Ime Akpan
The management of Ibom Air has distanced itself from the flight shutdown as from Monday, May 9, 2022 announced by the Airline Operators of Nigeria (AON).
Recall that the AON had in a statement issued on Friday threatened to withdraw flight services nationwide over high cost of aviation fuel.
The association said 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.
Although the CEO of Ibom Air, Capt Mfon Udom was a signatory to the statement, its management said in a release issued on Saturday that the airline has financial obligations to suppliers, financiers and staff, which depend on uninterrupted flow of revenue to service.
“More importantly is the fact that having been paid by customers in advance for flight bookings we are bound by contract to deliver the services already paid for, to avoid exposing the airline to the risk of avoidable litigation,” the airline said.
It added: “Ibom Air cannot in the circumstance volunteer to stop operating and will continue normal operations on Monday 09 May 2022 and beyond.”
Besides, it said “Ibom Air is currently the only airline serving Akwa Ibom State directly and as such, any voluntary stoppage of operations would completely cut off access by air into and out of the state.
The carrier defended its inclusion as “signatory” to the statement released by the airlines’ association saying it “must have derived from its active and committed membership of the AON.”
The statement reads: “Ibom Airlines Limited (Ibom Air) has been inundated with inquiries about what will happen on Monday 09 May, 2022, following the public statement issued by the Airline Operators of Nigeria (AON) Executive, on Friday 06 May, 2022 and it has become necessary for us to make the following clarifications:
1. Ibom Air acknowledges the existential threat that these runaway fuel price increases pose for the air transport industry in Nigeria. We agree that this out-of-control situation is simply unsustainable. However, every airline has its unique business model and pressures. We believe that in spite of the escalating fuel prices, airlines volunteering to stop operations would rather exacerbate an already bad situation.
2. Ibom Air has financial obligations to suppliers, financiers and staff, which depend on uninterrupted flow of revenue to service. More importantly is the fact that having been paid by customers in advance for flight bookings we are bound by contract to deliver the services already paid for, to avoid exposing the airline to the risk of avoidable litigation.
3. Apart from the above factors, Ibom Air is currently the only airline serving Akwa Ibom State directly and as such, any voluntary stoppage of operations would completely cut off access by air into and out of the State. Such action would be directly in conflict with and detrimental to the interest of our shareholder.
4. In view of the foregoing facts, Ibom Air had respectfully disagreed with the decision of AON to suspend flight operations on Monday 09 May 2022. Ibom Air cannot in the circumstance volunteer to stop operating and will continue normal operations on Monday 09 May 2022 and beyond. Ibom Air’s inclusion as “signatory” to the statement released by AON must have derived from its active and committed membership of the AON.
5. The above notwithstanding, we identify very strongly with our AON colleagues and will participate in every effort to resolve this frightening situation as soon as possible in the interest of our business, our customers, our stakeholders and our country.
6. We thank our customers for their continued patronage and we thank the AON for our collective efforts to secure a sustainable fuel pricing regime for the airlines.”
