Suspension Of Flights: Ibom Air Opts Out, To Continue Operations

By Adesina Soyooye

The Management of Ibom Air has caused a major crack within the ranks of the Airline Operators of Nigeria, AON. The Airline said it is not part of those shutting down their operations on Monday May 9, 2022.

The AON had on Friday, May 6, issued a statement withdrawing the services of their Airline as from Monday, May 9, due to the high cost of Aviation fuel.

The cost of Aviation fuel, the statement said, has overtime, risen from N190 per litre to N700 per litre. In the statement copied the  Minister for Aviation and the Director General of the Nigeria Civil Aviation Authority, NCAA, the AON said its members could no longer cope, as they were operating at a loss, and so have decided to shut down operations on Monday May 9, 2022.

But Ibom Air, in a statement said that while it “acknowledges the existential threat that these runaway fuel price increases pose for the Air Transport industry, volunteering to stop operations would rather  exacerbate an already bad situation.”

Among other reasons the Airline noted: “Ibom Air has financial obligations to suppliers, financiers and staff, which depend on uninterrupted flow of revenue to service. More importantly is the fact that having been paid by customers in advance for flight bookings, we are bound by contract to deliver the services already paid for to avoid exposing the Airline to the risk of avoidable litigation.”

Following is the full text of the statement by Ibom Air for opting out of AON’s decision.

Public statement on flights Cessation on Monday 09 May 2022

“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 of Nigeria (AON) Executive, on Friday 06 May, 2022 and it has become necessary for us to make the following clarifications:

“1. Ibom Air acknowledges the existential threat that these runaway fuel price increases pose for the air transport industry in Nigeria. We agree that this out-of-control situation is simply unsustainable. However, every airline has its unique business model and pressures. We believe that in spite of the escalating fuel prices, airlines volunteering to stop operations would rather exacerbate an already bad situation.

“2. Ibom Air has financial obligations to suppliers, financiers and staff, which depend on uninterrupted flow of revenue to service. More importantly is the fact that having been paid by customers in advance for flight bookings we are bound by contract to deliver the services already paid for, to avoid exposing the airline to the risk of avoidable litigation.

“3.  Apart from the above factors, Ibom Air is currently the only airline serving Akwa Ibom State directly and as such, any voluntary stoppage of operations would completely cut off access by air into and out of the State. Such action would be directly in conflict with and detrimental to the interest of our shareholder.

“4. In view of the foregoing facts, Ibom Air had respectfully disagreed with the decision of AON to suspend flight operations on Monday 09 May 2022. Ibom Air cannot in the circumstance volunteer to stop operating and will continue normal operations on Monday 09 May 2022 and beyond. Ibom Air’s inclusion as “signatory” to the statement released by AON must have derived from its active and committed membership of the AON

“5. The above notwithstanding, we identify very strongly with our AON colleagues and will participate in every effort 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 we thank the AON for our collective efforts to secure a sustainable fuel pricing regime for the airlines.”

The statement was signed by the management of the Airline

Ibom Air is owned by  Akwa Ibom State.