WITH a view to strengthening operations and enhance air safety of the nation’s airlines, the Federal Government is said to be considering a policy that could lead to two or more airlines to merge.
This came, as indications emerged that virtually all the carriers in the country were financially insolvent and heavily indebted to a staggering $5billion.
A Presidency source told The Guardian that should government go on to carry out financial audit on the airlines, many of them would not pass the test.
He said that already some of the perceived big airlines were showing signs of resistance to the proposed policy while others had welcomed the idea.
For those planning to resist the idea, he said government intends to raise the stake that would make it difficult to “go it alone’’, leaving them with no other option than to merge as it is being done in Europe, United States and Asia.
Air France in 2004 merged with KLM Royal Dutch Airlines, changing the operating name to Air France-KLM, although the two airlines still operate as separate airlines.
In 2006, Cathay Pacific Airways acquired full ownership over Dragonair, which continues to operate as a separate airline.
Delta Air, with headquarters in Atlanta Georgia, started as Huff Daland Dusters 1924. It was purchased in 1928 by C.E. Woolman and renamed Delta Air Service after the Mississippi Delta. Between 2008 and 2010, the carrier merged with Northwest Airlines and became the world’s largest carrier by passenger traffic in 2008, just as it kept Delta name.
The decision to encourage mergers was as a result of insinuations and accusations that because of the insolvency of the airlines, they are tempted to cut corners on maintenance.
Not all of them are able to pay salaries, meet their obligations to aviation fuel marketers and other sundry charges.
Speaking to The Guardian at the weekend, President, Nigeria Aviation Safety Initiative (NASI), Captain Dung Pam said his only advice to the operators was to consolidate or die.
He said it was left to the government to support and restructure the system or lose strategic control of the industry.
His words: “I spoke to Patrick Ekunwen, the Director of Airworthiness and I said you are regulating safety but remember it is your duty to economically regulate the airlines, make sure they operate with financial discipline or else safety will be compromised.
http://www.ngrguardiannews.com/index.php?option=com_content&view=article&id=91041:govt-mulls-merger-for-airlines-experts-seek-four-strong-carriers-for-nigeria-&catid=1:national&Itemid=559
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