Air Peace has disclosed that the cost of operating a one-hour flight surpasses 14 million in Nigeria aloneThe company’s Chief Operating Officer (COO), Oluwatosin Olajide, gave a breakdown of the airline’s expensesShe disclosed that aircraft, crew, maintenance and insurance (ACMI) for Air Peace gulps about $4,000 for an hour’s flight
Henzodaily.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Air Peace, Nigeria’s largest carrier, says the cost of operating a one-hour flight surpasses N14 million.
Oluwatosin Olajide, the airline’s Chief Operating Officer, disclosed this, saying that N7 million is needed to buy 4,000 litres of aviation fuel sold at N1,400 per litre in Nigeria.
Air Peace CEO Allen Onyema and the airline’s crew
Credit: Air Peace.
Source: UGC
Air Peace COO gives a breakdown
According to her, for the aircraft, crew, maintenance, and insurance (ACMI), Air Peace spends about $4,000 for a one-hour flight.
She disclosed that N5 million is needed for every hourly flight, which is higher than other operators pay globally.
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She stated that factors determining operating costs can vary, including aviation fuel, which consumes 60 to 65% of the cost.
The Guardian disclosed that the airline’s COO said, on average, a one-hour flight costs N7 million on fuel alone. Additionally, ACMI costs $4,000 for leasing planes due to the challenges airlines face.
She stated that insurance for a one-hour flight costs an additional N5 million.
Nigerians should pay N500,000 for an hour’s flight
She disclosed that Nigerian airlines’ operating costs make working with the current airfares challenging, stressing that a one-hour trip within Nigeria should be around N500,000.
Olajide disclosed that the fare exploitation allegations by the Federal Competition and Consumer Protection Commission (FCCPC) had cost the airline a major international slot.
She revealed that FCCPC only invited the airline for findings and not an investigation, as reported by some media.
Olajide disclosed that the airline’s chairman, Allen Onyema, honoured the FCCPC invitation.
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The Air Peace COO, however, said the commission could have directed the enquiry to the Nigerian Civil Aviation Authority (NCAA), the airline regulator.
She recalled the company’s many services during the COVID-19, xenophobic attacks on Nigerians in South Africa and the evacuation of stranded Nigerians abroad at no cost.
Air Peace, two firms face FCCPC probe
Henzodaily.ng earlier reported that the FCCPC had written to the airline, inviting them to investigate the complaint of fare exploitation.
The commission later said it was not investigating the airline but making an enquiry.
The airline is among three firms pencilled down by the FCCPC for probe, including a telecommunications company and a bank.
Air Peace reportedly increased airfares on the Lagos-Abuja route
Henzodaily.ng previously reported that a one-way ticket from Lagos to Abuja on Air Peace hit N200,000.
The development comes as experts disclosed that the tough economy affects the aviation sector.
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The development has forced many travellers to choose alternative means of transport.
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Source: Henzodaily.ng