Nigerian airlines suspend plans to ground local flights over cost of jet fuel -Breaking
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© Reuters. FILE PHOTO Arik Airlines takes off from Abuja’s Nnamdi Azikiwe International Airport on July 8, 2020. REUTERS/Afolabi SotundeCamillus Eboh, MacDonald Dzirutwe
ABUJA, (Reuters) – Nigerian airlines suspended plans to ground local flights because of the soaring price of jet fuel. The move had been due to go into effect on Sunday.
Airline Operators of Nigeria was under intense pressure from customers, consumers protection groups and the government to postpone the shut-down plan announced Friday.
Airline passengers are complaining that they have to pay for their jet fuel in advance with cash. This price is 700 Naira (or $1.69 per litre). Partly because of Russia’s invasion and occupation of Ukraine, which has increased their operating expenses by approximately 95%,
A weaker local currency in Nigeria has made it more difficult for this sector to make ends meet.
According to Sunday’s aviation ministry, local airlines face unfavourable international oil market conditions. However, there are continuing efforts to solve the “perplexing” issue of fuel affordability and availability.
In 2016, some airlines suspended flights to local destinations due to high fuel prices and high levels of debt. However, the government intervened to provide financial aid.
Nigeria subsidies imported petrol to lower pump prices. However, Nigeria has had to endure rising oil prices and high costs to keep its economy afloat, particularly in the months leading up to next year’s presidential elections.
Air Peace Nigeria’s most important carrier and has flights to Dubai as well as Johannesburg said that suspension would be in effect until the association changes its stance.
Ibom Air pulled out Saturday of its flight suspension due obligations to suppliers and financiers. Dana Air followed suit.
($1 = 414.69 naira)
(Additional reporting for Felix Onuah; writing by Chijioke Ohuocha, editing by Kirsten Donovan
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