Commercial airline’s to shut down operations over high cost of Jet-A1
Fred Omotara, Lagos
The Airline Operators of Nigeria (AON) have resolved to shut down operations from Monday, 9th of May, 2022 over increasing cost of aviation fuel.
Arising from a meeting on Friday which was attended by the President of the AON, Alhaji (Dr.) Abdulmunaf Yunusa Sarina and most of the commercial airline operators, the airline operators said they cannot continue operating under the very high cost of aviation fuel.
According to the airline operators, “It is with a great sense of responsibility and patriotism that the Airline Operators of Nigeria (AON) have carried on deploying and subsidizing their services to our highly esteemed Nigerian flying public in the last four months despite the steady and astronomical hike in the price of Jet-A1 and other operating costs.
“Overtime, aviation fuel price (JetA1) 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.
“While aviation fuel worldwide is said to
cost about 40% of an airline’s operating cost globally, 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 Jet-A1 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. To this end therefore, the Airline Operators of Nigeria (AON) hereby wishes to regrettably inform the general public that member airlines will discontinue operations nationwide with effect from Monday May 9, 2022 until further notice.
“AON uses this medium to humbly state that we regret any inconveniences this very difficult decision might cause and appeal to travelers to kindly reconsider their travel itinerary and make alternative arrangements.”
Other operators present at the meeting include 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; Capt. Abdullahi Mahmood, CEO, Aero Contractors; Alhaji Faisal Abdulmunaf, MD, Azman Air; Capt. Edward Boyo, CEO, Overland Airways; Mr. Sukh Mann, Deputy CEO, Dana Air; Barr. Allen Onyema, Chairman, Air Peace; amongst others