Business Economic Crisis: United Airline Pulls Out Of Nigeria


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United Airlines has announced ending its carrier’s only route to Africa because of weakness in the energy sector and difficulties in collecting money from tickets sold in Nigeria.

The daily route from Houston to Lagos had underachieved for years but was kept alive because of its importance to Texas-based customers, United Continental Holdings Inc. said in a note to employees on Wednesday.

The last flight will be June 30, after which Delta Air Lines Inc. will be the only major U.S. carrier flying to Africa.

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Nigeria has restricted the amount of money that can be moved abroad after the global slump in oil prices depleted the government’s U.S. currency reserves. The country owed airlines about $575 million in air fares as of March 31, according to the International Air Transport Association.

“Repatriation has been a significant issue, as has been the downturn in the energy sector,” said United spokesman Jonathan Guerin, who confirmed the note’s authenticity to Bloomberg.





Source: Bloomberg
 
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