Cost of aviation fuel, major challenge to operations – Dana Air

The skyrocketing price of aviation fuel (otherwise known as Jet A1) has been identified as the major challenge confronting the operations of domestic airlines in the Nigerian aviation industry.

In a bid to change the situation, operators in the industry have continuously called on the Federal Government to intervene in the issue, but so far, Government is yet to make a categorical statement on the matter.

Speaking with aviation correspondents at the weekend at the Murtala Mohammed Airport Two, MMA, Lagos, during the recommencement of its Lagos-Uyo-Abuja direct flights, Obi Mbanuzuo,  chief commercial officer, Dana Air, revealed that the airlines in the sector spend at least 30 percent of their revenues on purchase of aviation fuel.

He however noted that in a bid to address the sordid situation, the airlines in conjunction with the Airline Operators of Nigeria are discussing with the oil marketers and the government.

Investigations reveal that currently, a litre of the commodity is sold at $1.20, which is huge for a country that produces crude oil.

For a 50 minutes flight (Lagos to Abuja for instance), a typical Boeing 737-300 burns 2,250kg of aviation fuel.

Apart from the high price of aviation fuel, airlines in the sector also pay various charges ranging from five percent Ticket Sales Charge, navigation charges, passenger service charge among others.

Mbanuzuo said, “Aviation fuel as you know, takes 30 percent of our costs. But it is left for individual airlines to look, for instance, at their price structures to make sure we mitigate the effects of its rise in the aviation industry.

“The government policy is affecting our operations and each airline will have to look at what it does to mitigate its effects. It is a problem that we are talking with AON and the marketers with. Some things are not in our hands. Good thing about this market is that it is competitive, which drives efficiency and the prices.

On the recommencement of its Lagos-Uyo-Abuja direct flights, Mbanuzuo assured its clients that its Unique Selling Point, USP, would continue to be timeliness and quality services at affordable prices.

He said the introductory airfare is N9,000, but not static, adding that as the bookings increase, the price would increase.

Mbanuzuo emphasised that the airline was working with the objective of integrating most major cities in Nigeria into its route network, adding that it would constantly review its operations with a view towards exceeding the high expectations of its guests.

Meanwhile, as Muslims all over the world observe the holy month of Ramadan, Dana Air has announced that it would offer special in-flight menu that can be taken away throughout the fasting period of Ramadan to cater for the dietary needs of guests who are adherents of the Islamic faith.