Nigerian Airlines Struggle: Fully-Booked Flights But No Planes to Fly

  

In recent months, Nigerian air travel has faced significant turbulence as airlines grapple with severe fleet reductions and escalating costs, leaving passengers stranded and prices soaring. This crisis, characterized by fully-booked flights without available planes, has turned passengers into ticket scavengers, highlighting the severe aircraft shortage in the domestic aviation sector.

Nigerian airlines have been struggling with a reduction in available aircraft due to the prohibitive costs of maintenance. Many planes have been sent for mandatory maintenance, but airlines face difficulties returning them to service because of skyrocketing costs driven by the foreign exchange crunch. Some airlines have grounded their planes altogether, unable to meet the financial demands of maintenance, further reducing the fleet available to passengers.

The grounding of Dana Air, a low-cost carrier, has notably impacted the domestic aviation market. With Dana Air’s six aircraft out of operation, routes previously serviced by the airline have seen significant increases in ticket prices. For instance, the Lagos to Abuja route, which cost between N60,000 to N80,000 three months ago, now demands N200,000 or more for a one-way economy ticket.

On certain days, passengers attempting to book flights from Lagos to Abuja find no available seats, as airlines are fully booked. For example, ValueJet operated only two flights from Lagos to Abuja on a particular Thursday morning, causing a passenger glut on this highly traveled route.

Data from the Nigeria Civil Aviation Authority (NCAA) reveals that 13 domestic airlines collectively operate 91 aircraft, including those undergoing maintenance. However, more than half of these planes are out of service, straining the few operating aircraft. Five years ago, ten domestic airlines operated with over 120 aircraft, demonstrating a significant reduction in fleet size.

Travel experts suggest this reduction has made air travel increasingly exclusive, often monopolizing routes and making travel accessible only to those who can afford high ticket prices. Passengers without at least N200,000 may find it challenging to secure a seat, with some airlines misleadingly selling premium economy tickets that turn out to be regular economy class upon boarding.

Olumide Ohunayo, an industry analyst, highlighted the ongoing capacity problem exacerbated by Dana Air’s grounding and the inability of airlines to send aircraft for maintenance due to foreign exchange issues. He emphasized the urgent need to address the capacity and seat availability problems to alleviate passenger suffering.

Ndukwe Ginika Ogechi, CEO of Geena Travels and Tours Ltd, noted that clients have increasingly complained about the difficulty of securing flights to destinations like Asaba, Enugu, Owerri, and various northern locations. Airlines that once operated multiple daily flights to these areas now offer limited or no flights at all.

An anonymous airline operator confirmed that capacity issues are the primary reason for fully-booked flights. An Air Peace source mentioned that the airline is attempting to provide more flights to domestic connections as aircraft return from maintenance checks, with the Abuja route seeing particularly high demand due to business summits and political events.

Nigerian airlines face higher operating costs due to the depreciating naira against the dollar. While tickets are sold in naira, maintenance, spare parts, and insurance premiums are paid in dollars. The exchange rate fluctuations have significantly increased the cost of C-checks, from N200 million to N400 million at N400/$, to N800 million to N1.5 billion at the current rate of N1507/$.

Additionally, airlines are burdened with high insurance premiums. Nigerian carriers pay 8-10% of an aircraft's value for insurance, compared to 2-3% in other African countries like Ghana and South Africa, and 0.5-1% in Europe and the United States. This disparity means Nigerian airlines pay around $1 million annually to insure a B737-300 aircraft, while counterparts in Ghana or the US pay between $200,000 and $300,000.

The Nigerian aviation sector is in a state of crisis, with high maintenance costs and a foreign exchange crunch grounding many planes. This has led to fully-booked flights, soaring ticket prices, and a significant strain on both airlines and passengers.