NCAA suspends operating licenses of Dana Air indefinitely

Nigerian Civil Aviation Authority (NCAA) has suspended operational licences of Dana Air indefinitely with effect from 12 midnight of Wednesday, July 20.

According to NCAA, the suspension of Dana Air’s operations in the country follows the report of a financial audit it carried out on the airline, which revealed that ‘Dana Air is no longer in a position to meet its financial obligations and to conduct safe flight operations.’

Consequently, the country’s civil aviation regulatory agency suspended Dana Air’s Air Transport Licence (ATL) as well as its Air Operator Certificate (AOC) with immediate effect.

A statement made public and addressed to the management of Dana Air, by NCAA Director General, Capt. Musa Nuhu, Wednesday, explained that the suspension was ‘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.’

“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 Air 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,” read the statement.

The suspension of Dana’s operations comes barely days after the country’s oldest domestic privately-owned airline, Aero Contractors, suspended its flight operations owing to a difficult operating environment in the country.

It would recalled that Aero Contractors, had last Monday, announced an indefinite suspension of all flight operations, from Wednesday, July 20, 2022.

Aero, which has been under administration owing to debts, explained that the decision is due to ‘challenging operating environment’ in the country.

Aero is under administration, following takeover from their original owners by the Federal Government which placed the aviation firm under receivership of the Asset Management Corporation of Nigeria (AMCON) in 2016.

The airline industry has battled high operational costs owing to rising aviation fuel prices (JET A1), scarce foreign exchange, drop in general passenger demand, exorbitant airfares, lingering dispute with various labour unions over staff welfare demands, tax remittances, since emerging from the shutdown occasioned by the Covid-19 pandemic, last year.

On its decision to shut down operations, Aero Management said, however, that the move will not affect its other businesses such as the Approved Maintenance Organisation (AMO), otherwise known as AeroMRO, the Approved Training Organisation (ATO), also known as Aero Training School, Helicopter and its Charter operations.

The embattled airline management said that its partners in the Spring Alliance will assist to ameliorate the impact of the suspension on its affected customers to help them reach their destinations.

“Due to the impact of the challenging operating environment on our daily operations, the management of Aero Contractors Company of Nig. Ltd. wish to announce the temporary suspension of its scheduled passenger services operations with effect from Wednesday, July 20, 2022.

“This does not in any way affect the Maintenance activities of the Approved Maintenance Organisation (AMO) otherwise known as AeroMRO, the Approved Training Organisation (ATO) also known as Aero Training School, the Helicopter and Charter Services operations.

“This decision was carefully considered and taken due to the fact that most of our aircraft are currently undergoing Maintenance, resulting in our inability to offer a seamless and efficient service to our esteemed customers.

“We are working to bring these aircraft back to service in the next few weeks, so we can continue to offer our passengers the safe, efficient, and reliable services that Aero Contractors is known for, which is the hallmark of Aero Contractors Company of Nig. Ltd.

“The past few months have been very challenging for the Aviation industry and the airline operators in particular. With the high cost of maintenance, skyrocketing fuel prices, inflation, and forex scarcity resulting in high foreign exchange rates. These are amongst the major components of airline operations.

“In the meantime, we are working assiduously to return to service as quickly as possible, and do assure our esteemed customers and stakeholders of our determination, that our short absence will not create any major void in the market, as we are coordinating with our business partners to ensure minimum discomfort to ticket holders.

“As members of Spring Alliance (a commercial alliance with member airlines providing mutual support in the area of operations), we are liaising with our partner airlines to minimise the impact on our esteemed customers. Our customer service team will be working to help affected esteemed customers reach their destinations,” the airline said.

In May, this year, a planned general shutdown of operations by all domestic operators under the aegis of the Airline Operators of Nigeria (AON) in protest over the high cost of operations in the country, was called off at the last minute following the intervention of the Federal Government.

AON members explained that the stay of action which prevented shutdown of the aviation services its deference to numerous calls from the highest echelons in government with promises to urgently intervene in the crises.

According to a statement by President of AON, Alhaji (Dr.) Abdulmunaf Yunusa Sarina, the airlines in the country currently face astronomic and continuously rising cost of JetA1, leading to high cost of operations and erosion of commercial margins.

The statement was jointly signed by the Executive Director of Max Air, Alhaji Shehu Wada; Chairman, United Nigeria Airlines, Dr. Obiora Okonkwo;  CEO of Arik Air, Capt. Roy Ilegbodu; CEO of Aero Contractors, Capt. Abdullahi Mahmood; and MD, Azman Air, Alhaji Faisal Abdulmunaf.

The operators said the AON acceded to requests to withdraw the industrial action for the time being “while we allow for a fresh round of dialogue with government in the hope of reaching an amicable solution.”

“We have also reached this decision with the highest consideration for our esteemed customers who have been faced with uncertainty over the last few days and to enable them to have access to travel to their various destinations for the time being during the period of discussions with relevant authorities.

“In view of the above and in the interest of national economy and security considerations, AON hereby wishes to notify the general public that the earlier announced shutdown of operations on May 9, 2022 is hereby suspended in good fate pending the outcome of hopefully fruitful engagement with government.”