Domestic Airlines under the aegis of Airline Operators of Nigeria (AON) in the country, have stated that they will discontinue operations nationwide with effect from Monday, May 9, 2022, until further notice.
In an official statement issued Friday, jointly signed by their President, Alhaji (Dr) Abdulmunaf Yunusa Sarina, Alhaji Shehu Wada – Executive Director, Max Air, Dr Obiora Okonkwo, Chairman, United Nigeria Airlines, Capt. Mfon Udom, CEO, Ibom Air, Capt. Roy Ilegbodu, CEO, Arik Air, Barr. Allen Onyema, Chairman, Air Peace and others, the operators stated that domestic airlines have carried on deploying and subsidising their services to their highly esteemed Nigerian flying public in the last four months despite the steady and astronomical hike in the price of JetA1 and other operating costs.
According to AON, over time, aviation fuel price (JetA1), has risen from N190 per litre to N700 currently.
They emphasised that no airline in the world can absorb this kind of sudden shock from such an astronomical rise over a short period.
While aviation fuel worldwide is said to cost about 40% of an airline’s operating cost globally, the operators insisted that the present hike has shut up Nigeria’s operating cost to about 95%.
“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, which has currently made the unit cost per seat for a one hour flight in Nigeria today to an average of N120,000. The latter cannot be fully passed to passengers who are already experiencing a lot of difficulties.”
“While AON appreciates the efforts of the current government under the leadership of President Muhammadu Buhari to ensure air transport in Nigeria grows, unfortunately, the cost of aviation fuel has continued to rise unabated, thereby creating huge pressure on the sustainability of operations and financial viability of the airlines. This is unsustainable and
the airlines can no longer absorb the pressure”, the operators added.