Within the Nigerian aviation industry, airlines are currently facing substantial operational challenges due to the scarcity of foreign exchange. This scarcity has resulted in an increase in the number of grounded aircraft and a subsequent reduction in the industry's overall capacity. The procurement of essential maintenance and parts, primarily sourced from international markets, has become increasingly difficult, compelling numerous airlines to temporarily decommission their aircraft.
The former Managing Director of the Nigerian Airspace
Management Agency (NAMA) and current Chief Executive Officer of Tobrass
Aviation, Roland Iyayi, emphasized the gravity of the situation. In a
conversation with Daily Sun, Iyayi pointed out that the scarcity of foreign
exchange is directly affecting the operational efficiency of Nigerian airlines.
“The high ticket prices we are seeing today are a direct
result of the lack of operational aircraft due to forex scarcity,” Iyayi
explained. Due to the limited availability of flights in comparison to the
current demand, the cost of economy class tickets has experienced a significant
increase, with prices reaching up to N220,000.
The current circumstances emphasize the pressing requirement
for remedies to address the foreign exchange crisis, as the aviation industry’s
capabilities progressively diminish, impacting not only the airlines but also
the wider economic landscape.
Mudi Muhammad, the esteemed chairman of the National Association of Aircraft Pilots and Engineers (NAAPE) Arik Air chapter, elucidated the primary factors contributing to the escalation in flight ticket prices. He highlighted the critical issue of depleted aircraft, with numerous operators having their aircraft grounded in maintenance facilities worldwide due to the scarcity of foreign exchange (forex) required for necessary repairs and maintenance. The acquisition of essential aircraft components, such as a 5,000-cycle aircraft engine, has become prohibitively expensive, further exacerbating the situation. Moreover, the substantial cost of individual aircraft parts, such as a single brake for a 737 aircraft, which can cost approximately $45,000, compounds the financial challenges faced by operators. These factors, coupled with the imposition of excessive charges on airlines, create an environment of capacity depletion and hinder the industry’s ability to cope effectively.
Mr. Muhammad further elaborated that the current challenges faced by the aviation industry cannot be solely attributed to the airlines. The stark reality is that the number of operational aircraft has significantly declined, leading to financial constraints for those still in operation. For instance, Arik is expecting its fourth aircraft this week, Aero has a limited fleet of three, and Air Peace currently has approximately 10 aircraft in service, a substantial reduction from its previous fleet of over 20. Additionally, Dana is not operational, and ValueJet has a fleet of no more than three aircraft. This fleet depletion is a widespread issue affecting all airlines. The lack of access to foreign exchange for purchasing spare parts and servicing their fleets has severely hindered their operations.
In light of these challenges, it is imperative to address the underlying issues and explore viable solutions to support the aviation industry’s recovery and sustainability.