FG Moves To Seize Dana Air Assets As Refund Crisis Deepens

According to Ireporter Online, the Federal Government is considering moving against the assets of Dana Air in order to recover funds belonging to passengers and travel agents who have been unable to access their refunds since the airline’s suspension. The Minister of Aviation and Aerospace Development, Festus Keyamo, revealed that he has instructed the Nigeria Civil Aviation Authority (NCAA) to investigate why the outstanding refunds have not been settled.

Keyamo, who spoke in Abuja during the fourth-quarter stakeholder engagement on improving aviation governance, explained that the suspension of Dana Air was a necessary decision taken in the interest of public safety. He said the reports available to authorities indicated serious safety concerns that made grounding the airline unavoidable.

Dana Air’s flight operations were halted after an incident involving one of its MD-82 aircraft at the Murtala Muhammed International Airport, prompting the NCAA to withdraw the airline’s Air Operator Certificate effective April 24, 2024. The Director-General of the NCAA, Capt. Chris Najomo, had stated in a letter that the suspension was crucial to enable a comprehensive safety and economic audit.

Keyamo noted that resolving the safety crisis took precedence over commercial considerations, stressing that the government could not ignore multiple red flags that put passengers at risk. He added that the NCAA has been directed to intensify efforts to recover funds owed to affected passengers and agents. The minister hinted that if individuals linked to the airline attempt to re-enter the aviation sector under any new arrangement, they would first be required to settle all outstanding liabilities. He also suggested that the government may pursue the sale of available Dana Air assets to raise the funds needed to compensate those affected.

Capt. Najomo revealed that between January and September this year, 9,529 passengers had already received refunds or compensation, while additional claims remain under review in line with regulatory timelines. Represented by the Director of Aviation Security Regulations, Dr. Ben Omogo, he added that 11 enforcement actions and nine sanctions had been issued for consumer protection violations, alongside the processing of 515 economic authorisations within the same period. He further disclosed that 80 per cent of passenger complaints were resolved immediately, with baggage and refund complaints addressed within approved timelines.