Why did United Airlines withdraw from Nigeria?

People are wondering whether they have possibility to use United Airlines in future. After June, 30 it won’t be possible. Will it affect people’s lives? What was the reason of withdrawing flights?

united airlines

Unfortunately, next month United Airlines stop flying to Nigeria. This ending of the cooperation happened because of the weakness in the whole energy sector and difficulties in getting money from tickets sold in Nigeria.

For example, the daily route ‘Houston to Lagos’ was not profitable for years. But still it was kept ‘alive’ because it was very important to Texas-based customers. That what United Continental Holdings told in a note (message) to their employees on Wednesday. On June 30 their plane will make its flight for the last time. After that Delta Air Lines will be the major U.S. company flying to Africa.

Nigeria has already restricted the sum of money, which can be transferred abroad because of the huge global slump in the whole oil industry and spent U.S. currency reserves. Nigeria owed United Airlines about $570 million for air fares. This information was completed till March 31 according to the respectable International Air Transport Association.

The company United Airlines is the third biggest US carrier by revenue. It currently flies from Houston to Lagos every day.

Jonathan Guerin, who is United Airlines spokesman, told that repatriation had become a significant problem, as there had been a huge downturn in the whole energy sector. He also proved the note’s authenticity.

united airlines plane

READ ALSO: What does aeroplane use as fuel in Nigeria?

Passengers are still able to fly to Nigeria using United’s business partner, famous Deutsche Lufthansa AG. It has a connection in Frankfurt. Also the Boeing Co. 787, which is serving Lagos now, will be moved to the San Francisco-to-Tel Aviv route. In October it is going to expand to daily from three times weekly. This information was also presented in the airline note.

The passengers are very disappointed and sad because of this fact. Whether the huge companies stop working in Nigeria, what is going to happen next?

As Nigeria has extremely struggled with dwindling foreign reserves, because of a huge drop in the price of oil, it put strict controls. For example, limit repatriation of U.S. dollars out of the country. So all the airlines, which are operating in Nigeria have been hit so much. They lost hundreds of million dollars.

Because of government’s policies and currency controls, which have affected United Airlines business, they decide to stop the flights.

After the problems with the economic sector and oil, Nigeria began suffering from the government policy. Trying to save the currency reserves, the government makes leading companies leave the country.

plane inside

The economic policy of the president Muhammadu Buhari is questioned once again. The president’s bans on import of several goods have made the investors increasingly cautious about working in the country. Unexpected refusal of the president to devalue the Nigerian naira impressed experts. He made such a decision despite a huge fall in a value against the U.S. dollar. Buhari makes lots of economic and political mistakes and now the huge world companies think to stop working in Nigeria.

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