Air Peace Ltd. says the operating cost for a one-hour flight exceeds N14 million.
The airline’s Chief Operating Officer (COO), Mrs Oluwatoyin Olajide, disclosed at a news conference on Friday in Lagos.
Olajide said that N7 million is required to purchase 4,000 litres of jet A1 (aviation fuel), which is currently sold for N1,400 per litre.
She added that for Aircraft, Crew, Maintenance and Insurance (ACMI), the airline spends about 4,000 dollars for a one-hour flight.
According to the COO, N5 million is required for every one-hour flight, a figure significantly higher than what operators’ counterparts pay globally.
“There are factors that define operating cost and they include aviation fuel which takes between 60 per cent to 65 per cent of the operating cost.
“One litre of fuel is N1,400. If I have to operate a one-hour flight from here to Abuja, Port Harcourt, Owerri, I am going to be using about 4,000 litres of fuel.
“So, on average, a one-hour flight costs N7 million on fuel alone. Also, ACMI costs 4,000 dollars for leasing planes, considering the challenges we are currently facing,” Olajide said.
She explained that, on average, operating a one-hour flight costs N7 million, with an additional N7 million for fuel, bringing the total to N14 million.
She noted that insurance for a one-hour flight costs an additional N5 million.
“For financing, we pay about 30 per cent to borrow money, while foreign airlines pay around three percent. Also, Nigerian airlines pay four times more than others for spare parts,” she added.
According to Olajide, given the operating costs of Nigerian airlines, it is not easy operating with the current airfares.
She emphasised that a one-hour trip within Nigeria should cost no less than N500,000.
Speaking on the recent report of fare exploitation, Olajide said that the allegation had cost the airline a major international slot.
She also clarified that the Federal Consumer and Customer Protection Commission (FCCPC) only invited the airline for enquiry and not investigation as reported by some media.
She said that the Chairman of the Airline, Dr Allen Onyema, honoured the invitation.
She, however, said that FCCPC, could have directed the enquiry to the Nigeria Civil Aviation Authority (NCAA), the regulator of the airline.
Olajide recalled the airline’s selflessness during COVID-19, Xenophobia and the evacuation of stranded Nigerians from foreign countries at no cost.
