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Africa: Nigerian Aviation Crisis continues as Emirates and Kenya Airways pulls out of Abuja

by Atqnews
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By Friday Nwosu

It seems there is no end in sight to the crisis trailing Nigeria’s aviation sector as Emirates one of the biggest foreign carriers operating in the country has decided to stop flight operations to the Nnamdi Azikiwe International Airport, Abuja effective 22nd October2016. Bringing its weekly flights down to 7 flights. Before now Emirates operated 21 flights weekly out of Nigeria.

This is just as East African carrier Kenya Airways, has announced that it will suspend flights to Abuja with effect from November 15, 2016 as part of its restructuring and loss saving efforts.

According to dailytrust.com, the Middle East carrier has formally written the Minister of State, Aviation, Sen. Hadi Sirika over its decision to stop flight operations into the country’s capital following the airline’s inability to buy forex and remit it sales.

There are indications that the airline might also suspend the Lagos operations indefinitely if the situation continues the way it is. With the suspension of its Lagos operation Emirates would have finally exited Nigeria. it is being rumoured that it will drop its 7 weekly flights down to 5 flights a week in the coming months.

“Emirates has huge money in naira at the banks. It cannot repatriate its sales because it cannot buy dollars. This is having negative effect on their operations,” the source said.
Emirates President, Tim Clark said the airlines is feeling the effects of a global slowdown and this year will prove to be a particularly challenging one for the carrier.

Clark who stated this an International Air Transport Association (IATA) event in Dubai, added that the airline is working on it.
He said: “It’s tough (compared to last year). Air traffic demand “is all about consumer demand. It’s not there yet”.

kenya_airwaysAccording to thenational.ae, the Emirates executive touched on a range of issues that have an impact on its global operations, including the security situation in Europe following terror attacks in Brussels and Paris, and the impact of the United Kingdom’s referendum vote to leave the European Union.

“We remain optimistic. Perhaps (it’s) not as good as it used to be but (it)will be in two to three years (provided there are no further geopolitical issues in Europe).”

The Dubai carrier has also made some cuts to its frequencies in Africa because of weakening currencies and recession in markets such as Nigeria.

“We made some contractions in Africa (because of the currency) situation,” Mr Clark said, adding that more cities and frequencies can be cut.

The airline has cut its twice daily flights to the Nigerian cities of Lagos and Abuja to once daily because of a hard currency shortage that is forcing airlines to refuel in neighbouring countries. It will be recalled that last month Emirates combined Abuja flights with Accra, Ghana citing aviation fuel issues.

Meanwhile, the airline’s fleet renewal plans remain unaffected by the economic upheaval. “Fleet [and deliveries] remain as is. We have 44 aircraft coming between end of this month and December 2018,” Mr Clark said.

On its part, the Kenya Airways indicated that the suspension of its Abuja flights was triggered by the dwindling traffic from Abuja to Nairobi, the airline’s operational hub.
Kenya Airways CEO Mbuvi Ngunze disclosed this plan in a statement obtained by Daily Trust in Lagos which indicated that the airline would however continue to operate its daily flight from Lagos to Nairobi.

Foreign airlines operating in the country’s aviation sector have been finding it difficult to repatriate their funds back to their home country due to the forex crisis bedeviling the industry in Nigeria.

Over $800m belonging to foreign carriers was trapped in Nigerian Banks up until June when the government allowed them access to it after the devaluation thereby wiping out 40% of the value.

According to atqnews.com, United Airlines, one of the US carriers flying operating into Nigeria about four months ago stopped flight operations into the country, precisely on June 30th after due notification to its customers.

Also, Iberia Airlines had earlier halted its operation to Nigeria due to the forex policy in the country which is affecting foreign carrier.

In July 1st , 2016, Emirates Airlines suspended its evening daily flights from Lagos, Nigeria. The airline had said it will keep only the daily afternoon flight out of Lagos. But with the bleak economic situation staring the industry in the face this might no more be the case for the airline.

Also, in March 2016, British Airways reduce its flights to Nigeria by bringing in aircraft with smaller capacity than the traditional Boeing 747, which operates the lucrative Lagos-London route.

The forex crisis had forced Nigerian carriers like , Aero Contractor, Dana Air, Medview Airline to stop operating the Lagos-Accra route, with exception of Arik Air the country’s largest carrier. Medview now flies twice a week down from daily flights.

Nigeria, oldest player in the country’s aviation industry Aero Contractors later suspended it flight operations in the sector citing both internal and external factors. Aero has operated for over 50 years without an incident or crash.

Chief Executive Officer, Aero Contractor, Capt. Fola Akinkuotu in a statement said the development was part of the strategic business realignment to reposition the airline and return it to the part of profitability.

According to him, the decision to suspend its operation is as a result of the current economic situation in the country which has forced some other airlines to suspend operation or out rightly pull out of Nigeria.

Not many days after Aero suspended it operation, another carrier, FirstNation airlines also suspended it flight operation promising to resume operation soon. It later restarted its domestic operations.

Also, Chanchangi Airline was one of the domestic carriers that dominated the Nigerian airspace controlling over 40 percent of the market share when it was still in operation. But the airline suffered multiple safety incidents and near-accidents in mid/late 2007.
Chanchangi continued to operate skeletal services after is suspension was again lifted but things did not get better, in fact for long it operated with one aircraft along with another airline, IRS until the Nigerian Civil Aviation Authority (NCAA) suspended the airline’s Air Operators Certificate (AOC) following a memo signed by the then Director-General of the NCAA, Captain Fola Akinkuotu, dated October 14, 2013 ordering all scheduled airline operators whose fleet size had been reduced to only one operational aircraft to immediately stop flight operations.

That was the blow that knocked both airlines out the of the aviation scene.
This comes as Aviation experts gather at Akwaaba African Travel Market on the 31st of October in Lagos to discuss “Why Airlines Fail”. The speakers for the conference include. Dr. Harold Demuren, former DG, NCAA; Capt. Dapo Olumide, former MD Virgin Nigeria; Capt. Samuel Thompson, COO, AWA, Ghana; and Richard Aisuebeogun, former MD, FAAN.

Others are, Mr Chris Aligbe, CEO Belujane Konzult; Yomi Jones, former MD, Nigeria Airways and Capt. Mike Omokore, CEO Broadlink Aviation.

At least 50 airlines which operated in Nigeria from Independence Day on October 1, 1960 have gone into extinction.

While most of the airlines were owned by Nigerians, others were jointly owned with partners from countries in Africa and Europe. Few of the airlines lasted for more than one year in operation.

Some of the airlines brought aircraft but never conveyed passengers before they went under.
Nigerian Airways Limited (NAL), established in 1958, two years before independence, was the mother of all the defunct airlines.

The NAL was liquidated in 2004 by former president Olusegun Obasanjo.
Following the liquidation of the national carrier, many Nigerian airlines were established but did not see the light of the day.

The defunct airlines included Flash Airline; Hold Trade Airline; Gas Air; Jambo Express; Chachangi; IRS Airlines, Savannah Airline, Albarka Airline; Intercontinental Airline; Air Mid-West; and HAK Air.

Others were EAS Airline; Nicon Airways; Virgin Nigeria Airline; Air Nigeria; Falcon Air; Sosoliso Airline; Zenith Airline; Barnas Airline; Space World International Airline; Dasab Airline; Fresh Airline; Trias Airline; Bell-View; Freedom Airline; Okada Air; Concord Airline (owned by the late Chief MKO Abiola); Associated Airline and Air Taraba (serving Taraba, Bornu and Adamawa states).

The list also included United Air Service; Aras Airline Ltd; Nigeria Global; Nigeria Eagle (which commissioned an aircraft but didn’t fly and had to take the aircraft back); Harco Airline; Premier Airline; Al Bashir; Trans-Sahara Airline; ADC; Oriental Airline; Axiom Airline; Forward Air; Flok Air; Das Air and Cargo.

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