Airlines must adjust to rising Jet A1 cost — Olowo
By Itohan Abara-Laserian
An aviation expert, Dr Gabriel Olowo, on Thursday said that airlines had no choice but to sell what they buy, in terms of fuel costs, to stay afloat.
Olowo, the immediate past President of Aviation Safety Round Table Initiative (ART) and Chairman Sabre Global Technology Ltd., InterGuide Group & GolfView Suites, told the News Agency of Nigeria (NAN) in Lagos.
He spoke against the backdrop of the increasing cost of aviation fuel and the attendant rise in air fares.
NAN learnt that the cost of Jet A1 (aviation fuel) which was N1,380 per litre a week ago, rose to N1,480 in Lagos, N1,522 in Abuja and Port Harcourt, and N1530 in Kano on Tuesday.
“To stay afloat, airlines are advised to sell what they buy, no subsidies.
“The foreign airlines are withdrawing their inventories but the local ones cannot.
“Hence, the local ones must strictly sell at cost,” he said.
Olowo said that fuel price had a significant role on tariffs as it formed 30 per cent to 35 per cent cost element in aviation.
“Increase, therefore, is tantamount to upward review on all tariffs. Affordability is a question of travel need.
“When there is the urgent need for one to travel, especially by air, one must travel, but it will cut down on travel wastes.
Speaking on the proposed installation of the e-verification gates at the Nnamdi Azikiwe International Airport, as announced by the Minister of Interior, Dr Olubunmi Tunji-Ojo, Olowo said it would enhance travel comfort.
“E-verification gates is most welcome and also desirable at all our international airports especially Lagos.
“It enhances passenger processing and makes travel experience much more comfortable.
“It also enhances security, preventing operatives from flipping from one page of document to another page,” he noted.
NAN reports that on Feb. 19, Tunji-Ojo announced that biometric e-gates were being installed at Nnamdi Azikiwe International Airport in Abuja and at the e-border data and control center at the Nigeria Immigration Service headquarters.
As of Feb. 19, four out of the planned 10 gates had been installed at the airport, while the remaining six gates would be operational before the end of the month.
The nationwide project will deliver a total of 40 e-verification gates across international airports by the end of the first quarter of the year.
These installations will include 10 gates in Abuja, 17 in Lagos, five in Kano and four each in Enugu and Port Harcourt.
Olowo also highlighted the need for airlines to adhere to the standards of International Civil Aviation Organisation (ICAO) on full insurance coverage of passengers.
He said: “Insurance is not new to operators. They must comply with ICAO standards for full coverage of the hull, and passengers.
“In the event they do not, the local CAA has a duty to perform. ICAO standard and recommended practices has provided adequate cover for accident victims and their relatives,” he said. (NAN)
Edited by Oluwole Sogunle
Published By
Has also recently published
ForeignNovember 21, 2024We’ll continue to prioritise social investment programmes, Tinubu tells IMF MD
General NewsNovember 21, 2024Nigeria championing global tax reform – says Tuggar
General NewsNovember 21, 2024Economy has turned the corner, says Uzoka-Anite
ForeignNovember 20, 2024G20 leaders: Changing the face of the world
