Nigeria’s airlines fume over fuel, forex and runway closure

The Airline Operators of Nigeria (AON) has issued a further warning over rising fuel prices and supplies for the country’s airlines, saying it is threatening their ability to continue operations.

“The Airline Operators of Nigeria (AON) would like to notify the general public that the JetA1 crisis which began in late February and deteriorated further through the months of March to May, has further worsened and [is] currently threatening the ability of airlines to continue operations,” said the AON in the statement, which was published by News Express.

Member airlines of the AON consists of Max Air, Ibom Air, Aero Contractors, Overland Airways, Air Peace, United Nigeria Airlines, Arik Air, Azman Air and Dana Air, which has just been grounded due to financial difficulties.

The AON said fuel prices have risen by about 400% since December 2021 and also highlighted erratic fuel supplies as a concern.

“On top of the continuous rise in the price of Aviation fuel, supply is at best epileptic and unpredictable at several airports across the country thereby causing flight delays, and even cancellations, as airlines queue for fuel at airports across the country.”

In addition, a shortage of foreign currency is hampering airlines’ ability to maintain regular operations said the AON in the statement, explaining that airlines carry out many activities in US dollars.

“To say the least, airlines are in a ‘life and death’ struggle to secure the foreign exchange that they urgently need to acquire spare parts to ensure the regular routine and scheduled maintenance of aircraft. This is a major influence on how quickly a grounded aircraft can be fixed and restored for flight operations, which impacts greatly on the reliability of schedules, growth of the industry and economic growth and sustainability,” commented the AON.

On July 21, 2022, the Nigerian Civil Aviation Authority (NCAA) announced its decision to suspend Dana Airline’s Air Transport License (ATL) and Air Operator Certificate (AOC) indefinitely, as a result of a financial audit carried out on the airline by the authority. The NCAA said the audit “revealed Dana Airlines is no longer in a position to meet its financial obligations and to conduct safe flight operations.”