What High Aviation Fuel Cost Does To The Industry, By Ogungbagbe
The Chief Executive Officer of CITA Aviation Fuelling Company, Dr. Thomas Ogungbangbe has identified the effect of high cost of aviation fuel on the industry’s operations.
In his opening remarks as Chairman of the 28th edition of the Annual Conference of the League of Airport & Aviation Correspondents (LAAC) held at Providence Hotel Ikeja, Lagos, under the theme, Aviation Survivability Amidst A Challenging Macro-Economic Environment,” Ogungbangbe said “one of the critical challenges in our sector is the high cost of aviation fuel. This affects ticket prices, operational costs, and passenger traffic. The volatility in fuel prices, coupled with poor access to foreign exchange and a weakening currency, exacerbates the financial strain on airlines. Maintenance costs and the need for technological upgrades further add to the burden, making it difficult for airlines to operate profitably.”
Speaking on proliferation of airports in the country, he said: “Investing in new airport projects while neglecting essential infrastructure like roads is counterproductive. Improved road networks facilitate easier access to airports, making air travel a more attractive option for our populace. We must prioritize the maintenance and improvement of existing airports and essential infrastructure rather than embarking on new airport projects that may not yield immediate returns.”
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