*As aviation fuel price jumps by over 268%
*Minister begs airlines
*NANTA seeks prompt intervention by FG
* FCCPC appeals for halt
*Ibom Airline will not withdraw flight services
WorldStage Newsonline– There is anxiety in Nigeria’s aviation sector as airline operators threantened to shut down operations on Monday, May 9, due to high cost of aviation fuel and other operational costs.
In a letter addressed to the Minister of Aviation, Sen. Hadi Sirika, and the Nigerian Civil Aviation Authority, on Friday in Lagos, the airliners noted that overtime, aviation fuel price (JetA1) had risen from N190 per litre to N700 currently, an over 268% increase, and described the rise as “astronomical”.
The letter signed by Captain Serina Abdulmunaf, President, Airline Operators Association said that, “While aviation fuel worldwide is said to constitute about 40 per cent of an airline’s operating cost globally, the present hike has shot up Nigeria’s operating cost to about 95 per cent.
“In the face of this, airlines have engaged the Federal Government, the National Assembly, NNPC and Oil Marketers with the view to bringing the cost of JetA1 down, to no success,” he said.
He said that the situation had made the unit cost per seat for a one hour flight in Nigeria to an average of N120,000.
Abdulmunaf regretted that the cost of aviation fuel had continued to rise unabated thereby creating huge pressure on the sustainability of operations and financial viability of the airlines.
“This situation is unsustainable and the airlines can no longer absorb the pressure.”
The president, however, appealed to travelers to kindly reconsider their travel itinerary and make alternative arrangements.
Abdulmunaf, however , said that the members appreciate the efforts of the current government to boost the growth of air transport in the country, and regretted the inconveniences the “very difficult decision may cause our ccustomers”.
Meanwhile stakeholders including government have been reacting to the development with calls for calm.
SIRIKA BEGS
The Minister of Aviation, Sen. Hadi Sirika, has begged Nigerian airlines to suspend the planned shutdown of operations from Monday over the high cost of aviation fuel from N190 to N700 per litre.
Sirika in a statement issued by his Special Assistant on Public Affairs, Mr James Odaudu, on Saturday in Lagos urged the airlines to consider the multiplier effect shutting down operations would have on Nigerians and global travellers.
He said: “The attention of the Minister of Aviation, Sen. Hadi Sirika, has been drawn to reports that the nation’s air transportation system will be disrupted as from Monday.
“This follows the threats by airline operators to shut down operations as a result of rising cost of Jet A1, otherwise known as aviation fuel.
“As the ministry charged with the industry, we are greatly concerned about the difficulties being faced by the airlines in procuring aviation fuel which has resulted in spiraling costs in air transportation in the immediate past.
“We also acknowledge that the airlines 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 the main international gateway to the nation.
“Unfortunately, the issue of fuel supply is not within the purview of the ministry, so the much it can do in the present situation is to engage with agencies, institutions and individuals in positions.
“This is to provide succour to the airlines. This is already being done by the relevant team led by the minister.”
Sirika assured Nigerians, especially stakeholders, that the Buhari administration remained stoic in its commitment to the creation and sustenance of an environment that promotes the growth of the aviation industry.
He said the president was committed to the development of the industry where major players such as the airlines could operate in a profitable and competitive market.
NANTA DEMANDS PROMPT INTERVENTION FROM FG
The National Association of Nigeria Travel Agencies (NANTA) has urged the Federal Government to quickly wade into the proposed strike by the Airline Operators of Nigeria (AON), due to the increase in the price of aviation fuel.
Mrs Susan Akporiaye, President of NANTA, made the call in a statement on Saturday in Lagos.
Akporiaye called on the Minister of Aviation, Alhaji Hadi Sirika, to help resolve issues concerning domestic airline operators in the country.
“We cannot afford another COVID-19 pandemic look-alike regime where Nigerians cannot move about freely, simply because airlines cannot operate due to poor operational environment.
“The federal government must quickly intervene beyond mere promises.
“We cannot continue like this and to think of it, the mere announcement by airline operators of Nigeria that they are off the sky on Monday, has sent panic around the globe.
“Nigerians returning home and those coming to do business in our country have cancelled their flights,” she said.
Akporiaye noted that her phones had been busy as travel agents and travellers from all over the world wanted to know the latest developments concerning the issue in the industry.
“NANTA appeals to the Minister of Aviation to rally round support for AON members.
“And to think that we are also in the heat of preparations for 2023 elections when electoral materials and campaign trains would move from one end of the country to another, calls for serious measures.
“We cannot continue like this, it is damaging to our image as a nation and our business,” she said.
FCCPC APPEALS FOR HALT
The Federal Competition and Consumer Protection Commission (FCCPC) has appealed to domestic airline operators to shelve their proposed service shutdown, considering the effect on passengers, difficulties and hardship associated with the action.
Mr Babatunde Irukera, the Executive Vice Chairman of FCCPC said the commission was engaging both operators and the leadership of major fuel marketers in a discussion to understand the global supply challenges and possible steps to ameliorate same.
He, however, frowned at the rising consumer feedback that airlines had continued to sell tickets beyond May 9, the date for the proposed service shutdown.
According to him, if the airlines have decided and are resolute, it will be egregious exploitation of consumers and a violation of law to purport to sell a service that the provider knows will not or does not intend to provide or deliver.
”It is misleading and deceptive under Section 123 of the FCCPA to represent that a service will be delivered on a certain date when the provider knows the same is false or improbable.
”If a service provider is unable to provide a service on account of its own decision, not a countervailing circumstance, the obligation for a refund is sacrosanct.
”The commission is optimistic that airline operators will not deliberately sell tickets for flights they do not intend to operate and is as such, hopeful that a solution short of a shutdown will emerge accordingly.
”The commission strongly advocates engagement among all stakeholders across the value chain to mitigate the current constraints and develop an acceptable interim arrangement.
”This is to address problems and costs associated with global supply constraints on account of a war, sanctions associated with the war, and a fragile ongoing post pandemic recovery in aviation,” he said.
Irukera said that the commission would continue to monitor the sensitive and evolving situation and remained committed to supporting engagements to provide solutions and stability.
IBOM AIRLINE OPTS OUT
Ibom Airlines Ltd., (Ibom Air) has said that it will not take part in the withdrawal of flight services as announced by Airline Operators of Nigeria (AON).
The airline’s Chief Executive Officer, Mfon Udom, in a statement on Saturday in Lagos, explained that the clarification was necessary to let members of the public know the airline’s stance on the matter.
According to the statement, the carrier cited its financial obligations to suppliers, financiers and workers who depend on an uninterrupted flow of revenue to service as reasons for remaining in service.
“More importantly, having been paid by customers in advance for flight bookings, we are bound by contract to deliver the services already paid for, to avoid exposing us to the risk of avoidable litigation.
“We acknowledge the existential threat that these runaway fuel price increases pose for the air transport industry in Nigeria. We agree that this out-of-control situation is simply unsustainable.
“However, every airline has its unique business model and pressures. We believe that in spite of the escalating fuel prices, airlines volunteering to stop operations will rather exacerbate an already bad situation.
“Ibom Air has financial obligations to suppliers, financiers, and staff, which depend on an uninterrupted flow of revenue to service.
“More importantly is the fact that having been paid by customers in advance for flight bookings we are bound by contract to deliver the services already paid for, to avoid exposing the airline to the risk of avoidable litigation.”
The statement noted that apart from the above factors, the airline was currently the only airline serving Akwa Ibom State directly and as such, any voluntary stoppage of operations would completely cut off access by air into and out of the state.
It assured the public that the airline would continue normal operations on Monday and beyond, adding that the Ibom Air’s inclusion as “signatory” to the statement released by AON must have derived from its active and committed membership of the association.
“Notwithstanding the current situation, we identify strongly with our AON colleagues and will participate in every effort to resolve the frightening situation in the interest of our business, customers, stakeholders and the country,” the airline added.
