Aviation
Naira slump, hiked fuel price push up airfares
LAGOS-Airfares on domestic routes have gone up by over 60 per cent as a result of the fall in naira value and the fluctuating price of aviation fuel, popularly called Jet-A1.
It was gathered that most airlines operating one hour flights across the country had adjusted their fares upwards.
For instance, a one-way Flight from Lagos to Abuja that usually attracted between N15,000 and N20,000 had been raised to N25,000 or N35,000, depending on the airline.
Findings showed that Arik Air was charging about N30,000 for a one-way flight, while Aero Contractors charged N25,000.
Some front desk officers at the Nnamdi Azikiwe International Airport, Abuja told our correspondent that airfares were cheaper on Mondays and Tuesdays because of the low traffic on those days.
Although new carriers such as Air Peace charged between N18,000 and N20,000, they often directed passengers to do the transaction online so as to reduce the operating cost for the carrier.
High fares were also charged during rush periods, especially during weekends.
An airline operator and former Secretary-General, Airline Operators of Nigeria, Mr. Mohammed Tukur, said aircraft of many airlines travelled with far less their passengers’ capacity.
He told our correspondent that this had been compounded by the recent crash in the naira.
“The airline operators have even tried. When the naira started falling, they did not increase airfares. But since it has persisted and is now affecting Jet-A1, they have to adjust the fares in order to survive. They have to pay salaries, buy spare parts, pay their dues to agencies of the government and service other costs that keep the business afloat. So, basically it is a survival strategy that the airlines have adopted to stay in business.”
Tukur also stated that the cost of maintaining airplanes was increasing by the day.
He said, “Some airlines flying out of Abuja travel with about 20 passengers onboard and this is as a result of the harsh economy. A lot of people do not have money to fly again. People are cutting down on travels in order to save money and this is because of the economic hardships.”
On how aviation fuel was affecting airfares, Tukur said the product was being imported and marketers had to buy it in foreign currency despite its high cost.
Tukur said, “The oil marketers import aviation fuel and that is a problem. They have to buy dollar at high rate despite interventions by the Central Bank of Nigeria. So, it is a problem.
The President, National Association of Aircraft Pilots and Engineers, Mr. Isaac Balami, told our correspondent that some operators were finding it tough to cope, especially when their aircraft was due for C-Check outside the country.
He explained that it cost about $2m to carry out the C-Check maintenance on aircraft.
Balami said, “We sell tickets in naira in the industry, but when we are paying for maintenance, insurance, expert services and others, it is in dollar. Now if you want to buy dollar, it is at a very high rate. So, this is the reason why airfares have been jerked up by airlines. The C-Check done by airlines cost between $1.5m and $2m and this is paid for in dollars. You now imagine how much naira you will have to change in order to get $2m.”
In a bold step to strengthen Akwa Ibom’s position in Nigeria’s aviation industry, Governor Umo Eno announced the addition of two new Bombardier CRJ900 aircraft to the fleet of the state-owned airline, Ibom Air, on Friday.
The two aircraft, registered as 5N-CED and 5N-CEE, mark a milestone in the state’s commitment to strategic investment, with the governor stressing that the acquisitions were fully funded by state resources without loans from financial institutions.
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At a welcoming ceremony attended by local officials and residents, Governor Eno emphasized his administration’s mission to drive revenue-generating ventures for Akwa Ibom rather than relying on debt.
He called the move a step toward breaking the cycle of government investments that only serve to pay off loans, vowing that the state’s funds would go towards projects that bring returns to the people.
The governor challenged Ibom Air to turn a profit by 2025, stating that the airline’s management should ensure routes in and out of Uyo remain dependable to prioritize the needs of Akwa Ibom travelers.
“As long as I remain governor, we will continue to use state funds for the benefit of all, not for private gain,” he said, noting that his administration aims to ensure that public investments deliver real value to the state.
Governor Eno also provided updates on several ambitious state projects, including an 18-story commercial complex underway in Lagos and an upcoming 4-star hotel in Abuja, both designed to generate revenue for Akwa Ibom.
Plans for an international market in Ikot Ekpene and the phased opening of a new terminal at the Victor Attah International Airport were also announced, with the airport terminal set for partial operation by December and full activation in early 2025.
Speaker of the Akwa Ibom State House of Assembly, Udeme Otong, commended Eno’s financial management, highlighting that the administration has avoided seeking loans over the past 18 months despite launching significant development projects.
Ibom Air’s Chairman, Pastor Imoabasi Jacob, expressed appreciation for the state’s investment in the airline, which has seen its fleet grow to nine aircraft.
Jacob credited the governor’s support with enabling Ibom Air to boost flight capacity, meeting demand on popular routes such as Uyo-Lagos-Abuja.
Captain Mfon Udom, CEO of Ibom Air, stated that the expanded fleet will improve efficiency and allow the airline to scale up its operations in time for the Christmas travel season.
Udom also noted that the airline anticipates the delivery of nine additional Airbus planes, which will further strengthen Ibom Air’s market presence.
Traditional leaders, including HRM Edidem Ita Edet Okokon III of Okobo Local Government Area, lauded the governor’s leadership, pledging continued support from the traditional institutions.
Anie Essienette, Group Manager for Marketing and Communications at Ibom Air, noted that demand for the airline’s services has surged nationwide, with the new CRJ900 aircraft helping meet this increasing need while the airline awaits further fleet expansion.
Nigeria’s Minister for Aviation and Aerospace Development, Festus Keyamo is of the view that there’s no cause for alarm over the approval of a private airstrip for a religious organisation, which attracted the attention of the House of Representatives.
He took to his verified handle on micro-blogging site, X, on Friday morning to shed light on the subject, and explained that it could be a great source of revenue for Federal Government.
Keyamo asserted that the issue was raised by an honourable member at plenary, out of ignorance, but was “unanimously referred to the Aviation Committee to look into.”
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Keyamo expressed confidence that by the time his Ministry was done enlightening them, “they will be satisfied”.
He added that “the privates air strip owners pay the Federal Government handsomely for these services.”
Keyamo wrote, “I think this is not correct. The House of Reps. as a body did not call on the Minister to revoke the license of any private airstrip.
“I think what happened is that someone moved a motion in that regard and it was unanimously referred to the Aviation Committee to look into it.
“Whilst the intention of the Hon. Member who moved it is very patriotic, it was based on a complete lack of knowledge of the aviation sector.
“By the time we explain to them how private air strips work and the processes they undergo by our agencies before the final approval, they will be satisfied.
“The responsibility of the owners of private air strips is just to build the runway and terminal building. But after they build the control tower in particular, it is completely handed over to the Federal Government through NAMA (Nigerian Airspace Management Agency) which is in complete control of the entire airspace in Nigeria. An MOU is usually signed with NAMA in this regard before the airstrip is approved for operations.
“It is NAMA that provides the Air Traffic Controllers and Engineers in ALL AIRPORTS and AIRSTRIPS IN NIGERIA. And the privates air strip owners pay the Federal Government handsomely for these services.
“No object flies into Nigeria without the prior clearance by NAMA and without filing a clear flight plan, eg, where it is taking off from and where it intends to land.
“And I have recently directed that all aircraft coming into the country MUST first land at our international airports where they would be properly processed and checked before they make their local flights into whatever airport or airstrip they intend to go. So, it is COMPLETELY AND TOTALLY impossible for any private airstrip owner to just jump on an aircraft and fly in and out of the country through that facility. The Federal Government does not permit that. You will not be cleared for take off or landing without prior request and authorisation.
“I thank the Member for his patriotism, but I wish he contacted us first to explain to him before rushing to move such a motion.
“I attach herewith for public consumption the NAMA Act that gives exclusive control of the Nigerian airspace to the Federal Government through NAMA.”
The NNPC Ltd has clarified that beyond the three bodies found in the ill-fated helicopter operated by East Winds Aviation that crashed on Thursday in Port Harcourt, no other bodies have been recovered.
This was contained in a statement in Abuja on Sunday by the Chief Corporate Communications Officer, NNPC Ltd, Olufemi Soneye.
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“The Company further notes that intensified search and rescue operations for the remaining bodies along with relevant authorities is still ongoing.
“Once again, our hearts and prayers are with family members of this unfortunate incident,” the statement added.
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