Domestic airlines under audit to determine those to continue operations
By Jeph Ajobaju, Chief Copy Editor
An economic and financial audit of domestic airlines grappling with financial challenges has begun to determine those viable and those likely to suspend operations as Aero Contractors has done, citing a difficult business environment.
The Nigerian Civil Aviation Authority (NCAA) has audited Dana Air and withdrawn its operating licence and top industry sources said the NCAA is also auditing at least two other domestic carriers to ascertain their financial health.
“NCAA DG has mandated a team to audit three domestic airlines to ascertain if they can still continue operation. Dana Air is one of them. This development led the agency to stop Dana from operating.
“We don’t know whether the two remaining carriers would fail the audit too,” said a top official of the NCAA who spoke on condition of anonymity because he was not authorised to speak on the matter.
The development comes days after Aero Contractors announced suspension of its operations. It is unclear if it had a financial crisis but the management complained of skyrocketing aviation fuel prices, foreign exchange crisis, among others.
When contacted on whether the NCAA has set up a team to conduct an economic and financial audit on the three airlines, spokesperson Sam Adurogboye, said: “I am not aware. All I know is that NCAA has a standing audit committee for airlines.”
_________________________________________________________________
Related articles:
Repairs to cause more flight delays at Lagos Airport
Airlines blame 80% flight hassles on airport deficiencies
FAAN says it can’t operate airports 24/7 for now
__________________________________________________________________
Dana Air to begin remedial actions
Adurogboye advised Dana Air to act fast so that it could restart operations as soon as possible, per reporting by The PUNCH.
“The airline should consider taking remedial actions so that it can commence operations as soon as possible. However, in the main time, it is expected that they refund their passengers or renegotiate with them. Dana Air should fix its issues as quickly as possible,” he said.
Suspension of operations by Aero, Dana
Aero Contractors, Nigeria’s oldest airline, announced suspension of flight operations on 18 July due to a hostile operating environment, particularly the high cost of aviation fuel. Aero Contractors had been in operation for 61 years.
The NCAA announced the suspension of Dana Air on 20 July.
“The suspension was made pursuant to Section 35(2), 3(b) and (4) of the Civil Aviation Act, 2006 and Part 1.3.3.3(a)(1) of the Nigeria Civil Aviation Regulations (Nig.CARs), 2015,” the NCAA explained in a statement.
“The decision is the outcome of a financial and economic health audit carried out on the Airline by the Authority, and the findings of an investigation conducted on the airline’s flight operations recently, which revealed that Dana Airlines is no longer in a position to meet its financial obligations and to conduct safe flight operations.”
