Abstract
The aim of the study is to access the economic implication of absence of National carrier in the Nigeria aviation industry. The airline industry is the key drive of the travel and tourism industry and also a major contributor to many countries’ overall economy through international tourist arrivals and departures. The study estimate the amount of revenue Nigeria is losing to capital flights for not having a viable national carrier over the past ten years that is from 2007 to 2016.The estimated amount of revenue loss was examined on airlines offering direct flights on Nigeria to London route, in which we have two foreign airlines (British airways and Virgin Atlantic airline)and a Nigeria’s private national carrier which is Med-view airline. The class of tickets and services in each class of ticket being offered by the airlines was examined. The study reveals an estimate of total of over $6 Billion revenue were being lost to hands of foreign competitors over the past ten years with British airways generating closely to $4 billion, while Virgin Atlantic generated over $2.3 billion and Med-view generated over $133 million in the past ten years. The study also reveals that the higher the passenger carried the higher the revenue and vice versa. However, establishing a national carrier by the federal government is imminent which will express Nigeria culture and to better serve passengers especially Nigerians. Finally, banks and other governmental financial institutions should make available enough funds with longer payback period and little interest for both existing airlines to upgrade their services and new entrants to be able to purchase necessary equipment’s to make them competitive in the market.
Highlights
Transportation can be defined as the movement of goods, services, information and people from one place to another for a purpose, through a particular means at a particular time
The aim of this research is to estimate the amount of revenue Nigeria is loosing to capital flights for not having a viable national carrier
The study solely focuses on direct flights that are from Nigeria to London route, whereby British Airways, Virgin Atlantic airline and Med-view airline direct flights were considered
Summary
Transportation can be defined as the movement of goods, services, information and people from one place to another for a purpose, through a particular means at a particular time. Transportation moves people and goods from one place to another using a variety of vehicles across different infrastructure systems It does this using technology (namely vehicles, energy, and infrastructure), and people’s time and effort; producing the desired outputs of passenger trips and freight shipments, and adverse outcomes such as air pollution, noise, congestion, crashes, injuries, and fatalities (Levinson, Lui, Garrison, Hickman, Danczyk, Corbett and Dixion, 2014). Air transport is known for its great comfort and very fast speed It is ideally suitable for long haul and highly competitive short journeys in areas having difficulties with surface transport. It follows a direct line of flight which is unhindered by physical barriers such as mountain and hills. For example, in the economic development of a region or of a particular industry such as tourism, but there has to be a latent www.cribfb.com/journal/index.php/aijmsr
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