Airlines’ Financial Crisis Gets Worse
- By Justina Okpanku
- Published September 27th, 2010
- News
- Unrated
(L-R) Mac Machaiah, MD, Media Reach; discussing with Wael Ammar, COO, Etisalat Nigeria; at a conference on Nigeria Idols in Lagos.
BARELY a week to Nigeria’s 50th independence anniversary celebrations, operators in the country’s services industry are already in the mood for a boom as many high profile visitors are already billed to be in the country for the celebrations. But BusinessWorld investigations can reveal that the financial crisis being faced by some Nigerian airlines may mar the celebrations.
In the last one week, services provided by the domestic airlines have been very poor. Many visitors who are already taking part in the logistics of the celebrations and those who came to study the unfolding political campaigns were not satisfied with the quality of service provided by the airlines despite the global standards attained by the Nigerian aviation industry.
One airline that is at the forefront of the poor service which may embarrass the visitors is Arik Airlines whose debt profile has affected the comfort of its many passengers. Its inability to pay for the purchase of aviation fuel has been attributed to the numerous flight cancellations which it has been recording on daily basis of late. There are strong indications that if positive steps are not taken to address the crisis, it will spoil the fun of visitors.
There is no such thing as low-cost carrier within the period as airlines are already charging high fares. Demand for air services has climbed and is not being matched with supply on the Abuja route. During peak period like Tuesday morning and Friday evening, passengers pay more. This has led to unnecessary fare escalation which changes within seconds. Travellers who were at Dana Air counter to purchase air ticket to Abuja at MMA2, a domestic wing of the Murtala Muhammed Airport in Ikeja, Lagos last Wednesday said they had a very bad experience.
Well over 50 hotels that boast at least 20 rooms have never had it so good. Most of them that used to record zero or 10 per cent occupancy rate have climbed to 45 per cent while those below 50 per cent have recorded 85 per cent.
The Transcorp Hilton, Abuja where the visiting heads of state will be staying during the anniversary has been upgraded. The carpets in the guestrooms and public areas, for example, have been changed.
