United Nigeria Airlines (UNA), a prominent domestic airline, has expressed concern over the escalating cost of operations, attributing it to increased charges from service providers across the aviation industry.
The airline lamented that if it were to pass on the additional costs to passengers, a one-way ticket would have to be priced at no less than N200,000.
Compounding the challenges faced by operators, the price of aviation fuel, known as Jet A1, soared to N1,530 per litre in Kano. According to the latest price list for February 20, 2024, Jet A1 reached N1,480 in Lagos and N1,522 in Abuja and Port Harcourt.
Osita Okonkwo, the Chief Operating Officer of UNA, speaking during a briefing marking the airline’s three-year anniversary, highlighted the detrimental impact of the rising cost of forex on operators. He emphasized that 90% of the airline’s operations depend on foreign exchange.
Okonkwo also criticized the proposal by ground handling companies to hike their charges by 500%, denouncing it as exorbitant. He further pointed out that privately managed airports, such as Asaba, have raised their fares significantly, making it challenging for operators to achieve profitability.
For example, Okonkwo cited additional charges imposed by Asaba airport for flights arriving after specific hours, with penalties ranging from N500,000 to N1 million per hour.
In addition to addressing compensation for flight delays and cancellations, advocated by the Minister of Aviation and Aerospace Development, Festus Keyamo, Okonkwo urged the Minister to intervene in securing affordable loans, forex, and lower leasing rates for domestic operators.
Regarding the $3 million trapped fund at the Central Bank of Nigeria (CBN), Okonkwo revealed that approximately 50% of the funds are currently being honored.
