Chairman,
Arik Air, Joseph Arumemi-Ikhide (middle); Managing Director, Chris
Ndulue (left) and Deputy Managing Director/Senior Vice President,
Operations, Captain Ado Sanusi. PHOTO: SOLA OJEDOKUN
Domestic airline operators in Nigeria have again bemoan those issues
threatening their survival and hindering the growth of air travel in the
country.
Some of the challenges, they said are the non-availability of
adequate fund, rise in fuel price, multiple charges, high exchange rate,
lack of infrastructure, unfavourably government policies and others
have gripped their capacity to compete with their counterparts globally.
Consequently, though to the pitiable economic situation, some of the
commercial airlines operators in Nigeria have cut back their routes in
order to remain in business, as they are struggling for survival.
For instance, three out of four Nigerian airlines that fly to Ghana have cut back their operations, leaving only Arik Air, which use Accra as hub to West Coast destinations. On the domestic routes, Aero now operates from Lagos to Abuja, Port Harcourt and Warri.
Indeed, the carriers are in serious financial position, as it is now,
even the strongest airlines will need to raise money to keep operating.
They are also seeking a fresh window for stable foreign exchange rate
for them to ease their operations.
According to the International Air Transport Association (IATA): “The
inability of airlines to access forex in Africa’s largest economy, if
not solved, will affect air transport services to, from and within
Nigeria and undermine the country’s position as West Africa’s aviation
hub.”
To the operators, availability of forex would help to stem the
astronomical rise in prices of air ticket, as flexible exchange rate
makes it difficult for them to determine exactly what to charge
travellers.
Accountable Manager, Dana Air, Obi Mbanuzuo, said: “The major issue
airline operators in Nigeria battle with are the issue of multiple
charges. If these charges can be merged or eliminated, it will help the
present situation of airlines. As it stands, airlines pay a statutory
charge, which is fine, but some other charges, which the airlines need
to grapple with, are not even applicable in other climes.”
According to him, another issue is the unavailability of forex-
foreign exchange market. He noted that airlines peg fares in naira and
have to pay for necessary maintenance in hard currency.
He said that the cost on all these elements concerning maintenance
even in Nigeria, are nothing to write home about. Even while bringing in
parts, airlines also have to contend with certain internal charges that
are untoward, he added.
Mbanuzuo continued: “For us as an airline, we are concerned about
providing affordable regional air transport services and we will be
happy if the government can enter favorable agreements and create
policies that will favor domestic airlines so that the burden is reduced
on the flying public”.
Meanwhile, Airline Operators Association of Nigeria has called on the
Federal Government to review the charges paid by its members in order
to reduce their high cost of operation.
The airlines said the market has depleted by about 50 percent,
pointing out that further increase in fares to reflect the high price of
aviation fuel may reduce passenger traffic to less than 40 percent.
