The International Air Transport Association, IATA, has revealed that the cost of operating airlines in Nigeria is expensive, stating that this is even as the country has the poorest infrastructure, News About Nigeria reports.
The IATA Regional Vice President, Africa & Middle East, Kamil Alawadhi, made this revelation while speaking at the IATA Global Media Day in Geneva, Switzerland, on Thursday.
He noted that with the high cost of airlines operating in Nigeria, it will be difficult for the airlines to break even or make profits in the country, adding that airlines in Nigeria operating outside of Nigeria have cheaper operating costs and better prices than Nigerian airlines.
He further noted that the 25 percent interest on airline loans in the country was ridiculously high and already placed the airline at a disadvantage.
He added that the interest on loans in the Nigerian Aviation Ministry was the highest everywhere.
According to him, the high interest, airport taxes, and insurance premiums made it difficult for the airlines to make a profit.
He, however, noted that the Air Transport Association was doing all it could to identify the cause of the high costs and come up with lasting solutions on how the costs could be reduced to enable African airlines to become profitable.
Al-Awadhi further noted that Nigeria currently holds the highest amount of airline-trapped funds, warning that some foreign airlines may be forced to quit the Nigerian markets if nothing is done about it.
He therefore urged the federal government to map out a strategy to ensure that the debt is defrayed.
