The International Air Transport Association, AITA, has named many problems confronting foreign airlines in Nigeria, one of which is the inability to repatriate their revenue with $790m ticket earnings currently trapped in the country.
While speaking at a media presentation with African journalists at the IATA Global Media Day in Geneva, Switzerland, on Thursday, IATA Regional Vice President, Africa & Middle East, Kamil Alawadhi, said the repatriation issue may lead those airlines to exit Nigeria if the situation is not addressed.
Alawadhi said further of the problems foreign airlines are battling with: “Every airline has its challenges and it depends on where it operates. To answer this question, I will use Nigeria as an example. Nigeria has two most expensive airports; their fuel is higher than elsewhere in the world, and insurance is six times more expensive than anywhere else in the world.
“The interest on loans is 25%. It is ridiculous. It is the highest interest I have ever seen. When you set up these airlines, you are already disadvantaged. Any airline in Nigeria operating outside of Nigeria has a cheaper operating cost and better prices than Nigerian airlines. You can see why it is difficult for African airlines to make profit.”
