Airline Operators Suspend Planned Operations Shutdown

…As Aviation Expert Urges FG To Release Unused N22b Bailout Funds To Pay For Jet A1 Subsidy

Airline Operators of Nigeria (AON) has cancelled plans to shut down flight operations.

In a statement from the president, Abdulmunaf Sarina, the association said following the promise of the Federal Government to urgently intervene in the crises faced by airlines due to the high cost of JetA1, it has decided to suspend its plans to shut down operations from tomorrow

The AON had over the weekend said its members will commence indefinite suspension of flights from Monday, May 9, over the high cost of aviation fuel, also known as jet A1, which currently sells for N700.

But the Minister of Aviation, Hadi Sirika, had appealed to the airlines not to shut down operations, assuring that the Federal Government will intervene in the matter.

On Sunday evening, the body released a statement saying it has decided to accede to the Minister’s plea to shelve the planned shut down of operations but that most importantly, it is putting the difficulty passengers will face into consideration.

The AON said: “We wish to inform the general public that further to numerous calls from the highest echelons in government with promises to urgently intervene in the crises being faced by airlines due to the astronomic and continuously rising cost of JetA1, that the AON has acceded to requests to withdraw the action for the time being while we allow for a fresh round of dialogue with government in the hope of reaching an amicable solution.

“We have also reached this decision with the highest consideration for our esteemed customers who have been faced with uncertainty over the last few days and to enable them to have access to travel to their various destinations for the time being during the period of discussions with relevant authorities.

“In view of the above and in the interest of national economy and security considerations, AON hereby wishes to notify the general public that the earlier announced shutdown of operations on May 9, 2022 is hereby suspended in good fate pending the outcome of hopefully fruitful engagement with government.”

On how the issue caused by high cost of jet A1 can be resolved, the Chief Operating Officer of TAL, an non scheduled operator, Femi Adeniji, told our correspondent that the government should immediately come up with relief for the airlines.

He said: “There was N22 billion that was approved as palliative for the airlines during covid that was not released, so, the Federal Government should not give them the cash directly, but that money should be released and used for jet fuel subsidy. For each gallon the marketers sell to the airline, a certain percentage should be subsidised.

“Crude oil price has increased and NNPC has made more money now that the Ukrainian war is on, so they should be able to subsidise jet fuel. Sales tax should also be reduced.

“Also, the importation of all commercial aviation needs should be duty free and landing and passenger charges should be reduced.”