Foreign airlines have concluded plans to reduce airfares next year following the plummeting oil prices. Also, the International Air Transport Association, IATA, the clearinghouse for global airlines, which represents 240 airlines, has given the operators the nod.

The association, however, disclosed that carriers are still stuck with contracts for fuel that pre-date the past months’ price slump. Yemi Dada, managing director of IRS Airlines, stated that it would be difficult for the airlines to quickly effect a cut in fares, noting that fuel hedging deal that virtually all the international airlines entered into is one of the reasons airlines have not cut ticket prices despite the oil price fall.

“In fact, as demand for flying remains strong, fares have been going up,” he explained. The IRS boss said that reduction in fares is predicated on the oil marketers’ readiness to effect reduction in the price of JET A1. It is, however, believed that the removal of surcharges by foreign and domestic airlines would drastically lead to a slump in fares. Airlines had, over five years ago, introduced surcharges to cushion the effects of high cost of aviation fuel, otherwise known as Jet A1.

The differences in airfares are as high as 50 per cent. Foreign airlines claim that the high charges were as a result of hostile Nigerian operational environment, where airlines are required to pay all kinds of charges, provide security for crew members and pay exorbitant rates for hotel accommodation and other services.

Although, Nigeria is an attraction to international travel because of its high passenger movement, costs of services at the airports are very exorbitant.