‘High Cost of Operation Makes Airline Business in Nigeria Unprofitable’

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The CEO of United Nigeria Airlines, Dr. Obiora Okonkwo, in a recent media session with Aviation Correspondents, said the high cost of flight operations had made it difficult for airlines to operate…

The CEO of United Nigeria Airlines, Dr. Obiora Okonkwo, in a recent media session with Aviation Correspondents, said the high cost of flight operations had made it difficult for airlines to operate profitably in Nigeria, noting that high cost of aviation fuel and foreign exchange has become very challenging for Nigerian carriers.

Within this one year we had Embraer ERJ 145 for a start, but we commenced our operation with two in the first instance, not long after, we came into full operation with the four aircraft. They have been all over the places doing what they know to do. In order to meet the demand of our passengers, we had introduced another aircraft, Airbus A320.

When that is done, it is important for you to know that we have all the blessings and all the capacities to do beyond the territories of Nigeria. So we have set a big task for ourselves that within the next couple of months, that we would have started our regional flight. When we say regional we are talking about West Africa.

So, as a matter of fact, by the time you remove all these deductions from this 20,000 that we are talking about, you have to use your money to finish some of them and then also take care of other operational needs. You could recall also that in 2000, you may have bought a ticket at N2000 but if you cast your mind back to that year; that 2000 was $100 based on the exchange rate.

 

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