*Ibom Air Opts Out of Plan to Stop Operations
The Minister of Aviation, Senator Hadi Sirika has called on the Airline Operators of Nigeria (AON) to suspect their plan to shut down flight operations on Monday, May 9, 2022 due to sudden increase of aviation fuel last Thursday by oil marketers, from the pegged N500 per litre to between N600 to N700 per litre.
The airlines said that they would not be able to cope with the new increase in aviation fuel, as they had been subsidizing the cost of flight ticket and also would not want to increase airfares because Nigerians are struggling with adverse economic situation in the country.
In a statement signed by the Special Assistant to the Minister, James Odaudu, Sirka called on the airline operators to suspend their plan to shut down operations.
“The attention of the Honourable Minister of Aviation, Senator Hadi Sirika has been drawn to reports that the nation’s air transportation system will be disrupted as from Monday May 9th, 2922, following threats by airline operators to shut down operations as a result of rising cost of Jet A1, otherwise known as aviation fuel. As the Ministry charged with the management of the industry, we are greatly concerned about the difficulties being faced by the airline operators in the country in procuring aviation fuel, which has resulted in spiraling costs in Air transportation in the immediate past.
“We also acknowledge that the airline operators are in the business to make profits, while servicing the very critical sector that is not only the preferred mode of transport for most Nigerians, but also the main international gateway to the nation. Unfortunately the issue of fuel supply is not within the purview of the Ministry and so the much it can do in the present situation is to engage with agencies, institutions and individuals in positions to provide succour to the airlines. This is already being done by the relevant team led by the Honourable Minister,” the statement said.
The Minister also noted that while the efforts to assuage the situation are on, “we wish to appeal to the airline operators, even in the difficult situation, to consider the multiplier effect of shutting down operations, on Nigerians and global travellers, in taking their business-informed decisions and actions.
“We also assure Nigerians, especially stakeholders in the sector, that the Buhari administration remains stoic in its commitment to the creation and sustenance of an environment that promotes the growth of the aviation industry where major players like the airlines can operate in a profitable and competitive market.
Also the House of Representatives through its House Committee on Aviation has appealed to the airlines to suspend the plan to ground their operations.
The Chairman, House of Representatives Committee on Aviation Hon. Nnolim Nnaji disclosed that the Speaker of the House of Representatives, Right Hon. Femi Gbajabiamila was greatly disturbed by the reoccurring aviation fuel crisis in the country.
According to him, ” The House of Representatives consequently plans to take a far reaching decisions on the matter as soon as possible to ensure that the problem is permanently rested.”
The Chairman however appealed to the Airline Operators of Nigeria to rescind action on its planned shutdown of operations due to the escalating cost of aviation fuel, Jet-A1
Nnaji who regretted that despite the last intervention of the leadership of the House of Representatives, the problem remained unabated, assured the airlines that his Committee and indeed the House leadership were not sleeping over their plight.
Nnaji who commended the operators for their patriotism further urged them not to ground their operations stressing, that, ” such will inflict more pains on our already distressed economy”.
He also promised them that, “the National Assembly is determined to ensure that the aviation fuel crisis is urgently resolved because air transportation has become the safest mode of travel.”
Meanwhile, the state owned airline, Ibom Air has indicated that it would opt out of the plan to suspend flights on May 9, 2022.
In a statement signed by management, the airline said, “Ibom Airlines Limited (Ibom Air) has been inundated with inquiries about what will happen on Monday 09 May, 2022, following the public statement issued by the Airline Operators of Nigeria (AON) Executive, on Friday 06 May, 2022 and it has become necessary for us to make the following clarifications: Ibom Air acknowledges the existential threat that these runaway fuel price increases pose for the air transport industry in Nigeria. We agree that this out-of-control situation is simply unsustainable. However, every airline has its unique business model and pressures. We believe that in spite of the escalating fuel prices, airlines volunteering to stop operations would rather exacerbate an already bad situation.
“Ibom Air has financial obligations to suppliers, financiers and staff, which depend on uninterrupted flow of revenue to service. More importantly is the fact that having been paid by customers in advance for flight bookings we are bound by contract to deliver the services already paid for, to avoid exposing the airline to the risk of avoidable litigation. Apart from the above factors, Ibom Air is currently the only airline serving Akwa Ibom State directly and as such, any voluntary stoppage of operations would completely cut off access by air into and out of the State. Such action would be directly in conflict with and detrimental to the interest of our shareholder.”
The airline stated that in view of the foregoing facts, it has respectfully disagreed with the decision of AON to suspend flight operations on Monday 09 May 2022, adding that Ibom Air cannot in the circumstance volunteer to stop operating and would continue normal operations on Monday 09 May 2022 and beyond.
Ibom Air’s inclusion as “signatory” to the statement released by AON must have derived from its active and committed membership of the AON. The above notwithstanding, we identify very strongly with our AON colleagues and will participate in every effort to resolve this frightening situation as soon as possible in the interest of our business, our customers, our stakeholders and our country. We thank our customers for their continued patronage and we thank the AON for our collective efforts to secure a sustainable fuel pricing regime for the airlines,” the management also said.
