Airlines groan as high cost impact operations

Airlines groan as high cost impact operations

The skyrocketing costs of aviation might have taken its toll on airlines as they now shell out billion in sourcing for the commodity which account for above 50 percent with the price of their operations. While, the commodity is no longer scare as claimed Wale Tinubu, national chairman of Major Oil Marketers Association of Nigeria (MOMAN), the airlines are receiving the product at higher rates, a circumstance that has impacted on all elements of their operations.

A minimum of on a each day basis, an airline spends millions on fuel consumption while they get the pump price at N180 per litre. For instance, Arik Air Chairman, Joseph Arumemi-Johnson Ikhide through the pay a visit to of General Electric officials to his provider, disclosed that with 126 flights everyday, the Airlines requirements about 500, 000 litre in a day to energy its flights.

“Unfortunately, some marketers even deny us fuel. They can’t even provide us what we want and we’ve to adjust our flights. As an example, we want 500,000 litres a-day however the marketers can’t provide that since it truly is scarce, we need about three.5 million litres inside a week.

“Therefore, we can not operate typically, we drop dollars. While, we’ve a fuel dump but that is certainly just for any couple of litres, it does not serve the purpose of all our flights,” he said. With N180 per litre, Arik Air which operates the largest fleet and flights may devote about N90 million to power all its flights its 26 flights in a day.

“This is distinct from other operational costs like upkeep which is a significant aspect of flight operations that gulp a lot of capital. You understand that the substantial grades maintenance are not executed in Nigeria, they are mandatory checks that have to be done in foreign currencies abroad.

“I am not absolving the marketers but the Nigerian circumstance has created airline operations in the nation a tough and high-priced one if actions usually are not taken by required government or private quarters, we may perhaps quickly be left with 1 domestic scheduled airline alone”, says a concerned stakeholder.

Arik Air operates two A340-500, one particular A330-200, four B737-800, nine B737-700, two 737-300, four CRJ 900, two Bombadier Q400 and two HS125-800 XP; Aero operates four B737-500 and five B737-300 Air Nigeria, which just lately improved its fleet operates eight B737 and two Embraer; Dana operates 4 MD 83; IRS operates five Fokker 100 style.

Overland Airways operates two Beechcraft 1900D and three ATR-42. Capital operates three Embraer 125 when Associated operates four Embraer 125 “For an hour flight, you’ll need averagely three, 600 litre on a B 734, it could be more for the reason that sometimes, there are actually concerns “, David Balami, President of National Association of Aircraft Pilots and Engineers (NAAPE) mentioned.

Air Nigeria, which operates nine B737 in its fleet requirements over 28, 800 litres in a day too as more than 7,200 litres for its two Embraer. With this, the airline operates above 70 flights and might require 245, 000 litres everyday and invest N44 million daily on the commodity.

As for Aero which also operates above 70 flights, the airlines requires above 231,000 litres everyday apart from its helicopter operations and may perhaps be spending more than N41 million inside a day on fuel alone.

Isyaku Rabiu , the chairman of IRS Airlines had mentioned it’s glaring that the travelling public were around the receiving end from the complete circumstance adding that his airline will assistance the government for the work it can be generating to resolve the higher price of air travel, which is considerably influenced by the high price of aviation fuel.

Airline operators underneath the aegis of Airline Operators of Nigeria (AON) had lately offered situations for the reduction of air fares. The operators had demanded among other factors, the typical provide and reduction inside the cost of aviation fuel, otherwise known as JET A1 and the removal of worth extra tax (VAT). The operator noted that the VAT was not applicable to other modes of transportation in Nigeria, just as they equally canvassed the removal of rent payable in the airports.

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