Nigeria: Airline Bankruptcies

28 December 2012
column

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.

...

AllAfrica publishes around 400 reports a day from more than 100 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.