Airline operators in Nigeria have raised the alarm over the rising cost of operating flights in the country. They have warned that the price of a one hour flight from Lagos to Abuja may soon hit N250,000 if the current situation persists.
The spokesperson for Airline Operators of Nigeria (AON), and Chairman of United Nigeria Airlines, Obiora Okonkwo, made this revelation while appearing on Arise Television Morning Show on Wednesday.
He said that local operators are making huge sacrifices to keep the fares affordable for passengers, despite the increasing costs of aviation fuel, maintenance, insurance, and other expenses.
Okonkwo appealed to the Central Bank of Nigeria (CBN) to create a special window for local airlines to access foreign exchange at a reasonable rate. He said that the scarcity and volatility of foreign exchange is one of the major challenges facing the aviation sector.
He said: “If you think tickets are expensive, then you probably don’t appreciate the sacrifices made by local operators.
“If we have to charge the fares, the way the costs are increasing every day, we should be paying not less than N250,000 from Lagos to Abuja.”
He also urged the Aviation Minister, Festus Keyamo, to collaborate with other relevant agencies and stakeholders to identify and resolve the issues affecting the aviation sector. He said that the minister should champion the cause of local operators and protect their interests.
He said: “You have naira and you can’t convert it to the dollar. So, the solution to this is for our minister to understand that we need a special window with the CBN to access foreign exchange.”
The AON spokesperson also called for a review of the multiple taxation regime imposed on local airlines. He said that local operators are paying more taxes than their foreign counterparts, which is unfair and unsustainable.
He said: “We are paying more taxes than any other sector in this country. We are paying more taxes than even foreign airlines. We are paying VAT, passenger service charge, landing and parking fees, fuel surcharge, and so on. These taxes are killing us.”
He appealed to the government to support and encourage local airlines, as they are providing essential services to the nation. He said that local airlines are creating jobs, boosting tourism, facilitating trade, and enhancing national security. He said that without local airlines, Nigeria would be isolated and underdeveloped.
The proposed increase in flight prices is likely to have a significant impact on air travel in Nigeria. It could make it more difficult for people to afford to fly, and could also lead to a decline in tourism.
The government needs to take steps to address the challenges facing the aviation sector, or else the proposed increase in flight prices could become a reality.
