United Airlines, Chicago-based American airline, is pulling out of Nigeria over difficulty in recovering monies made from tickets sales, due to Nigeria’s foreign exchange policy, reports Bloomberg.
The company says it will stop flying to Nigeria next month, ending the its only route to
Africa because of weakness in the energy sector and difficulty in collecting money from tickets sold in that country. Jonathan Guerin, United spokesperson said: “Repatriation has been a significant issue, as has been the downturn in the energy sector”.
“The daily route from Houston to Lagos had underachieved for years but was kept alive because of its importance to Texas-based customers,” United Continental Holdings Inc. said in a note to employees.
The last flight will be June 30, after which Delta Air Lines Inc. will be the only major US carrier flying to Africa. Nigeria restricted the amount of money that can be moved abroad after the global slump in oil prices depleted the government’s dollar reserves.
The country owed airlines about $575 million in air fares as of March 31, according to the International Air Transport Association. Passengers can still fly to Nigeria on United’s trans-Atlantic business partner, Deutsche Lufthansa AG, through a connection in Frankfurt. The Boeing Co. 787 serving Lagos will be used on the San Francisco-to-Tel Aviv route, which will expand to daily in October from three times weekly, according to the airline note.
The Nigerian foreign exchange regime has made it difficult for airlines to make the kind of profits of the past, following the ease of fund repatriations. Most airlines sell their tickets in naira at the rate of N197 to a dollar. This makes them lose a sizeable amount of money to the exchange rate regime.
vanguard.
Say a prayer for Nigeria
ReplyDeleteBuhari will soon bury this country
ReplyDeleteYou can say that again!,..
DeleteHaba
DeleteGOD forbid
Haba
DeleteGOD forbid
As at yesterday,GTB charged about 330 rate to make withdrawal from an ATM here(NY).the banks are making bastard money from this exchange rate bullshit,they get it for 199 from CBN and then make us withdraw it with parallel market rate. Seriously for how will Nigerians suffer this way.it's incredible.Buhari pls do something,Nigerians abroad are feeling it too
DeleteNija which way?
ReplyDeleteWow, too bad. So now instead of flying united to Dallas direct, we now have to go through ATL with delta. I prefer delta though but direct flights are always better. .Buhari, emiefele and kemi adeosun are you seeing what you have caused? No matter the justification or what you are trying to rectify, things can't keep going from bad to worse in ur regime. Big shame on you guys. Notoriously infamous fellows!
ReplyDeleteSue! Sue! see as you fell your own hand when google could have easily been your friend. United flies directly from Lagos to Houston. It has never flown directly from Lagos to Dallas. Even the article up there states that.
DeleteU r a compound mumu, of course we always land in Houston on our way to Dallas and yes I meant Houston. I don't need to use Google for where I used to live idiota
DeleteYou are still lying. If you stop in Houston, go through immigration and get on a different plabe to Dallas it is NOT a direct flight. You would be doing the same thing by stopping in Atlanta and then going on to Dallas if you use Delta. Unless the problem here is not knowing the meaning of direct flight. Direct means non-stop. You Sue are the compound mumu. Either admit you were lying or you made a mistake. Talking about you prefer Delta but direct flights are better. RFLMAO
Delete*plane
DeleteSo I'm supposed to start explaining to u that I mistakenly said Dallas instead of H town, because we always drive from Dallas to IAH airport, God have mercy on u low lives who think everyone is like u who stoops so low to be telling damn lies, all ds talk ontop a simple mistake, u can go and drink sniper for all I care or show ur dirty face instead of being cowardly 2 faced and going anon
DeleteLol. Quantas can move in now.
ReplyDeleteAustralian dollar to Naira is still on the low side.
Chai! Ths doesn't sound good at all. Naija!
ReplyDeleteWell, whatever happens Nigeria will make it. I don't know why I feel positive about my country. God bless Nigeria and it is well with her.
ReplyDeleteVirgin Atlantic is doing same. So who go remain? Na to begin fly with bat.
ReplyDeleteSisi Eko and what is your Buhari doing about it?...
DeleteQueen leave me ohhh..Lmaoo.
DeleteDon't worry, he will bring them back soonest. Trust me on this one.
Some supporters will still say nonsense like we are getting there? We are getting where exactly? Total meltdown?
ReplyDeleteSomeone like Kemikane suffering and smilling!...
DeleteNa you marry am give femi?lol
ReplyDeleteSo what happens to return tickets back to Lagos after June? Maybe na to just jejely stay for here with all the wahala back home.
ReplyDeleteU better stay back and do ur papers because the no more free lunch in naija oh
DeleteRead the article again.
DeleteI heard British airways is also pulling out, is it true?
ReplyDeleteYes
DeleteThey are pulling out, enough of exploitation why is 197 naira to 1 dollar not enough for them? Awon ole buruku, Buhari is doing is best nigerians are so impatient it may take awhile but it will surely be good.
ReplyDeleteIsn't official price more than 197?? So what are you saying. Official price is 250 and yet they make them collect at 197 making them loose money. Which business man will want to loose money??
DeleteSit back and watch all foreign investors pull out.. Then we would be on our own and trust me, we are not ready to be on our own that's why Buhari keeps trying to travel up and down to see what he can do. But no business man will come and invest in Nigeria now..
STFU!,,,
DeleteWhich best is the clueless Buhari doing?...
Just tell me one thing he has achieved in his one year in office?...
Nonsense!...
"Doing is best" O people
DeleteVery soon the whole airlines will pull out and Nigerians will be cut off from entire world,only bubu will be traveling out
ReplyDeleteExactly...
DeleteI understand that PMB wants to make Nigeria great again but why must the masses suffer for it and the Senate lives on! Why can't they scrap the Senate, reduce all these governor's aides, make the govt smaller!
ReplyDeleteThis is serious. Buhari and his economic team told us to be patient.
ReplyDeleteI just wonder how patient we can be with all these negative reports.
Chill where there's a will,there's a way. If they pull out we find alternatives thereby building our own. I don't know why I just feel positive. Say a prayer, you can't do any better.
ReplyDeleteYes!...
ReplyDeleteSo true!...
Very soon,Nigerians will start going through Ghana to travel abroad!...
Yeye dey smell!...
Ahahah. Na canoe sure pass
DeleteCan't blame them! Nigeria is mess right now and more airlines will pull out and the ones that will stay back will become so high end people won't be able to afford them. Very soon pple will be using Boat to go to America or will have to go to Ghana just to get flight to travel abroad. The government really need to look into making things better fast
ReplyDeleteDt one keeps on blaming his predecessor and refuses to take responsibility even after 1year. God save your people... all in d name of change, see sinking ship wen Niger go enter.
ReplyDelete