There seems to be no respite in the rising domestic airfares across the country as travellers continue to pay more for their movement.
According to vanguardngr.com, this came as travellers flying through Kebbi, Bayelsa, Enugu, and Anambra state pay the most, while those travelling to Abia, Kano, Lagos, paid the least in January 2023.
Vanguard Aviation World gathered that the rising development is coming against the backdrop of the high cost of aviation fuel, also known as Jet A1, along with the scarcity of foreign exchange. The scarcity is forcing airlines to raise their air fares.
It was also gathered that as of 2021, Jet A1 was sold between N200 to N300.
The price rose marginally to N350 in December 2021. Suddenly, it rose to N500, which was when the Airline Operators of Nigeria (AON) raised alarm on the surge.
Currently, the price of the product hovers around N790 and N800 in Lagos, Abuja and N840 in Kano amongst others.
NBS report
Meanwhile, the National Bureau of Statistics, NBS, in its transport fare watch for January 2023, stated that the average fare paid by air passengers for specified routes one-way tickets increased by 0.16 percent on a month-on-month from N74,586.49 in December 2022 to N74,702.70 in January 2023.
On a year-on-year, the fare rose by 94.78 percent from N38,352.19in January 2022.
The report noted that, “North-East recorded the highest fare of air transport in January 2023 with N76,366.66, followed by South-East with N75,540.00. While North-Central had the least with N72,371.43.”
A breakdown on the air tickets showed that the average price paid by travellers from Kebbi and Bayelsa stood atN80,500, while Enugu and Anambra states averaged N80,000 and N78,000 respectively.
Also, Abia state recorded the lowest airfare for the month of January 2023 at N69,800, followed by Benue, Kano and Niger states at N70,000, while Akwa Ibom and Lagos State tickets were sold at N70,500.
Stakeholder reacts
Commenting on the development, the Chief Operating Officer, United Nigeria Airline, Osita Okonkwo in a chat withVanguard, disclosed that the fact that Nigerian operators have survived the fuel crisis which is again a testament to the promoters and investors who continue to pump in their own capital to keep the airline flying, not that there is any magic.
“If you look at many airlines outside Nigeria that have closed shops they got huge handouts from governments to be able to keep afloat, but we are not so lucky in this part of the world.
“I think that is the issue. If youmanage forex at the rate of black market rate or parallel market rate if we usethat term, then a combination of that is a recipe for disaster. The good thing isthat if you are looking at the long term, you try as much as possible to keep moving hoping that it will balance. Airline is not a one-year business, it is a long-term business. The focus of any airline is to manage costs.
“There were reactions when airfaresrose from N23, 000, N30, 000 to N50, 000, N70, 000. Now what we are seeing is that because of the economic situation in the country, nobody is flying at N70,000. So airlines have reacted irrespective of what people say that they were colluding to fix prices.
“This is market force driven. There is nobody who can fly at N40,000. It is not possible even if you filled the aircraft. The Nigeria Civil Aviation Agency (NCAA) takes five percent, and Bi-Courtney takes N4,250, which is already 10 percent of the fare you have collected. Then you talk of fuel. One-hour flight will take about 1,300 litersof fuel, so there is no way anybody who flies at N40,000 will not do anything.”
Oyo govt built 500,000 litres capacity jet A1 facility
Meanwhile, in a bid to cushion theeffect of the rising airfare, the Oyo State government has built a 500,000 litres capacity tank in the state.
This according to thegovernment is a Public-Private Partnership project, built by BOVAS Petroleum Limited.
Speaking at the inauguration, the state governor, Seyi Makinde disclosed that this was part ofhis efforts to ensure the upgrade of Ibadan Airport to an International Airport, thereby, boosting the state economy.
He said: “Thecompletion and inauguration of the 3.2 kilometres road and the aviation fuel tank projects were fulfillment of the promises I made to people of Oyo state.
“My dream of making the Airport become an international one and where aircraft would fly every30 minutes, was still alive.
“History has been made by his administration with the construction of the aviation fuel dispensing facility at the Ibadan Airport.
“The new development would enhance the aviation operational activities at the airport and also boost the economy of the state.”
