Airline operators’ stance on ticket prices
The Spokesperson of Airline Operators of Nigeria and the Chairman of United Nigeria Airline, Obiora Okonkwo, reaffirmed on Monday during an interview on Arise TV that the prices of air tickets in Nigeria will not be reduced, despite the recent appreciation of the naira against the dollar.
Government Intervention and Industry Reaction
This statement comes in response to the recent warnings issued by the Minister of Aviation and Aerospace Development, Festus Keyamo. Keyamo emphasized that airlines would be held accountable for flight delays and any other discrepancies.
Industry Challenges and Implications
Okonkwo highlighted the complexities faced by the airline industry, noting that the government’s attempt to hold someone responsible for their actions or inactions complicates the situation further.
Impact on Airline Operators
With the average price of air tickets soaring from approximately N60,000 to nearly N200,000 for an economy seat, Okonkwo stressed that the airline operators are the primary victims of these high costs.
Pricing Dilemma and Losses
Despite the seemingly exorbitant prices, Okonkwo emphasized the operators’ considerations and their reluctance to further escalate ticket prices. He underscored the significance of maintaining an affordable rate to ensure optimal passenger occupancy.
Forex and Operational Challenges
Airline operators have persistently encountered obstacles in accessing foreign exchange, leading them to resort to the black market, where forex rates surpass N1,000/$. However, following the recent intervention by the Central Bank of Nigeria, the currency saw a notable drop to less than N950 over the weekend.
Long-Term Industry Outlook
Okonkwo expressed hope for a gradual stabilization in the cost of tickets, emphasizing the need for a consistent forex rate. He also shed light on the ongoing struggles with the high cost of aviation fuel and the substantial borrowing rates exceeding 25%.
The Call for Support
In a plea to the government, Okonkwo reiterated the critical role of the aviation industry in the country’s development and urged the authorities to consider providing feasible financial assistance similar to other vital sectors.
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