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B N W: Biafra Nigeria World News |
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Another airfare hike looms as aviation fuel hits N66 per litre
LESS than three months after domestic airlines raised fares by 10 per cent, another increase is imminent, following a sudden jump in the price of aviation fuel (JET A1) from N50 per litre to N66 per litre.
Some of the operators have, however, said that further increase in the price of air tickets would drive them out of business, while others said the only way out was for them to take their fates in their hands.
The umbrella body, Airline Operators of Nigeria (AON) will meet to discuss the situation.
Meanwhile, operators have declared their resolve to source the JET A1 from neighbouring African countries, particularly Ghana and Cote d'Ivoire.
A circular dated September 8 and signed by V. O. Solu and R.N.E. Dike, Aviation Sales Manager and Area Manager (West Africa) for Mobil Oil Nigeria Plc and Chevron Texaco Global Aviation and addressed to the Managing Director of Chanchangi Airlines read:
"In view of the recent upward rise in the acquisition and distribution costs of aviation fuel occasioned by the deregulation policy on the downstream sector, we humbly inform you of our new JET A1 sales price."
While the commodity is sell for between N62.50 per litre and N66 in Lagos, it goes for between N67 and above per litre elsewhere.
But the spokesman of Chanchangi Airlines, Alhaji Mohammed Tukur during a chat with journalists ruled out an immediate increase in fares.
He explained that a rush to increase fares would be "detrimental" to the operations of domestic airlines.
Tukur, however, said the union would meet to discuss the issue.
The operators in July this year hiked fares by 10 per cent, following an increase in the price of aviation fuel (JET A-1) from N41 to N50.
The hike, which was deployed by the operators, forced AON chairman, Dr. Steve Mahonwu, to disclose plans to source the product from neighbouring countries, particularly Ghana and Cote d'Ivoire, where it costs far less.
Citing high operational costs and incessant increases in the prices of aviation fuel, the AON hiked fare from N9,00 to N10,000 in July.
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