100% hike in airfares: Experts say insecurity, cost of operations responsible

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By Francis Ogwo

Experts in Nigeria’s aviation sector have attributed the rising insecurity situation around the country and the increased cost of operations as responsible for the 100% hike in airfares across the country.

Recall that in recent days, there have been widespread complaints by passengers of a hike in airfares with most airlines doubling their fares even within the space of a day.

The Managing Director of Aero Contractors, Captain Ado Sanusi, while confirming the hike said airlines could not access foreign exchange at the official rate as the Federal Airport Authority of Nigeria had increased its fees.

According to Sanusi, unless airlines were given special concessions, the prices would continue to rise and could hit an average of N100,000 for even the Lagos/Abuja route.

In his words, “We were buying dollars at N360 and it went to N380 but you can’t get it for less than N480.

“We are paying VAT at 7.5 per cent. We are paying 15 per cent duty on our spare parts. The boarding passes, we pay 15 per cent duty on it.

“The passenger service charge has been increased by FAAN. So, don’t look at one component but look at the total reason for the increase.

“Yes, there is an increase in demand but it is caused by the lack of aircraft and this lack of aircraft is caused by unavailability of spare parts which is also caused by dollar scarcity.”

According to reports, several airlines on their websites have doubled their fairs, even passengers who made advance bookings not spared in the hike.

Information available on the sites of selected airlines show that a flight from Lagos to Abuja on Max Air on Monday was put at N80,000 while the same flight on Aero was fixed at N107,000.

Also passengers travelling to Kano from Lagos on Arik Air on Saturday, would pay about N70,618 while the flight would cost N65,564 for the same route on Tuesday.

In the same vein, a one-way ticket from Maiduguri to Lagos for Saturday on Max was put at N100,000 while the same flight costs N70,000 for Monday.

Overland Airways, which travels less busy routes with its much smaller aircraft, also hiked its ticket prices.

It was also observed that the Lagos-Port Harcourt route, which is one of the busiest in the country, had also been affected.

A check on Arik Air’s website on Friday showed that there were no available seats till Monday and the price for the four available seats was fixed at N52,868 each for afternoon flight and at N57,045 for morning.

Ilorin to Abuja flight was put at N56,000 on Saturday and N61,500 on Sunday; the same route was put at a cost of N56,000 on Tuesday and N52,500 on Wednesday.

Also casting his view on the issue was the General Secretary, Aviation Roundtable, Mr Olumide Ohunayo, who said insecurity around Nigeria played a major role in the rising airfares in the country.

The nation had over the days been thrown into palpable fear with the rising cases of kidnapping along the highways including a recent breakdown of a passenger train along Kaduna-Abuja route.This, experts argue has pushed up the demand for air travel and influx of passengers.

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