Nairametrics|The European Commission yesterday banned several airlines from flying into European airspace. Several airlines were banned including a Nigerian carrier, Medview Airlines.
Here are key highlights of the press release:
- A total of 181 airlines were banned from flying into Europe 174 airlines were banned due to a lack of safety oversight by aviation authorities in their home countries.
- All carriers from Mozambique and Republic of Benin have been removed from the list of airlines banned.
- Medview airline was one of 7 airlines banned due to safety conditions with the airlines themselves.
The press release did not state the safety conditions that led to the ban. Here is a copy of the press release.
Medview airlines is yet to issue an official statement concerning the ban. The ban may have several implications on the airline. A proposed Initial Public Offer (IPO) which had been planned after the listing on the NSE may be shifted.
The Nigerian Stock Exchange (NSE) had on Tuesday January 31st 2017 listed by introduction 9.75 billion ordinary shares of Medview airlines at N1.50 per share.
The airline’s revenues could also decline, due to the EU ban which will affect its Gatwick London route.
Expansion plans to Dubai and Washington may be put on hold. First quarter results released by the airline saw revenue increasing by 77% to N7.6 billion. Profit before tax jumped massively from a loss before tax of N133 million in 2016 to a profit before tax of N745.2 million in 2017. Medview shares are currently trading at N1.50, its listing price.