COVID-19: FG commence disbursement of N4bn bailout as airlines agitate over sharing formula

The federal government has commenced the disbursement of N4bn COVID-19 palliatives to domestic airlines in a bid to cushion the effects of COVID-19 on their operations.

However, the disbursement of these funds has so far not been without intrigues as some airlines may have received the bailout funds while others are yet to get them.

BusinessDay checks show that the federal government had set up a committee consisting of some members of domestic airlines and top staff of aviation agencies to ensure the process of disbursement is transparent and without rancour.

However, some airlines with valid Air operators Certificate (AOC) are alleging that they have been sidestepped in the disbursement of the funds even after meticulously following the process and submitting their request for the funds and are agitated about the unorthodox 70-30 sharing formula which has popped up without recourse to them.

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Recall that during the height of the COVID-19 when airlines were forced to stop all operations, Federal government agreed on palliatives to cushion the effects of the industry being one of the worse hit but provisos were made that for airlines to access such palliatives they needed to have a functional AOC.

An operator who craved anonymity said that the AON Board of Trustees (BOT) and the executive numbering 10 had disagreed some days back over the sharing of N3 billion to some scheduled operators out of the N4 billion released.

For now, most charter operators are yet to get anything from the funds and seem to be amiss as to what is actually happening.

James Odaudu, director of Press, Ministry of Aviation, explained the Ministry’s position stating that the bailout has been disbursed and it will go to airlines with functioning AOCs but is not aware of the intricate details on it.

Odaudu said “What I can confirm at this time is that it was released to individual airlines, the consideration is for individual airlines and airlines that have AOC. On whether charters were included he said,” I can’t confirm that but charter

Another source said the process could have been handled more professionally to avoid the controversies it is generating among airlines as a list of qualified candidates should have been put out by the Ministry in charge so everyone knows who is qualified instead of shrouding the process in secrecy and creating doubt .