2 months ago
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- The cost of airline tickets is likely to continue increasing following the decision by international lessors to blacklist Nigerian airlines
- Thirteen Nigerian airlines including Air Peace are affected, and the airlines are been asked to return leased aircraft
- The international lessors are unhappy that Nigerian airlines have failed to fulfill their monetary agreements
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Thirteen Nigerian airlines have been reported to be blacklisted by international aircraft lessors over various breach of contracts
The international airlines are now looking to enforce terms of their contracts by demanding the return of their aircraft.
Source: Getty Images
Lessors are firms or persons who lease or let airplanes to other entities for use.
BusinessDay reports that the contract breaches include refusing to pay lessor fees over a period of time.
Additionally, domestic airlines have refused to return the aircraft as stipulated in the contract when they breached payment terms, opting instead to take the international lessors to court.
The domestic airline action did not go down well with international lessors, forcing them to blacklist, the report added.
The blacklisted airlines the report said include Aero, Air Peace, Arik, Azman, Dana, Green Africa, Ibom Air, Max Air, NG Eagle, Overland, Reno Air, United Nigeria Airline and Value Jet.
Lessors who have blacklisted Nigerian airlines include: Planesense, Jetcraft, AerCap, Air Lease Corporation, Avolon among others.
Airfares to rise
The ongoing saga is expected to increase airfares for domestic travels amid ongoing challenge of aircraft shortage.
Legit.ng reported that several airlines have grounded aircraft for maintenance but are unable to bring them back into service due to maintenance costs caused by foreign exchange.
Already, Nigerian air travelers are paying high premium to fly from one part of the country to another.
For example Lagos -Abuja route have increased from between N60,000 and N80,000 three months ago, to as high as N200,000 or more for a one-way ticket on the route.
Ugandan Airlines begin direct flights to Abuja
Legit.ng earlier reported that the Ugandan Airlines is also set to commence direct flights to the Gatwick Airport in December after securing slots.
The airline initially secured slots at Heathrow Airport, which is yet to be cleared by aviation authorities.
Source: Legit.ng
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