Nigerian Airlines to Suspend Operations from May 9 over High Cost of Aviation Fuel

By Derrick Bangura

The Airline Operators of Nigeria (AON) has served notice of ceasing operations on Monday, May 9, over the high cost of aviation fuel otherwise known as JetA1.

In a statement co-signed by the leading executives of Air Peace, Max Air, Arik Air, United Nigeria Airlines, Aero Contractors, Ibom Air, Azman Air, Overland Airways and Dana Air, the airlines complained of subsidising their services to customers in the last four months due to the “astronomical hike” in the price of aviation fuel from N190 per litre to N700.

“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 AON statement said.

“The latter cannot be fully passed to passengers who are already experiencing a lot of difficulties,” said the operators who recently had to raise base fares fir a one hour flight to N50,000.

The operators revealed that aviation fuel is about 40% of an airline’s operating cost globally but the recent hike in prices has shot up Nigerian airlines’ operating cost to about 95%.