Here’s why some foreign airlines pulled out of Nigeria, NCAA boss

    

In case you missed this, Spanish air giant, Iberia, and America’s toast, United Airlines, have disengaged from servicing Nigerian route since April and May respectively. Their decision was prompted by the nation’s controversial forex restrictions that resulted to scarcity of the Dollar and other foreign currencies in Nigerian banks.

The situation had a negative impact on the airlines as they couldn’t repatriate their revenue. And, on the local scene, Aero Contractors in August suspended flight operations despite being under receivership of the Asset Management Company of Nigeria, AMCON. Also, First Nation had to suspend operations for two weeks due to non-availability of equipment.

With all these in mind, the Director-General of the Nigerian Civil Aviation Authority, NCAA, Capt. Muhtar Usman, has explained why some of the foreign airlines, mentioned above, had to quit Nigeria while others are reducing their frequencies.

In an interaction with the House Committee on Aviation Wednesday in Lagos, Usman attributed the situation to the lingering harsh economic malaise that put too much pressure on the naira, making it weak to other foreign currencies.

He, however, disclosed that the Federal Government, through the Central Bank of Nigeria, CBN, has released 50 per cent of the foreign airlines’ funds trapped in the country, promising that the issue would be adequately tackled forthwith.

Before now, about $700, 000 of foreign airlines’ funds were trapped in the CBN due to forex restrictions. But with the revelation of Usman yesterday, it means half of the funds had been released to the airlines in recent time.

Usman lamented how recession in the country has generated a negative impact on the operations of the airlines and the entire aviation industry, stressing that apart from the airlines losing revenue due to low passenger patronage, the agencies are at the receiver end since they depend on percentage of tickets sold by the airlines.

The recent reduction in patronage also forced Emirates Airlines to reduce its three frequencies to Lagos and Abuja to just two daily.

Also speaking, the Chairman House Committee on Aviation, Hon. Nkeiruka Onyejeocha, said that the major priority of the committee was to ensure total safety in the Nigerian aviation industry.

She observed that some of the airlines were not complying with the regulations of NCAA and urged the management to improve on its economic regulations of the airlines.

She noted that if the NCAA was carrying out its duties as expected, some of the airlines that closed shop recently would still be in operation.

The committee agreed to call a public hearing on the situation of the airlines and the proposed airport concessions by government.