Domestic airlines across the country have seen their flight ticket prices increase as a result of the more than threefold increase in aviation fuel prices over the past year. To mitigate the effects of jet fuel on their operations, the adjustment could instead take the form of a fuel tax or levy. The domestic airport's runway was recently abruptly closed by the Federal Airports Authority of Nigeria (FAAN) under very short notice.
"The past few months have been very challenging for the aviation industry and the airline operators in particular following the high cost of maintenance, skyrocketing fuel prices, inflation, and forex scarcity resulting in high foreign exchange rates, which are amongst the major components of airline operations," the airline declared.
The Nigerian Civil Aviation Authority (NCAA) suspended Nigeria's Dana Airline due to financial inability. The NCAA cited unsound financial records found during an audit of the airline as the reason Dana Air was grounded. Dana Air has mentioned the lack of fuel and the increasing price of Jet A1 at N860 per litre as contributing factors to its problems.
According to retired Group Captain John Ojikutu, Managing Director of Centurion Aviation Security, “Aero Contractors is out of commercial flight operations, so now is Dana Air, and I know for sure that Arik is getting choked; these are among the big ones; what do you think is happening to the lesser ones, especially the new comers?I predicted this in 2020 when COVID-19 entered flight operations; I advised our domestic airlines to switch to cargo operations, but it fell on deaf ears. But here we are today.”
While welcoming the grounding of Dana Air and its ongoing audit, Ojikutu said: "This is the first time I have heard of the report of an economic audit of a Nigerian domestic airline." More of this is required of all operators, not just airlines, in order to effectively comply with Nigeria Civil Aviation Regulations (CARs) Part 18.17.1.1 on operations. I am hoping this audit will be extended to other operators, especially the services providers like FAAN, NAMA, Met, and ground handling and maintenance services. That is what the Nig CARs demand of the NCAA annually and not a knee jack operation. "
Depending on the booking method and the type of aircraft, a one-hour flight used to sell for between N20 and N25,000 but has since increased to between N50,000 and N100,000. An airline addressed the airline operators at a meeting. Sell what you acquire! Given these unpredictable production issues in the airline industry sector, here is my unvarnished opinion on airlines. Demand will undoubtedly decline, but it's far preferable to take shortcuts and plot an accident.
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