The chairman and chief executive officer of United Nigeria Airlines, Mr. Obiora Okonkwo, has lamented the high cost of aviation fuel (JET A1) in Nigeria which, according to him, takes as much as 40 per cent of airline’s operation.
Okonkwo stated this at a media briefing in Lagos on Wednesday to commemorate the airline’s first anniversary.
“As of today, aviation fuel is N400 per litre. When it is not available, it costs between 450 and N470 per litre. It is telling on the operations of the airlines,” he said.
Obiora said if the trend was not checked, aviation fuel would sell N500 per litre before March 2022.
In the event of that, he said there will be upward adjustment in the air fare.
He said the twin effects of the astronomical rise in the price of JET A1 and lack of support from the federal government including fluctuation in the exchange rate are factors that could make aviation prostrate.
“Aviation fuel is…30-40 per cent of the cost of operations. In year 2000, you may have bought a ticket for N2, 000; but if you cast your mind back that N2, 000 was $100 exchange rate. 99 per cent of aviation component is foreign exchange denominated. Even the reason for increase in aviation fuel is foreign exchange-related.
“From that 2000 to now, the cost of aircraft has not reduced, salaries to staff are on the rise, airport taxes have also increased,” he added.
On how the airline had fared in the past one year, Obiora said the airline had flown over 260, 000 passengers and operated 40 daily flights “comfortably and safely.”
“We took off in February reaching Lagos, Abuja, Enugu and Asaba after demo flights in January 2021. In April we opened up the Owerri and Port Harcourt wings and in May, we responded to demand by creating additional flights to Lagos and Abuja.”
He further said the airline’s vision “is to satisfactorily serve the public and become noted for on-time departure.”
For the growth plan, Obiora said “we also look forward to establishing an MRO in Enugu.”
He added: “We are already in talks with the regulatory authorities and the Enugu state government on this.
“The choice of Enugu for our MRO is strategic. Enugu is the heart of the southeast region and that is also the home of United Nigeria Airlines.
“We are in talks with critical partners for the construction and operationalisation of the project.
“So, all of us at United Nigeria Airlines are eagerly looking forward to the foundation laying ceremony for the construction of our MRO in Enugu.
“We mean business and will do whatever we say that we will do in order to keep our aircraft in the sky and etch our name, United Nigeria Airlines, on the annals of Nigeria’s aviation index.
“We shall do our utmost best to ensure that our customers, old and new, enjoy every flight with us.
“Ours is a mission to serve Nigerians diligently and satisfactorily.
