Nigerian Airlines Lose N8 Billion Annually Due to Underutilization

Nigerian airlines are facing significant financial losses, estimated at N8 billion annually, due to the underutilization of their aircraft fleets. Investigations reveal that medium-sized aircraft such as the Boeing B737, Embraer E195 E2, Airbus A220, and Bombardier CRJ 900/1000 are expected to operate for 14-16 hours daily to generate sufficient revenue.

However, operational constraints, including infrastructure limitations and security threats, restrict airlines to only 7-8 hours of daily operation. Akin Olateru, Chief Executive Officer of Omni Blu Aviation, highlighted that the inability to maximize aircraft utilization affects revenue recovery, especially when airlines invest heavily in acquiring new aircraft.

Factors contributing to this issue include the design of Nigerian airports, which primarily operate during the day, and the absence of night landing facilities. Only five out of 30 airports in Nigeria operate at night.

The article emphasizes the need for government support in facilitating aircraft acquisition and operational improvements to enhance the aviation sector's profitability.