The Nigerian Civil Aviation Authority (NCAA) has suspended Dana Airlines' Air Transport Licence (ATL) and Air Operator Certificate (AOC) indefinitely, with effect from midnight on Wednesday, 20 July 2022. The suspension was announced by then NCAA Director-General Captain Musa Nuhu.
The Authority said the decision followed a financial and economic health audit of the airline, alongside a separate investigation into its flight operations, which together concluded that Dana Air was no longer in a position to meet its financial obligations or to conduct safe flight operations. The action was taken pursuant to provisions of the Civil Aviation Act 2006 and the Nigeria Civil Aviation Regulations.
Findings of the Audit
The NCAA's audit reportedly found that Dana Air's current liabilities significantly exceeded its current assets, raising doubts about the airline's ability to meet obligations without further borrowing. The suspension followed a period in which the carrier had recorded more than one operational incident during the year, adding to regulatory concern over its financial and operational standing.
"The NCAA acknowledges the negative effect this pre-emptive decision will have on the airline's passengers and the travelling public and seeks their understanding, as the safety of flight operations takes priority over all other considerations," the Authority said in its statement announcing the suspension.
Path to Reinstatement
For the suspension to be lifted, the NCAA indicated that Dana Air would need to resolve the findings of the financial and technical audit, provide a sustainability plan demonstrating proven financial resources to operate for at least six months, and agree repayment plans with its creditors, including the regulator itself. The suspension added to a difficult year for Nigeria's domestic aviation sector, which was already grappling with a jet fuel price crisis that had forced a brief nationwide suspension of flights earlier in the year.
