Number of commercial airlines operating in the nation’s aviation sector have shrunk to eight from 10 in the last one week after the NIgerian Civil Aviation Authority (NCAA), shut down the operations of Dana Air Indefinitely for audit amid financial struggles and recurrent flight incidents.
Following the suspension, the airline, on yesterday, said customers who sought refund of their ticket fare should contact the airline for refund.
Recall that on Monday, Aero Contractors, had announced temporary shutdown of its operation due to the high cost of operating, especially, the hike and scarcity of Jet A1 as well as unavailability of foreign exchange to purchase spare parts for grounded aircraft.
However, with Aero Contractors, temporarily shut down and Dana Air shut indefinitely by NCAA, airlines presently operating in Nigeria includes, Air Peace airline; Arik Air; Azman Air; Green Africa; Ibom Air; Max Air; Overland and United Nigeria Airlines.
Dana Air, it was gathered, was shutdown due to financial struggles as the airline was no longer in a position to meet its financial obligations and to conduct safe flight operations, as well as, frequent incidents.
For instance, on Monday, one of the airline’s aircraft, Boeing 737 with registration number (5N DNA), with over 100 passengers bound for Abuja had an engine failure. The aircraft, however, made an emergency landing and the aircraft grounded.
Also, in May, 2022, the airline, MD-83 aircraft with registration number 5N-JOY, had the tyre of Lagos bound plane bursted and immediately caught fire. The aircraft with 50 passengers on board were immediately evacuated as the pilot aborted takeoff.
However, to forestall mishap after recent incidents, the director general of NCAA, Capt. Musa Nuhu, had on Wednesday Night, announced the suspension of Dana Airlines’ Air Transport Licence (ATL) and Air Operator Certificate (AOC) indefinitely, with effect from midnight of Wednesday, 20th July, 2022.
The suspension, according to NCAA, 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.
He said: “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.
“The NCAA acknowledges the negative effect this preemptive decision will have on the Airline’s passengers and the travelling public and seeks their understanding, as the safety of flight operations takes priority over all other considerations.”
In their reaction, the management of Dana Air, yesterday, disclosed that the recent skyrocketing cost of aviation fuel, Jet A1 at 830/litre, unavailability of forex, inflation are factors that contributed to the suspension of their operation by NCAA
The airline, in a statement by the communication and marketing manager, Kingsley Ezenwa, expressed readiness and commitment to the course of NCAA’s operational audit, saying the airline is safe, efficient and reliable.
The statement read, “our operations have been suspended as advised by the NCAA in order to undergo a full operational audit with effect from midnight 20th July, 2022. Operational audits are regulatory and airlines are obligated to suspend their operations when the NCAA calls for it and we understand the impact this suspension will have on our partners, staff, passengers and the general public but we are very confident that we would come out stronger as we have done in the past.
“We wish to assure the NCAA that we are fully ready and committed to cooperating with them in the course of this audit and to also reassure our customers and partners that we are safe, efficient and reliable.
“The recent skyrocketing cost of Jet A1 at 830/litre, unavailability of forex, inflation are also contributory factors to this decision regrettably.
“We crave the understanding and patience of our customers, travel and business partners and sincerely apologize for any inconvenience our short absence from the market might cause.
“Our customer service team will continue to operate 24/7 to assist affected customers with necessary information on refunds and our offices will be open to all our existing partners.”
However, stakeholders have said that the airline has been operating at a loss, thereby, making the sustainability of operation very difficult
in an exclusive chat with LEADERSHIP, the secretary general, Aviation Round Table Initiative (ARTI), Olumide Ohunayo, said: “when you are in losses you don’t move from losses to profit, but rather, you have to reduce your profit loss first before talking about profit. We are talking about reducing loses first even if they carry full passengers, the loses have been so huge in the past.
“Except we want to judge it by the weekly or monthly operation but in your financial book, they will look at your end of the year and not weekly operation.”
Meanwhile, in a press statement by the communication and marketing manager, Dana Air, Kingsley Ezenwa, said the airline will come out stronger in it operational audit to be embarked upon by the NCAA.
The statement read, “we are pleased to announce that we have commenced the operational audit as advised by NCAA and we are fully cooperating with the NCAA to ensure our quick return to flight operations.
“Operational Audits are regulatory and airlines are required to suspend their operations when the regulator calls for it and we are confident that having been successful in previous audits, we will come back even stronger and better.
“The audit is also an opportunity for us to prove once again and reassure our guests, clients and partners that we remain strong, safe, efficient and reliable.”
According to him, the forex scarcity, aviation fuel hike and other operational challenges contributed to the crisis that led to NCAA’s suspension of the airline’s licence.
“As an airline, we are not insulated from the multiple challenges airlines and the aviation industry is grappling with daily which includes the recent skyrocketing cost of aviation fuel at N830/ltr, unavailability of forex, Ground Handling services, inflation, multiple taxation amongst other operational challenges which airlines have made frantic efforts to communicate to the flying public and the government.
“While this short stay off the market remains painful and heartbreaking for us, our customers, clients and partners, we remain very hopeful and very confident of our position.
“Our offices will remain open to our travel partners, clients and our customer service will still be operational 24/7 as always to assist customers with necessary information.
“Our customers with unused tickets have also been advised to apply for refunds by sending an email to [email protected] with their details and we will try and resolve in a timely manner.
“Wish to sincerely apologize to all affected customers, clients and travel partners for any inconveniences caused and crave your understanding and patience in the cause of this audit.”
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