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Wednesday, July 20, 2022

Airlines write FAAN, NCAA over Lagos airport runway closure

Airline operators say that a week after the closure, work had yet to begin on the runway, causing “unsustainable additional operating costs” to airlines.

• July 19, 2022
Airline Operators of Nigeria
Airline Operators of Nigeria

The Airline Operators of Nigeria (AON) has written to the Federal Airports Authority of Nigeria (FAAN), seeking an urgent review of the 90-day closure of the runway.

The group’s letter, dated July 15, signed by AON president, Abdulmunaf Yunusa, lauded the project, but said a week after the closure, work had yet to begin on the runway, and the move was causing “unsustainable additional operating costs” to airlines.

“International best practice for such critical airfield infrastructure projects is for the airport operator to enter into discussions with all affected parties, to arrive at an optimal arrangement that allows the work to be done while limiting the inconvenience, economic impact and safety implications on all concerned.

“In this instance, FAAN failed to do this,” the operators said in the letter directed to the managing director of FAAN, Rabiu Yadudu.

”The airlines have already felt these additional costs within the first week of the closure of the runway,” it said. “This unnecessary burden is unsustainable for a 3-month period on the airlines.”

Similarly, the body wrote to the NCAA in a letter dated July 18 and directed to Musa Nuhu, its director-general, on their concerns.

The AON said, “In addition to the crippling effect of intermittent shortages of Jet A-1, the price has risen from 420 per litre in February 2022 to over 780 today.

”This has greatly increased the operational cost of airlines by well over 130%. Yet, airlines are unable to increase fares and as well suffer from the unavailability of foreign exchange to conduct their operations.

“In order to forestall a backlash and total shutdown of the system, airlines are hoping to resort to an introduction of a Fuel Surcharge of between 25% – 40% of NUC as a way of offsetting the additional burden brought about by increased fuel cost bearing in mind that jet fuel accounts for about 40% of total operational expenses.”

The AON called for an immediate review of the decision that airlines must obtain approval for an initial three months before implementing a fuel surcharge.

It sought a waiver of the demand that airlines pay an additional five per cent on the fuel surcharge entirely separate from the five per cent Ticket Sales Charge (TSC).

Efforts to reach both aviation bodies were unsuccessful at the time of filing this report.

(NAN)

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