Experts in the aviation industry have said that Nigerian airlines spend more on aviation fuel than their counterparts in other parts of the world, The Punch reports.
On the average, Nigerian carriers are said to spend about 40% of their expenditure on fuel, whereas their counterparts globally spend about 29%, showing a difference of 11%. The Chief Executive Officer of Kitari Consult Limited, an aviation consulting firm, Mr. Ali Magashi, gave the indication along with other aviation experts in Lagos. He said in Africa, aviation fuel was about 20% more expensive than on other continents, adding that the cost was even higher in Nigeria and added that this is a major reason why airlines are not able to break even.
The Chairman, Airline Operators of Nigeria, Capt. Noggie Meggison, said after spending almost half of their total funds on aviation fuel, airlines were often left with about 60% of the total income to cover other costs such as insurance, maintenance, payment of salaries, levies and taxes. The Chief Executive Officer of Med-View Airline, Mr. Muneer Bankole and the Chairman and Managing Director of Air Peace, Mr. Allen Onyema, also echoed the sentiment and indicated that the major problem of airlines in Nigeria was the high cost of aviation fuel in the country.