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Warri Crises: Aero Contractors Reduces Flights

This Day (Lagos)
NEWS
June 30, 2004
Posted to the web June 30, 2004

By Ndubuisi Francis
Lagos
Effective June 28, Aero Contractors Airlines commenced the cancellation of its
afternoon flights on the LagosWarriPort Harcourt route due to the perennial
unrest in the Delta region.
Deputy Managing Director of the airline, Capt. Dapo Olumide said the action was
due to the persistent communal unrest in the Delta, noting that the airline has
been experiencing a steady decline in the number of passengers patronising the
service.
"Since 1995, Aero Contractors has been providing 200 seats every weekday
between Warri and Port Harcourt. Our load factor on the route has reduced from
83% in 2002 to 39% in September 2003. As of May 2004, it further reduced to 21
%.
"We simply cannot sustain this level of revenue loss any longer. Like most
viable companies we have an obligation to our investors and customers alike. In
order for us to maintain the same level of service for which we are famous, we
must implement costsaving measures that will reverse the tide.
"Two options were proposed. One was to increase airfares on the route in
question, while the other (less painful) was to reduce capacity. In the end we
decided to reduce capacity from 200 seats a day to 100 seats a day. This will
be achieved by canceling the least patronised of the two service offerings
(morning vs. afternoon flights)", he added.
Olumide noted that "while Aero Contractors is well aware that there are
companies who prefer the afternoon flight, the fact remains that they only buy
between 28 tickets a day on this service", adding that unfortunately this does
not even pay for the fuel to take them there "at today's prices."
"The management of Aero Concentrators Company of Nigeria Limited hopes that
having sustained and absorbed the losses on this route for over a year that our
valued customers will, in turn, appreciate why we can no longer afford to carry
on like this. Like you we also have to maintain a 'bottom line", he stated.
Olumide disclosed that information on the airline's timetable and prices on new
destinations that it will be operating to, which include MalaboSao Tome,
Cotonou, Lome and Accra would soon be despatched.
He added that Aero Contractors remained committed to providing a safe, reliable
and efficient transport service to all.

   

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