NCAA considering grounding planes over aviation fuel scarcity

By our reporter| The Nigeria civil aviation authority, NCAA on Thursday said it may be forced to stop airlines from flying following the hike in the price of aviation fuel.

Musa Nuhu, NCAA director-general, who made the disclosure during a hearing by the house of representatives ad hoc committee investigating the scarcity of aviation fuel said the move is to avoid air mishaps.

“Considering the cost of air tickets now, the airline industry cannot survive. It is either we shut them down because they cannot generate enough revenue to operate safely,” Nuhu said.

“We are not even talking about cancellations and delays; we are talking about the safety of flight operations.

“It is the responsibility of the Nigerian Civil Aviation Authority and I am fully responsible for the safe operations. We hope the honourable House can help us find a solution to resolve this matter. Aviation is critical to the economy of Nigeria.”

According to the NCAA DG, if the aviation sector were to crash today, many other sectors of the economy would stop operations in a matter of time.

NAN reported that Allen Onyema, chief executive officer of Air Peace, who spoke for airline operators, had earlier told the committee that within two weeks, the price of aviation fuel moved from N190 per litre to N670 per litre.

Onyema said the operators would have shut down operations if not for the political season and to support the current administration that had been supportive of the sector.

He said the operators could not survive the next 72 hours because they were indebted and risked takeover by the Asset Management Corporation of Nigeria (AMCON).

However, in his submission during the hearing, group managing director, Nigerian National Petroleum Company Limited (NNPC), Mee Kyari said it will be impossible to reduce the price of ATK to N200 per litre as requested by airline operators.

According to him, the current landing price of the product was above N400 per litre.

“I can confirm that there is enough supply. Yes, it might be in the wrong hands or the wrong places. We are going to do everything we can to address the situation,” Kyari said.

“However, regarding the request by the airline operators to bring down the price to N200, let me say that will not be possible.

“It is not possible because the landing cost of jet A1 now is N480 per litre. Except if we are going to subsidise it, the price cannot come down to N200.”