Expert Tells Nigerians To Expect Airfare Increase Amid Floating Naira

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Expert Tells Nigerians To Expect Airfare Increase Amid Floating Naira
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The general secretary of the Aviation Round Table Initiative (ARTI), Capt. John Ojikutu (rtd), has informed the flying public to brace-up for increase in

LEADERSHIP reports that the Central Bank of Nigeria , has floated the naira, thereby, allowing market forces determine the exchange rate of the naira to foreign currencies.

With the rising dollar rate, there would be increase in the operational cost of airline, especially, while acquiring spare parts and maintenance of the aircraft abroad. However, in an exclusive chat with LEADERSHIP, Ojikutu, who is also the chief executive officer, Centurion Aviation Security and Safety Consult said, for airlines to meet the operational costs arising from fuel, dollar rate, low passengers among others airfare must increase.

He said: “It is difficult to get stable airfare now that there are too many variables costs on imported jet-A1 and the exchange rate on dollar. Also, don’t forget that spares for the aircraft maintenance are not local but imported.

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