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By Chinelo Obogo
Airline Operators of Nigeria (AON) has raised the alarm over the increasing cost of aviation fuel, saying JetA1 cost has peaked to N714 per litre in some airports thus leaving at least three domestic airlines on the throes of liquidation in a matter of months.
Speaking at the maiden edition Federal Airports Authority of Nigeria (FAAN) National Aviation Conference (FNAC) with the theme: ‘Advancing the Frontiers of Possibilities for Safe, Secure and Profitable Air Transport’, in Abuja on Wednesday, Mr. Allen Onyema, Vice Chairman of AON, warned that if the present challenge of aviation fuel was not nipped in the bud, more airlines may shutdown operations in the coming months.
The AON Vice Chairman who refused to name the airlines said that the aviation fuel challenge is not limited to Nigeria alone, noting that the country’s situation was made worse by the slump of naira against major currencies, especially the dollars.
According to AON, in order to address the challenge, the Federal Government approved 10,000 metric tonnes of aviation fuel to the airlines, which the carriers arenyet to access.
Onyema explained that airlines hoped to start lifting the 10,000 metric tonnes of aviation fuel from ThursdayThat is why we ran to the government and the Federal Government has given us about 10,000 metric tonnes of fuel at the cost of N580 per litre in Lagos and about N607 per litre outside Lagos.”
“This is not the only issue. Since the COVID-19 crisis, most airlines all over the world, including Nigeria have not recovered except those whose countries have injected so much funds to assist them. This is nobody’s fault. It just happened. Government has tried it’s best by giving us this aviation fuel. The fuel can take airlines out, not only in Nigeria but everywhere in the world.”
Some airlines outside Nigeria have closed down because of the effects of rising aviation fuel. If these things are not addressed in Nigeria, it can affect the bottom line of all airlines in Nigeria.
We have come to realise that there is little or nothing the committee set up can do because this is as a result of foreign exchange and price of oil all over the world now. The fuel marketers will sell according to what they are paying. The cost of aviation fuel has increased, even in London and every other country. Our own is worse because of the increase in foreign exchange,” he said.
A representative of aviation fuel marketers, John Abegunde, while speaking at the event appealed to the government not to step into commercial related issues in aviation fuel supply, warning that this may jeopardise safety in the system.
Abegunde explained that FAAN, NCAA and other government agencies should rather be more concerned about the stringency of the aviation fueling requirement.
He added that fuel marketers subscribed to joint ownership of aviation companies, but kicked against the throughput arrangement, which he said may work against the industry’s growth in the future.
