Airlines in the Nigerian aviation industry might be compelled by circumstances to embrace merger as a result of the impact of the covid-19 pandemic on business, Musa Nuhu, the director-general of the Nigerian Civil Aviation Authority (NCAA) has said.
The NCAA chief gave the revelation while examining the effects of the pandemic outbreak on the sector during a Nigerian Television Authority programme on Saturday.
“The COVID-19 pandemic exaggerated a bad situation; some airlines may not survive but the industry will come back better. It has always gone through crisis but has come out stronger. The Airlines Operators of Nigeria are coming together to see what they can do to help the situation and they met with me. The industry will be different altogether,” the NCAA boss said.
“I am sure a lot of them will see changes in their model. I won’t be surprised there would be merger activities around airlines to reduce cost and survive.”
The International Air Transport Association forecasted in a commentary in May that the Nigerian aviation sector was at risk of losing $900 million in revenue and 124,000 jobs in this year alone.
The NCAA boss said “the airlines carry their maintenance out of the country and it is done in foreign exchange. They need to raise enough money to service the aircraft.”
“The airlines have to find a source of raising more naira. Passenger load has decreased during the pandemic. That is why there have been significant increase in airfares, they are trying their best and by the time the bailout kicks in, things will be better,” the NCAA director-general stated.
In the last few weeks, an average one-hour economy class seat for local flight among some airlines ballooned to N75,000 from N33,000, representing over 127 per cent increase.
Join the conversation
INVESTIGATION… Ten years after, communities count losses as AfDB, Cross River govt abandon road project
Ten years after the Cross River State government and African Development Bank (AFDB) jointly awarded the Yahe-Wanokom-Wanikade-Benue border road for...
INVESTIGATION….N.3bn down the drain: Why water projects for Enugu communities don’t work
In this concluding part, ARINZE CHIJIOKE talks about some of the projects that are serving the people and how various WASH programmes have failed to tackle...
INVESTIGATION…PARKVIEW ESTATE: Exclusive images of how billionaire property developer incurred Lagos govt‘s anger
Many have seen the demolished building, but not many know the circumstances that led to the teardown of the about...
INVESTIGATION… N.3bn down the drain, as Enugu communities suffer from dry taps
In November 2020, three organizations and the Enugu State government celebrated the completion of N300 million worth of projects that were expected...
INVESTIGATION… How herdsmen crisis compounds woes of already deprived Ogun communities
Earlier in January, the Nigerian media space was awash with reports of violence between herders and farmers across the country....