United Nigeria Airlines says soaring Jet A1 prices linked to the Iran crisis triggered N10bn losses.

Executive Chairman of United Nigeria Airlines, Professor Obiora Okonkwo, revealed that the carrier lost about N10 billion in a three-month stretch, occasioned by high cost of aviation fuel due to the Middle East crisis.

Within the last two months alone, Airline Operators of Nigeria (AON) recorded 266.7 per cent surge in Jet A1 (aviation fuel) prices, which spiked from N900 to N3,300 per litre.

Okonkwo, in his speech at the equipment unveiling ceremony, explained that the two aircraft were named in honour of two icons, the Obi of Onitsha, Igwe Nnaemeka Achebe, and the late globally acclaimed literary giant, Chinua Achebe.

Reflecting on the airline’s survival strategy, Okonkwo stressed, “There are seasons when there are low passengers, but in the last three months, what we have seen is simply too much. We have lost about N10 billion, N5 billion, N6 billion in a space of three months as a result of the closure of the Strait of Hormuz. We have to make up for the losses we have incurred in the last three months.”

Okonkwo, however, said, “We have gathered here to celebrate. Two, three, four years ago, it was not clear what the future of aviation would be. There were issues, and in Nigeria, aviation was in total turmoil; until our minister, Festus Keyamo, stepped in.

“When he took over, we had a meeting in his office where he promised he would address the policy issues. Today, the right policies have helped us come this far.

“Today we have one Achebe that introduced Africa to the whole world. He is from my home town. Wherever I go around the world, I tell them that Okonkwo in Things Fall Apart is my great-great-grandfather. We have another Achebe who is a living legend and icon. We have here the Obi of Onitsha, Nnaemeka Achebe.”

Detailing the hidden operational deficits forced upon domestic carriers by international supply chain disruptions, Okonkwo stated, “The journey of this aircraft purchase was a long one. It started with the Boeing visit, the Minister of Aviation, and Moore Ibekwe (Executive Sales Director for the Africa, Middle East Region, Boeing Commercial Airplanes).”

He expressed gratitude to the leadership of the apex regulatory body for removing bureaucratic bottlenecks during the induction of the new fleet.

He said, “We are thankful to the Director General of the Nigeria Civil Aviation Authority (NCAA) who has made our services possible. I told him I had three aircraft that were arriving. Three of his directors came to our office on a Saturday, prepared all the documents, inspected the aircraft, and issued all the certificates. The process of operating aircraft won’t be easy without ease in certifications.

“United Nigeria started with just four old aircraft. I sent 23 pilots for heavy maintenance C-checks in South Africa, and two days after they left, the airspace closed down. Those 23 pilots were stuck there. We were paying for hotels and medicals for nine months.”

Okonkwo also spoke against a government policy stipulating that aviation agencies must remit part of their earnings to Single Treasury Account (TSA), pointing out that infrastructural deterioration stems directly from the deductions.

He stated, “Minister, we are not happy with the recent report from IATA (International Air Transport Association) that Nigeria is the most expensive place to operate commercial airline. It means it costs operators more to operate.

“We want a reduction in the charges. Unless the government leaves the money of aviation in the NCAA and Federal Airports Authority of Nigeria (FAAN) accounts, the services they offer will not improve.”

He added, “Government yanks out 70 per cent from of the aviation revenues to do other things that are not aviation-related, and this strains the NCAA and FAAN. If we leave these monies in their accounts, they will be encouraged to provide the needed services.

“The core aspect of the Nigeria economy is driven by aviation. In conclusion, when this is done, the government can also provide a single-digit loan to the airlines.” (AriseNews TV)