Nigerian Govt Withdraws Licences of 7 Airlines, Clears 13

[Flying Touareg]

As the recapitalisation exercise in the aviation industry came to a close yesterday, the Federal Government announced the withdrawal of operating lice-nces of seven airlines that failed to meet the requirements and re-certified 13 others to fly the nation’s airspace.
The banned airlines were Aviation Development Com-pany (ADC), Sosoliso Airlines, Fresh Airlines, Albarka Air-lines, Chrome Airlines, Dasab Airlines and Space World Air-lines.
The recapitalised airlines include Aero Contractors Air-lines, Afrijet Airlines, Allied Airlines, Associated Airlines, Bellview Airlines, Chanchangi Airlines, Dornier Aviation Nigeria Limited, NICON Air-ways, IRS Airlines, Overland Airways, Air Midwest, Arik Airlines and Virgin Nigeria.
Air Midwest was however announced as a new entrant into the nation’s aviation industry.
Although some of those that have their licences revoked were already grounded for one reason or the other, they however could not cross the threshold of the capitalisation which was set at N500 million for flight operations within the country; N1 billion for flight operations within the African continent as well as Mecca and Jerusalem and; N2 billion for airlines with international operations.
It could be recalled that the Federal Government about two months ago directed all airlines to recapitalise their operations by April 30, 2007 (yesterday) and vowed that any that failed to meet the requirements would have its licence withdrawn.
Addressing newsmen yesterday in Abuja on the outcome of the recapitalisation exercise, Minister of State for Air Transportation, Chief Femi Fani- Kayode, stressed that, “no other airline operators, apart from those that I have listed as from today, that is domestic carriers. As at today, they would not be allowed in the Nigerian airspace for any reason whatsoever.”
Fani-Kayode however added that, “the only way they can be allowed to fly is if they satisfy the NCAA and achieve that share capital base. They can still do so. If they are ready to do that and if it is proved and shown to the NCAA that they have done it, then of course the ban on them would be lifted.”
When prompted for clarification on that aspect, he explained that if any of the failed airlines applies afresh for licence in line with the new capitalization requirements, they would be granted, so far they also satisfy NCAA guidelines.

http://www.thisdayonline.com/nview.php?id=76904

[Rani]

What was the point of this exercise if 90% of the active operators made it through? They like to call it "consolidation" to draw a parallel with the banking sector reforms. Most registered banks in Nigeria did not make it to the finish line independently. They had to merge, secure foreign partners, or do some serious cash-hunting on the stock market.

Consider that both ADC and Sosoliso were grounded due to their crashes and safety record. Seperately, the owner of Spaceworld declared last year that "he's an old man" and as such has no energy to "run around from office to office" to secure permits and finance. Both Spaceworld and Albarka have not operated for many months... Nicon was practically sleeping anyway, on their first and last legs: 2 ex. EAS 737-200s.

It would appear that the minimum paid up capital required was still ridiculously low in international standards. IMO, further consolidation and regrouping is imperative in light of the challenges that lie ahead... I'm not against liberalization and free market forces, but if Nigerian airlines wish to grow and propser, competing with their counterparts in Kenya, Ethopia, and South Africa, then only one avenue will lead them there. It's the path of economies of scale and seriousness in long-term investment.
Now where's my mojito :) :E

[bdwa]

If what happened in the banking sector is anything to go by, then I think it a good thing. if some of this airlines merge then great, but i hope the government continues the oversight of the industry and mantain the high standards that are been set.
Its been proven in the banking and telecom sector that its possible.

[Fat Reggie]

Uh oh, somebody didn't pay their chai.:=

[dynamicd]

Flying Toureg,I find Kabo Air missing from both banned and recapitalised lists.Are you aware of their status?What info can you give us on the new entrants, air midwest and rahamaniya.

[Flying Touareg]

Dynamcid, i think Kabo Mgt has decided to remain as a charter service only for Hajj etc.
No mention has been made of the makeshift coys that provide charter/Hajj services like Kabo, Mangal and Meridien.

As for the new entrants especially rahamaniya, a rich man from the north and based in Lagos i gather is behind it.

[NDB17]

Air Midwest has been around since 2003, they had their office then on opebi rd by the U-turn. If I remember correctly they were talking about bringing in b717s, which at the time I felt was a joke. The then MD was the former MD of kabo, victor was his first name.

[Flying Touareg]

''Four days after the expiration of the April 30 deadline to airlines operators to recapitalise their operations, the Federal Govern-ment yesterday said it has re-certified additional seven airlines to fly the nation’s airspace having met the set requirements.
The airlines are Wings Aviation, Pan African Air-lines, Kings Air and Travels Ltd, Kabo Air and Travels Ltd, Capital Airlines Limited, Caverton Helicopters and Bristow Helicopters.''


Not loosing our jobs afterall:D