Posted by By Kenneth Ehigiator on
THERE are indications that local airlines operating in the country have no plans to increase air fares in response to recent increase in the price of petroleum products, especially premium motor spirit which is currently fixed at N65 per litre.
LAGOS-THERE are indications that local airlines operating in the country have no plans to increase air fares in response to recent increase in the price of petroleum products, especially premium motor spirit which is currently fixed at N65 per litre.
Prior to the increase by the federal government last weekend, aviation fuel, otherwise known as JET-A1, sold for between N62 and N70 per litre, depending on which part of the country it is being sold.
As at yesterday, price of aviation fuel still hovered around the existing figures, starving off any increase in air fares.
Co-ordinator and spokesman of Chanchangi Airlines, Alhaji Mohammed Tukur, said neither his airline or any others have the intention of raising fares, at least for now.
According to him, "we are still getting aviation fuel for between N62 and N70 per litre. You know aviation fuel is cheaper than petrol for cars.
"We learnt yesterday (Monday) that the price per barrel of oil in the international market is now $70, and if this increase continues, especially when this new import into the country is exhausted, then we will have no choice but to raise fares. But for now, we don't have plans for fare increase."
Tukur also dismissed speculations that the Airline Operators of Nigeria (AON) was contemplating fare increase, stressing that current price of aviation fuel doesn't warrant any fare hike.
He, however, said some airlines with very limited number of aircraft might want to increase fares, as their equipment limitations does not give them the bargaining chip for fuel supply.
"Here at Chanchangi, we have nine aircraft, therefore, we enjoy certain discount and preferences from major marketers because of the number of aircraft we have. The way we source our fuel is different from others.
"Also, look at Bellview, with the number of aircraft they have in their fleet, it will be easier and cheaper for them to source cheaper fuel. But even at that, I don't really foresee any fare increase," said Tukur, who noted that should there be any further increase in the price of crude oil beyond $70 per barrel, there definitely would be fare hike.