The continual rise in the cost of aviation fuel, known as jet A1, is beginning to cause apprehension in the minds of stakeholders in the industry.
They have expressed fears that the sector may collapse and there may be huge job losses if the rising cost is left unchecked.
As of Friday, reports indicated that Jet A1 fuel had risen from about N300 per liter in February to about N1,000 per liter, causing a significant increase in the cost of tickets.
Aviation Round Table, which is a body of professionals in the sector, said more airlines might be forced to halt operations, in addition to the two domestic airlines not in operation at the moment.
Aero Contractors on July 18 announced the suspension of its operations, citing the impact of the challenging operating environment on its daily operations, while the Nigerian Civil Aviation Authority on July 20 suspended the operations of Dana Air.
In an interview with one of our correspondents, a former Managing Director of the Nigerian Airspace Management Agency and Chief Executive Officer, TopBrass Aviation Company Limited, Capt. Roland Iyayi said the government must work towards reviving the refineries for the local production of JetA1.
Iyayi added, “The key to the success of any airline is affordability. If fares are unaffordable, what you will end up having will be empty flights. Now, when you have empty flights, it will become a double whammy. At this point, how do you manage the sustainability of the airline?
“This means there is imminent danger in the entire industry and it is bound to spiral out of control if something is not done urgently. So if the government considers aviation as a critical asset, I would expect it to intervene in JetA1 pricing.”
