WITH the rising price of aviation fuel in Nigeria, airlines are now refueling their aircraft in neighbouring countries of Ghana and Togo, where the product is cheaper, for local and international operations.
Disturbed by the development, the Federal Government, yesterday, summoned aviation fuel marketers to explain why the product is more expensive in the country and the consequent refueling of aircraft offshore.
The price of aviation fuel rose from N98 to N160 recently, although marketers have attributed the skyrocketing price to high cost of its importation, since the product was not being refined in the country.
The Director-General of the Nigerian Civil Aviation Authority (NCAA), Dr. Harold Demuren, confirmed the meeting with the aviation fuel marketers yesterday, saying there was no way the airline could continue to operate successfully with the current trend.
According to Demuren, aviation business was not a gold mine, adding that returns on investment in aviation could be three per cent for the airlines or even manufacturers.
He said that while marketers have raised price of their product over time, the carriers have only marginally increased air fares, saying: “We cannot operate that way”.
“The price of aviation fuel in Nigeria is ridiculously too high. We need to knock this down. We are working on it and I believe we will be able to do this. We can’t continue this way.
“There is a lot of loopholes that we are trying to close right now. We are talking with the government and the third meeting with the fuel marketers will be major, because everybody will be present.
“Aviation business is not a gold mine. A lot of people who come to this industry feel it is a gold mine. The rate of return on investment in aviation is about two to three per cent for the airlines or even manufacturers”, he added.
Most of the cash flow you see belongs to fuel marketers, maintenance organization, training facility and they have to pay lease rental, only little belongs to the airlines”.
He however, lauded a new entrant into the sector- First Nation Airways, for undergoing all mandatory safety audits for the qualification of Air Operator Certificate (AOC), the all-important criterion for airline business.
The airline, which had taken delivery of three A320 aircraft and in fourth stage of NCAA certification, is expected to commence operations after the fifth stage, which is the summary of over 300 manuals the airline was subjected to.
Source : wwwngrguardiannews.com
PS: Shame on Nigeria.
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