According to Aviation Experts, Nigerian Airlines spends more on aviation fuel than International Airlines. It was revealed that over 40% of their expenditures go to fuel averagely. While their counterparts spend less 29% a difference of 11%.
Chief Executive Officer of Kitari Consult Limited, an aviation consulting firm, Mr. Ali Magashi disclosed that the cost of aviation fuel is higher in Nigeria which is about 20 percent more expensive than on other continents. Hence the reason why Nigerian Airlines cant break even
“The aviation industry in Nigeria is constrained by numerous challenges, which have resulted in value loss, increased debt and airline failures. With almost half of revenue spent on aviation fuel, Airlines are often left with about 60 percent of the total income to cover other costs such as insurance, maintenance, payment of salaries, levies and taxes.
A very good reason why many airlines in the country struggle to remain in business; while some others had to shut down few years after starting operations. Apart from the cost of aviation fuel, which rose to N265 per litre early 2017, Nigerian airlines are sometimes made to pay in advance during the scarcity of the product.
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Aside from the fuel situation carriers face, Airport infrastructure is also another major hindrance to the growth of airline industry. Mr. Ali Magashi said “Many airports in the country are in a state of disrepair while basic infrastructure such as adequate runway capacity and terminal facilities were often lacking at major airports, some of which were notably underutilized.
“Reforming the Nigerian aviation sector would depend on the implementation of various critical factors by all relevant stakeholders particularly the government.”
