By UDEME CLEMENT
Alhaji Mohammed Tukur  is the Assistant Secretary General, Airline Operators of Nigeria (AON).He speaks on how the new fuel price regime is affecting  the aviation sector.

How is the new fuel price regime affecting the aviation sector?

The reality is that the aviation fuel had already been deregulated before the recent increase in the price of Premium Motor Spirit (PMS) commonly known as petrol from N65 per litre to N97, and airline operators are already paying the price for that. But the recent increase in the fuel pump price has now added to the costs of our operations, that is why we have increase in the price of local flights from N20,000 to N25,000.

This is due to the fact that prices of food items, snacks and drinks for passengers on board have also increased due to increase in fuel price. Another issue is the increase in the cost of transportation in terms of airport taxi carrying passengers to the airport.

With the latest development, what precisely is the cost of a business class ticket for a local flight?

The business class of an airline now goes for between N35,000 and N45,000 depending on the airline and destination. But, in some cases, a passenger can get business class for N30,000 depending on the airline because there is so much competition in the industry.

Business class has to do with those who have the money to pay. For instance, if you book on-line, you can get a ticket for a local flight for just N7,000. But the problem with this type of ticket is that the passenger must be at the airport two hours before the flight in order to get space.

How much is a litre of aviation fuel now?

Due to the removal of subsidy, aviation fuel that initially sold for N152 per litre is now sold for between N175 and N180 per litre and this is adding to the cost of our operations. I think  government should have consulted exhaustively with relevant stakeholders before removing the subsidy. And the  timing was wrong. Government should have provided palliatives before the increase in the price of fuel.

Is airline business profitable in Nigeria?

The success story in the sector now is safety. There are no cases of plane crash in Nigeria anymore. We have good aircraft flying to various locations with adequate safety measures. The Nigerian Civil Aviation Authority (NCAA) now ensures transparency in the system, such that the C-checks are carried out at the appropriate time.

Beyond safety, the sector needs adequate support to thrive despite its slow returns on investment. For instance, the report released from International Air Transport Association (IATA)’s study that revealed that the global aviation sector recorded 0.1 percent profit in 40 years. This is just the real reflection of the workings in the industry. Aviation is not just like any other sector of the economy, because it requires expertise to grow.

What is the way forward?

We are calling on government to support the industry and ensure that multiple charges are removed from the system. Also, government should grant the airline operators waivers on spares imported into the country and assist in capacity building to ensure professionalism in the industry, like what obtains in advanced countries. One of the challenges facing some airline operators is debt. We are saying that they should be given sufficient time to enable them pay-off their debt as they carry out their daily operations.