There's trouble in the skies
as practically all the nation’s airlines are now suspending, cancelling and
rescheduling flights, amidst acute aviation fuel shortage.
First to formally
acknowledge there’s a big issue with procuring the essential aviation fuel was
Nigeria’s largest indigenous airline, Arik Air.
The airline had to cancel
the last of its Owerri-Abuja evening flight on Sunday, April 26, 2015 as a
result of scarcity of aviation fuel.
Arik had to scale down
flight operations all through last week.
Things got so bad that the Managing Director of the airline, Mr. Chris
Ndulue warned they might suspend flights if the scarcity persisted.
Arik’s position jolted the
aviation sector as concerns were raised over the fate of thousands of
passengers who would be stranded at the various airports across the country as
Nigeria major airline planed to suspend flight operations due to the lingering
aviation fuel scarcity in the country.
The Managing Director, Arik
Air, Mr. Chris Ndulue made this disclosure on Friday, May 1, at the airline
corporate headquarters while addressing aviation reporters.
He said the airline has been
operating only 20 per cent of its daily flights schedule due to scarcity of
aviation fuel, particularly in Lagos, its major hub.
According to Ndulue, “This
aviation fuel scarcity started last week Thursday. And since then, we have had
to scale down our operations due to non-availability of fuel. We have had to
cancel and reschedule flights. We couldn’t depart for Dubai yesterday due to
this scarcity. It is becoming impossible to continue. We will suspend flights
operation from tomorrow (Saturday, May 2), until when aviation fuel becomes
available.”
Arik Air controls about
sixty percent of the Nigerian aviation market. The airline operates about 120
flights on its domestic routes daily covering over 22 airports across the
country.
Efforts to know the true
state of affair at Arik before going to press was not fruitful as the airlines
spokes man, Mr. Ola Adebanji didn’t respond to our inquiries.
The scarcity of aviation has
indeed forced all the airlines to cancel flights. From Aero Contractors, Air
Peace, Dana to First Nation,it has been sad stories for travellers whose
flights are cancelled at will.
For instance, only Arik flew
to Lagos on Monday morning (May 4, 2015) as scarcity of aviation bite harder,
despite the truce the Federal Government reached with petroleum product
marketers.
A source told us that an
Owerri-Lagos bound Aero flight was even cancelled on Monday (May 4) morning,
even as other airlines didn’t fly at all.
A staff of Aero who was not
authorised to speak on their behalf also told us that scores of flights are
being cancelled since the scarcity of petroleum products hit the land.
“It’s been tough, my dear.
Flights are being cancelled daily due to the scarcity of aviation fuel. Even
international flights are affected. To
double passengers’ woes, cost of flight has also increased marginally. I won’t advise my enemy to travel until this
fuel issue is sorted out.”
A ticketing officer at Sam
Mbakwe International Cargo Airport also spoke with complained about the
negative effect of the acute fuel scarcity on aviation business. She regretted
that the Federal Government has not handled the disagreement with oil marketers
with the seriousness it requires.
The major oil marketers have
refused to import products, claiming the Federal Government owes them over N200
billion after they were paid N156 billion last week. This has led to scarcity
of petroleum products, including aviation fuel, nationwide.
FG WARNS OIL MARKETERS NOT
TO HOLD THE COUNTRY TO RANSOME
Meanwhile, the Federal
Government on Sunday, May 3, 2015 called on oil marketers to be patriotic in
their decisions by considering the interest of Nigerians who always bear the
brunt of their actions, noting that they should not by their actions hold the
country to ransom.
The Minister of Finance and
Coordinating Minister of the Economy, Dr. Ngozi Okonjo-Iweala, while speaking
with journalists in Abuja said contrary to claims by the marketers that they
were being owed about N200bn after being paid N156bn last week, what is being
owed them is about N131bn.
The marketers had claimed
that the government’s indebtedness to them for oil subsidy was about N354,4bn.
Confirming the figure, the
Executive Secretary, Major Oil Marketers Association of Nigeria, Mr Thomas
Olawore, had said, “The government had paid N154.2bn out of N354.4bn and we are
left with a balance of N200.2bn.
“What happens to the
N200.2bn? That is why we requested that the government invites us so that we
can be told how it intends to liquidate the remaining N200.2bn.”
But the minister said this
figure could not be correct, insisting that the balance that is left based on
Petroleum Pricing Products Regulatory Agency’s template is about N131bn.
“As you know, we paid N156bn
recently, N100bn of the principle payment that we owe them and then we paid
N56bn interest rate and some remaining exchange rate differentials.
“Prior to that, we have just
paid N31bn exchange rate differentials. So at the time we paid that last week,
what we had outstanding is N98bn.”
According to her, every
week, the Petroleum Products Pricing Regulatory Agency sends data and that is
what government only subscribes and certified as what is due to marketers.
“As at now, since we made
the announcement last week, it has now risen from N98bn to N131bn outstanding
in principle payment.
“And they are now making a
demand of N200bn and I asked them what is the balance for,” she added.
She likened the oil
marketers to a small cartel that are into a no risk business based on template
negotiated with PPPRA long time ago which factored in exchange rate
differential, and profit margin guarantee.
This situation, she said,
leaves them with absolutely no risk.
She said, “It has become a
situation where we have a cartel that can ground the nation to a halt at will.
I strongly suggest that the nation has to do something about it.
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