Three Airlines May Collapse As Aviation Fuel Hits N714/Litre

Category: Business News

There are fears that at least three domestic airlines may close shop in the coming months due to the continuous rise in the price of Jet A1, otherwise known as aviation fuel in local parlance.

This is as the Airline Operators of Nigeria (AON) has raised the alarm that aviation fuel has skyrocketed to 714 per litre in some airports in the country, thereby further compounding the woes of the operators.

Also, companies in the Nigerian aviation industry, aviation fuel marketers, airline operators, ground handling companies and catering services, among others, have bemoaned the paucity of foreign exchange and the collapse of naira against major currencies.

Speaking at the maiden edition of Federal Airports Authority of Nigeria’s (FAAN) National Aviation Conference (FNAC) with the theme, ‘Advancing the Frontiers of Possibilities for Safe, Secure and Profitable Air Transport’, in Abuja on Wednesday, Mr. Allen Onyema, the Vice Chairman of AON, warned that if the present challenge of aviation fuel was not nipped in the bud, more airlines may shutdown operations in the coming months.

Though he declined to name the airlines that could close shop in the next few months, but it was gathered that the airlines are going through herculean tasks in their operations due to aviation fuel prices and other challenges.

Onyema, however, said that the aviation fuel challenge was not limited to Nigeria alone, but emphasized that ours is made worse because of the slump of naira against major currencies, especially the dollars.