Abuja: Nigeria’s aviation industry, which recently celebrated a global safety milestone, is facing a significant challenge – the high cost of Jet A1 (aviation fuel).
According to News Agency of Nigeria, some industry experts have termed this challenge an emergency that has moved from the tarmac to the balance sheet. Instead of the usual hourly shuttles between cities, domestic airlines and passengers now face consolidated flights and cancellations.
Nigeria recently recorded an impressive 91.45 per cent Effective Implementation score in the International Civil Aviation Organization Coordinated Validation Mission. However, this milestone is being overshadowed by challenges associated with the Jet A1 price hike, including the reduction of flight frequencies. On April 26, Air Peace announced a cut in flight frequency on its Abuja-London route, reducing its daily flights to three per week. Similarly, Ibom Air expressed concern over the increased cost of fueling its aircraft, with Jet A1 prices skyrocketing within weeks.
Analysts are worried that aviation fuel now accounts for 45 per cent to 50 per cent of total operating costs for airlines, making air ticket prices unstable. The Airline Operators of Nigeria (AON) noted that the increase in aviation fuel prices was triggered by global crude oil prices following geopolitical tensions in the Middle East. The President of Aircraft Owners and Pilots Association Nigeria, Dr Alex Nwuba, stated that airlines paid approximately ?150 billion in excess for Jet A1 from February to April, urging an end to the fuel crisis.
Retired Air Commodore Ademola Onitiju, President of Aviation Safety Roundtable Initiative, highlighted in a letter of appeal that the Jet A1 crisis was not solely caused by Middle Eastern tensions, but was a widening local problem that required urgent attention. Onitiju argued that the aviation sector faced a dangerous chain reaction triggered by debt concessions, emphasizing the need for stabilisation of the system, including a time-bound Jet A1 refund mechanism and targeted emergency stabilisation packages for airlines.
The President of Airline Operators of Nigeria, Dr Abdulmunaf Yunusa Sarina, raised concerns about the role of marketers in the significant increase in airlines’ operational costs. Meanwhile, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) pegged aviation fuel prices between ?1,760 to ?2,037 per litre in Lagos and Abuja, respectively. A technical committee was constituted to recommend solutions, including direct sales from marketers to airline operators and a 30-day credit window for payments.
This intervention is part of the Federal Government’s efforts to cushion the impact of the Jet A1 crisis. According to the Minister of Aviation, Festus Keyamo, the initiative underscores the administration’s commitment to stabilizing the aviation industry and ensuring the continued viability of domestic air transport services. Air passengers, facing steep ticket prices, have expressed concern, urging a fast resolution to the crisis. Analysts call for collaborative efforts to reduce aviation fuel costs and alleviate the suffering of air travelers, airline operators, and the aviation industry in general.