Air Peace reveals 1-hour flight fare exceeds ₦14m
Air Peace Ltd. has announced that the operating cost of a one-hour flight exceeds N14 million.
During a press conference on Friday in Lagos, the airline’s Chief Operating Officer, Mrs. Oluwatoyin Olajide, shared insights into the financial burdens faced by the aviation industry.
Olajide highlighted that approximately N7 million is allocated for purchasing 4,000 liters of Jet A1 aviation fuel, which is currently priced at N1,400 per liter.
Additionally, she noted that the airline incurs around $4,000 for Aircraft, Crew, Maintenance, and Insurance (ACMI) for each one-hour flight.
According to Olajide, the combined expenses amount to N5 million per flight, emphasising that this expense is significantly higher than what airline operators pay around the world.
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“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.
The FCCPC had on Dec. 2 written to the airline, inviting them for an enquiry on the complaint of fare exploitation.
The FCCPC later clarified that it was not conducting an investigation into the airline but rather an enquiry, contrary to reports circulated in the media.
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