NCAA Boss Expresses Concern Drop In Airlines Revenues | Independent Newspapers Limited
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NCAA Boss Expresses Concern Drop In Airlines Revenues

Capt-Mukhtar-Usman NCAA
Posted: Apr 5, 2016 at 3:00 am   /   by   /   comments (0)

Sylvester Enoghase, Lagos
The Director-General, Nigeria Civil Aviation Authority (NCAA), Capt. Mukhtar Usman, has expressed worries at the sharp drop in airlines’ revenue in Nigeria and globally.

He attributed this substantially to discontinued state funding, sustained de-regulation, liberalisation, privatisation and intense competition.

He said this while delivering a paper titled, “The Acts of Promoting Sustainable Air Transport Economy While Maintaining High Level of Aviation Safety Standards” at the just concluded Airport Business Summit and Expo in Abuja,

Usman said human and cargo traffic at many airports has also dwindled with declining purchasing power of passengers and shippers.

According to him: “On the other hand, the cost of providing standard air transport services has continued to rise with the continuous innovations in the facilities and increasing demand for customer satisfaction, as a result, most airlines presently are faced with high and rising cost of operation”.

The NCAA boss noted that in Nigeria, for instance, aviation fuel constitutes 40 to 50 per cent of airlines’ direct operating costs, adding that high cost of funds and the steady devaluation of the local currency in which the airlines’ income is mostly denominated, against the foreign currencies on which their major expenses are based and many others, no doubt, aggravate the challenge.

He stated that a lot of small and average airlines around the world had either collapsed or gone bankrupt, while most, if not all the world’s major airlines have recorded losses or sharp falls in profit Within the period in reference,

The NCAA boss however stated that one of the few areas where significant performances have been recorded is the operation of low-cost airlines that have benefitted from a shift to cheaper travel.

This, he pointed out that it was because they use smaller and more fuel-efficient aircraft and extend their networks to small and remote aerodromes thereby taking their operations to the grassroots and aiding the distribution of goods and services to, as well as the development of the hinterlands.