In this history post, we look at the defunct Nigeria Airways which was the country’s flag carrier and was a testament of its great position in the continent up to the time it became an international embarrassment.
Nigeria Airways founded in 1958 after the dissolution of West African Airways Corporation (WAAC) with Nigeria owning 51% of its shares until 1961 when the country bought off the rest of it and it became its flag carrier.
Although it kept the WAAC due to its prestige, this was however rebranded to Nigeria Airways in 1971.
The airline had both domestic and international operation with its US link launched in early October in 1964.
Air hostesses for the Nigeria Airways. Credit: Facebook
In the early period of its operation, the airline which had a staff of 2000 leased aircrafts from other airlines until it procured its own which was a common practice. Gradually it began to purchase its own aircraft. For example, the aircraft that flew from Lagos–London route were leased from Laker Airways and Ethiopian Airlines until a new Boeing 707-320C was incorporated into the fleet and deployed on the route in August 1971.
In 1975, its staff increased to 2,400 as its expanded its internal routes. Nigeria Airways provided flights to Abidjan, Amsterdam, Accra, Bathurst, Beirut, Brussels, Dakar, Douala, Frankfurt, Freetown, London, Madrid, Monrovia, New York, Paris and Rome.
A return ticket from Lagos to New York. Credit Facebook
So what led to the decline and eventual demise of the Nigeria Airways if it enjoyed tremendous growth in a relatively short period?
Corruption
Corruption played a significant role in the decline of Nigeria Airways with the country itself still battling with the menace. It was reported that the airways became a cash cow for subsequent governments. In spite of the injection of US$200 million into the company, it still could not salvage it due to the high level of looting that was taking place.
It was reported that between 1983 and 1999, about US$400 million could not be accounted for and the government launched an investigation to trace it to little success.
A bag bearing the Nigeria Airways logo. Credit: Facebook
Management
In 187, the International Air Transport Association suspended Nigeria Airways over accumulated debts of US$1,100,000 which meant it could not issue tickets to fly in other IATA member airline. From then, its aircraft were either impounded or detained due to debt.
In 1987, its revenue stood at $5,000,000 per month and expenditure of approximately $5,175,000 a month. To salvage the situation, it increased its domestic fares by 100 per cent and its international fares by 20 per cent but this led to a significant reduction in passengers.
Overstaffing
The airline had more employee than was necessary for its operation and this led to a large payroll that was eating deep into its finance. For example in 1986, it had 8,500 which is 500 staff managing one aircraft, a number that was double the international average. In order to cut cost, there was massive downsizing and reduction of staff. In 1995, the number had been reduced to 4500 but this did little to the already crumbling airline.
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In 2000, Nigeria Airways had just 3 aircraft from the 32 it had in early 1980. From an airline that managed 2,1 million passengers in 1985 to just 10,000 in the first quarter of 2003, it was a serious blow that was caused by an accumulation of several factors.
With a debt of US$528 million, the airline liquidated in 2004 controlling just 1 per cent of the international market and was taken over by Virgin Atlantic Airways to form the Virgin Nigeria Airways.
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