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Med-View Airline Seeks Fresh Funds After N10bn Loss in FY 2018

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By Dipo Olowookere

One of the airline operators in Nigeria, Med-View Airline Plc, has released its financial statements for the year ended December 31, 2018.

As expected, the figures were disappointing, indicating that the company might really be going through a tough time at the moment.

Both the topline and the bottomline were in red and urgent steps must be taken by the management to keep the firm afloat or else, things might get out of hand.

A brief analysis of the results by Business Post showed that the revenue generated by the company in the year dropped by 74 percent to N9.6 billion from N37 billion a year earlier.

However, the company improved its other income to N40.3 million in the year from N7.4 million, while the finance costs went down to N192.7 million from N227.1 million, with the administrative expenses rising to N5.7 billion from N4.3 billion.

Though the company recorded a profit before tax of N1.5 billion in 2017 financial year, the 2018 fiscal year closed with a loss before tax of N10.3 billion.

Furthermore, Med-View Airline ended the 2018 financial year with a loss after tax of N10.4 billion against the profit after tax of N1.3 billion in 2017, representing a 925 percent decline.

In the same vein, the earnings per share stood at -N106.22k against N12.87k of the previous year, with the return on assets (ROA) at -N55.4 percent versus N8.6 percent in 2017.

Commenting on the performance, Chairman of the company, Mr Abdul-Moshen Al-Thunayan, said the effect of the economic downturn in Nigeria “impacted adversely on our operations as there was reduction in credit opportunities which in turn affected our income.”

He also said, “The political tension and extremely tight market liquidity in Nigeria affected economic growth of Med-View.”

Furthermore, he said, “The performance of the airline was adversely impacted by the partial stagnation in the revenue generation (passenger traffic/cash in-flow) due to the lack of aircrafts and high cost of maintenance and improvement items due to foreign exchange fluctuation.”

Mr Al-Thunayan said, “The operating environment remained highly volatile characterised by lack of infrastructure and foreign currency shortages as the depletion/fluctuation of dollar continued unabated.”

“The aviation sector remained highly taxed and has witnessed the issue of double taxation on numerous items unresolved even after the government made promises to reduce it. Other airlines are not spared of the adverse impact of these difficult operating conditions,” he added.

Going forward, he said, “Our focus in the coming years is to deal with our weaknesses and enhance our strengths so we can become once again, the number one airline in Nigeria, it is our view that to be able to do this we should take a strategic view to assess the threats and opportunities in our landscape.”

Business Post has gathered that in order to expand its operations and bounce back to profitability, the board of Med-View Airline is seeking approval to raise fresh capital.

This would be one of the issues to be discussed at the Annual General Meeting (AGM) of the firm slated for a later day in 2019.

The company revealed that the board, at the meeting, will ask shareholders to consider and if thought fit, pass with or without modification(s) a special resolution “to approve raising of capital through private investors.”

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via [email protected]

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Airlines Face Fresh Turbulence Over Jet Fuel Scarcity

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Jet Fuel Scarcity

By Adedapo Adesanya

The National Association of Aircraft Pilots and Engineers (NAAPE) has revealed that Nigerian airlines are battling a severe jet fuel crisis, triggered by soaring jet fuel prices and supply shortages.

This is the latest blow to the aviation industry, which escaped an industrial action by airline operators over the price of jet fuel.

The latest development is increasing costs, disrupting flights and creating concerns about operational safety and sustainability.

According to Reuters, the persistent scarcity of jet fuel has triggered ⁠widespread operational challenges, including flight delays, route adjustments and extended crew duty periods, as airlines struggle to manage schedules amid rising costs.

According to the President of the association, Captain Bunmi Gindeh, the fuel shortages were pushing crews beyond planned limits, increasing fatigue and potentially eroding safety margins in an industry governed by strict rest regulations.

According to local carrier Rano Air, it revealed that jet fuel prices had more than quadrupled, as well as made some routes commercially unsustainable, forcing operational adjustments.

Other carriers have also begun rescheduling or cancelling flights and cutting unprofitable routes, industry ‌sources ⁠cited by Reuters said.

This comes at a difficult time for Nigeria’s aviation sector, already strained by foreign-exchange volatility, high aircraft maintenance costs, airport infrastructure strains and fuel price swings.

Airlines group, Airline Operators of Nigeria (AON), last month threatened to suspend operations over what they described as crippling and artificially inflated jet fuel prices.

Nigeria’s airline industry carries millions ⁠of passengers annually across an extensive domestic network and plays a critical role in connecting cities where road travel is often slow or insecure, making reliable air services economically and socially important.

The publication reported that the Nigerian Midstream ⁠and Downstream Petroleum Regulatory Authority (NMDPRA) has said fuel prices would not be capped, adding that any decisions on deregulated products would be formally communicated.

The crisis is worsening existing problems in Nigeria’s aviation sector, including forex instability, expensive aircraft maintenance and weak infrastructure.

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FG Unveils Leasing Initiative to Cut Airlines’ Fleet Acquisition Costs

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aviation workers

By Adedapo Adesanya

The federal government has approved the establishment of a national aircraft leasing company aimed at easing access to modern fleets for domestic airlines and transforming aviation financing in Nigeria.

The minister of aviation and aerospace development, Mr Festus Keyamo, announced the decision after a meeting of the Federal Executive Council (FEC), describing the move as a significant shift in how Nigerian carriers will acquire and finance aircraft.

Mr Keyamo said the proposed company would operate as a private-sector-driven Special Purpose Vehicle (SPV) with government backing.

“This initiative is a game-changer for our aviation industry. It eliminates the long-standing challenges Nigerian airlines face in accessing aircraft on competitive terms and positions the country as a hub for aviation financing in Africa,” he said.

According to the minister, the new platform will allow airlines to source aircraft through a centralised system, replacing the current model where operators negotiate individually with international lessors, often at higher costs and stricter terms.

Mr Keyamo noted that the government’s role would be largely supportive, providing sovereign guarantees to boost investor confidence, while private sector players drive the project.

“Through the Ministry of Finance Incorporated, the government will hold equity and earn revenue without direct financial investment. Our primary obligation is to provide the confidence investors need, especially in ensuring asset security,” he added.

The initiative, he said, has already begun attracting interest from both local and international investors, signalling early confidence in its viability.

Beyond supporting Nigerian carriers, the leasing company is also expected to extend services across West Africa and the broader continent, positioning Nigeria as a regional hub for aircraft leasing.

Airlines in Nigeria have come into focus in recent weeks due to renewed concerns over the financial sustainability of operators, which almost forced them to suspend operations last month. However, the Bola Tinubu-led government approved a 30 per cent relief on debts owed by local ‌airlines to aviation agencies and ordered talks involving fuel marketers, airlines, and ​regulators to reach a ​fair jet fuel price.

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Passengers to Enjoy Starlink Wi-Fi on Emirates’ Flagship A380

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Emirates A380 Starlink

By Aduragbemi Omiyale

Air travellers flying through Emirates will enjoy Starlink Wi-Fi onboard after the completion of the installation of the internet service on the company’s flagship A380.

The introduction of Starlink on the A380 builds on Emirates’ ongoing investment into redefining the customer journey, including one of the most ambitious retrofit programmes in aviation history.

The airline operator recently test-run this on a flight to Dubai, and it allowed passengers to enjoy seamless broadband while flying at 40,000 feet.

The Emirates A380 was one of the first commercial aircraft in the world to offer internet to its customers, with first-generation systems offering a total aircraft bandwidth of less than 1 Mbps. The installation and certification were accomplished in Newquay, UK.

With more A380s scheduled for accelerated installation throughout 2026, Emirates customers will soon enjoy a transformative leap in onboard connectivity with the ability to stream, game, browse, and work throughout their journey on personal devices.

The service will be complimentary for all customers, across all cabins, with easy sign-up and access. Future enhancements will include Live TV streaming over Starlink, initially on personal devices and later integrated into seatback screens.

So far, more than 650,000 Emirates customers have already flown on Starlink‑equipped flights, experiencing the benefits of next‑generation onboard connectivity firsthand.

As the world’s largest passenger aircraft, the A380 presents unique engineering challenges and opportunities. This industry-first Starlink configuration is designed to meet the demands of the A380’s ‘double-decker’ layout and high passenger capacity and is capable of delivering more than 2 Gbps of total aircraft bandwidth across the cabin.

Compared with the Emirates Boeing 777, the Emirates A380 features additional wireless access points and a third antenna to deliver an enhanced connectivity experience for its higher passenger capacity. Optimised inter‑deck integration supports a seamless Wi‑Fi experience, with customers able to enjoy high speeds depending on usage and device capability.

Starlink installations will soon begin at Emirates Engineering facilities in Dubai to accelerate deployment across the fleet.

Emirates is committed to bringing the best possible connectivity to its entire fleet at the earliest opportunity, with 25 Boeing 777-300ER aircraft already equipped with Starlink and the first A380 now joining service.

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