‘Airlines spend N72bn yearly on aviation fuel’

 The estimated cost of over N72 billion spent by airlines yearly have been described as humongous, leading to call that the Federal Government should urgently help the carriers to stem the tide of high cost of aviation fuel.

Aviation security consultant and former Commandant, Murtala Muhammed Airport, Lagos, Group Captain John Ojikutu (rtd), said for instance, Arik Air, Nigeria’s largest airline by fleet size, consumes about 500,000 litres of Jet A1 daily at N200 per litre. Ojikutu stated that it translates to N100 million per day or N3 billion per month and N36 billion per annum.

Arik controls about 50 per cent of the airline market share in Nigeria while others such as FirstNation, Dana, Medview, Overland Airways, Air Peace and Azman make up the other 50 per cent, bringing the estimated amount spent on aviation fuel by all the airlines to about N72 billion annually.

Ojikutu noted that it does not include other operational expenses such as landing and parking fees, air navigational charges and others, querying how much profit is left for a typical Nigerian businessman who wants dollar profit from dollar spending.

He said: “If Arik has this much complains, you can imagine the travails of other airlines. The travails of Arik explain why they all are in perpetual debts with short lifespans.

The option left for them to remain in business is to cut corners or depend on government intervention funds.”

“Government must be firm on all the domestic airlines operators; it is either they pay up all their recurring debts or pack out if the kitchen is too hot for them.

Minister of State for Aviation, Hadi Sirika, had recently told Airline Operators of Nigeria (AON) that deliberations had begun with the Ministry of Petroleum Resources to commit one of the three refineries in the country to Jet A1 refining.

The minister said with new investments in Kaduna refinery, they would get it back on stream so that the more they refine, the more the fuel would be available.

“The essence of refining it locally is not only to make it available, but to also make it cheaper because the element of importation would be removed,” Sirika said.

Meanwhile, a former General Secretary of Airline Operators of Nigeria (AON), Alhaji Mohammed Tukur, said the acquisition and use of light, fuel-efficient aircraft and cutting down the excessive lifestyle of airline investors are ways for airline operators in the country to stem the recession and stay afloat beyond the seven-year limit bench-marked for airlines’ survival in Nigeria.

Tukur said this while speaking to woleshadare.net on the reasons why domestic airlines do not exceed the 10 years limit of existence.

According to Tukur, the use of ‘jumbo’ aircraft meant for between five and six hours flight for an hour flight on domestic routes was not helping the finances of the airline, as the aircraft was being underutilized.

Tukur said the only way domestic airlines will survive in the country was for operators to acquire less fuel consumption aircraft while management of various airlines should stop living expensive lives with monies meant for operations of airlines, adding that some management staff of some airlines received too much as salaries.

“There is need for airlines to change their aircraft types. They should get Jet aircraft and not these B737 and light aircraft. If they have these less fuel consumption aircraft, it will reduce their burdens.”

He said the B737 aircraft were costly to maintain, adding that there was no way an operator could survive under the present economic situation.

On the cost implication brought upon by wages of workers in the airline, Tukur also noted that the burden of the airlines from the time they acquire their Air Operators Certificate (AOC) was much, as workers’ salaries were paid immediately the AOC was granted.