Three airlines may shut down soon over aviation fuel crisis – AON

By our reporter| The Airline Operators of Nigeria (AON) has raised fears that three airlines may soon shut down operations over the aviation fuel crisis.

The Vice-President of AON, Mr. Allen Onyema, who did not mention the names of the airlines in his disclosure, however, confirmed that the fuel price has now hit an all-time high of N714 per litre.

Onyema, who spoke at the ongoing Federal Airports Authority of Nigeria (FAAN) National Aviation Conference (FNAC) in Abuja, noted that while the aviation fuel crisis is not limited to Nigeria, the naira to dollar exchange rate has not helped the airline operators.

Onyema also revealed that the federal government in a bid to address the challenge, had approved 10,000 metric tonnes of aviation fuel to the airlines, which the carriers have been unable to access.

According to him, 16 months ago, the price of aviation fuel was about N200 per litre but has risen to over N700 per litre today in the local market.

“That is why we ran to the government and the Federal Government has given us about 10,000 metric tonnes of fuel at the cost of N580 per litre in Lagos and about N607 per litre outside Lagos, Onyema said.

“This is not the only issue. Since the COVID-19 crisis, most airlines all over the world, including Nigeria have not recovered from COVID-19, except those whose countries have injected so much funds to assist them. This is nobody’s fault. It just happened. The government has tried its best by giving us this aviation fuel. This aviation fuel can take airlines out, not only in Nigeria but everywhere in the world.

“Some airlines outside Nigeria have closed down because of the effects of rising aviation fuel. If these things are not addressed in Nigeria, it can affect the bottom-line of all airlines in Nigeria.

“We have come to realise that there is little or nothing the committee set up can do because this is as a result of foreign exchange and the price of oil all over the world now. The fuel marketers will sell according to what they are paying. The cost of aviation fuel has increased, even in London and every other country. Our own is worse because of the increase in foreign exchange.”