Distress May Force Airlines In Nigeria To Merge- NCAA
The Nigerian Civil Aviation Authority has tipped the possibility of merger by some Nigerian airlines over covid-19 inflicted distress on the sector.
The Director-General of the NCAA, Musa Nuhu, made the disclosure during an interview on the Nigerian Television Authority on Covid-19 effect on the country’s aviation industry.
Nuhu said, “The COVID-19 pandemic exaggerated a bad situation; some airlines may not survive but the industry will come back better.
“It has always gone through crisis but has come out stronger. The Airlines Operators of Nigeria are coming together to see what they can do to help the situation and they met with me. The industry will be different altogether.
“I am sure a lot of them will see changes in their model. I won’t be surprised there would be merger activities around airlines to reduce cost and survive.”
The statement comes as the CEO of Aero Contractors, Captain Ado Sanusi, on Friday said Arik Air and Aero may merge over the impact of the pandemic.
Ado said, “Aero and Arik can come together but the history of those companies are not similar; their origin and circumstances are different, but the government can get financial experts that can look at the two companies and put them together to make sure we serve the public better.”
Arik on Friday laid off over 300 staff according to a statement released by the airline, citing ” stunted revenues against increasing operational costs,” due to the virus outbreak.