Airline Shutdown: What Govt Must Do To Make Aviation Fuel Affordable For Airline Operators—Expert

The Federal Government has been advised to give airline operators the license to directly import aviation fuel that would be used for their operations.

The advise was given by aviation experts following the plan by the Airlines Operators of Nigeria to shut down aviation services from Monday, May 9.

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The airlines had lamented the impact of aviation fuel on their operations which rose to N600 in February.

This led to the increment of airfares from around N25,000 to over N50,000 across all routes.

The airlines while disclosing the development said the Jet A1 fuel price had risen to N700 and now constitutes 95 per cent of their operating cost.

The union said in the aviation sector globally, cost of fuel only constitutes 40 per cent of operating cost of airlines.

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The Minister of Aviation, Mr Hadi Sirika had while reacting to the development appealed to local airlines to reconsider the planned shut down of operations next Monday, saying the development has disastrous consequences on the economy as a whole.

Sirika in a statement released on Saturday said high-level engagements with airlines, oil marketers and other stakeholders were on and seeks to address the scathing price of Jet A1 (aviation fuel).

He emphasized that the matter was outside its purview but will continue to engage all those concerned.

Sirika said: “As the Ministry charged with the management of the industry, we are greatly concerned about the difficulties being faced by the airline operators in the country in procuring aviation fuel which has resulted in spiraling costs in Air transportation in the immediate past.

“We also acknowledge that the airline operators are in the business to make profits, while servicing the very critical sector that is not only the preferred mode of transport for most Nigerians, but also the main international gateway to the nation.

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“Unfortunately the issue of fuel supply is not within the purview of the Ministry and so the most it can do in the present situation is to engage with agencies, institutions and individuals in positions to provide succour to the airlines. This is already being done by the relevant team led by the Honourable Minister.”

But an aviation expert while reacting to the Minister’s statement told THE WHISTLER on Saturday that the licensing of airline operators to import the aviation fuel will make the product more affordable.

He said, “The narrative (by the minister) is incorrect as this is nothing to do with supply but pricing. Unless Government wants to also appropriate subsidy for ATK , the aviation authorities must allow airlines to adjust their prices.They can also be licenced to import for themselves directly.”

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