Lagos, Nigeria (PANA) - Domestic airlines in Nigeria may hike their fares following an increase in the price of aviation fuel, called JET A1.
According to operators, a litre of the fuel has gone up from 170 naira (US$1) to 195 naira (US$1.2), putting the airlines in a tough situation since 60 per cent of their revenue is gulped by fuel costs.
“Just last Saturday, fuel marketers raised fuel price and it has gone up from N170 to N195. You need N9,375 (US$60) for passengers to pay for fuel. How much are you charging? N21,000 (US$133), N23,000 (US$145)? What about maintenance? What about the charges?
''If you increase your air fare, people will go to the road to take night buses, then you lose passengers,” said the Secretary General, Airline Operators of Nigeria (AON), Mr. Mohammed Joji.
AON, which is the umbrella body for domestic airlines in Nigeria, has been appealing to the federal government to assist the airlines.
-0- PANA SEG 12April2012