N50k Air Fare: We cannot run out of business, Airline Operators
Post created on 10:00 am
Airline Operators of Nigeria (AON) has justified the adjustment in air fare. There has been outcry from members of the flying public over the increment in air fare with a one-way economy ticket costing over N50,000.
The Vice President of AON, Mr Allen Onyema, while justifying the increment at a media briefing in Lagos, on Wednesday said, “It is only a very stupid business man that would not know there is fire on the mountain.”
Onyema lamented the rise in the cost of Jet A1 from N200 per liter to N430 per liter and also debunked the insinuation that airline operators met to fix ticket prices
“Some people even said that we are a cartel. We want to state clearly that the Airline Operators of Nigeria never got together to increase their base fare. We debunk that insinuation that the airlines got together to fix prices.”
“The N50,000 you have seen on our inventory has always been there for the last five years. During Christmas time, the period of December, you noticed that the base fare going to certain areas of the country would be N60,000, N70,000. Airlines didn’t come together to decide to do that.
“If the cost of aviation fuel has risen by over 200 percent within a month, what should I do? If the cost of forex (foreign exchange) has risen from N340 to N585, what should I do? Gentlemen, don’t forget airline business is dollarized. Everything is in dollars. Do you want to fall out of the sky or fly safe in Nigeria?
“In the year 2000, the lowest fare in Nigeria was N2,200 which was equivalent to $100 then. Now 22 years down the line, Nigerian airlines, we were charging less than $30, $40. Do you need to look for reasons why airlines are closing shops in this country? Over 50 airlines have closed down in this country. Has anybody bothered to find out why?”