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Nairaland Forum / Nairaland / General / Travel / Nigerian Airlines To Shut Down All Operations On Monday Over Fuel Costs (30743 Views)
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Re: Nigerian Airlines To Shut Down All Operations On Monday Over Fuel Costs by openmine(m): 1:25pm On May 07, 2022 |
BigBashiru: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? |
Re: Nigerian Airlines To Shut Down All Operations On Monday Over Fuel Costs by lexy2014: 1:44pm On May 07, 2022 |
Cognitivereason: 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? |
Re: Nigerian Airlines To Shut Down All Operations On Monday Over Fuel Costs by spartan50(m): 2:06pm On May 07, 2022 |
UCHIHAmask:so what’s your suggestion |
Re: Nigerian Airlines To Shut Down All Operations On Monday Over Fuel Costs by odimbannamdi(m): 2:15pm On May 07, 2022 |
openmine: 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 |
Re: Nigerian Airlines To Shut Down All Operations On Monday Over Fuel Costs by Mayor36: 2:50pm On May 07, 2022 |
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: |
Re: Nigerian Airlines To Shut Down All Operations On Monday Over Fuel Costs by Cognitivereason: 3:11pm On May 07, 2022 |
lexy2014: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.. |
Re: Nigerian Airlines To Shut Down All Operations On Monday Over Fuel Costs by lexy2014: 3:20pm On May 07, 2022 |
Cognitivereason: 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? |
Re: Nigerian Airlines To Shut Down All Operations On Monday Over Fuel Costs by AlphaTaikun: 3:27pm On May 07, 2022 |
stephanie11:Dangote Refinery will be between July to September 2022. Whew! |
Re: Nigerian Airlines To Shut Down All Operations On Monday Over Fuel Costs by Aaay: 3:47pm On May 07, 2022 |
Elshaddai |
Re: Nigerian Airlines To Shut Down All Operations On Monday Over Fuel Costs by BigBashiru: 4:21pm On May 07, 2022 |
Mayor36: their greed is catching up with them na.... let them make the price N100k! |
Re: Nigerian Airlines To Shut Down All Operations On Monday Over Fuel Costs by Cognitivereason: 4:57pm On May 07, 2022 |
lexy2014: 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 |
Re: Nigerian Airlines To Shut Down All Operations On Monday Over Fuel Costs by lexy2014: 5:51pm On May 07, 2022 |
Cognitivereason: 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? |
Re: Nigerian Airlines To Shut Down All Operations On Monday Over Fuel Costs by Miracle2022: 6:13pm On May 07, 2022 |
That will be very good,let everybody follow road so that we can find solutions to bandits attack. |
Re: Nigerian Airlines To Shut Down All Operations On Monday Over Fuel Costs by openmine(m): 7:40pm On May 07, 2022 |
odimbannamdi:When you say available seats does that not also include business class? odimbannamdi: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: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! |
Re: Nigerian Airlines To Shut Down All Operations On Monday Over Fuel Costs by sirp9898(m): 8:53pm On May 07, 2022 |
Biafra is w |
Re: Nigerian Airlines To Shut Down All Operations On Monday Over Fuel Costs by odimbannamdi(m): 9:10pm On May 07, 2022 |
openmine: 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. |
Re: Nigerian Airlines To Shut Down All Operations On Monday Over Fuel Costs by odimbannamdi(m): 9:24pm On May 07, 2022 |
Mayor36: 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 |
Re: Nigerian Airlines To Shut Down All Operations On Monday Over Fuel Costs by odimbannamdi(m): 9:27pm On May 07, 2022 |
BigBashiru: I tell u...only the pilots and air hostesses will be the "passengers" on their flights... ...everything cannot be solved by price increases. |
Re: Nigerian Airlines To Shut Down All Operations On Monday Over Fuel Costs by odimbannamdi(m): 9:29pm On May 07, 2022 |
Miracle2022: 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. 1 Like |
Re: Nigerian Airlines To Shut Down All Operations On Monday Over Fuel Costs by CavemanDefuturo: 5:45am On May 08, 2022 |
Contact me if you're in Lagos, I can help. O&O&O5&O25four. Sixfiguresmart: |
Re: Nigerian Airlines To Shut Down All Operations On Monday Over Fuel Costs by 1875omenk: 7:30am On May 08, 2022 |
[s] Miracle2022:[/s] |
Re: Nigerian Airlines To Shut Down All Operations On Monday Over Fuel Costs by chiboycue: 9:50am On May 08, 2022 |
stephanie11: 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, |
Re: Nigerian Airlines To Shut Down All Operations On Monday Over Fuel Costs by lebete3000: 12:19pm On May 08, 2022 |
Re: Nigerian Airlines To Shut Down All Operations On Monday Over Fuel Costs by Funkybabee(f): 12:47pm On May 08, 2022 |
lebete3000: Yes, you cann order |
Re: Nigerian Airlines To Shut Down All Operations On Monday Over Fuel Costs by lebete3000: 1:37pm On May 08, 2022 |
Funkybabee: I'll rather steal it |
Re: Nigerian Airlines To Shut Down All Operations On Monday Over Fuel Costs by Funkybabee(f): 1:45pm On May 08, 2022 |
lebete3000: Haba, thou shall not steal |
Re: Nigerian Airlines To Shut Down All Operations On Monday Over Fuel Costs by haconjy(m): 6:53pm On May 09, 2022 |
tiswell: Now that you committed another error? |
Re: Nigerian Airlines To Shut Down All Operations On Monday Over Fuel Costs by Mayor36: 9:07am On Jun 07, 2022 |
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: |
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