Aviation sector is bleeding seriously – UNAC boss, Obiora Okonkwo laments
Chairman, United Nigeria Airlines Company Limited, Prof Obioro Okonkwo, has said that Nigeria’s aviation industry is facing serious challengesChairman, United Nigeria Airlines Company Limited, Prof Obioro Okonkwo, has said that Nigeria’s aviation industry is facing serious challenges.
Okonkwo, in a recent interview with Vanguard on the state of the nation, said that the “aviation sector is seriously bleeding” as he mentioned numerous battles confronting it.
Speaking about many things, he said the number of aeroplanes is decreasing because of the challenges faced with foreign exchange.
“And they (aeroplanes) are continuing to drop. I can tell you that about 40% has dropped and in the next one or two months it might get to 70% drop in the fleet. And it is not the fault of the aviators,” Okonkwo “And they (aeroplanes) are continuing to drop. I can tell you that about 40% has dropped and in the next one or two months it might get to 70% drop in the fleet. And it is not the fault of the aviators,” Okonkwo said.
While listing the problems, the aviation Don said the industry operates on the dollar, and that much of the goods and services are transacted in the dollar.
He said, “Look, 99% of aviation is forex, and the currency of aviation is dollar. So, starting from those who are marketing JetA1 fuel, they bench-mark their cost in dollars, and all the spare parts you need are bought in dollars.
“Unlike your car, which you service when you notice something bad, it is not the same with aviation. There are services that you must do by calendar whether you fly or you do not fly; some services are by cycles whether you like it or not.
“What this means is that things must be done as they should be done, not as you like because if you do not follow the procedure, the aircraft is grounded. You’re doing all these with dollars. But now you can not access the dollars, and 100% of our earnings on domestic flights are in naira, which is losing value.
“The ticket you sell today in naira, by the time you convert it to dollars to buy spare parts and do maintenance, it has been up by almost 30% to 40%.The ticket you sell today in naira, by the time you convert it to dollars to buy spare parts and do maintenance, it has been up by almost 30% to 40%.
“I can tell you that for almost nine months, we have never had an official allocation of forex for airlines. Every airline is buying from the parallel market. So you’re buying in the same market with somebody who is importing Brazilian hair, toothpick and those who are also mopping up the forex.
“It should not be so because aviation is a catalyst for economic growth, and it has national security implications. Some of us still have in CBN huge sums of money we’ve been debited for two years now: We do not have our money back and the dollars we did not get.”
Corroborating the UNAC MD’s statements, an air travel agent in Lagos, said passengers complain so much about the flight tickets that continue to rise. The source said in the last months, flight tickets from Lagos to Abuja were between N50,000 to N80,000 but have skyrocketed to N100,000 to N130,000 now.
Vanguard
