Local airlines risk collapse as Jet-A1 hits N714/litre
Written by on June 16, 2022
Local airline operators, yesterday, said that a number of them now risk collapse barring availability of affordable aviation fuel to sustain commercial operations.
They said besides the fuel scarcity that is disrupting scheduled operations, the prevailing market rate of N690-N714/litre was unsustainable.
In a related development, other stakeholders in the aviation value-chain also bemoaned the effect of weak Naira-to-Dollar exchange rate on critical services like fuel supply, ground handling, and catering.
Vice President of the Airline Operators of Nigeria (AON), Allen Onyema, at the ongoing Federal Airports Authority of Nigeria (FAAN) National Aviation Conference (FNAC) in Abuja, did warn that if the present challenge of aviation fuel was not fully addressed, about three airlines may quit operations due to unbearable cost of operations.
He noted that the recent intervention by the Federal Government led to the approval of 10,000 metric tonnes of aviation fuel, though yet to be accessed by the beneficiary airlines.
Onyema was, however, optimistic that the airlines would start lifting the subsidised fuel by today (Thursday).
The operators said it was regrettable that the aviation fuel that sold for N200/litre barely 18 months ago has increased by more than 300 per cent.