The Nigerian Federal government today grounded seven operating airlines by revoking their operating licences. In January, the regulator NCAA had given carriers until the 30th of April to raise their minimum capital base by a certain percentage or lose their right to fly. The measure was designed to discourage minimal servicing and the use of aging planes by the country's airlines. During a press conference in Abuja the Minister for State for Aviation, Chief Femi Fani-Kayode stated that the grounded carriers included ADC, Sosoliso, Fresh, Albarka, Chrome, Dasab and Skypower. Sosoliso had already been grounded by the NCAA for allegedly falsifying safety documents related to a disagreement with its partner, JAT of Yugoslavia. That dispute was over compensation to the families of passengers who perished in the December 10, 2005 accident at Port Harcourt in the Rivers State. Airline ADC (Aviation Development Co) had already been grounded over safety issues. Thirteen other airlines had met the recapitalization requirements the Minister said, adding that "If any of the failed airlines applies afresh for a licence in line with the new capitalization requirements, they would be granted, so far they also satisfy NCAA guidelines". The announcement followed a “crucial” meeting between the airlines' association, the Airline Operators of Nigeria (AON) and the NCAA. The minimum capital base for airlines that are operating domestic routes (only) had been raised to N500 million ($3.9 million) from N20 million. Long-haul operators had their capital base doubled to N2 billion, while regional carriers had theirs doubled to N1 billion. Industry observers noted that the capitalization hurdle might serve to keep more in check some of the cowboy operations that had prospered under deregulation. In addition new safety equipment rules were being introduced, such as the requirement to fit ground proximity warning systems (EGPWS).