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FX crisis: Airlines moan as fleet depletion worsens

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Fresh indications have emerged revealing that some domestic airlines’ operators may close up shop due to inability to access forex required to either return or take their aircraft outside the country for checks.

It was learnt that the country’s 12 scheduled airlines with different range of airplanes from Boeing 737 series, Airbus A320-300, A220-300, ATR, Embraer CRJ, Embraer E2, Embraer ERJ-145, Dash 8 to MD 83, among others, had suffered severe fleet depletion, leading to reduction in capacity.

May 29 Tinubu Special: One year of teetering on edge of hope
It was also gathered that the instability in exchange rate was affecting the cost of aircraft spare parts, forcing operators to constantly adjust airfares.

Stuck aircraft

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A senior member of Airline Operators of Nigeria, AON, and the Chief Executive Officer of Top Brass Aviation Limited, Captain Roland Iyayi, lamented the paucity of rex, calling for an urgent fix.

He said: “I know of a domestic carrier that has as many as 13 aircraft stuck at various maintenance facilities worldwide. The same operator, in the course of putting in bid for forex, has domiciled with the Central Bank of Nigeria, CBN, $14 million worth of naira. A year and half on, he is yet to receive the dollars.

“They have a situation where, because of this paucity or unavailability of forex, they are stuck with having about 30 per cent of their operational fleet stuck with maintenance facilities worldwide.

‘’That has depleted their fleet availability and schedule reliability. So, when you hear a lot of domestic airlines cancelling and delaying, it is not completely unconnected with the fact that they have not had FX available to be able to recover their airplanes to optimize operations.

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Unsustainable

“It is not sustainable. That is the reason a fleet of about 30 aircraft is now down to 21. Some airlines with about 10 airplanes are now down to four. What that translates to ultimately is an increase in fares because if there is no capacity and demand is higher, fares will increase. The lack of forex is a major factor in how domestic airlines fare.

“Right now, I think government should declare a state of emergency in aviation. If we continue at this rate, the fleet size of the domestic market may be reduced to as low as between 35 and 50 per cent within the next three months, meaning airfares will increase.”

Instability

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Also speaking to Vanguard, the Managing Director of Aero Contractors, Captain Ado Sanusi, said: “There is no part of the aircraft that is manufactured in Nigeria. So, whenever there is a rollercoaster of exchange rate, it translates directly to the price of spare parts being bought. ‘’That is what has translated to the number of aircraft we currently have in the country. The aircraft that are down for maintenance is a direct relationship to the exchange rate.

“If the foreign exchange could be stable, the airlines will adjust their tickets to reflect the foreign exchange. The problem lies in the rollercoaster of foreign exchange. And that is where airlines experience challenges to remain in business.

‘’However, when there is long-term stability in the FX market and the margin between the naira and dollar is not so wide, then one can plan.

Fiscal policy

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“Thank God the fiscal policy of current government is showing that we will probably have it stable between N1,400 and N1,500. If it remains, then I believe airlines can now adjust their tickets prices to reflect the exchange rate that would give them a good picture to plan ahead and make a good budget.”

VANGUARD

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PHOTOS Of Prisoners Who Escaped Borno Prison And Those Recaptured

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By Mario Deepromoter

Nigerian Correctional Service on Sunday disclosed that about 281 inmates escaped from Maiduguri Medium Security Custodial Centre following severe flooding in the capital city.

NCoS spokesperson, Umar Abubakar, said the agency had alerted the Nigerian Immigration Service, and Nigeria Police Force among other security agencies to help recapture the fleeing inmates.

“Every security agency in the country has been notified and they are on alert to help track down the fleeing inmates wherever they may be. With their help, we will capture them and return them to our custodial centre,” Umar said.

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In a statement on Sunday, he said of the 281 fleeing inmates, seven had already been recaptured and returned to the facility.

“The Nigerian Correctional Service has observed the flooding currently being experienced in Maiduguri, Borno State, and its environment.

The unfortunate incident has left scars, bringing down the walls of the correctional facilities, including the Medium Security Custodial Centre in Maiduguri as well as the staff quarters in the city.

“Upon the evacuation of inmates by officers of the service, with support from sister security agencies to a safe and secure facility, 281 inmates were observed to be missing.

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Presently, a total of seven inmates have been recaptured and returned to custody, while efforts are on the ground to track down the rest and bring them back to safe custody,” the statement read in part.

Abubakar further stated that details of the fleeing inmates had been made available to the public while noting that efforts were underway to track them.

“However, it is important to note that the service is in the custody of their details, including their biometrics, which are being made available to the public. The service is working in synergy with other security agencies as both covert and overt deployments have been activated to locate them. While this effort is ongoing, the public is assured that the incident does not impede or affect public safety,” the statement added.

Recall that the flood affected many parts of Maiduguri, leading to the displacement of over 300,000 residents and the deaths of over 30 people, including children.

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Meanwhile, Borno State Governor, Babagana Zulum, on Saturday said he was “seriously worried” that jailed Boko Haram terrorists might have escaped from the prison facility.

See Pictures Below;

Prisoners

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SEE new price of petrol across all 36 states

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By Mario Deepromoter

Despite the counter accusations by both Dangote Refinery and NNPCL over prices, the price list of petrol has emerged online.

According to reports, this is because NNPCL bought petrol at a higher price from Dangote Refinery on Sunday.

NNPCL also mentioned that Dangote Refinery sold the petrol in US Dollars, not naira, against the federal government’s directive.

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However, Dangote Refinery will sell its petrol in naira starting in October.

According to a breakdown from NNPCL, Dangote Refinery sold petrol to NNPCL at N898.78 per litre.

NNPCL paid Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) fee of N8.99, inspection fee of N0.97, a distribution cost in Lagos of N15, margin N26.48.

NNPCL’s statement added that the estimated pump price in:
Lagos will be N950.22
Sokoto State N999.22
Kano State N999.22
Borno State N1,019.22
Kaduna N999.22
FCT N992.22
Oyo State N960.22
Lagos State N950.22
Rivers State N980.00
Imo State N980.22

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An analysis of the chart showed that except from Lagos State, other states of the federation will be paying higher because of distribution costs.

The distance from Dangote Refinery and NNPCL‘s depot in Lagos State to other states of the country majorly would determine the price differences.

The report also showed that the six geo-political zones would be paying differently.

The North East states would be paying the highest per liter from N1,019.22, followed by North West states from N999.22, followed by North Central states from N992.22, followed by South East states from N980.22, South South states from N980.22 and South West states paying the least from N960.22, except Lagos State paying from N950.22.

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At the time of filing this report, the presidency is yet to speak on the latest development.

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Rivers 2027: Ogoni powerful men snub Fubara, throw weight behind Wike

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By Mario Deepromoter

Political heavyweights from the Ogoni and Oyigbo zones have formally withdrawn their support for Rivers Governor Siminalayi Fubara ahead of the 2027 general elections.

The leaders have dumped Fubara and lace their boots with the action packed Minister of the Federal Capital Territory (FCT), Nyesom Wike.

The leaders gathered on Saturday in Nonwa, Tai Local Government Area, at an event tagged “Ogoni, Oyigbo People’s Assembly.”

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The assembly, which focused on fostering unity between the two ethnic zones, was heavily attended by politicians loyal to Wike, who remains locked in a bitter political feud with Fubara, his estranged protégé.

Prominent personalities, including Senators Barinada Mpigi and Magnus Abe, Ambassador Desmond Akawor, and Chief Victor Giadom, attended the meeting.

The group emphasized that after years of marginalization, it was time for Ogoni and Oyigbo to produce the next governor of Rivers State.

Speaking on behalf of the assembly, Senator Mpigi declared, “The Ogoni and Oyigbo Peoples Assembly, a multi-political convergence of five Local Government Areas within the Rivers South-East Senatorial District, met today to reaffirm their support for the President Bola Tinubu-led administration and pledged total loyalty to the former Governor of Rivers State and current Minister of FCT, Chief Nyesom Wike.

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“We also reiterate the obvious fact that the senatorial district’s upland is due for a governor and should produce the next governor of Rivers State come 2027.”

Tensions between Wike and Governor Fubara have been mounting, with Wike publicly withdrawing his support for his former ally.

Wike, who was instrumental in Fubara’s rise to power, has accused the governor of straying from their shared vision for the state.

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