‘Domestic Airlines Owe Banks N200bn’

The General Secretary of Airline Operators of Nigeria (AON), retired Capt. Mohammed Joji , said on Wednesday in Lagos that domestic airlines were owing banks about N200 billion.

He spoke at an interactive session with aviation stakeholders at the Murtala Muhammed International Airport.

“Domestic airlines’ debt now stands at about N200 billion.

“With the debt profile, the cost of operation by airlines in the country remains one of the highest in the world,’’ Joji said.

He, however, expressed doubts about the ability of the airlines to defray the huge debts.

“The way things are going, airlines will have to think of their survival first before they can think of paying the debts,’’ AON’s scribe added.

On the cost of operation by the airlines, Joji said the price of aviation fuel, Jet A1, had increased from N170 per litre to N191.

He described the increment in fuel price from 31 kobo per litre, as at 1976, as astronomical and said it was beyond the reach of the operators.

“Despite the high cost of operation, airlines have not increased airfares to ensure that the volume of passengers does not reduce,’’ Joji said.

He noted that the intervention fund provided by the government had not bailed out the airlines, saying “it has only succeeded in bailing out banks that the airlines are indebted to’’.

Joji accused the Nigeria Customs Service of failing to implement the waivers granted by the Federal Government in 2005 on spare parts importation.

He said:“Up till this moment, the Nigeria Customs Service has not implemented the waivers.

“The essence of the waiver was to ensure that the cost of operation by airlines is reduced drastically so that they will not cut corners to avoid air crashes