By Henry Uche
Concerned by the crises rocking the transport sector owing to dearth of Aviation Fuel (JET A1) and Premium Motor Spirit (PMS) popular known as fuel, the Institute of Chartered Secretaries and Administrators of Nigeria (ICSAN) has called on the Federal Government, the Nigeria National Petroleum Company Limited (NNPCL), and other stakeholders to urgently fix the problem considering the devastation and hardship this has caused Nigerians in recent time.
In a communiqué issued at the end of its webinar put together by the Aviation Sector Group of the Institute and signed by its Registrar/CEO, Taiwo Ganiyat Olusesi, (Mrs), the Institute observed with dismay that the unavailability of JET A1 and PMS has led to rapid rise in landing cost and selling prices to airline operators in recent months.
According to the document, there was a hike in air-fare by the airline operators as well as increase in their charges for cargo and courier services; delay in flight take-offs and sometimes total flight cancellation.
Other implications according to the institute include: Reduction in airline operators’ profit, accumulation of debts by domestic airline operators to Federal Airport Authority of Nigeria (FAAN), and other sister agencies; distress in the sector and job Losses. Moreover several airlines have gone under as a result of the “permacrisis” in the aviation sector while many others are struggling to survive.
“The quantum of business the nation has lost as a result of aviation problem and negative impact on the economy have undermined the critical nature of the aviation sector to the nation. “Air schedule reliability and customer satisfaction have considerably reduced for reasons beyond the total control of the airlines as the ongoing “permacrisis” in the aviation sector continues to make it difficult for airlines to render best services to their customer.
“If the crisis inherent in Jet A1 scarcity is not quickly arrested, it might lead to airline failures and further job losses. This, will throw the industry into chaos. There is therefore an urgent need to address the problem of Jet A1 scarcity in Nigeria in order to restore normalcy which would pave way for growth and development of the aviation sector in Nigeria,”
With the theme: “Jet A1 crisis and the implications for aviation industry”, the communiqué maintained that the importation of aviation fuel to bridge the gap of the scarcity could never be a viable and lasting solution as this is not sustainable, but can only be a temporary measure.
“Nigerian Government should partner with private investors to establish and maintain more functional and efficient refineries to fully exploit the potential of our economy as a top oil producing nation.
“The Federal Government should charge the NNPCL (in the meantime before the nation becomes self-sufficient in fuel production) with sourcing for Jet A1 in addition to its other responsibilities as it has both the structure and experience in this area.
This will make the situation less volatile than the present where individual vested interest has to import the aviation fuel. There will also be greater adherence to quality and standards if the importation is solely handled by the NNPCL.
“Airlines companies and fuel suppliers should continue to consider “Fuel Hedging” as way to reduce the impact of sudden hike in fuel prices.
“The airline companies should also embrace the modern trend of adding to their fleet, technologically advanced aircraft with remarkable comparative advantages like fuel efficiency, reduction in weight and overall improvement in aerodynamics and control systems.
“The regulators in the aviation sector must be more committed to their responsibility of ensuring compliance, safety and overall efficiency of the sector as they constitute one of the major bedrocks on which the superstructure of the entire industry lies,”
ICSAN emphatically emphasized the need for airlines to engage more with the consumers of their service(s) in terms of adequate communication (e.g. on issues relating to flight delay or cancellations) in the spirit of disclosure and transparency, as most consumers do not understand the workings of airline operations and may not be able to fathom the full ramifications of the challenges being faced by the airlines.
The Institute tasked Nigerians to be wary of unwholesome practices, including keeping items like currencies in their checked-in luggage. They should also ensure they take precautions by insuring their essential items with value above the insured sum provided by the airline companies.
“There should be a three-way agreement among the Ministry of Aviation, the NNPCL and the Central Bank of Nigeria (CBN) to foster collaboration in ensuring interrelated problems line sourcing for Foreign Exchange and standard aviation fuel and lack of proper planning and coordination affecting the aviation are effectively addressed.
“All stakeholders in the aviation industry should work in synergy to ensure the health and continued survival of the industry, not only through refraining from practices and activities capable of undermining the sector but also through embracing positive practices that conduce to the interests of other stakeholders including employees, customers and suppliers. This will strengthen the integrity and prosperity of the sector,” it read.