Nigerian domestic airlines threaten to ground their fleets over soaring aviation fuel prices

DOMESTIC airlines operating within Nigeria are planning to stage a one day strike on Thursday April 30 to protest the incessant rise in aviation fuel prices that have costs surge by 300% since February.

In response to the ongoing Middle East crisis, the price of petroleum products have gone up across the board. Internationally, this has led to increases in the cost of petrol, engine oil, aviation fuel, diesel and all other petroleum by-products, with Nigerian airlines being particularly hard hit by the crisis.

Industry insiders say the airlines, having engaged both the federal government and oil marketers without a breakthrough, may be left with no option but to ground flights. According to the airlines, the current situation is unbearable and unsustainable as this 300% surge in prices has made it impossible for them to operate profitably.

In a bid to avert the crisis, Nigeria's aviation minister Festus Keyamo, convened a meeting with airline operators and fuel marketers in Abuja last week. However, the tripartite talks ended in a deadlock, with operators unwilling to shift their stance unless decisive action is taken.

At the end of the two-day meeting, the minister announced a 30% reduction in aviation-related taxes as part of efforts to ease the burden on airlines. While the gesture was acknowledged and the welcomed government’s intervention welcomed, airline operators said

it still falls short of addressing the problem.

Allen Onyema, the vice president of the Airline Operators of Nigeria, said: “This government has helped the industry more than anyone since 1999 and the president is even willing to waive 30% of the debts airlines are owing. However, the truth is that the marketers must be brought to book to explain how they came about the 300% increase when even Dangote is surprised because what he is selling to us is still the cheapest.”

At the end of the Abuja meeting, the airlines gave a seven-day ultimatum from midnight last Thursday for action to be taken.  According to Mr Onyema, fuel prices have skyrocketed from about N900 per litre before the crisis to between N2,700 and N2,900, with some marketers selling as high as N3,500.

He added that airlines are now operating primarily to service fuel costs. Mr Onyema said: “All the airlines in Nigeria have been flying to pay fuel marketers only and you don’t want to compromise safety."