- Carries 17.3m passengers
Management of Arik Air has lauded the decision of the federal government to halt further devaluation of the Nigerian currency, saying it is not good for airline operations in the country.
Speaking during a media briefing in Lagos to mark the ninth year of operations and the launch of Travel Insurance, the Managing Director of Arik Air, Mr. Chris Ndulue, said the action will save most of the country’s airlines from going under as any further devaluation of the naira will spell doom for the industry.
Ndulue explained that aircraft spare parts are purchased in foreign currencies, while maintenance is also carried out abroad.
He disclosed that since inception on October 30, 2006, the airline has flown 17.3 million passengers on its domestic and international flight operations.
He said the airline will launch its private placement in the first half of 2016 before listing the company on the Nigerian Stock Exchange, NSE.
It would be recalled that the Vice President, Professor Yemi Osinbajo, and the Central Bank of Nigeria, CBN, had recently disclosed that further devaluation of the naira is not the last resort to Nigeria’s 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 as 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 the naira is the issue, but how to ensure foreign direct investment which is more useful.”