Tag: AON

  • Airline operators groan, write FAAN, NCAA over ‘unsustainable operating costs’

    Airline operators groan, write FAAN, NCAA over ‘unsustainable operating costs’

    The Airline Operators of Nigeria (AON) have written to Federal Airports Authority of Nigeria (FAAN), seeking an urgent review of the 90-day closure of Runway 18L.

    The group’s letter, dated July 15, signed by AON President, Alhaji Abdulmunaf Yunusa, was made available to newsmen in Lagos on Tuesday.

    It said that a week after the closure, work had yet to begin on the runway and the move was causing “unsustainable additional operating costs” to airlines.

    FAAN had on July 6 announced plans to complete the installation of CAT III Airfield Ground Lighting system on Runway 18L/36R.

    It said that the project would begin on July 8, and was expected to last for 90 days.

    Consequently, it said that Runway 18L/36R would be closed to flight operations during the time.

    It, however, assured stakeholders that there would be no disruption, as all normal flight operations would be conducted through runway 18R/36L.

    FAAN said that a Notice to Airmen (NOTAM) to this effect had already been published and disseminated accordingly.

    It said the work was part of efforts aimed at improving safety and efficiency of flight operations at the Murtala Muhammed Airport, Lagos

    But the airline operators, in their letter, also claim that the notice on the closure was short.

    The airline operators, who are groaning over harsh operating conditions, have also written the Nigeria Civil Aviation Authority (NCAA) requesting approval to remove 5% fuel surcharge.

    It wants this as an ameliorative measure to cushion the effect of the continuous increase in the exorbitant price of Jet-A1 on airline operations in the country.

    In the letter written by AON President to FAAN, the group flayed the 90- day period stipulated for the installation of the Air Field Lighting.

    The airlines stressed that due to the ever-rising cost of Jet A1 the closure of the main domestic runway of MMA automatically adds an additional 10-15% more fuel costs per sector into and out of MMA.

    This, it said, is based on the additional flight and taxi time incurred.

    The letter, was directed to the Managing Director Federal Airports Authority of Nigeria, Capt. Rabiu Yadudu, called on the FAAN boss to convene an urgent stakeholders consultation meeting, to review the closure of Runway 18L .

    It said there was a need to enter into discussion with the users of the runway on a procedure for the project, that limits both the cost impact on airlines as well as disruption to normal flight operations.

    The letter reads in part, ”The AON welcomes the effort by FAAN to install runway lighting on Runway 18L, at last.

    “However, international best practice for such critical airfield infrastructure projects is for the airport operator to enter into discussions with all affected parties, to arrive at an optimal arrangement that allows the work to be done, while limiting the inconvenience, economic impact, and safety implications on all concerned.

    “In this instance, FAAN failed to do this.”

    It said that FAAN was aware of the current existential threat of runaway aviation fuel prices to the domestic airlines.

    “The closure of the main domestic runway of MMA automatically adds an additional 10-15% more fuel costs per sector into and out of MMA, based on the additional flight and taxi time incurred as a result.

    ”The airlines have already felt these additional costs within the first week of the closure of the runway.

    “This unnecessary burden is unsustainable for a 3-month period on the airlines, ” it said.

    The AON contends that in line with international best practice, runways of airports are only closed when there is no other option.

    ”For infrastructure projects such as this one on 18L, to limit the impact on flight operations, FAAN ought to have ensured that the contractor does the work at night, when the runway is not in use.

    ”If there is an absolute need for work to be done during daylight hours, then agreement should have been reached with the runway users on what time window would allow this.

    “For the major airport in Nigeria, AON notes with disappointment that Runway 18L has been closed for a week now, with no evidence of any work going on.

    “Yet the airlines have been burdened with huge but unnecessary additional costs and flight delays. Surely this situation is not in the best interests of the industry.

    “Moreover, the additional taxi time due to closure of runway 18L impacts negatively on airlines schedule to sunset airports around the country leading to delays and cancellation of flights to these airports.

    “Given the above critical concerns, AON implores the management of FAAN to urgently review this closure of Runway 18L and enter into discussion with the users of the runway on a procedure for the project, that limits both the cost impact on airlines as well as disruption to normal flight operations, “the letter reads in part.

    In the same vein, the body wrote to the NCAA in a letter dated July 18, directed to Capt. Musa Nuhu, it’s Director-General, on their concerns.

    AON is seeking his approval to remove fuel surcharge as an ameliorative measure to cushion the effect of the continuous increase in the price of Jet A1 on airline operations in the country.

    The AON said, “In addition to the crippling effect of intermittent shortages of Jet A-1, the price has risen from 420 per litre in February 2022 to over 780 today.

    ”This has greatly increased the operational cost of airlines by well over 130%, yet airlines are unable to increase fares and as well suffer from unavailability of foreign exchange to conduct their operations.

    “In order to forestall a backlash and total shutdown of the system, airlines are hoping to resort to an introduction of a Fuel Surcharge of between 25% – 40% of NUC as a way of offsetting the additional burden brought about by increased fuel cost bearing in mind that jet fuel accounts for about 40% of total operational expenses.”

    The AON called for immediate review of the decision that airlines are required to obtain approval for an initial three (3) months before implementation of a fuel surcharge.

    It sought a waiver of the demand that airlines pay an additional 5% on the Fuel Surcharge entirely separate from the 5% Ticket Sales Charge (TSC).

    According to them, unless this is done, it will mean in effect that whatever is collected by the airlines as fuel surcharge to cushion the effect of the high fuel price will be taken away once again by NCAA.

    “This in effect will amount to double jeopardy as airlines will be unable to offset the additional cost which the fuel surcharge is meant to address in the first place.

    Efforts to get reactions from both aviation bodies were unsuccessful as at the time of filing this report.

  • Airline Operators suspend planned services withdrawal

    Airline Operators suspend planned services withdrawal

    Airline Operators of Nigeria (AON) has called off its planned withdrawal of services over astronomical rise in aviation fuel.

    This is contained in a statement jointly signed by the operators and made available to newsmen in Lagos on Sunday.

    The airlines said they would start fresh round of dialogue with government with the hope of reaching an amicable and lasting solution.

    The statement read, “Airline Operators of Nigeria (AON) wishes to inform the general public that further to numerous calls from the highest echelons in government with promises to urgently intervene in the crises being faced by airlines due to the astronomic and continuously rising cost of JET A1.

    “That the AON has acceded to requests to withdraw the action for the time being while we allow for a fresh round of dialogue with government in the hope of reaching an amicable solution.

    “We have also reached this decision with the highest consideration for our esteemed customers who have been faced with uncertainty over the last few days and to enable them to have access to travel to their various destinations for the time being during the period of discussions with relevant authorities.

    “In view of the above and in the interest of national economy and security considerations, AON hereby wishes to notify the general public that the earlier announced shutdown of operations on May 9, 2022 is hereby suspended in good fate pending the outcome of hopefully fruitful engagement with government.”

    The statement was signed by six members of the AON, including Alhaji Shehu Wada, Executive Director, Max Air; Dr Obiora Okonkwo, Chairman, United Nigeria Airlines, and Capt. Roy Ilegbodu, CEO, Arik Air.

    Other signatories are Capt. Abdullahi Mahmood, CEO, Aero Contractors; Alhaji Faisal Abdulmunaf, MD, Azman Air and Mr Allen Onyema, Chairman, Air Peace.

  • Airline Operators suspend proposed strike, to discuss with FG

    Airline Operators suspend proposed strike, to discuss with FG

    Airline Operators of Nigeria (AON) has called off its planned withdrawal of services over astronomical rise in aviation fuel.

    This is contained in a statement jointly signed by the operators and made available to newsmen in Lagos on Sunday.

    The airlines said they would start fresh round of dialogue with government with the hope of reaching an amicable and lasting solution.

    The statement read, “Airline Operators of Nigeria (AON) wishes to inform the general public that further to numerous calls from the highest echelons in government with promises to urgently intervene in the crises being faced by airlines due to the astronomic and continuously rising cost of JET A1.

    “That the AON has acceded to requests to withdraw the action for the time being while we allow for a fresh round of dialogue with government in the hope of reaching an amicable solution.

    “We have also reached this decision with the highest consideration for our esteemed customers who have been faced with uncertainty over the last few days and to enable them to have access to travel to their various destinations for the time being during the period of discussions with relevant authorities.

    “In view of the above and in the interest of national economy and security considerations, AON hereby wishes to notify the general public that the earlier announced shutdown of operations on May 9, 2022 is hereby suspended in good fate pending the outcome of hopefully fruitful engagement with government.”

    According to reports, the statement was signed by six members of the AON.

    This includes Alhaji Shehu Wada, Executive Director, Max Air; Dr Obiora Okonkwo, Chairman, United Nigeria Airlines; Capt. Roy Ilegbodu, CEO, Arik Air; Capt. Abdullahi Mahmood, CEO, Aero Contractors; Alhaji Faisal Abdulmunaf, MD, Azman Air and Mr Allen Onyema, Chairman, Air Peace.

    See statement:

  • BREAKING: Ibom Air pulls out of planned suspension of flight operations by AON

    BREAKING: Ibom Air pulls out of planned suspension of flight operations by AON

    Ibom Air has pulled out of the planned suspension of flight operations by Airlines Operators of Nigeria, AON that as from Monday all flight operations will be suspended in Nigeria.

    TheNewsGuru.com (TNG) reports this is coming few hours after the Federal Competition and Consumer Protection Commission (FCCPC) in a statement calling off the bluff of the airlines operators to suspend operations.

    TNG had reported FCCPC as saying airline operators will not deliberately sell tickets for flights they do not intend to operate, and as such a solution short of a shutdown will emerge accordingly.

    In the statement dated May 7 and signed by Akwa Ibom Air 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.

    “In view of the foregoing facts, Ibom Air had respectfully disagreed with the decision of AON to suspend flight operations on Monday 09 May 2022. Ibom Air cannot in the circumstance volunteer to stop operating and will 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”.

  • Airline operators are bluffing, there’ll be domestic flights on Monday – FCCPC

    Airline operators are bluffing, there’ll be domestic flights on Monday – FCCPC

    The Federal Competition and Consumer Protection Commission (FCCPC) has described as bluff plans by airline operators to suspend domestic flights, expressing optimism that airline operators cannot suspend domestic flight operations on Monday.

    TheNewsGuru.com (TNG) reports FCCPC as saying airline operators will not deliberately sell tickets for flights they do not intend to operate, and as such a solution short of a shutdown will emerge accordingly.

    According to the Commission, rising consumer feedback has it that airlines have continued to sell tickets beyond the date announced for the proposed service shutdown.

    In a statement by Babatunde Irukera, Executive Vice Chairman/Chief Executive Officer of FCCPC, the Commission stressed that since airlines have decided and are resolute to suspend domestic flights, it will be egregious exploitation of consumers and a violation of law to purport to sell a service that the service provider knows, it will not, or does not intend to provide or deliver.

    Recall that domestic airline operators under the aegis of Airline Operators of Nigeria (AON) had announced plans to shut down operations from Monday, due to the skyrocketing cost of aviation fuel, which has reached an all-time high of N700 per litre.

    The Airline Operators stated this in a letter its President, Alhaji Abdulmunaf Yunusa Sarina, sent to the Minister of Aviation, Senator Hadi Sirika.

    However, in the statement by FCCPC, the airline operators have continued to sell flight tickets beyond the date proposed for the suspension of flights, which the Commission has described as egregious exploitation of consumers.

    The statement, meanwhile, added that the Commission has been in discussion with the leadership of major fuel marketers to understand the global supply challenges and possible steps to ameliorate same.

    The statement reads: “The Federal Competition and Consumer Protection Commission (FCCPC) has become aware of a public service announcement by Airline Operators of Nigeria (AON) regarding the impracticality of continuing operations beyond Monday, May 9th, 2022 under the prevailing circumstances of high and rising cost of jet fuel.

    “The Commission encourages and implores domestic airlines to consider the effect of the proposed shutdown on passengers and the magnitude of difficulties and hardship associated with such an action.

    “The Commission does not trivialise the disruption and potential challenge to business continuity and survivability an inordinately high cost of jet fuel presents to domestic aviation, especially coupled with other rising cost of operations and foreign exchange.

    “Indeed, the Commission has been in discussion with the leadership of major fuel marketers to understand the global supply challenges and possible steps to ameliorate same. Accordingly, the Commission strongly advocates engagement among all stakeholders across the value chain to mitigate the current constraints and develop an acceptable interim arrangement to address problems and costs associated with global supply constraints on account of a war, sanctions associated with the war, and a fragile ongoing post pandemic recovery in aviation.

    ALSO READ || See why domestic airlines will halt operations from Monday

    “The Commission is however concerned with rising consumer feedback that airlines have continued to sell tickets beyond the date announced for the proposed service shutdown. To the extent that this is accurate, and the airlines have decided and are resolute, it will be egregious exploitation of consumers and a violation of law to purport to sell a service that the service provider knows, it will not, or does not intend to provide or deliver. It is misleading and deceptive under 5.123 of the FCCPA to represent a service will be delivered on a certain date when the provider knows the same is false or improbable.

    “The Commission is optimistic that airline operators will not deliberately sell tickets for flights they do not intend to operate, and is as such hopeful that a solution short of a shutdown will emerge accordingly. The Commission continues to monitor this sensitive and evolving situation and remains committed to supporting engagements to provide solutions and stability”.

  • Aviation fuel: Sirika begs domestic airlines to shelve planned operations shutdown

    Aviation fuel: Sirika begs domestic airlines to shelve planned operations shutdown

    The Minister of Aviation, Sen. Hadi Sirika, has begged Nigerian airlines to suspend the planned shutdown of operations from Monday over the high cost of aviation fuel from N190 to N700 per litre.

    Sirika made the appeal in a statement issued by his Special Assistant on Public Affairs, Mr James Odaudu, on Saturday in Lagos.

    Thenewsguru.com reports that Nigerian airlines, under the aegis of Airline Operators of Nigeria (AON), on Friday announced plans to shut down operations from Monday due to the high cost of aviation fuel.

    The minister urged the airlines to consider the multiplier effect shutting down operations would have on Nigerians and global travellers.

    He said: “The attention of the Minister of Aviation, Sen. Hadi Sirika, has been drawn to reports that the nation’s air transportation system will be disrupted as from Monday.

    “This follows the threats by airline operators to shut down operations as a result of the rising cost of Jet A1, otherwise known as aviation fuel.

    “As the ministry charged with the industry, we are greatly concerned about the difficulties being faced by the airlines in procuring aviation fuel which has resulted in spiralling costs in air transportation in the immediate past.

    “We also acknowledge that the airlines 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 the main international gateway to the nation.

    “Unfortunately, the issue of fuel supply is not within the purview of the ministry, so the much it can do in the present situation is to engage with agencies, institutions and individuals in positions.

    “This is to provide succour to the airlines. This is already being done by the relevant team led by the minister.”

    Sirika assured Nigerians, especially stakeholders, that the Buhari administration remained stoic in its commitment to the creation and sustenance of an environment that promotes the growth of the aviation industry.

    He said the president was committed to the development of the industry where major players such as the airlines could operate in a profitable and competitive market