July 19, (THEWILL) – Domestic airline operators in the country under the aegis of Airline Operators of Nigeria (AON), has called for the removal of 5 percent fuel surcharge by the Nigerian Civil Aviation Authority (NCAA).
The operators also demanded for the review of the decision that airlines should obtain approval for an initial three months before implementation of a fuel surcharge.
The operators, in a letter to Captain Musa Nuhu, the director general, NCAA, dated July 18, 2022 and signed by its President, Alhaji Abdumunaf Sarina, indicated intention to introduce fuel surcharge of between 25-40 percent in a bid to cushion the effect of the situation.
The airline owners are also asking that taxes should be based on the fare due to airlines adding that fuel surcharge should be exempted from Ticket Sales Charge (TSC).
“The Airline Operators of Nigeria, hereby, wishes to seek your kind approval of fuel surcharge as an ameliorative measure to cushion the effect of the continuous increase in the exorbitant price of Jet-A1 on airline operations in the country.
“In addition to the crippling effect of intermittent shortages of Jet-A1, the price has risen from N200 per litre in February 2022, to over N780 today. This has greatly increased the operational cost of airlines by well over 130 percent, yet, airlines are unbale to increase fares and as well, suffer from unavailability of foreign exchange to conduct their operations.
“In order to forestall a backlash and total shutdown of the system, airlines are hoping to resort to an introduction of a fuel surcharge of between 25% to 40% of Neutral Unit of Consumption (NUC), as a way of offsetting the additional burden brough about by increased fuel cost, bearing in mind that Jet fuel account for about 40% of total operational expenses.
“We, therefore, solicit your kind understanding and support by reconsidering and reviewing the following decisions taken by your organisation in this regard: immediate review of the decision that airlines are required to obtain approval for an initial three months before implementation of a fuel surcharge and waiver of the demand that airlines pay an additional 5 percent on the fuel surcharge entirely separate from the five percent ticket sales charge (TSC).”
According to the operators, unless this is done, it will mean in effect, that whatever is collected by the airlines as fuel surcharges to cushion the effect of the high fuel price will be taken away once again by NCAA
“May we therefore, propose that taxes should be based on the portion of the fare due to airlines less the fuel surcharge, which is specifically for the purpose of cushioning the effect of rising fuel price and not on the total paid for the ticket inclusive of the fuel surcharge (fuel surcharge should be exempted from TSC)’’, the operator’s added.
About the Author
Anthony Awunor, is a business correspondent who holds a Bachelor of Arts Degree in Linguistics (UNILAG). He is also an alumnus of the Nigerian College of Aviation Technology (NCAT), Zaria Kaduna State. He lives in Lagos.
