The Airline Operators of Nigeria, AON, has said despite the cry from the travelling public about the high cost of flying tickets in Nigeria, the people still pay of the cheapest rates in the world.
Also, the group has blamed the perceived high cost on numerous taxes and levies they have to pay and the high cost of doing business in the sector.
AON has therefore called for the reduction in the number of taxes and levies members have to pay and making the business environment friendly.
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The spokesperson for the AON, Prof. Obiora Okonkwo, stated this while appearing on Morning Brief, a Channels TV Programme.
His words: “In aviation, there is a formula in which fares are determined. You have different classes. You have low, middle and so on and so forth. You might have about six classes of tickets. At the end of the day, we make a yield.
“We put it all together and divide it by the number of the seats in the aircraft, including even vacant seats. For that ticket you are talking about N400,000, we might have sold a seat for N150,000. You have to sell in terms of number and in terms of cost to be able to break even and you still have to be able to service the aircraft.
“We buy aircraft from the same market (bigger airlines outside Nigeria). We buy spare parts from the same market. It is the same amount of money we pay pilots, even if they are Nigerian pilots. The cost of operation even in Nigeria is higher.
“99.5 per cent of every expense in our operations, including spare parts, maintenance and procurement of equipment are all in dollars, but we still sell this ticket here in Nigeria in Naira, and we have to compare it before we make our expenses.
“We take loans at 30, 35 per cent as the case may be, and those countries we are referring to may be taking loans at two per cent or five per cent maximum. We also pay a whole lot of taxes, fees that do not exist in any part of the world. Our operational expenses are way higher.
“But still, for some reasons, we charge low. Nigeria remains the cheapest place in terms of air fare. But as a matter of fact, it is to the detriment of operators. If taxes are removed, levies are removed and infrastructures are improved, it will definitely reflect on the cost of the ticket. That is because for every single levy and extra tax, you pass it on to the passengers.
“We are just the cash cow, the source of money for every other aviation ecosystem. What the grand handlers charge, we collect. What the Nigerian Civil Aviation Authority, NCAA, charges, we collect. We want them all to be removed, because 80 per cent of them do not exist in other parts of the world.
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“International Civil Aviation Organisation, ICAO, has rules of what must be charged and what must not be charged. The International Air Transport Association, IATA, has said Nigeria is the most expensive place to operate.”
