Amidst the complaints against the rising cost of travelling by air, a leading airline in Nigeria, Air Peace Ltd. has stated that the current fare charged is unrealistic. This is even the airline said a one-hour trip within Nigeria should cost no less than N500,000.
According to Air Peace, this is because at least N14 million is spent on operating a one-hour flight. With N7 million required to purchase 4,000 litres of jet A1 (aviation fuel), currently being sold for N1,400 per litre.
This was disclosed by the Chief Operating Officer (COO) of Air Peace, Oluwatoyin Olajide.
Speaking at a news conference on Friday in Lagos, she added that for the Aircraft, Crew, Maintenance and Insurance (ACMI), the airline spends about 4,000 Dollars for a one-hour flight.
She said, “N5 million is required for every one-hour flight. A figure significantly higher than what operators’ counterparts pay globally.
“There are factors that define operating cost. And they include aviation fuel which takes between 60 per cent to 65 per cent of the operating cost.
“One litre of fuel is N1,400. If I have to operate a one-hour flight from here to Abuja, Port Harcourt, Owerri, I am going to be using about 4,000 litres of fuel.
“So, on average, a one-hour flight costs N7 million on fuel alone. Also, ACMI costs 4,000 Dollars for leasing planes. That is considering the challenges we are currently facing,” Olajide said.
The COO explained that, on average, operating a one-hour flight costs N7 million. With an additional N7 million for fuel, bringing the total to N14 million.
Olajide also noted that insurance for a one-hour flight costs an additional N5 million.
“For financing, we pay about 30 per cent to borrow money, while foreign airlines pay around three percent. Also, Nigerian airlines pay four times more than others for spare parts,” the COO added.
Olajide, therefore, added that given the operating costs of Nigerian airlines, it is not easy operating with the current airfares.
Reacting to allegations by airline users of exploitations by the airline, Olajide said that the allegation had cost the airline a major international slot.
The COO clarified that the Federal Consumer and Customer Protection Commission (FCCPC) only invited the airline for enquiry. And added that the invitation has nothing to do with investigation as reported by some media.
She informed that the Chairman of the Airline, Dr. Allen Onyema, honoured the invitation.
Recall that FCCPC had on Dec. 2 written to the airline, inviting them for an enquiry on the complaint of fare exploitation.
FCCPC later clarified that it was not conducting an investigation into the airline. But rather an enquiry, contrary to reports circulated in the media.
source: NAN
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