Airline operators
threaten shut down over high fuel
price
By Wole Shadare and Adeyemi
Adepetun
THE groundswell of
opposition to high fuel prices in the country appears not
limited to Labour circles as airline operators yesterday
disclosed that they are reeling under a heavy burden imposed
by the regime.
The airline chiefs therefore threatened to shut down
operations across the country if the current price of aviation
fuel (JET A1) is not radically reviewed downwards.
To cut costs, they also disclosed plans to source the
product from neighbouring countries, particularly Ghana and
Cote d'Ivoire where it costs far less.
The chairman of the Airline Operators of Nigeria (AON), Dr.
Steve Mahonwu, at a press conference in Lagos advised
Nigerians to brace up for a one-week warning operation shut
down, after which they would review their action.
After an emergency meeting last week, the AON increased
airfare from N9,000 to N10,000, citing high operational costs
and the incessant increases in the prices of aviation fuel.
From N38, JET A1 moved to N41 per litre last year. With the
recent increase in fuel prices, which saw a jack-up in the
cost of petrol, first from N34 to N38 and then N43.90, the
aviation fuel now sells for N52.
Mahonwu told the press that the association had sent
several letters to the Federal Government on the need to lower
the price of the product but that none of the letters was
replied.
He, therefore, defended last week's increase in airfare by
the airlines, adding, however, that the operators would prefer
a lower rate that would be to the benefit of all.
Many of the operators had complained about the increase in
the price of JET A1, which is compounded by a plethora of
landing and parking charges at the airport. This, Mahonwu
disclosed, is made much worse by the high cost of maintaining
the operators' equipment. His words: "The recent fuel
adjustment and increase in fare is not for profit making but
just to help stay afloat. We will still want to stay in
business, to be in line and continuing with the provision of
employment."
The AON chief said that the airline industry in the country
had contributed immensely to the provision of jobs for
Nigerians, stressing that airlines have about one million
citizens as employees.
Asked if the increase in airfare would not reduce
passengers' patronage, the AON chief said that everything
depended on the availability of fuel.
He described the economy as pitiable, lamenting that the
country, which is one of the largest producers of oil, could
not sell the product to its citizens at affordable rates.
His words: "We are poor because those who rule us are
mismanaging the economy. Every aviation tariff will continue
to increase any time the government decides to increase the
price of fuel. We have been talking to the government, but no
response. We are moving to a situation where all the operators
in Nigeria will stop operations for a week."
Meanwhile, operators have begun to effect the new airfare.
All airlines at the domestic wing of the Murtala Muhammed
Airport, Lagos, have adjusted their airfares.
Aero-contractors now charges N12,500 to Port Harcourt from
Lagos, up from N10,500. It now charges N10,500 to Abuja from
the former N9,500.
Correspondingly, Capital Airlines now charges N8,000 to
Benin from Lagos. The fare before now was N6,000.
Bellview Airlines on the other hand now charges N12,200 to
Kano against the former N10,000 while ADC still maintains its
N20,000 rate for a flight from Yola to Lagos.
Only Space World Airline maintains its fares on all routes.
Meanwhile, passengers have started reacting to what they
described as high cost of air transportation in the country.
A frequent flier who gave her name simply as Nneka absolved
the operators of any blame. She described government's
insensitivity to the plight of common man as worrisome.
To her, the hike in airfare will do more harm than good to
the industry.
She explained that operators now find it difficult to cope
with what they were formerly charging.`
Another who gave his name as Jumobi Olamide said the
situation would force people to resort to road travels, at a
time people are calling on the government to discourage the
idea.
The recent increase in the price of aviation fuel brings to
three times the marketers are increasing the price of the
commodity.`
