Devaluation of naira not good for airline operations -Arik Air
…. Carries 17.3 million passengers so far
The management of Arik Air had applauded the decision of the federal government to halt further devaluation of the country’s currency; stressing that it is not good for airline operations in the country.
Speaking during a media briefing in Lagos to mark the 9th year operations and the launch of it Travel Insurance, the managing director of Arik Air, Mr. Chris Ndulue said the action will save most of the country’s airline from going under as any further devaluation of the naira will spell doom for the industry.
Mr. Ndulue explained that aircraft spare parts are purchase in foreign currencies while maintenance is also carried out abroad.
He disclosed that since inception on October 30th 2006, the airline has flown 17.3 million passengers on it domestic and international flight operations.
He said the airline will launch it private placement in the first half of 2016 before listing the company on the Nigerian Stock Exchange NSE in 2017.
It would be recalled that Vice President, Professor Yemi Osinbajo and the Central Bank of Nigeria, CBN had recently reiterated that the further devaluation of the country’s currency is not the last resort to Nigeria present economic challenge.
According to Professor Osibanjo, “I don’t agree on devaluation and it is not that I am doctrinaire about it. In the first place, it is not a solution-we are not exporting significantly. And the way things are, devaluation will not help the local economy. What we need to do is to start spending more on the economy and then things will ease up a bit. I am not sure devaluation of Naira is the issue, but how to ensure foreign direct investment which is more useful.”