Ticket Fare Hike

The rising oil price in the international market has continued unabated moving close to the $100 mark; it is usually accompanied by panic, shock and inflationary tendencies. It is a norm for airlines world over to respond by either using the numerous operational fuel saving strategies or effecting increase in fare, which is usually borne by passengers. The airlines use terminologies like fuel surcharge, fuel tax, distance or sector charge etc.

In Nigeria, the oil marketing cartel, held the industry by the jugular using deregulation and closed participation to a profitable advantage even when the international price was stable, while equally frustrating efforts of one or two domestic airlines, who have decided to get their own fuel dump.

It took the intervention of the house committee on aviation, to bring down the price of Jet A1 locally sometime ago despite having stable oil price at the international market. The oil marketers should realise, their actions is depleting the country's expected revenue. Because some foreign airlines prefer going to Accra, Ghana, to pick fuel, thereafter pick passengers, lodge crew and maintenance personnel that would have been provided by related organisations in Nigeria.

The domestic carriers must unite and work towards beating the marketers to their game considering some of them have interest in the oil industry rather than adopting a me, myself and I principle. Air Canada at a time in the past was importing crude oil directly from Nigeria to reduce cost. Also, airlines should endeavour to liaise with related agencies and organisations at the airports to ensure flights are swiftly handled and despatched to reduce fuel consumption, while also adopting conventional fuel saving strategies known to the industry.

The government can give airlines fuel bailout, by regulating, reducing or eliminating fuel tax or releasing a certain quantity to them in batches at a reduced or subsidised rate. This will not be uniquely Nigerian, the Indian, Brazilian and Chinese governments have done it for their carriers. The Bolivians gave conditionality’s such as acquiring newer aircraft before participating in the subsidised fuel programme.

The passengers will not mind a slight adjustment in price and will remain loyal to the industry, provided we maintain, sustain and ensure safety always, while also improving service level. They are aware that the industry benefited from the excess crude account, which was used to improve infrastructure. The airlines must continue to provide different strata of fares as witnessed in the year 2010, with a promise to adjust the fares downwards in line with the international oil price.

Finally, for our carriers that are craving for public funds, bailout, act, support e, t, c. They need to expand ownership by involving Nigerians, none of the airlines operating into the country is owned by an individual even Virgin Atlantic, in the absence of a national carrier we need flag carriers we can identify as truly Nigerian. The Tanzanians are seriously considering abandoning the troubled National Carrier, Air Tanzania, after wikileak exposed the shady conditions given to Boeing. The successful and privately owned, Precision Air, quickly capitalise by offering to give participation to Tanzanians to replicate flag ownership, can our own operators replicate same before requesting for public support.