The Vice Chairman of Airline Operators of Nigeria (AON), Allen Onyema, has warned that airline operators in the country might shutdown due to the hike in aviation fuel, known as Jet A1, in the global market.
Onyeama said the high cost of buying the aviation fuel is eating into the revenue of airline operators, couple with the rise in foreign exchange, as the dollar exchange at N616 in the black market, against the N420 reported in the official market of the Investors and Exporters (I&E) window.
According to the founder of Air Peace during the Federal Airports Authority of Nigeria (FAAN) National Aviation Conference (FNAC), he said airlines operating in foreign countries are shutting down over the cost of Jet A1, and same might happen in the country.
He said operators in the aviation sector had to approach the Federal government, and have been given 10,000 metric tonnes of aviation fuel, at the cost of N580 per litre in Lagos, and N607 per litre in other states.
This comes as the fuel is reportedly sold at some Nigerian airports at the cost of N750 per litre, which was previously offered at the price of N200 prior to the ongoing war between Ukraine and Russia.
However, Onyeama said the government’s intervention will have little or no impact on the difficulties being experienced by airline operators because the challenges are foreign and beyond their control, such as rising global oil price and costly forex.
”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 per litre in Lagos and about N607 per litre outside Lagos.
”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 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 the price of oil all over the world. The fuel marketers will sell according to what they are paying. The cost of aviation fuel has increased, even in London and other country. Our own is worse because of the increase in foreign exchange.” Onyeama said.