- Med-View Airline Considers Diversifying to Boost Earnings
Med-View Airline, an airline company based in Lagos, has announced a possible diversification move to broaden revenue-generation and explore other options aside from the current focus.
The airline currently generates most of its revenue from air passenger, however, the management is considering diversification to up revenue generation, deepen the airline growth and deliver strong returns to shareholders.
Alhaji Muneer Bankole, CEO Med-View Airline, who disclosed this at the Company’s third Annual General Meeting (AGM) held in Lagos on Thursday, said the diversification program being considered requires a broad development of infrastructure to make Med-View Airline a Maintenance and Repair Organisation (MRO) and Aviation Training Organization (ATO).
He said: “The infrastructural development of Med-View’s (MRO) and ATO are aimed at addressing over-dependence on air passenger traffic to raise inflow. It will also generate more foreign currency, foreign direct investment (FDI) and restoration of fiscal sustainability. The company is in the final stage of embarking on the project in partnership with Chinese Construction Company (CCEC), who has submitted drawing plans and quotation to build the structure. This is done in order to foster continuous growth. The challenges associated with these anticipated projects will be significant but we remain optimistic on the sustainable growth in the company’s economic activity despite the current challenges.”
He also explained why the company recorded low profit in the last financial year. According to him, this was as a result of the reduction in the company’s fleet due to the C-Check in Med-view which in-turn affected the revenue company’s revenue.
“The lack of support and trust which banks in Nigeria have towards aviation business did not help matters as none of the banks take risks but were not willing to take up this in particular,” he said.
Nevertheless, the CEO assured the stakeholders that the management will continually strive to achieve the best for the company, stressing that ”Med-View is firmly on the path to improved performance, sustained growth, profitability and adequate returns to all stakeholders with the shortest possible period of time.”