View Full Version : Airlines Loses Over N7bn to Strike

14th January 2012, 03:58 PM
Nigeria's domestic carriers may have lost about N7 billion in the first five days the strike embarked by workers to protest the removal of subsidy by the Federal Government.

Arik and Aero which have over 65 per cent chunk of the market lost estimated N242 million daily as Aero has the highest load factor per aircraft.

Arik which has about 40 per cent market share operates average of 120 flights daily, followed by Aero that operates about 70 flights daily left hundreds of passengers stranded on the first day of the strike, which was January 9, 2012.

Other airlines that recorded huge losses include Dana Air, IRS, Chanchangi, Air Nigeria and First Nation Airways.

The strike which paralised totally domestic operations in the first five days also led to huge loss of revenue by aviation agencies, including the Federal Airports Authority of Nigeria (FAAN), which lost landing and parking charges, the Nigeria Airspace Management Agency (NAMA) which lost terminal navigation charges from domestic carriers.

All the other agencies lost passenger service charge from domestic passengers who were denied air travel by the strike action.

Industry expert and CEO of Belujane Konsult, Chris Aligbe, noted that strikes were not good for any business and they are usually regrettable because they lead to huge loss of revenue.

“The strike had tremendous impact because it affected both domestic and international operations. It is a huge loss in terms of revenue to the airlines, to the aviation agencies and how have the passengers been able to manage themselves?”

Aligbe observed that strikes were not in the interest of anybody because it would be difficult to calculate the huge losses incurred in terms of revenue and in terms of inconveniences and difficulties faced by employers, employees, passengers and others who have something to do with air transport.

“We will never be able to calculate it, the revenues that would have accrued from landing and parking, from over flyers for the aviation agencies; then revenues from passengers that would have accrued to the airlines. It will take a long time to calculate the losses.”

At the international wing of the Murtala Muhammed International Airport, Lagos, many passengers, some with children, were stranded for days and turned the departure hall of the airport into their living quarters as many of them could not go home because there were no vehicles to take them to their destinations.

A senior official of one of the major airlines told THISDAY that passengers face untold hardship as they could not move to their destinations, noting that the non-operation of domestic flights has incalculable effect on the nation's economy.

“We are also losing our credibility with our interline because we have to service our partners with passengers which we are not doing and this is difficult for us and the passengers,” the official said.

Following the announcement of notice to airmen (NOTAM) by aviation labour unions, some international airlines stopped coming to Nigeria on January 8, including Air France, Lufthansa and KLM, leaving their passengers stranded for days without hope of their being airlifted any time.

But some airlines like Ethiopian, Delta Air Lines, United Airlines, Kenya Airways, Qatar Airways and Emirates operated during the period, but their passengers suffered delays as aviation union members barred them from airlifting their passengers at scheduled time.