High Aviation Fuel: Three Airlines May Be Liquidated Soon, Air Peace Boss Raises Alarm

The high operating cost being experienced by operators in the aviation industry may force three airlines into extinction in the next few weeks, the Chairman, Air Peace, Allen Onyema has warned.

Onyema said this at the National Aviation Conference organised by the Federal Airports Authority of Nigeria in Abuja.

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The airline operators had in recent times lamented the impact of aviation fuel on their operations which rose to over N600 recently.

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

The operators 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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Speaking on behalf of Airline Operators of Nigeria, Onyema said though airlines had been interfacing with the federal government on the high cost of aviation fuel, the commodity had continued its upward price movement.

He said operators pay excessive charges to the Nigerian Airspace Management Agency, adding that the payment of navigation charges is absurd for domestic operations.

He said, “There are so many issues in the aviation industry. Issues like high taxes are making airlines to be unprofitable here.

“We pay excessive charges to the Nigerian Airspace Management Agency. Paying navigation charges is absurd for domestic operations. The mortality rate of airlines in Nigeria is alarming. Over 70 airlines have gone into extinction in the last few years.”

Onyema added, “The current fuel crisis will take away three airlines in the next weeks. How do we make money in a situation where we pay salaries and charges to different aviation agencies?”

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The Air Peace boss explained further that since the COVID-19 crisis, most airlines all over the world, including Nigeria have not recovered from pandemic, except those whose countries have injected so much funds to assist airlines.

“This is nobody’s fault. It just happened. The government has tried its best by giving us this aviation fuel. This aviation fuel can take airlines out, not only in Nigeria but everywhere in the world,” he added.

ENDS

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