Friday, 21 October 2016

Emirates, Kenya Airways to axe Abuja, Nigeria routes



Emirates (EK, Dubai Int'l) and Kenya Airways (KQ, Nairobi Jomo Kenyatta) have both announced they will be pulling out of the Abuja, Nigeria market in the coming weeks citing the country's worsening foreign currency shortage.


Emirates said its withdrawal from the Nigerian capital would occur on Saturday, October 22 while Kenya Airways will exit from November 15 onwards. Other foreign operators that have withdrawn from the Nigerian market in past six months include Iberia (IB, Madrid Barajas) and United Airlines (UA, Chicago O'Hare).

Nigeria's foreign currency reserves have plummeted in the wake of low global oil prices, its main export commodity. Given that demand for hard currency currently outstrips supply, airlines have struggled to remit ticket sales to their native countries. Aside from difficulties in remitting ticket sales in foreign currency, Emirates has also had to grapple with Nigeria's Jet A1 fuel shortage re-routing some return flights to Dubai Int'l via Accra, Ghana.

Emirates President Tim Clarke has said the airline is reviewing not only its Nigerian operations, but also its African network in light of the continent's continued weak economic performance of late. Given the circumstances, Emirates expects to either withdraw from or reduce its operations in several other African markets in the coming weeks. No specific destinations were disclosed.


Emirates, one of the biggest foreign airlines operating in Nigeria, has said it is stopping flight operations to the Nnamdi Azikiwe International Airport, Abuja with effect from October 22, 2016.

In another development, East African carrier Kenya Airways, has also announced that it will suspend flights to Abuja with effect from November 15, 2016 as part of its restructuring and loss saving efforts.

Daily Trust quoted sources as saying that Emirates had since formally written the Minister of State, Aviation, Sen. Hadi Sirika over its intention to stop flight operations into Abuja following the airline’s inability to buy forex and remit its sales.

The letter was received by the Permanent Secretary, Ministry of Transportation on behalf of the Minister, Rotimi Amaechi.

According to the source, the said letter indicated 22nd October 2016 as the date Emirates would suspend the Abuja flight operations if respite did not come their way.

The source said if after weeks of the Abuja suspension, no drastic change happened, Emirates would also suspend Lagos operations indefinitely. When that occurs, Emirates would have exited the Nigerian market.

“Emirates has huge money in naira at the banks. It cannot repatriate its sales because it cannot buy dollars. This is having negative effect on their operations,” the source said.


For its part, Kenya Airways is in the midst of a restructuring programme wherein several unprofitable routes, among them Abuja and Gaborone, Botswana, are being discontinued.

Both airlines will continue to serve Nigeria, albeit through Lagos

(culled from ch-aviation.com)Emirates (EK, Dubai Int'l) and Kenya Airways (KQ, Nairobi Jomo Kenyatta) have both announced they will be pulling out of the Abuja, Nigeria market in the coming weeks citing the country's worsening foreign currency shortage.

Emirates said its withdrawal from the Nigerian capital would occur on Saturday, October 22 while Kenya Airways will exit from November 15 onwards. Other foreign operators that have withdrawn from the Nigerian market in past six months include Iberia (IB, Madrid Barajas) and United Airlines (UA, Chicago O'Hare).

Nigeria's foreign currency reserves have plummeted in the wake of low global oil prices, its main export commodity. Given that demand for hard currency currently outstrips supply, airlines have struggled to remit ticket sales to their native countries. Aside from difficulties in remitting ticket sales in foreign currency, Emirates has also had to grapple with Nigeria's Jet A1 fuel shortage re-routing some return flights to Dubai Int'l via Accra, Ghana.

Emirates President Tim Clarke has said the airline is reviewing not only its Nigerian operations, but also its African network in light of the continent's continued weak economic performance of late. Given the circumstances, Emirates expects to either withdraw from or reduce its operations in several other African markets in the coming weeks. No specific destinations were disclosed.

For its part, Kenya Airways is in the midst of a restructuring programme wherein several unprofitable routes, among them Abuja and Gaborone, Botswana, are being discontinued.

Both airlines will continue to serve Nigeria, albeit through Lagos

(culled from ch-aviation.com)

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