The planned suspension of flight operations by scheduled airline operators in the country due to commence Monday has been halted, with some airlines backing out of the arrangement.
The Airline Operators of Nigeria (AON), the umbrella body of airline owners, had Friday announced the joint decision to halt all operations.
The operators had shocked Nigerians as they announced the decision to halt all operations across airports in the country due to the skyrocketing price of aviation fuel, JetA1 and sundry operating costs.
The statement said: “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% of an airline’s operating cost globally, the present hike has shut up Nigeria’s operating cost to about 95%.
“In the face of this, airlines have engaged the Federal Government, the National Assembly, NNPC and Oil Marketers with the view to bringing the cost of JetA1 down which has currently made the unit cost per seat for a one hour flight in Nigeria today to an average of N120,000. The latter cannot be fully passed to passengers who are already experiencing a lot of difficulties.
“To this end therefore, the Airline Operators of Nigeria (AON) hereby wishes to regrettably inform the general public that member airlines will discontinue operations nationwide with effect from Monday May 9, 2022 until further notice,” the AON had declared.
Ibom, others back out
However, the declaration by 9 members of the airline body appears not to be sanctioned by the very Chief Executive Officers of airlines who signed the suspension document.
Amidst the confusion, the federal government appealed to the airlines to shelve the action and allow for dialogue and intervention to address the vexed issues.
Minister of Aviation, Senator Hadi Sirika, in a statement by his Special Assistant on Public Affairs, Dr. James Odaudu, said efforts to assuage the situation were ongoing and appealed to the airline operators to consider the multiplier effect of shutting down operations, on Nigerians and global travellers, in taking their business-informed decisions and actions.
On Saturday, Ibom Air led the withdrawal list of airlines as it announced its decision to continue its operations on its route unhindered, stating it 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 declared.
Other airlines that later towed similar line include Dana Air, Green Africa Airways, Overland Airways and Arik Air, while the trio of Air Peace, Azman Air and Max Air in separate statements Sunday remained resolute with the AON declaration.
AON surrenders
The operators later caved in to pressure Sunday evening and in another statement announced the suspension of the action.
“The Airline Operators of Nigeria (AON) wishes to inform the general public that further to numerous calls from the highest echelons in government with promises to urgently intervene in the crisis being faced by airlines due to the astronomic and continuously rising cost of JetA1, that the AON has acceded to requests to withdraw the action for the time being while we allow for a fresh round of dialogue with government in the hope of reaching an amicable solution.
” We have also reached this decision with the highest consideration for our esteemed customers who have been faced with uncertainty over the last few days and to enable them to have access to travel to their various destinations for the time being during the period of discussions with relevant authorities,” the AON said.
The statement was signed by the AON President, Alhaji Abdulmunaf Yunusa Sarina, his vice, Mr. Allen Onyema and five other members.
The body said: “In view of the above and in the interest of national economy and security considerations, AON hereby wishes to notify the general public that the earlier announced shutdown of operations on May 9, 2022 is hereby suspended in good faith pending the outcome of hopefully fruitful engagement with the government.”
On the decision by some members to back out, the body said: “AON however regrets the unfortunate position taken by one of our members, Ibom Air, not to stand by the collective decision. While they may have their reasons for doing what they did, it is pertinent to note that they equally accepted in their statement that the JetA1 situation poses an “existential threat to the air transport industry in Nigeria” and that “the out-of-control situation is simply unsustainable.”
Blueprint gathered that the disunity among the operators will lead to further implosion as suspicion is rife within the body.
Some operators decided to take advantage of the situation and further increase air fares for the few days the action could possibly last.
FG lauds AON
Commending the decision of some operators to back out, the federal government said the ministry of aviation had always made conscious efforts to assist members of the AON “some of which includes facilitating a meeting between the Association and Mr. President, during which the Association got several concessions, including duty-free importation of aircraft, engines, spare parts and components.”
He said at various times, he personally took members of the association to engage with Central Bank of Nigeria (CBN) to sort out issues of access to Foreign Exchange (FOREX) for their operations, and also the NNPC to exploit ways of ensuring the availability of Aviation fuel (JET A1) through importation or from the major Marketers.
“It should also be recalled that members of the Association were also considered for, and given Bail-out funds to the tune of N4 billion during the COVID-19 pandemic to ensure that they remained afloat. This was without prejudice to the fact that most of them were heavily indebted to Aviation agencies (as they still are).
“We believe that members of the Association are patriots who have continued to bear the brunt of an unfavourable oil market for which we salute their doggedness. It is gratifying that members of the Association have started reviewing the decision to withdraw flight services, with Ibom Air, Green Africa Airlines, Arik Air, Dana and others confirming that they will carry on with their normal flight schedules. We hope that other members will consider the expected impact on businesses and individuals and review their decision.
“We also wish to assure foreign airlines operating in the country that all logistics and services for their operations remain in place as usual and that no disruptions whatsoever should be envisaged.
“As a government, we reiterate our commitment to the continued growth of the aviation industry where airlines and other service providers operate in a profitable and competitive environment.” Senator Sirika noted in an electronic statement on Sunday,” the minister said.
ART fumes
Meanwhile, the President of Aviation Round Table (ART), Dr. Gabriel Olowo said AON could not shut down airlines operations “because It’s un Nigerian to cooperate, collaborate and or consolidate for common courses such as this, hence we wouldn’t be at this stage.
“Aviation Fuel has been an issue for upwards of 20 years in Nigeria without serious attention, yet airlines keep operating out of being patriotic.”
Olowo added that “regrettably this is planning for an accident. Please heed the voice of the watchman. God forbid. This has been the essence of my consistent advocacy for upward review of tariffs all the time. But how high can tariffs go given the average passenger purchasing power?
“If any Airline pretends about this problem , such Airline must be receiving subsidies for the business or “cutting corners”. No operational & management skill can answer for this uncontrollable factor of the business.
“My take, government must provide a lasting solution once and for all at this time. While I also appeal to the Airlines to heed the Minister’s appeal to endure and stretch a little more but NOT beyond their elastic limit.”
Fuel queues return
Meanwhile, queues for fuel have returned to filling stations in Abuja with motorists spending an average of two hours to get the commodity.
Blueprint observed Sunday that most fuel stations didn’t have fuel while a few which had the commodity in stock, had long queues, making motorists to through the harrowing experience experienced some two months ago.
The scarcity has opened the way for black marketers who now make brisk business, selling a ten-liter gallon of fuel for as high as N3,000.
