Arik Airlines may be in for a debacle as aviation staff launched an indefinite strike on Nigerian’s largest carrier over unpaid salaries and arrears.
Arik Airlines and other international airlines have been grappling with a shortage of aviation fuel and the inability to repatriate millions of fares sold in local currencies.
Nigeria is in its worst recession in 25 years, United Airlines and Iberia had halted operations in country or cut flights while local carriers, Aero Contractors and First Nation, suspended operations amid financial difficulties.
According to Reuters, the unions said the strike began at midnight (2300 GMT) and would continue indefinitely until demands, including the payment of seven months of salary arrears and negotiations over contract conditions were met.
“All ground handling services, security clearance for Arik Air ticket holders, marshalling, aviation fuel supply, air traffic controls, safety inspection, will be completely withdrawn,” said the unions.
The latest strike actions by the union could deal a very big blow to an already battered economy as passengers would be stranded.
In order to curb inflation and stop the continued bleeding of the external reserve, the CBN pegged the currency at N197-N199 for 15 months. This policy was ineffectual as the dollar shortage heightened, forcing companies to seek dollars at the inaccessible black market.
There were capital flights as investors fled on the fret that a sudden devaluation of the naira could lead to a huge loss of investment.
Even the adoption of a flexible exchange rate regime by the Apex Bank that saw the naira loss 40 percent of its value against the US currency hasn’t assuage the pains of companies that still bemoan dollar shortages.
Experts say the latest strike action could force air line operators both local and international to shed jobs in order to cut costs and stay afloat. This is inimical to a country whose unemployment rate jumped to 13.80 percent in the third quarter from 13.30 percent in the second quarter.
