AON seeks dedicated FX support line, licence to import, distribute aviation fuel

Domestic aviation firms under the aegis of the Airline Operators of Nigeria (AON) say the federal government should allow them to procure the requisite licence for the importation and distribution of aviation fuel, commonly called Jet A1.

The airlines made the call during a courtesy visit to Festus Keyamo, minister of aviation, in his office in Abuja on Monday.

According to Abdulmunaf Yunusa, president of AON, the purpose of the visit was to make known their challenges in the sector and proffer solutions.

Speaking on behalf of the association, Roland Iyayi, chief executive officer (CEO) of Top Brass Aviation, said there was an urgent need to ensure the adequate supply of aviation fuel in the sector.

He also said the government should provide a dedicated support line for domestic airlines to access foreign exchange (FX) to enable the carriers to meet their obligations to air travellers.

“There is an urgent need to facilitate the liberalisation, procurement, and distribution of JetA1 nationwide and allow AON to procure a requisite licence for product importation and distribution,” Iyayi said.

“There should be an immediate review of all industry taxes, and charges to determine applicability in line with the cost recovery model.”

Iyayi said airline operators were the end users of Jet A1 and should be granted permission to penetrate the market to source aviation fuel and distribute it, lamenting that AON had been denied that right for a long time.

He also said the issue of FX had become a major challenge for the operators.

“We call on the federal government to establish and provide a dedicated support line for domestic airline operators to have unfettered access to foreign exchange through the CBN at the official investors and export (I&E) window in support of local and international transactions,” he said.

Responding to the demands, Keyamo said the challenge of forex has been lingering, but promised to proffer a solution.

“The ministry will liaise with the CBN to see how operators can get forex at a single-digit interest rate of 1.5 to 2 percent as requested,” he said.

The minister also charged the operators to always ensure the safety of their airlines, stressing that this was key to the success of the aviation industry.