Nigerian Billionaire's Airline Suspends Operation, Airfares Could Rise
- Azman Air, a major Nigerian carrier, has decided to suspend operations indefinitely, citing a shortage of aircraft
- The latest suspension once again further reduced the number of active domestic airlines in the country, and it could mean higher airfares
- The aviation industry has been faced with rising operational costs, fluctuating fuel prices, and exchange rate challenges
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
In another blow to Nigeria's aviation sector, Azman Air, one of Nigeria's domestic airlines, has suspended its operations indefinitely.
The airline's decision to suspend operation follows a series of disruptions in recent weeks.
Source: Getty Images
According to an internal memo, the airline has sent its staff on leave without pay.
This is not the first time Azman Air has made such a decision.
Daily Trust reported that in August 2023, the airline suspended its operations indefinitely, citing an aircraft shortage and placing its staff on unpaid leave.
The same reason led the airline to decide to cease operations in 2024.
Here is a breakdown of the airline operation changes
- 2010: Azman Air, founded by Alhaji Abdulmunaf Yunusa Sarina,
- 2021: The Nigeria Civil Aviation Authority (NCAA) suspended Azman Air's operations to conduct an audit due to challenges in the aviation sector and the airline's weak cash flow.
- September 2022: Azman Air resumed operations on a limited number of domestic routes.
- Early 2023: The airline suspended operations after its aircraft were stranded in maintenance facilities abroad.
Challenges of the aviation industry
Azman Air's decision to halt operations could increase the cost of travel for Nigerians, who are already facing high fares.
A recent report revealed that it costs about N250,000 to fly between Lagos and Abuja.
With the number of airlines shrinking and higher demand for air travel amid security challenges in the country, a change in airfares is expected.
Aside from Azman Air, Dana Air is another domestic airline that has remained grounded.
The major challenges for airlines include FX supply and naira depreciation, operational costs, and other factors.
Maintaining aircraft is expensive, and overseas repairs have become nearly impossible with the naira's depreciation.
BusinessDay reports that non-routine aircraft maintenance can cost as much as $1 million, noting that these costs are for manpower rates, not spare parts.
19 airlines closed up in 20 years.
Legit.ng, in an earlier report, provided a long list of airlines that have ceased operations in Nigeria over the past 20 years. Airlines that disappeared during this period include Nigeria Airways, Albarka Air, Discovery Air, Air Midwest, Okada Air, EAS Airlines, NICON Airways, and ADC Airlines.
Others are Space World Airlines, First Nation, Hak Air, Slok Air, IRS Airlines, Air Nigeria, Nigerian Eagle, Associated Aviation, Chanchangi Airlines, Sosoliso Airlines, Bellview Airlines, and Virgin Nigeria.
Max Air suspends operations
In related news, Legit.ng reported that Nigerian airline Max Air announced the indefinite suspension of its domestic flight operations.
Max Air disclosed this in a statement, explaining that the decision to halt operations is due to the ongoing hunger protests in Nigeria.
The airline also promised continued support from its customer service through social media, email, and phone.
PAY ATTENTION: Unlock the best of Legit.ng on Pinterest! Subscribe now and get your daily inspiration!
Source: Legit.ng
