Ibom Air, the Akwa Ibom state government-owned commercial airline, has rejected Nigerian airlines’ plan to suspend operations from Monday over the high cost of aviation fuel and other operating costs.
In a statement on Saturday, Ibom Air said that while it recognized the significantly higher business cost, in the circumstances it could not agree to stop operations.
The airline operators had on Friday in a letter addressed to the Aviation Minister Sadi Sirikaand the Nigerian Civil Aviation Authority said they will halt operations from Monday, amid an astronomical rise in aviation fuel.
The letter was signed by Serina Abdulmunaf, president of the Airline Operators Association, and co-signed by the CEOs of eight domestic airline operators, including Mfon Udom, CEO of Ibom Air.
However, Ibom Air in its statement on Saturday said its inclusion as a “signatory” to the statement issued by the Airline Operators of Nigeria (AON) must have stemmed from its active membership in AON.
Ibom Air’s management explained that it cannot suspend its operations due to its financial obligations to suppliers, financiers and staff, who depend on an uninterrupted flow of service revenue.
The airline noted that, more importantly, the fact that customers paid us in advance for flight reservations, “we are contractually obligated to provide the services already paid for, to avoid exposing the airline to the risk of avoidable litigation.” ”.
Read the airline’s full statement below:
Ibom Airlines Limited (Ibom Air) has been inundated with inquiries about what will happen on Monday 09 May 2022, following the public statement issued by the Airline Operators Executive of Nigeria (AON) on Friday 06 May 2022. 2022 and it has become necessary for us. make the following clarifications:
1. Ibom Air recognizes the existential threat that these runaway fuel price increases pose to the air transport industry in Nigeria. We agree that this out-of-control situation is simply unsustainable. However, each airline has its own business model and pressures. We believe that despite escalating fuel prices, airlines volunteering to halt operations would exacerbate an already bad situation.
2. Ibom Air has financial obligations to suppliers, financiers and personnel, who depend on an uninterrupted flow of service revenue. More importantly, having been paid in advance by customers for flight bookings, we are contractually obligated to provide the services already paid for, to avoid exposing the airline to the risk of avoidable litigation.
3. In addition to the above factors, Ibom Air is currently the only airline serving Akwa Ibom State directly and as such any voluntary interruption of operations would completely cut off air access to and from the State. Such action would be directly in conflict with and detrimental to the interests of our shareholders.
4. In view of the above facts, Ibom Air respectfully disagreed with AON’s decision to suspend flight operations on Monday, May 09, 2022.
Ibom Air is unable, under the circumstances, to volunteer to cease operations and will continue to operate as normal on Monday, May 09, 2022 and beyond. Ibom Air’s inclusion as a “signatory” to the statement issued by AON must have stemmed from its active and committed membership with AON.
5. Notwithstanding the foregoing, we identify very strongly with our colleagues at AON and will participate in all efforts to resolve this frightening situation as soon as possible in the interest of our business, our customers, our stakeholders and our country.
6. We thank our customers for their continued patronage and thank AON for our collective efforts to ensure a sustainable fuel pricing regime for airlines.
Signed: Management