Credit Cuts Threaten Airlines’ Operations

Failure to effectively service their debts has prompted Nigerian banks to cut their credit facility to domestic carriers, thus denying them operational funds.

Inside sources disclosed to THISDAY that some airlines could not source funds to pay for the maintenance of their aircraft overseas and could also not ferry the ones due for major maintenance out of the country due to lack of funds.

Without bank funding, airlines cannot have operational funds for the payment of aviation fuel, aircraft maintenance and acquisition of spares.

The airlines depend on short-term loan facilities from banks for their daily operations but now that some banks have withdrawn these services for the airlines, the serviceable aircraft in operation has shrank from 46 to 32, informed source told THISDAY.

THISDAY, May 25, 2018

 

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