… receives commendation from Aviation Ministry
Following the promises by the federal government to intervene in the challenge of aviation fuel (Jet A1), the Airline Operators of Nigeria (AON) today (Sunday) announced that it has put on hold its plans to suspend flight operations.
The AON made this announcement in a statement jointly signed by the managing directors and CEOs of six domestic airlines.
The AON had on Friday announced that it was going to shut down operations amidst high cost of Jet A1 effective Monday, May 9, 2022.
But based on several calls to the body by the federal government with the promise of intervention, the association today withdrew the decision in the interim while it goes into a fresh dialogue with the government.
The statement read: “The Airline Operators of Nigeria (AON) wishes to inform the general public that further to numerous calls from the highest echelons in government with promises to urgently intervene in the crises being faced by airlines due to the astronomic and continuously rising cost of JetA1, that the AON has acceded to requests to withdraw the action for the time being while we allow for a fresh round of dialogue with government in the hope of reaching an amicable solution.
“We have also reached this decision with the highest consideration for our esteemed customers who have been faced with uncertainty over the last few days and to enable them to have access to travel to their various destinations for the time being during the period of discussions with relevant authorities.
“In view of the above and in the interest of national economy and security considerations, AON hereby wishes to notify the general public that the earlier announced shutdown of operations on May 9, 2022 is hereby suspended in good fate pending the outcome of hopefully fruitful engagement with government.”
The AON had said it was with a great sense of responsibility and patriotism that had carried on deploying and subsidising their services to the Nigerian flying public in the last four months despite the steady and astronomical hike in the price of JetA1 and other operating costs.
Overtime, aviation fuel price has risen from N190 per litre to N700 currently. “No airline in the world can absorb this kind of sudden shock from such an astronomical rise over a short period.
“This has currently made the unit cost per seat for a one hour flight in Nigeria today to an average of N120,000,” said the AON.
While aviation fuel worldwide is said to cost about 40 per cent of an airline’s operating cost globally, the present hike has shut Nigerian airlines’ operating cost to about 95 per cent.
The airlines said they had engaged the federal government, the National Assembly, NNPC and oil marketers with the view to bringing the cost of JetA1 down to no avail.
“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 airline body had said in its earlier statement to shut down operations..
The statements were jointly signed by the AON’s President, Alhaji (Dr.) Abdulmunaf Yunusa Sarina, Executive Director, Max Air, Alhaji Shehu Wada, Chairman, United Nigeria Airlines, Dr. Obiora Okonkwo, CEO, Arik Air, Capt. Roy Ilegbodu, CEO, Aero Contractors, CEO, Capt. Abdullahi Mahmood, Managing Director, Azman Air, Alhaji Faisal Abdulmunaf, and Chairman, Air Peace, Chairman, Barr. Allen Onyema.
Meanwhile, the Ministry of Aviation has commended the airlines’ patriotism, saying that threat of service withdrawal is not a strike against the government.
Special Assistant to the Minister of Aviation on Public Affairs, Mr. James Odaudu
in a statement today said: “Since members of the Airline Operators of Nigeria (AON) issued notice of withdrawal of flight services as a result of rising cost of Jet A1 (Aviation fuel), and in spite of the initial statement by the Ministry, enquiries have continued to flood in with some under the erroneous impression that the withdrawal was a kind of strike against the government.
“We wish to state that the decision of the Association is purely a business one as they are private businesses reacting to market forces but appealing for interventions to enable them to carry on with their operations.”