JET-A1 Crisis: Airlines Borrowing Billions To Stay Afloat, Says Air Peace CEO

Nigerian airlines are borrowing billions from banks to buy aviation fuel and keep their operations running, Air Peace chief executive Allen Onyema has said.

Vanguard reported that Onyema spoke on Tuesday during an appearance on Arise TV, where he disclosed that aviation fuel costs have risen by 250 to 300 per cent in Nigeria compared to 30 to 40 per cent globally.

Onyema said the cost of fuel per flight has risen from about N3 million to N4 million to between N12 million and N13 million. He said airlines have borrowed billions just to buy fuel and fly.

He blamed middlemen in the supply chain for the price spike and urged President Tinubu to set up an Aviation Taxes Review Committee to address the crisis.

Onyema also opposed the proposed five per cent NCAA Ticket Sales Charge, saying it would further burden airlines already struggling with fuel costs. He cited the Iran war as a trigger for the global rise in fuel prices.

Sources: Vanguard