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  • Business - Companies
  • Updated: May 08, 2020

Minister Of Aviation Reveals Many Airlines Won't Survive COVID-19 Pandemic

Minister Of Aviation Reveals Many Airlines Won't Survive COV

One of the most hit sectors since the outbreak of COVID-19 in Nigeria is the aviation industry. All the airlines have been grounded since March following the closure of Nigeria's airspace.  The Minister of Aviation, Hadi Sirika, has now atated that many of the airlines won't survive the coronavirus period.

Both airline companies and travel agencies have been greatly affected by the restriction on movements within Nigeria and global. This has led to cancellation of flights and travel bookings. With some companies already pondering downsizing, some might just shutdown. Already, Arik Air has placed 90 per cent of its staff on unpaid leave since May 1, a month after slashing staff salary by 80 per cent.

Speaking on the struggles of the aviation sector, Sirika said the revenue loss recorded in the aviation sector can't be compared to any other sector even though these sectors were also impacted negatively by the coronavirus outbreak.

He said the aviation industry has lost N24 billion, and this loss can never be recovered again, “Certainly in civil aviation, we’re in very difficult moments like everyone else. All of this started because someone travelled. Unfortunately, he came back hone with it and the consequence is what we’ve been going through,” he said.

“We are very aware of our responsibilities and the weight attached to this. We are worst hit among all the sectors. Some 17 billion is being lost by the airlines monthly, thanks to COVID-19. The sector is highly regulated and very coordinated and has set standards that must be followed at all times, regardless, because we speak to safety.

“This is the situation of civil aviation. It is really a pathetic one and I can guarantee you that several airlines won’t come out of this unfortunately. Based on the trend of events prior to COVID-19, the total loss is about N21 billion approximately plus about N3 billion. It is divided in this form: N7 billion for aviation (what they lose in a month), N10 billion for airlines, N4 billion for ground handling, catering, etc., and then the taxation is N3 billion.

“Also, since you’re interested in dollars, what we got from the International Airline Transport Association (IATA), they’ve given us economic impact on Africa’s largest aviation markets. That for Nigeria, lost airline revenue is $994 million and in terms of employment at risk, 125,370. Loss of contribution to the GDP of the country is $885 million. Now these are IATA figures.” He said in The Cable report.

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