NCAA grounds Dana Air as airline suffers financial crisis

The Nigerian Civil Aviation Authority (NCAA) has grounded Dana Air’s operations with immediate effect from the midnight of Wednesday.

According to statement issued by the NCAA Wednesday night through the director general, Captain Musa Nuhu, the airline was grounded following what he called the outcome of a financial and economic health audit conducted by the regulatory body and the findings of an investigation conducted on the airline’s flight operations recently which revealed that Dana Airlines was no longer in a position to meet its financial obligations and to conduct safe flight operations”.

The decision is the outcome of a “financial and economic health audit carried out on the Airline by the Authority, and the findings of an investigation conducted on the Airline’s flight operations recently, which revealed that Dana Airlines is no longer in a position to meet its financial obligations and to conduct safe flight operations.

The NCAA said it ordered the indefinite  suspension of the airline in “pursuant to Section 35(2), 3(b) and (4) of the Civil Aviation Act, 2006 and Part 1.3.3.3(a)(1) of the Nigeria Civil Aviation Regulations (Nig.CARs), 2015.

“The NCAA acknowledges the negative effect this preemptive decision will have on the Airline’s passengers and the traveling public and seeks their understanding, as the safety of flight operations takes priority over all other considerations.”

According to the NCAA, the suspension order has since been communicated to the management of Dana Airlines.

Meantime, the Dana Airline management has confirmed the suspension of its operations in order for it to undergo a full operational audit with effect from midnight 20th July, 2022.

While saying during operational audits, airlines are obligated to suspend their operations, the airline declared: “when the NCAA calls for it and we understand the impact this suspension will have on our partners, staff, passengers and the general public but we are very confident that we would come out stronger as we have done in the past.

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“We wish to assure the Nigerian Civil Aviation Authority (NCAA) that we are fully ready and committed to cooperating with them in the course of this audit and to also reassure our customers and partners that we are safe, efficient and reliable.

The airline however identified the recent skyrocketing cost of Jet A1 at 830/litre, unavailability of forex and inflation as contributory factors to this decision regrettably saying: “We crave the understanding and patience of our customers, travel and business partners and sincerely apologize for any inconvenience our short absence from the market might cause.   

“Our customer service team will continue to operate 24/7 to assist affected customers with necessary information on refunds and our offices will be open to all our existing partners.”

Recently, indications emerged as to how some workers of the airline including its deputy chief executive and some pilots resigned from the airline owing to non payment of salaries.

One of the aircraft engines of a Boeing aircraft belonging to the airline was also on Tuesday involved in an emergency landing at the Abuja airport as a result of an engine failure.