ABUJA (Reuters) – The Nigerian Civil Aviation Authority said on Thursday it has suspended the operations of Dana Airlines with immediate effect, citing the outcome of an audit of the carrier.
The aviation regulatory body said the suspension was necessary because “Dana Airlines is no longer in a position to meet its financial obligations and to conduct safe flight operations”.
Dana in a statement said all its flights have been cancelled due to an ongoing operational audit.
Separately it said that one of its flights with 100 passengers on board made an emergency landing on Tuesday due to one of its engines.
The NCAA’s move comes after Aero Contractor, another airline, said it will suspended operations on Wednesday because most of its aircraft were undergoing maintenance and it was unable to offer an efficient service.
Nigeria’s airlines have faced stress this year as jet fuel costs are soaring and must be paid in dollars, a scarce currency in Africa’s top economy, while passengers pay for fares in naira, a currency that has weakened sharply due to devaluations.
The Airline Operators of Nigeria, an association with 9 members, had planned to stop operations in May due to the high cost of jet fuel but called off the plan hours before it was due to take effect.
Aero noted in a statement that the past few months have been challenging for the industry, citing the cost of jet fuel and shortage of dollars.
(Reporting by Camillus Eboh; Writing by Chijioke Ohuocha; Editing by Kirsten Donovan)
