The Airline Operators of Nigeria, or AON, has bemoaned what it called “existential threats.” Among the difficulties members face are a lack of foreign exchange, the rapidly rising cost of Jet-A1, which is currently N1,300 per litre, and the difficulty in obtaining planes because of national security concerns.
The operators claimed that because of a lack of foreign exchange, aircraft that needed maintenance had been grounded and cannot be transported abroad. They therefore demanded that the Federal Government act immediately.
Professor Obiora Okonkwo, the spokesman for AON, stated in a statement that if this keeps up, the nation might not have any aircraft available for use in domestic operations.
Additionally, he noted that because money is needed for fleet upkeep and aircraft purchases, airlines require a specific budgetary allocation in order to remain in business.
“We are making losses on factors that are beyond our control,” the statement says. Not only are we dealing with a shortage of money, but the aviation industry is also under pressure. Airport fees have gone up, handling businesses have raised their rates, and airplane maintenance companies have raised their rates as well. The passengers themselves, who are already strapped on cash, are providing the funds for these payments.
“Passenger traffic has shrunk because even those on social engagement like weddings, burials and other ceremonies may not be inclined to spend money on flight tickets; they would rather send credit alerts to those hosting the events who would appreciate such gestures. So, they pay instead of appearing in person.
“Air travel is a catalyst to economic development. There should have been government engagement with airlines at different levels. Airlines do not have special forex allocation; so, they buy at the same place traders who trade Brazilian hair, textiles and others buy. Our passion to remain in this business is being eroded. We are at the point of oxygen supply. Some airlines are going into a coma. Our equipment is diminishing. The minimal revenues we earn to keep the airlines flying, we convert to pay our lessors.
“It is impossible to bring in more aircraft. Aircraft owners have become skeptical because of country risk. A Nigerian airline may meet their terms, all the standard criteria but the aircraft owners consider country risk above other factors. Country risk supersedes everything and lessors have their own obligations. There is nothing personal. Some airlines deposited money with the Central Bank of Nigeria, CBN, but they cannot provide us the needed dollars.”
