Airlines operators decry poor funding, infrastructure, multiple charges, others

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.