Airlines groan as aviation fuel scarcity bites harder

The umbrella body of local carriers, Airline Operators of Nigeria (AON) said biting aviation fuel scarcity would trigger disruptions to scheduled travels resulting in reschedulling, delays and cancellations.

Spokesman for AON, Chief Obiora Okonkwo in a statement said the scarcity would impact negatively on seamless conduct of air transport operations

He said the association and its members were working very hard, and in alliance with product marketers, government and relevant stakeholders, to ensure availability and proper pricing of aviation fuel.

While for pleading the understanding of the public the operators also promise dto do all that is necessary and within their powers to restore normal flight schedules as soon as possible.

The National Union of Air Transport Employees (NUATE) and the Air Transport Services Senior Staff Association of Nigeria (ATSSSAN) have called on the National Assembly, Ministries of Aviation, Labour & Productivity to initiate interventions that would avert the collapse of two airlines- Aero Contractors and Arik Air, which are under the receivership of the Asset Management Corporation of Nigeria (AMCON).

The unions said the deplorable state of affairs in the two carriers, is enough sign for possible collapse.

At a briefing in Lagos at the NUATE secretariat, its General Secretary, Comrade Ocheme Abah said developments in Aero Contractors were frightening for the aviation ecosystem, as the carrier is unable to pay salaries with its depleting fleet of aircraft, which in the last few years have dropped from five to the current two.

He said the management of Aero Contractors, is hard hit on the precarious state of affairs that it is planning to reduce its workforce by 40 per cent without any negotiation for redundancy.

He described the situation as utterly disturbing, considering the fact that scores of workers sent home since 2016 were yet to receive their redundancy payment.

Abah said the reasons adduced by the airline management concerning the age of some of its aircraft, and their inability to fly appears unjustifiable.

He said the carrier plunged itself into crisis with the aircraft lease agreement it entered with a lessor.

According to Abah, the three aircraft procured by the lessor were deployed into Aero’s juicy routes under an arrangement that fetched more revenue for the company.

On Arik Air, the unions said the same lessor has transferred the deal to the airline, a development that could sound the death knell for the carrier.

The unions said they will direct their members to withdraw services on the aircraft secured from the lessor to save the beleaguered carrier from collapse.

“It would appear that the hidden forces are hell bent on forcing a shutdown of aero Contractors. Should they succeed, over 700 direct aviation jobs will go down the drain. A very solid aviation brand will become history. Nigeria’s flourish- and-flounder phenomenon in the aviation industry will once again come to the fore. And the prospect of a growing aviation industry in Nigeria will receive a major setback. This would be unfortunate indeed.

“We would have been silent on Arik Air for now, but for the fact that the House of 5A’s lease arrangement that was chased out of Aero has found its way into Arik Air. Disturbingly, there is evidence of a case of collusion between the management of Aero and Arik Air. As we understand, the new lease arrangement was to come into operation last Friday, but got shelved,” Abah said.

Meanwhile, the management of Aero Contractors yesterday offered clarifications on the status of its operations affirming that the aviation unions made unfounded and wild allegations against it.

The management, in a statement, explained that it was at a loss that workers who are abreast of developments in the carrier will compromise confidential information to the public.

“It has come to the attention of the management of Aero Contractors of the unions’ wild and unfounded allegations against it in running the affairs of the airline. It is pure mischief that when things are rosy the unions keep quiet, but when challenges occur they quickly run around with wild allegations and threats.

“It is in this regard that we are at a loss why the staff, knowing the challenges airlines are facing in the current operating environment are always in a haste to compromise confidential information to the public and make it an issue of discussion.

“All the allegations about the Managing Director on House of 5A’s and Charles Arumemi Johnson are unfounded. Charles is a very competent staff of Arik Air owned by AMCON, which equally owns Aero Contractors; therefore there is no conflict of interest. He is instrumental to the recently launched Aero portal which has given the site a face lift and made more user friendly compared to the previous website,” the management stated.

On the House of 5A’s, Aero management said every partnership was done with the aim of improving the revenues of the airline, particularly in relation to its unserviceable equipments and ensuring standard customer service.

“The question is what was our revenue before, during and after the exit of House of 5As? They should please respond.  We are conscious of the challenges we are facing and have been prudent with our expenses, and doing our best to take care of staff welfare. We urge the staff and unions to desist from this attitude and support the company to overcome its challenges.

“The current management decided to create the four strategic business units (SBUs): maintenance repair overhaul (MRO), aviation training organisation (ATO), airline operation and rotary wing, to enhance efficiency and profitability.

“There’s no Nigerian carrier without debt overhang caused by the operating environment. And all major airlines in the world have had similar challenges, but took strategic measures to turn around the airlines. It is unfortunate that the airline industry operates on thin margins and airlines are always making efforts to be leaner and smarter to stay afloat.

“Whatever management decisions are taken are usually done with the engagement of the unions. It is at the instance of the unions the chief executive officer called for a Townhall meeting last week. We believe that as the revenues begin to improve over the next few months, following strategic engagements with potential partners, the airline’s fortune will improve.

“We recognize the huge and massive potentials of Aero Contractors and are taking strategic steps to exploit them for the benefits of all stakeholders in these challenging times,” management stated.

Source: The Nation

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