The consistent rise in fuel cost across Nigeria has been a significant challenge for airline operators in Nigeria and on the verge of losing three more airlines to the national crisis.
On Wednesday, the Airline Operators of Nigeria said over 70 Airlines are not longer in operation in Nigeria in the last few years in Nigeria and its about to lose three more in the coming weeks.
The reason for this has been attributed to many of the challenges AON has been facing, including high cost of aviation fuel known as the Jet A1, increase in taxes, among others.
In spite of the constant conversation ongoing between the industry and Federal Government, Chairman of Air Peace, Allen Onyema lamented that there are so many issues in the aviation industry, making it unprofitable.
“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.
“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?” Onyema added while speaking on the looming collapse.
Onyema who spoke on behalf of AON at the ongoing National Aviation Conference organised by the Federal Airports Authority of Nigeria (FAAN), in Abuja added that the hike in aviation fuel price was putting severe strain on the operations of airlines.
He then added that FG had given domestic airline operators some volumes of Jet A1.
“That 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/litre in Lagos and about N607/litre outside Lagos,” Onyema added.
While reiterating the huge effect of COVID-19 on the airline industry, Onyema noted that Nigeria is yet to recover from COVID-19, unlike other countries of the world who have invested more to assist their airline industries.
