Cornered, Nigerian airlines threaten to suspend domestic flights

Airlines are threatening to halt domestic flights from Monday in protest at soaring jet fuel prices. Massive disruption for travelers due to insecurity on roads across the country.

Monday could be a different day for Nigerians who wish to travel by air from one city in the country to another. And for good reason: the airlines, hit hard by soaring fuel prices, are threatening to no longer provide domestic flights.

According to the managers of these companies, the price of kerosene rose from 190 to 700 naira per liter, or from 0.45 dollars to nearly 1.70 dollars. A dizzying increase which is mainly due to the conflict in Ukraine, which began in February.

Indeed, fuel prices have skyrocketed across the world since Russia invaded its neighbor, triggering a wave of Western sanctions against Moscow, a major oil and gas exporter.

“Our labor organizations support airline operators. We call on the federal government to quickly set the record straight to save our industry”alarmed Ocheme Abba, deputy secretary general of the Union of Nigeria Airlines.

The paradox of a country that both imports and exports

At airports, flight cancellations and delays have become commonplace since March due to a shortage of kerosene. Height of the paradox: with 1.4 million barrels of crude oil per day, Nigeria is the leading producer of crude oil in Africa. But the country has low refining capacity and depends almost entirely on imports to meet its own fuel needs, making the local market vulnerable to disruptions.

Added to this is a completely different problem: the prices of plane tickets have tripled on certain national lines in recent weeks. According to airline owners, passengers in Nigeria pay their fares in naira, the national currency, but fuel suppliers have to be paid in US dollars, causing a revenue shortfall.

“Everything we need for our operations comes from outside. We are forced to obtain dollars in a context where it is difficult to obtain foreign currency. If nothing is done as quickly as possible, companies could be closed”explains Allen Onyema, CEO of Air Peace Nigeria and Vice President of the Airline Operators Union.

The chosen ones seized

In March, airline owners stood before MPs to explain the difficulties their businesses are facing.

“We run the risk of endangering our own safety. Every one of us here footprints a flight to travel. All of us. If you ask someone to travel to Maiduguri by road, they won’t go. So why compromise our safety?asks Kashim Shettima, one of the owners present at this meeting with elected officials.

A danger confirmed by the Director General of the Civil Aviation Authority, Musa Nuhu, who was also in the Federal Parliament to take stock of the situation.

“With the current prices of airline tickets, companies will not survive”tranche-t-il.

Since then, the situation has not changed and airline operators insist they will suspend operations despite last minute appeals. For the time being, the suspension of flights does not affect international lines, for which transactions are made in foreign currencies.

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