The minister of aviation, Mr. Hadi Sirika has expressed concern about the difficulties faced by the domestic airlines in procuring aviation fuel which has resulted in spiraling costs in air transportation.
The minister stated this in a statement by his media aide, Mr. James Odaudu, while reacting to the threat by the Airline Operators of Nigeria to withdraw its services as from Monday, May 9, 2022.
The association had said in a statement issued on Friday, May 7, 2022 that the cost of aviation fuel had increased astronomically over time while airlines continued to subsidise their services “to our highly esteemed Nigerian flying public in the last four months.”
“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 per cent of an airline’s operating cost globally, the present hike has shut up Nigeria’s operating cost to about 95 per cent,” AON said.
Reacting, the minister empathised with the operators but appealed to them “even in the difficult situation to consider the multiplier effect of shutting down operations on Nigerians and global travellers” while taking informed business decisions.
Unfortunately, he said the issue of fuel supply is not within the purview of the ministry and so the much “it can do in the present situation is to engage with agencies, institutions and individuals in positions to provide succour to the airlines.”
Already, Sirika said the matter was being handled by the relevant team led by him.
The statement reads: “The attention of the minister of aviation, Senator Hadi Sirika has been drawn to reports that the nation’s air transportation system will be disrupted as from Monday May 9th, 2922, following threats by airline operators to shut down operations as a result of rising cost of Jet A1, otherwise known as aviation fuel.
“As the ministry charged with the management of the industry, we are greatly concerned about the difficulties being faced by the airline operators in the country in procuring aviation fuel which has resulted in spiraling costs in Air transportation in the immediate past.
“We also acknowledge that the airline operators are in the business to make profits, while servicing the very critical sector that is not only the preferred mode of transport for most Nigerians, but also the main international gateway to the nation.
“Unfortunately the issue of fuel supply is not within the purview of the Ministry and so the much it can do in the present situation is to engage with agencies, institutions and individuals in positions to provide succour to the airlines. This is already being done by the relevant team led by the honourable minister.
“While the efforts to assuage the situation are on, we wish to appeal to the airline operators, even in the difficult situation, to consider the multiplier effect of shutting down operations, on Nigerians and global travellers, in taking their business-informed decisions and actions.
“We also assure Nigerians, especially stakeholders in the sector, that the Buhari administration remains stoic in its commitment to the creation and sustenance of an environment that promotes the growth of the aviation industry where major players like the airlines can operate in a profitable and competitive market.”
Similarly, the house of representatives committee on aviation appealed to the AON to rescind action.
Chairman of the committee, Mr. Nnolim Nnaji regretted that despite the last intervention by the lawmakers the problem of aviation fuel had persisted.
He said the house leadership had already summoned a meeting of the stakeholders including the chairmen of the relevant committees of the house to a meeting on Monday, May 9, 2022 to address their matter.
“The national assembly is determined to ensure that the aviation fuel crisis is urgently resolved because air transportation has become the safest mode of travel.
“It is equally the catalyst of economic development so we cannot afford to entertain any disruptions in the sector especially now that election process is ongoing,” he said.
