Government pledges to
end aviation fuel scarcity.
The current spike in
the exchange rate of the dollar to the naira may be taking its toll on the
country's foreign-exchange-dependent aviation sector as airline operators seek
to increase their fares by 45 per cent.
The dollar exchange
rate, which currently stands at N350, according to the airline operators, has
further pushed the cost of running the business beyond them.
Some operators told The
Guardian that their plight was not helped by the Nigerian Civil Aviation
Authority (NCAA) disapproval of a new air fare regime that should have
officially gone up by 45 per cent, to keep pace with the dollar rate.
Some airlines, however,
appear to have resorted to self-help in raising ticket prices for
over-the-counter purchase.
The act, which is
described as a sharp practice by NCAA's rules, has seen some tickets gone up by
N10, 000 to N20, 000, depending on the airline and the time of purchase.
An operator, who is
also a leading member of the Airline Operators of Nigeria (AON), told The
Guardian on the condition of anonymity that the current fare regime, in
relation to foreign exchange, was not realistic.
He said: "The
current rate is killing our business and it seems our regulators don't care if
we go into extinction. The truth is that this sector cannot survive under the
current realities. You cannot do anything without the dollar, which is not in
anyway favourable."
The operator added that
several planes were either due for checks or had been sent for the same purpose
overseas but still could not be returned due to the further high cost of
service caused by the forex spike.
It would be recalled
that the aviation fuel scarcity that almost grounded operations nationwide last
week was due to oil marketers' staunch refusal to import the product, otherwise
called Jet-A1, into the country at an exchange rate higher than N300.
The situation had to be
salvaged by the Federal Government's intervention that availed forex to the
importers at an interbank rate. On the heels of the scarcity and attendant hardship on air travellers, The Guardian observed that rates, which normally range between N18, 000 and N23, 000 for economy class across the airlines, went up to about N30, 000 to N39, 800. The price is subject to the time of purchase and airline of choice.
Some operators have,
however, openly supported the hike. A former manager of the defunct Chanchangi
Airlines, Mohammed Tukur, at the weekend said that the airline operators had
been boxed to a corner by the current harsh economic condition, and left with
no choice than to raise fares.
Tukur, who was also the
Assistant Secretary-General of the AON, added that the carriers were in dire
straits, but would survive if fares were raised.
"You look at the
dollar; you now buy everything in dollar. Airline business is heavily
dollarised. Maintenance cost has gone up, the airlines pay so many charges to
the aviation agencies, among other sundry charges. It should not be less than
N35, 000 if they really want to break even. Their fear is that if they raise
airfare, people would take to road travel. It is still very cheap to fly in
Nigeria."
The NCAA had, however,
denied raising ticket fares for local airlines. The aviation regulatory body
said though airfares, add-ons, charges, tariffs and terms and condition of
service are fully liberalised, they are all subject to NCAA's approval before
coming to effect.
The spokesman for the
NCAA, Sam Adurogboye, said airfares and sundry charges had been statutorily
deregulated and subjected to market forces.
He said that
notwithstanding, all air carriers or their agents were expected to file with
the authority, a tariff for that service showing all rates, fares and add-on
charges, including the terms and conditions of free and reduced rate
transportation for that service, as specified in IS.18.14.1.1.
Another requirement for
airfare raise is for the carriers to obtain approval from the NCAA to introduce
and or increase add-on charges or surcharges such as fuel, Internet booking,
insurance, security and similar surcharges, prior to implementation.
Meanwhile, the Minister
of State for Petroleum, Dr. Ibe Kachikwu has assured that the Federal
Government is doing everything possible to tackle the scarcity of aviation
fuel.
Kachickwu who spoke
yesterday to aviation correspondents at the Nnamdi Azikwe International
Airport, Abuja said the sector had been privatised and the production of Jet A1
was entirely in the hands of the private sector. He said the government had
been trying to work with the private sector to douse the rousing tension.
Kachikwu disclosed that
in the short term, he had been trying to liaise with countries where there is
immediate availability of the product, and in the long term, the government
would resume the Jet A1 production in the refineries.
"Every one of us,
including the newly sworn in General Managing Director of the Nigeria National
Petroleum Cooperation (NNPC) are doing our best to find a short-term solution
to this problem before looking at the systemic problem and how it has affected
the private sector to provide the aviation fuel."
SOURCE: THE GUARDIAN