OIL PRICES SLUMP: ARIK AIR, AERO CONTRACTORS, OTHER AIRLINES JACK UP AIRFARES

Local commercial airlines operating in Nigeria have increased their airfares by 60 percent. Reports has it that airfares on domestic routes have gone up as a result of the fall in naira value and the fluctuating price of aviation fuel, popularly called Jet-A1.

Findings revealed that most airlines operating one hour flights across the country had adjusted their fares upwards. Presently a one-way Flight from Lagos to Abuja that once cost between N15,000 and N20,000 had been raised to N25,000 or N35,000, depending on the airline. Arik Air was charging about N30,000 for a one-way flight, while Aero Contractors charged N25,000.

New carriers such as Air Peace charge between N18,000 and N20,000, they even adavice passengers to do the transaction online so as to reduce the operating cost for the carrier. High fares were also charged during rush periods, especially during weekends. The development is compounded by the continued fall in the value of the naira and slump in the prices of oil worldwide.

“The airline operators have even tried. When the naira started falling, they did not increase airfares. But since it has persisted and is now affecting Jet-A1, they have to adjust the fares in order to survive. They have to pay salaries, buy spare parts, pay their dues to agencies of the government and service other costs that keep the business afloat. So, basically it is a survival strategy that the airlines have adopted to stay in business,” stated an Aviation official. The official also stated that the cost of maintaining airplanes have also increased.

Also some airlines travel with about 20 passengers onboard and this is as a result of the harsh economy. A lot of people do not have money to fly again. People are cutting down on travels in order to save money and this is because of the economic hardships. The oil marketers that import aviation fuel pay for their transactions with foreign currencies which is a problem at the moment.