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The continuous rise in the cost of aviation fuel, otherwise known as Jet A1, which has led to a sharp increase in domestic airfares, is an issue that the Federal Government and stakeholders in the sector should holistically address. Although the recent plan by the domestic airline operators to shut down operations was later shelved following government’s intervention, there is every likelihood that the rising cost of aviation fuel may force them to further hike airfares. And any further increase in domestic airfares will make air travel the exclusive preserve of the rich.
Hitherto, aviation fuel was sold at N450 per litre. Currently, the price hovers between N580 and N680 per litre. This is despite the resolution reached by industry stakeholders in March, at the instance of the House of Representatives Committee on Aviation that the price be pegged at N500 per litre pending the determination of a substantive uniform price. Consequently, Airline Operators of Nigeria (AON) had blamed marketers for the rising cost of aviation fuel and stressed that its members would not be able to sustain their operations in the face of the unfriendly business environment.
Also, major oil marketers, under the aegis of the Oil Marketers Association of Nigeria (MOMAN), have maintained that the rise in the price of aviation fuel is beyond their control. They blamed the situation on many factors, including the global oil market reaction to the Russia/Ukraine war, forex scarcity, inflation, logistics and others. At a base fare of N50,000 for a 45-minute or one-hour flight, there is considerable reduction in the number of air passengers. If the air fare is further increased, it will make many Nigerians to shun are travel, a development that could adversely affect the fortunes of domestic airline operators.
Considering that aviation business is capital intensive, we urge the Federal Government to ensure that aviation fuel is readily available and affordable. At the same time, government should strive to address the issue of forex scarcity and other problems facing the sector. Since air travel remains the safest and fastest means of transportation, every effort should be made to sustain the sector in spite of all odds. Let the government and the operators have a dialogue and come up with measures to move the sector forward without shutting down their operations. Any attempt to shut the industry will severely hurt the economy. It will also lead to loss of jobs and exacerbate the prevailing security challenges in the land. While the Russia/Ukraine war and forex scarcity might have led to increase in the high cost of Jet A1, it is expected that the government should have anticipated the situation and evolve workable strategies to overcome the challenges. There is the need for the government to envisage certain situations and be proactive in tackling them head-on.
As a result of the rising cost of aviation fuel, air travelers have been exposed to unnecessary flight delays, cancellation and outright postponement. We call for a change in this ugly narrative. Moving forward, air travel should be made to be seamless as obtainable in other countries. The aviation sector must always engage the attention of the government. It is not only when the operators threaten to shut down operations that government should intervene. Therefore, the government and airline operators must make sure that they maintain industry standards and global best practices in ensuring air safety. On no account should they compromise on air safety.
The recent threat to suspend flights by the AON is a wake-up call on the government to urgently address the problems hampering the smooth operation of the sector. Since some of the airline operators are reportedly running at a huge loss, we call on the government to intervene by way of bailouts, incentives and other necessary measures to keep the industry afloat. Above all, let the government stem the rising cost of aviation fuel.
