The airline industry is one of the toughest in which to do business anywhere in the world. Anyone who doubts this statement should ask the owners of Arik Air, Aero Contractors, Air Nigeria, DANA air, and First Nation Airlines. The crises associated with airline business are rooted in cost of funds, fixed and variable operational expenses. In addition to these costs are harsh government policies in the operating environment.
Even in the most aviation- friendly nations where governments support the creation of jobs through airline operations to stimulate the economy, costs of keeping aircraft flying, most times, create unbearable burden to airlines' long- term existence.
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