Airline Operators Hint at Total Shut Down over Jet Fuel Crisis

Airline Operators Hint at Total Shut Down over Jet Fuel Crisis

  • There is a growing crisis in the aviation sector at the moment with the inflation in airline fuel and ticket
  • No fewer than three airlines have confirmed to shutdown in due time as a result of the unending crisis in the aviation sector
  • The Airline Operators of Nigeria (AON) said the federal government has sent interventions but yet the problem still persists

FCT, Abuja - The Airline Operators of Nigeria (AON) has hinted that operations of airline in the country is heading for an imminent lockdown following the reoccurring crisis of aviation fuel known as Jet A1.

According to a report by the DailyTrust newspaper, the leadership of the AON hinted that three airlines are on the verge of shutting down due to the crisis.

FAAN, AON, Airline Operators
The Murtala International Airport in Ikeja, Lagos State. Photo: FAAN
Source: Twitter

Three airlines to shutdown soon - AON

Vice-President of AON, Mr. Allen Onyeho disclosed this development on Wednesday, June 15 but did not mention the three airlines stating that jet fuel has risen to its highest of N714 per litre, Legit.ng gathered.

While speaking at an ongoing Federal Airports Authority of Nigeria (FAAN) National Aviation Conference (FNAC) in Abuja, Onyema disclosed that the naira to dollar ratings also contributed to the crisis.

He said the federal government had intervened in the crisis by approving 10,000 metric tonnes of aviation fuel but claimed that there has been no access to it.

How jet fuel increased from N200/Ltr to N700/Ltr in 16 months

Onyema further disclosed that the crisis had reached a critical stage compared to 16 months back when jet fuel cost just N200 per litre as against the current N700 per litre.

He said:

“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.
“This is not the only issue. Since the COVID-19 crisis, most airlines all over the world, including Nigeria have not recovered from COVID-19, except those whose countries have injected so much funds to assist them. This is nobody’s fault. It just happened. The government has tried its best by giving us this aviation fuel. This aviation 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 the 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.”

Airline operators to shut down operations Monday, May 9

Recall that Legit.ng reported earlier that the Airline Operators of Nigeria in May announced a total shutdown.

The airline operators had threatened to shut down their operations in March arguing that they had only three days of fuel left.

The cost of aviation fuel, also known as Jet A1, had risen from N190/litre and later N360/litre in January this year to N607/litre in March. The product now reportedly sells for N700/litre.

Minority Reps fumes, tasks Buhari on planned strike by airline operators

President Muhammadu Buhari and the All Progressives Congress-led administration had been accused of failing Nigerians.

The allegation against the government and its representatives was made by the minority caucus of the House of Representatives.

The caucus led by the lawmaker representing the Aniocha North/Aniocha South/Oshimili North/Oshimili South constituency in Delta state called on the president to take measures that would avert the impending strike action by airline operators in Nigeria.

Source: Legit.ng

Authors:
Segun Adeyemi avatar

Segun Adeyemi (Current Affairs and Politics Editor) Segun Adeyemi is a journalist with over 9 years of experience as an active field reporter, editor, and editorial manager. He has had stints with Daily Trust newspaper, Daily Nigerian, and News Digest. He currently works as an editor for Legit.ng's current affairs and politics desk. He holds a degree in Mass Communication (Adekunle Ajasin University). He is a certified digital reporter by Reuters, AFP and the co-convener of the annual campus journalism awards. Email: segun.adeyemi@corp.legit.ng.

Online view pixel