JET-A1 CRISIS: Airlines borrowing, cutting operations to stay afloat – Onyema

urges Tinubu to review aviation taxes before more airlines collapse
By Dickson Omobola
Founder and Chief Executive Officer of Air Peace, Allen Onyema, Tuesday, lamented the effect of the sharp rise in aviation fuel prices, known as Jet-A1, on airline operating costs, saying operators are borrowing from banks to purchase fuel and cutting down on flight operations to stay afloat.
Since the outbreak of the Iran war, aviation fuel, which accounts for about 30 per cent of an airline’s operating costs, has significantly increased.
Onyema blamed middlemen in the fuel supply chain for the high cost of Jet-A1 in Nigeria, saying they drive up prices before the product gets to airlines.
Th...