Nigeria suspends Dana Air operations

The Nigerian Civil Aviation Authority has made the tough decision to suspend the Air Transport License and Air Operator Certificate of Dana Airlines indefinitely after a failed financial and economic health audit. This move comes on the heels of Aero Contractors announcing a temporary suspension of its scheduled passenger services operations. Tayo Ojuri, Managing Partner at Aglow Aviation Limited, shed light on the challenges facing the aviation sector in a recent interview on CNBC Africa. Ojuri highlighted the impact of external factors like the Russia-Ukraine war, foreign exchange shortages, and governance issues on the struggling sector. The aviation industry in Nigeria is grappling with a perfect storm of challenges, including the scarcity and high cost of Jet A1 fuel, exchange rate fluctuations, and governance failures. Ojuri emphasized the critical role of safety in aviation and commended the proactive stance of the Nigerian Civil Aviation Authority in prioritizing safety concerns over financial implications. However, the suspensions of Dana Airlines and Aero Contractors have raised alarm bells across the industry, with fears that more airlines may face a similar fate in the coming weeks and months. While each airline has its unique set of challenges, they are all navigating the same turbulent skies, trying to stay afloat in the face of mounting obstacles. Aero Contractors, despite its history of bankruptcy, has found success in charter services and maintenance operations, underscoring the need for diversification and adaptability in the current climate. Ojuri stressed the importance of strategic partnerships and foreign investments in bolstering the sector's resilience and competitiveness. He suggested that Nigerian airlines explore collaboration opportunities to leverage external expertise and resources to weather the ongoing storm. As the industry grapples with the need for consolidation and sustainability, there is a call for innovative strategies and collaborative efforts to navigate the challenging landscape ahead.