A government panel says most domestic airlines fly below par because of inappropriate business model and inadequate capital base of N500 million which does not cover the cost of operating and maintaining even one aircraft.
The Ministerial Committee on Aeronautical, Non-aeronautical and Passenger Charges discovered that many local airlines have an average of two aircraft.
It said their refusal to form partnerships makes it difficult for each to survive for a long time because when one aircraft is out of service or the two undergo maintenance the airline shuts down operations.
There is no policy that bars an airline with one aircraft from operating on safety grounds, it added.
It also listed the absence of a national carrier and absence of transparency among stakeholders as part of the problems.
The committee noted, however, that funding is a huge problem for airlines which cannot secure bank loans at single digit interest for long term expansion.
