. Revenue dips by 50 per cent
• Delta Airline takes over U.S. route from Arik
• FirstNation scales down operations
The current low pricing strategy and the attendant low cost of local air travel in the country may be attracting new passengers to airlines, but fast lowering the chances of struggling aircraft in the face of dire financial straits.
Whereas the steady drop in the economic power of the naira to the United States dollar over the years has not helped local operators and investors, the seeming under-pricing approach now accounts for about 50 per cent fall in revenue of some airlines.
Experts have, however, blamed the development on the desperation of some stronger operators to beat co-competitors to the market. They warned that such an unhealthy competition strategy, if not checked by the Nigerian Civil Aviation Authority (NCAA), will make it more difficult for airlines to meet financial obligations, compromise safety standards and hasten the collapse of struggling airlines.
