Med-View Airline, The History of Aviation Stocks on NSE & What To Expect


Thursday, January 12, 2017 3.20 pm / TheAnalyst 

Primary market segment of the Nigerian stock market recorded zero activity in the year 2016, which was taken as impact of low investors confidence and low market liquidity coupled with bearish postures of other macroeconomics fundamentals. 

Furthermore, the unimpressive performance of the primary market segment has left little or nothing to cheer about as market has recorded more delisting than listings of shares in the recent years. 

However, there are indications that the primary market segment would record a boost in the current year 2017. The listing of Med View Airline by 31 January 2017 would kick-start the primary market activity and revives the dead aviation sub-sector on the bourse-  the airline firm would list 9.75 billion ordinary shares of 50 kobo each at 1.50 per share by January 31st, which puts its market capitalization at N14.63 billion 

The aviation company is set to list by introduction, .i.e. listing the existing shares held by its shareholders in the market for public trading. We commend the development but there is little to cheer about until the aviation company issues an IPO to a larger public and investing community.  

Should we be happy? 

Well, we should be happy with a caution. The development is a plus for the market at large. But technically there is more in it for the (issuer) Med View Airline, particularly its existing shareholders that are ready to offload their holdings for cash and liquidity for the company. On this note, investors are advised to be more diligent in taking investing decisions, due diligence is more than necessary in trading new stock, aviation stock for that matter.

History of Aviation Stocks on the NSE 

After two non-operational or moribund quoted aviation firms, ADC Airlines and Albarka Airlines, Med View Airline would be the third airline to be listed on the Nigerian Stock Exchange- an indication that airline business runs on unsustainable margin that cannot withstand the industry risk. For instance, the defunct quoted airline firms mentioned above could not sustain operations after experiencing few air crashes.  

ADC Airlines was established in 1984. It was once a toast of air travellers; it remained the leading brand in the industry controlling about 50% market share.  The company was quoted on NSE in 1994, had about 12,000 shareholders- it was the first aviation company to go public. Series of fatal accidents and crashes experienced between 1994 and 1995 and the inability of the company to recapitalise the company by 30 April 2007 as required by government led to a shutdown. 

Albarka Air airline was established in 1999 and started operations in March 2000. It is owned by Buba Marwa (51%) and others (49%).  The airline failed to meet to recapitalisation by 2007 and subsequently closed shop for operations. Albarka Airline was listed in 2002 but delisted from Nigerian Stock Exchange in 2011. 

Other airlines that were shutdown due to inability to recapitalise includes Fresh Air, Sosoliso Airlines, Albarka Air, Chrome Air Service, Dasab Airlines and Space World Airline. Management incompetence, continued air-crash and financial stress were key factors that facilitated some of these airlines to shutdown.  

Snapshot Profile of Med-View Airline  

Med-View Airline, was established in 2007 as a charter airline, mainly operating Haji flights.  Since November 2012, the Lagos based airline has offered domestic passenger services and expanded into regional and long-haul scheduled passenger routes. It operates five international destinations, including London via the Gatwick Airport.  

The airline has six aircrafts in its fleet. The company sets to list by introduction, its 9.75 billion ordinary shares of 50 kobo each at 1.50 per share by January 31st. its market capitalization on listing date would be N14.63 billion  

List of Operating and Defunct Airlines in Nigeria

A Cursory Check of Other Aviation Related Stocks on NSE 

Other aviation-related companies listed on the NSE are Airlines Services and Logistics, an in-flight catering company and the Nigerian Aviation Handling Company (NAHCO) a ground-handling company.


Performance of aviation stocks and aviation related stocks on Nigerian stock Exchange has not been impressive. The only two listed airlines firms were shutdown due to inability to recapitalise to meet industry requirements after, following series of crashes recorded by these firms. Consequently, both companies were delisted on the Nigerian bourse.

In the same manner, the review of aviation related stocks on NSE showed unimpressive returns, posting 3% as 1year average returns in the sub-sector and a decline of 12% as 5yrs average returns. The subsequent paragraphs reveal business model and update on most recent financials of these companies.  


Airline Services & Logistics Plc provides catering and hospitality services to international airlines and airports in Nigeria. The Company delivers catering service to the civil aviation sector, as well as to oil and gas sector and offers aviation catering services in Rwanda. Its segments include Lagos Inflight Catering, which includes inflight catering, laundry and handling services. The Company manages restaurants and bar outlets within Lagos and Abuja International Airports. It manages duty free outlet at Murtala Mohammed International Airport, Lagos 


The company records 1yrs price appreciation of 24% and 5yrs price growth of 15.21%. Also, in its recent latest financials maintained impressive topline and bottom-line performance to record 12% and 515% growth respectively. it also maintained improved Net assets growth of 38%.  


Nigerian Aviation Handling Company Plc is involved in the provision of services, including aircraft handling, cargo handling, passenger profiling, crew transportation, leasing of ground handling equipment and equipment rental. The Company's aircraft handling services include ramp services, passenger profiling, security and baggage handling (loading and offloading). Its cargo handling services include cargo documentation services for airlines, import and export cargo facilitation through warehouses in Lagos, Kano, Abuja, Port-harcourt and Enugu. It provides crew transportation services for airline crew or passengers, business people, dignitaries and private jet passengers. The Company serves over 35 airlines across Nigeria.  


The share price of the company declined by 19% in the last 1 year, it also shed 38.52% of its market value in the last 5 years. In addition, the company in its most recent earnings report recorded unimpressive top-line and bottom-line performance, posting 11% and 76% decline respectively. Also, its total Assets declined by 2.21% while its Net Assets up 2%.

Aviation stocks in Regional and other Key Exchanges 

The meagre number of quoted aviation stocks on the regional markets revealed that aviation companies are not inspired to list their shares or raise money from the public despite the fact the business in highly capital intensive - this must be for a reason not farfetched.  The low profit margin of the industry makes it less attractive to investors while the high industry risk could be another weighty factor for discerned investors.  

However, price data have shown that the performance of aviation stocks in the last one year remain impressive particularly in New York Stock Exchange, posting 44.59% as one-year average returns as against 16.03% posted in London Stock Exchange.

Related News  

1.       [PDF]Nigerian Aviation Sector - Proshare

2.      [PDF]Nigerian Aviation Sector: - Proshare

3.      Saraki Promises to Intervene in Aviation Sector Facility Crisis - Proshare

4.      The Nigerian Aviation Industry: Are the Woes of 2016 Over? - Proshare

5.      Aviation Sector: Flying at a Low Altitude - Proshare

6.      Aviation contributes $10 billion to GDP of Nigeria, others, - Proshare

7.      New capital base for airline operators - Proshare

8.     Nigerian Aviation Sector report Q3 and Q4 2015 – NBS - Proshare

9.      Aviation Q1 Q2 2016 - Proshare

10.  CBN Extends N500bn Power and Real Sector Fund to Aviation Industry

11.   Airline operators bemoan fiscal, monetary policy regime - Proshare

12.  Dana Air Crash and the Financial Impact - Proshare

Related News