BigBashiru:


Ghana and Rwanda are developed first world countries while Britain and France are 3rd world countries.....

This mindless prevarication of yours has a terrible and illogical start or you have issues comprehending properly!
FYI There is a difference between developing and developed since you want to be clever by a quarter!
Stick to the issue at hand...How does your earlier solution solve the issue of over hiked aviation fuel price?

Cognitivereason:


dont be cynical .. petrol is being subsidized.. and it a day light fraud as politicians secretely benefit.. but NNPC has no choice

always read to understand
i said u can only bash government on forex issues not aviation fuel prices which they have no control over through subsidies..

..and u want me to seriously explain how forex is connected to a commodity dat is imported and isnt paid with naira?

How did my being cynical or not being cynical affect u? Is it your cynical?

If u say that fuel subsidy is a fraud as declared by buhari in 2011, how come he is allowing that same fraud under the ministry which he supervises? How is it that u say NNPC doesn't have a choice in perpetrating this fraud? How's that possible?

Since u say that I can only bash govt for forex, kindly explain how forex is connected to all this. Or aren't u a wiseman again?

UCHIHAmask:

God! I hate Nigerian youths..
There is no right person or party,the system of government/constitution has to be changed..

ISN'T IT FU*KING CLEAR ALREADY??

so what’s your suggestion

openmine:

Lets even assume without conceding that an airplane can accommodate such number...
Will the company not pay the workers who include the engineers,the pilots,the servicing of the planes,and also the multiple taxations they pay to the FG?
Why not tackle the issue at hand that caused the increment instead of trying to look for a way whereby passengers are parked like sardine inside an airplane!
Your illogical suggestion is tantamount to asking a bus driver to congest his bus with more passengers as a way of reducing the transport fare despite a humongous hike in the price of PMS!
Just incase you dont know which i have corrected in your statement,an airplane uses aviation fuel or jet fuel not PMS!

How do uounmean by congestion and parking passengers like sardine on an airplane? If there are available seats, then they have to be sat on. Planes fly at full capacity during festive seasons, especially on busy route. At full capacity of say 100 passengers and the current price of 50,000, the airline will make a revenue 5,000,000naira per trip. Even at 1,000/litre for jet fuel and 200litres to be consumed per trip, the airline will still be left with a gross profit of 4,800,000.

Maybe these airlines need to breakdown their costs for professionals to analyse and audit, coz we are not understanding any more

You say they are greedy when a lot of people have ignored the air means of transportation and are risking it on the road because of the #50,000. An aircraft of 200 people will carry maybe 10 people and you think they make the same amount they make when they fly the aircraft capacity.

BigBashiru:
Greedy airlines...after making minimum fare N50k they still not satisfied. E go clear for their eyes soon.

lexy2014:


How did my being cynical or not being cynical affect u? Is it your cynical?

If u say that fuel subsidy is a fraud as declared by buhari in 2011, how come he is allowing that same fraud under the ministry which he supervises? How is it that u say NNPC doesn't have a choice in perpetrating this fraud? How's that possible?

Since u say that I can only bash govt for forex, kindly explain how forex is connected to all this. Or aren't u a wiseman again?

If u can buy fuel for N430 per litre.. dat fine but the vast majority cant...hence the fraud continues

forex is what is used to import Aviation fuel..

the dollar rate ($1=N500) is reversed to nearly half it price or atmost N360.
aviation fuel wont cost dat much despite the external factors

but here u have a situation were over a few weeks running into months forex rate is $1=N490
few weeks/months ago the price of aviation was less than N600 at a forex rate of $1=N490
today it is nearly N700 still forex rate of $1=N490
dat should tell u the problem isnt within nigeria
and bubu is to intervene den he will have to either subsidize aviation fuel or reduce the dollar exchange to naira..

Cognitivereason:

If u can buy fuel for N430 per litre.. dat fine but the vast majority cant...hence the fraud continues

forex is what is used to import Aviation fuel..

the dollar rate ($1=N500) is reversed to nearly half it price or atmost N360.
aviation fuel wont cost dat much despite the external factors

but here u have a situation were over a few weeks running into months forex rate is $1=N490
few weeks/months ago the price of aviation was less than N600 at a forex rate of $1=N490
today it is nearly N700 still forex rate of $1=N490
dat should tell u the problem isnt within nigeria
and bubu is to intervene den he will have to either subsidize aviation fuel or reduce the dollar exchange to naira..

Thank u oh wise one for clearing the air on how dollar or forex is related to the discussion. The question now is who is in charge of forex in Nigeria?

Meanwhile u haven't answered this:

If u say that fuel subsidy is a fraud as declared by buhari in 2011, how come he is allowing that same fraud under the ministry which he supervises? How is it that u say NNPC doesn't have a choice in perpetrating this fraud? How's that possible?

stephanie11:



https://politicsnigeria.com/breaking-nigerian-airlines-to-shut-down-all-operations-on-monday-over-fuel-costs/

Dangote Refinery will be between
July to September 2022. Whew!

Elshaddai

Mayor36:
You say they are greedy when a lot of people have ignored the air means of transportation and are risking it on the road because of the #50,000. An aircraft of 200 people will carry maybe 10 people and you think they make the same amount they make when they fly the aircraft capacity.

their greed is catching up with them na.... let them make the price N100k!

lexy2014:


Thank u oh wise one for clearing the air on how dollar or forex is related to the discussion. The question now is who is in charge of forex in Nigeria?

Meanwhile u haven't answered this:

If u say that fuel subsidy is a fraud as declared by buhari in 2011, how come he is allowing that same fraud under the ministry which he supervises? How is it that u say NNPC doesn't have a choice in perpetrating this fraud? How's that possible?

u are just too dumb.. no offence.. i have answered ur last question..
to prevent U and I from buying fuel above N400 ..bubu has to allow subsidies exist.

CBN is in charge of forex..
it is technically not possible for the CBN to reverse the dollar rate...

if more dollar are coming into the reserves. they would rather hold those figures pending when the dollar inflow drastically reduces..den dey use from their reserves to defend the naira..they only devalue the naira if what is in their reserves isnt enough or there are projections of low inflow..there are other minor reasons too..

on normal circumstances CBN isnt supposed to have any direct control over forex but floating the market has devastating economic consequences when global incidences like covid ,oil prices falling, global financial crises etc..and every commodity is affected nt just aviation fuel
..so tampering forex isnt an option for just a single commodity isnt an option only if magically we begin to receive 2x our normal forex inflows

the only option is to introduce subsidy

Cognitivereason:


u are just too dumb.. no offence.. i have answered ur last question..
to prevent U and I from buying fuel above N400 ..bubu has to allow subsidies exist.

CBN is in charge of forex..
it is technically not possible for the CBN to reverse the dollar rate...

if more dollar are coming into the reserves. they would rather hold those figures pending when the dollar inflow drastically reduces..den dey use from their reserves to defend the naira..they only devalue the naira if what is in their reserves isnt enough or there are projections of low inflow..there are other minor reasons too..

on normal circumstances CBN isnt supposed to have any direct control over forex but floating the market has devastating economic consequences when global incidences like covid ,oil prices falling, global financial crises etc..and every commodity is affected nt just aviation fuel
..so tampering forex isnt an option for just a single commodity isnt an option only if magically we begin to receive 2x our normal forex inflows

the only option is to introduce subsidy

For simple questions, you are already getting emotional. I thought that u are wise?

I didn't ask for all this grammar. I only wanted to know who manages Nigeria's forex& u said CBN. That's all I am interested in. I didn't ask u how do they manage the forex.

Meanwhile, you didn't even scratch the surface of the following questions. If u can write grammar on what u weren't asked, why can't u write grammar on what u were asked?

1. If u say that fuel subsidy is a fraud as declared by buhari in 2011, how come he is allowing that same fraud under the ministry which he supervises?

2. How is it that u say NNPC doesn't have a choice in perpetrating this fraud? How's that possible?

That will be very good,let everybody follow road so that we can find solutions to bandits attack.

odimbannamdi:

How do uounmean by congestion and parking passengers like sardine on an airplane?
If there are available seats, then they have to be sat on.

When you say available seats does that not also include business class?

odimbannamdi:

Planes fly at full capacity during festive seasons, especially on busy route. At full capacity of say 100 passengers and the current price of 50,000, the airline will make a revenue 5,000,000naira per trip. Even at 1,000/litre for jet fuel and 200litres to be consumed per trip, the airline will still be left with a gross profit of 4,800,000.

Is that the only expense that the airline company incurs?
Have you considered the fee being paid by the airliner for parking space?
What about the staffs which include pilots,the airhostess,the engineers,and other relevant sections of the company...do you think they collect peanuts for working at the airline?
Do you know the cost of importing an aeroplane spare parts?
Like i told the other guy,most of you dont know what employers in Nigeria face due to draconian policies of the government!
The issue here is how to bring down the ever growing cost of purchasing aviation fuel....anything beyond this is irrelevant!

odimbannamdi:

Maybe these airlines need to breakdown their costs for professionals to analyse and audit, coz we are not understanding any more

Even if they break it down as you are alluding to,you will still not be satisfied!
U can check other airline operations in other countries and find out their operational cost!
This will assist in enlightening you about what airline companies are battling with in the country!

Biafra is w

openmine:

When you say available seats does that not also include business class?


Is that the only expense that the airline company incurs?
Have you considered the fee being paid by the airliner for parking space?
What about the staffs which include pilots,the airhostess,the engineers,and other relevant sections of the company...do you think they collect peanuts for working at the airline?
Do you know the cost of importing an aeroplane spare parts?
Like i told the other guy,most of you dont know what employers in Nigeria face due to draconian policies of the government!
The issue here is how to bring down the ever growing cost of purchasing aviation fuel....anything beyond this is irrelevant!


Even if they break it down as you are alluding to,you will still not be satisfied!
U can check other airline operations in other countries and find out their operational cost!
This will assist in enlightening you about what airline companies are battling with in the country!

Most of the costs you mentioned (tarmac rentals, salaries and overheads) are fixed costs, in the sense that they don't change as the number of patronage or flight trips increase or decrease. Fixed costs are usually easier to manage as they even reduce as outputs (patronage and flight trips increase). If anything, and according to research, fuel costs are variable costs and constitutes the most components of the cost structure especially in transportation businesses. Aeroplanes are solid and built to last, with depreciation period of as much as 30 years, so spares replacement and repairs are not exactly common

These guys are indirectly asking for subsidies on jet fuel, when it is only an insignificant percentage of Nigerians that travel by air. Infact, since the recent price increase, there has been a lot of congestion on the roads, because most people can no longer afford the cost of flights now. Where then is the sense in subsidising a product or service that the vast majority of the populace cannot afford.

Speaking from the perspective of a business executive, if costs is an issue to these airline companies, they should dialogue with the government to cut down on some statutory costs and taxes so that they can stay afloat, instead of clamouring for subsidies on their services that most people cannot even afford.

Mayor36:
You say they are greedy when a lot of people have ignored the air means of transportation and are risking it on the road because of the #50,000. An aircraft of 200 people will carry maybe 10 people and you think they make the same amount they make when they fly the aircraft capacity.

I really wonder at the kind of economics and price analysis that warranted the 50k-minimum move, honestly. Before, people could just pay for flights without even planning for it, now one have to really budget and sacrifice for it. And to think about the effect the price increase has had on substitute services like road travel is all the more sad.

Flight is a luxury service and so the demand is very elastic to price changes (especially increases). Its a game of numbers and common sense. Whatever per unit increase in revenue that the price hike has brought, it has been completely eroded by the extremely low patronage. They were better off flying at full capacity at less than 30, than above 50k with very few passengers. At least, that would improve their revenue while they sort out the profitability issues. Now, they are losing both ways because their operating costs (fixed and variable) have not reduced, but their revenue have greatly reduced.

Sad

BigBashiru:


their greed is catching up with them na.... let them make the price N100k!

I tell u...only the pilots and air hostesses will be the "passengers" on their flights... ...everything cannot be solved by price increases.

Miracle2022:
That will be very good,let everybody follow road so that we can find solutions to bandits attack.

Yes, looking on the bright side, this will be the positive fallout of this incessant and brazen price hike of flights.

When we all know that all of us will now have to go by road, then we will all come together to find a lasting solution to this bandits issue.

Contact me if you're in Lagos, I can help.
O&O&O5&O25four.

Sixfiguresmart:
What will happen to my bookings? Will I get refunds?

Men, it is about time one looks into private jet purchase. I am losing hope in commercial.

A friend of mine has a desperate need for a travel passport. She was captured since last year and the passport isn't forthcoming. Can she cancel and make a new one? What is the hope for her? Please help!

[s]

Miracle2022:
That will be very good,let everybody follow road so that we can find solutions to bandits attack.

[/s]

stephanie11:



https://politicsnigeria.com/breaking-nigerian-airlines-to-shut-down-all-operations-on-monday-over-fuel-costs/

Their action would bring about hoarding of fuel by PMS filling stations thereby creating artificial scarcity of fuel and the Government may be silent about the issues,

Funkybabee:

Fresh and yummy looking puffpuffs in your dp.

Can I have some

lebete3000:


Fresh and yummy looking puffpuffs in your dp.

Can I have some

Yes, you cann order

Funkybabee:


Yes, you cann order

I'll rather steal it

lebete3000:


I'll rather steal it

Haba, thou shall not steal

tiswell:
isworse

Now that you committed another error?

They are not ready. It is over a month now and the price is still very expensive because I just checked the price to book a local flight now and it is still expensive. Imagine flying two passengers for 100k then compare flying over 50 passengers for 30k even though the average passenger onboard is more than 50. When they have sense they'll know they made a big mistake.

odimbannamdi:


I really wonder at the kind of economics and price analysis that warranted the 50k-minimum move, honestly. Before, people could just pay for flights without even planning for it, now one have to really budget and sacrifice for it. And to think about the effect the price increase has had on substitute services like road travel is all the more sad.

Flight is a luxury service and so the demand is very elastic to price changes (especially increases). Its a game of numbers and common sense. Whatever per unit increase in revenue that the price hike has brought, it has been completely eroded by the extremely low patronage. They were better off flying at full capacity at less than 30, than above 50k with very few passengers. At least, that would improve their revenue while they sort out the profitability issues. Now, they are losing both ways because their operating costs (fixed and variable) have not reduced, but their revenue have greatly reduced.

Sad