EXPERTS have attributed the low asset utilisation to limited operating hours, fluctuations in exchange rates, high costs of fuel taxes and charges as part of the reasons carriers fail.

Besides, they listed an underdeveloped aviation value chain, absence of maintenance repair organisations, simulator centres and jet fuel depots at airports as factors militating against the growth of airline business.

The experts, including former Managing Director, Federal Airports Authority of Nigeria (FAAN), Mr Richard Aisebeogun; Managing Director, Daniel Young Global Investment Limited, Dr Daniel Young, and Principal Managing Partner, Avaero Capital Partners, Sindy Forster, spoke at separate interviews.

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According to Aisebeogun, the short lifespan averaging 10 years for carriers appears predictable because some of the carriers have their capacity constrained by poor and inadequate airport facilities. He said a situation where carriers cannot operate night flights from some airports due to the absence of airfield lighting profitability for such carriers remains a pipe dream.

Apart from poor facilities, he listed weak cabotage regimes and absence of codeshare agreement among domestic/foreign carriers as another factor that causes airlines’ failure.

He said carriers would have done better save for low propensity to fly arising from poor disposable income of Nigerians, which is forcing many of them to patronise other modes of transportation such as road and rail.