Indigenous airlines lose $60m to bird strikes, over N20bn to refunds
Nigerian airlines have said within the year they have lost at least $60 million dollars to Bird Aircraft Strike Hazard (BASH) also known as bird strikes and at the same time refunded over N20billion for cancelled flights.
This is just as the airlines, under the aegis of Airline Operators of Nigeria (AON) have condemned in strong terms the granting of multiple designations to foreign airlines particularly Qatar Airways and Ethiopian Airlines stressing that government by so doing inhibits the growth of domestic airlines.
The AON who rose from their annual General Meeting on Wednesday, February 23rd, 2022 also said that the N50,000 ticket prices was not something airlines did together stating that each airline checked its unit cost per seat and made the decision to increase the fares following the challenges of fuel increase, access to forex and an array of challenges mentioned.
Vice President of the AON, Chief Allen Onyema who addressed the media at the behest of the president on bird strikes said airlines have lost over $60bn, he said that Air Peace alone suffered fourteen (14) bird strikes in 2021 alone and this year has suffered four (4).
“If you multiply 14 by $3m dollars for an engine of a 737. You will understand and this is just for Air Peace. We had an aircraft that suffered a bird strike in Benin and Air Peace sent its E2-195 to rescue the situation only for that to also suffer a bird strike.
“On refund losses this year alone Air peace has lost N1bn, across all we have lost no fewer than N20bn because of refunds caused because we have Aircraft on Ground (AOG) coming from the fact we lost an engine, we get an engineer and it is a challenge to clear with Customs despite the zero tariff on aircraft and spares.”
On the airlines’ call against multiple designation, Onyema said, “The airlines object very seriously the multiple designation given to foreign airlines especially Qatar and Ethiopian. It is the belief that the growth of Nigerian Aviation will be affected if we keep encouraging this foray into our airspace.
“All the foreign airlines together do not provide 10% of the jobs provided by the smallest airline in Nigeria. Multiple designation is tantamount to loss of jobs and will worsen the situation. The airlines for the record oppose the multiple designation.”
On fixing of air fares by all domestic airlines, pegging it at N50,000 round, the AON leadership said it was not true and the fares were not agreed upon and fixed.
He however said the ground handlers came together and pegged fares and no one is saying anything especially as their increment impacts on the operations and adds to their cost.
Onyema said, “We want to make bold to say airlines in Nigeria never got togetherness to fix prices. The N50,000 you are seeing on our inventory has always been there. During Christmas certain fares will get to N60,000 on their own, airlines did not come together to do that. They only checked unit cost per seat.
“If Aviation fuel has risen 200% in a month what do I as an operator do? If forex has risen from N340 to N580 what do I do, gentlemen let us not forget our business is dollarised,” he lamented.
