Airlines face disruptions as fuel costs soar

Recent disruptions that stranded passengers, particularly in Abuja, have been linked to debts airline operators owe fuel marketers, even as operators lament the rising cost of Jet A1 aviation fuel.

Passengers who bought Air Peace tickets last Friday spent the night at the Abuja airport following flight cancellations and delays.

The PUNCH learnt that on Friday alone, Lagos, Maiduguri and Asaba-bound passengers remained at the Nnamdi Azikiwe International Airport as the airline delayed boarding for several hours and cancelled a number of flights.

Passengers who spoke with our correspondent claimed that the airline had failed to provide reasons for the disruptions.

Our correspondent gathered that Lagos-bound passengers scheduled to take off from Abuja at about 4:00 pm, as well as another set scheduled to depart earlier, remained at the airport until late that night.

While Lagos-bound passengers left the same night, Asaba- and Maiduguri-bound passengers spent the night at the airport, leading to a series of protests within the aerodrome.

Meanwhile, an airport source who refused to give her name for fear of reprimand had told our correspondent at the time that the passengers might still be airlifted before midnight to avoid disruptions to Sunday’s operations.

The source said, “Truly, many passengers sat helplessly at the airport. I learnt from the workers that it was a fuel-related issue, but only the airline can really explain what happened.”

When contacted, the spokesperson for the Nigeria Civil Aviation Authority, Michael Achimugu, told our correspondent that he gathered that the airline had been speaking with the passengers as events unfolded. He confirmed that issues relating to a lack of fuel had grounded the airline’s aircraft.

Achimugu did not, however, provide further information on why the airline was experiencing a shortage of fuel.

Achimugu said, “Yes, my CPOs have reported to me that the airline has been unable to fly the passengers because of fuel-related issues. I also learnt they have been updating the passengers, but you know when passengers get angry, they may not even listen to whatever information they are being provided with.”

When asked what exactly the issue was, he said, “What my CPOs told me is what I have told you. When we have more information, we will let you know.”

Efforts to speak with the airline’s spokesperson, Efe Osifo-Whiskey, were unsuccessful. He neither picked up his calls nor responded to text messages seeking clarification at the time.

Also, in a statement by the airline, Air Peace said the delay was caused by the unavailability of Jet A1 aviation fuel. Air Peace added that the fuel shortage also affected other airlines.

The Air Peace statement read partly, “The initial delays to our Abuja operations were occasioned by the unavailability of Jet A1 aviation fuel, which affected Air Peace and other airlines operating from the Abuja airport. Upon the availability of fuel, our affected flights commenced operations accordingly.

• Airport cab firms struggle to meet FAAN deadline
• Ground handlers suspend airline’s services over N300m debt
• Airlines threaten nationwide shutdown over union disruptions

“However, our Abuja-Maiduguri service could not subsequently operate as planned because the tower in Maiduguri, which had given an extension for our flight to come in, later came back, as at the time of our calling for boarding, to state that the airport had become VFR and would no longer fly beyond sunset.”

While apologising to passengers, Air Peace added, “Throughout the disruption, passengers were duly informed of the delays and provided with refreshments. Following the cancellation, affected Maiduguri passengers were also provided with hotel accommodation, with arrangements made to operate the flight the following day.

“We sincerely regret the inconvenience caused to our esteemed passengers and appreciate their patience and understanding. At Air Peace, the safety and wellbeing of our passengers remain paramount, and we will continue to prioritise these considerations in all our operations.”

However, sources among marketers said the product was available, although at a higher price. One of the sources told our correspondent that, “Airlines may have faced disruptions because a number of them were not supplied the product because they have refused to clear outstanding. They are owing in the millions.

“The truth is some are owing, and they won’t expect continuous delivery while they are yet to pay what they are owing.”

An airline source who also refused to give his name told our correspondent that a litre of Jet A1 currently sells for about N2,130 in Lagos and Abuja, while the price ranges between N2,180 and N2,230 per litre at airports outside the two major aviation hubs, depending on the location.

The source said although aviation fuel was available, the major challenge confronting airlines was the high cost of procuring the product, which he said had continued to drive up their operating expenses.

He added that the situation was particularly difficult for indigenous carriers because most of their revenues were generated in naira, while a substantial portion of their operating costs was either dollar-denominated or linked to foreign exchange.

According to the source, the high cost of operations has left several indigenous airlines struggling to remain in business, with some having to source funds from other areas to meet their aviation fuel obligations.

He called on the government to intervene in the situation to prevent total collapse of the operating carriers.

Also, the Managing Director of Aero Contractors, Ado Sanusi, confirmed that the product is available in the country, dismissing the allegation of its scarcity. He, however, agreed that the cost of the product remained a major concern for operators.

Sanusi, who spoke against the backdrop of concerns over Jet A1 availability, said the emergence of the Dangote refinery has helped in making the product available. According to him, Jet A1 currently sells for about N2,000 per litre in Lagos, while the price is slightly higher outside Lagos by approximately N100 per litre.

He said: “I am not aware of the scarcity of aviation fuel in Nigeria. With the Dangote refinery, how can we experience scarcity of the product locally? The only problem is that it is expensive to purchase. Presently, the product goes for N2,000 per litre in Lagos, while it is slightly more expensive outside Lagos with about N100 difference.”

Sanusi also clarified that Aero Contractors was not indebted to aviation fuel marketers, saying the airline had a policy of settling its fuel bills as soon as they were presented.

“I can’t comment on any other airline’s debts, but one thing is sure: at Aero Contractors, we are not indebted to fuel marketers. We pay all our bills as and when due. For clarity’s sake, what I am saying is that once the bill is submitted to us, we settle it immediately at Aero Contractors. That’s the way we work here,” he said.