“Airlines cannot be expected to fly if they cannot generate revenue from ticket sales. Loss of connectivity is hurting the economy, hurting investor confidence and impacting jobs and people’s lives. The Government of Nigeria must prioritize the release of funds, before more damage is done”hammers the International Air Transport Association (IATA) in a Tweeter post on Thursday.
This is a straightforward appeal addressed to the Nigerian authorities who, faced with the shortage of foreign currency experienced by the country over the past two years, have taken a series of measures including limiting access to foreign currency for imports and for investors seeking to repatriate their profits. Saying it was “disappointed”, IATA recalls that it has “several times and without success” challenged the government on the situation of airlines due to these restrictive measures.
Emirates suspends operations
In the wake, Emirates Airlines – which has $85 million in revenue from all blocked funds – announced on Thursday the suspension of its operations in Africa’s largest economy from September 1. Evoking a ” difficult decision “, the company says it is motivated by the need to “to limit additional losses and the impact on [ses] operational costs that continue to accumulate in the market ».
In Nigeria, the Dubai national carrier operates in the political and economic capitals, namely Abuja and Lagos. The lines are considerably busy, because the big Nigerian traders – when they are not going to China – very often go to Dubai.
Who’s next ?
The restriction on the repatriation of income from foreign companies has already been criticized by IATA in June. While Emirates suspends its local activity, whose next turn? So far, the Nigerian authorities have not commented on the subject. But it seems clear that if such a decision comes from several airlines, it would not be for the good of the Nigerian economy at a time when most countries are taking advantage of this season to take advantage of the strong recovery in travel around the world. .
