Hike In Airfare: Stakeholders Canvass Local Refining Of Jet A1

In a bid to stem the continuous rise of the price of the aviation fuel, also known as, Jet A1 in the country, stakeholders in the aviation sector, on Wednesday, called on the federal government to priotise local refining of the product .

They also asked the government to provide special funding for the aviation industry in order to address the issues of foreign exchange and other challenges facing organisations in the sector

Speaking yesterday at the opening of the 51st Annual General Meeting (AGM) and Conference organised by the Nigerian Air Traffic Controllers’ Association (NATCA) organised with the theme: ‘Energy Crisis and The Aviation Industry: A Quest for Sustainable Growth’ in Ibadan, Oyo State, Prof. Anthony Kila, the Chairman of the occasion lamented that the failure of the government to refine the Jet A1 product locally was negatively affecting the economy.

Kila insisted that the aviation industry should be seen as an essential infrastructure by the government, insisting that aviation should not be treated as elitist.

He explained that apart from telecommunications industry, aviation was the next to connect humans and cargo, maintaining that the government should not allow the energy crisis to stunt growth in the sector.

Kila emphasised that the more passengers that patronise the sector, the more revenues for the players in the industry and the country at large.

He added, ‘We should create an aviation sector that is able to create movement for commerce. The issue of energy crisis should not be allowed in the industry. If we want to make aviation industry to be viable, we should look at commerce.

‘’The government can look at establishing a bank of aviation, which will attract other players into the sector, especially investors. Aviation leaders should come together and ensure aviation fuel is refined in the country.’’

Kila also craved more recognition for ATCs in the country, saying they play critical roles in ensuring safety on the ground and in the air.

Also,  the immediate past managing director of the Nigerian Airspace Management Agency (NAMA), Capt. Fola Akinkuotu, declared that inasmuch as aviation fuel is continued to be imported into the country, its price and airfares would continue to skyrocket.

Akinkuotu lamented that barely three months ago, one-way ticket in the business class to Abuja from Lagos was barely N50, 000, but said the airfare had rose to N150,000 in the local market today.

Akinkuotu challenged airline operators to acquire modern equipment to address the challenge of ageing aircraft, hoping that the planned aircraft leasing company by the government would help to resolve the challenge.

He, however, said that adoption of modern technologies by government and other organizations in the would help to address some of the challenges presently bedevilling growth in the sector.

He added: ‘’There should be appropriate financial institution where the airlines can lend money at single digit interest rates to acquire modern aircraft. If the current challenges in the sector are not properly addressed, the the issue of ageing aircraft.

‘’Also, we will continue to pay more for flights. Three months ago, a business class ticket Lagos-Abuja was just N50,000 and it rose to N75,000, but today, it is N150,000 for the same ticket. The government should address the challenges to save the sector.’’

Earlier, Mr. Abayomi Agoro, the President of NATCA, regretted that energy crisis in Nigeria had gotten worse in recent months.

He explained that with the challenge of insecurity and bad roads, aviation industry needed effective and efficient handling by all.

Agoro further called for the confirmation of Engr. Matthew Pwajok, the Acting Managing Director, NAMA as the substantive helmsman in the agency.