Festus Keyamo, the Minister of Aviation and Aerospace Development, on Friday, announced the temporary suspension of the controversial $300 helicopter landing fee outsourced to Messers NAEBI Dynamic Concept Limited.
The decision, which took effect on May 30, is coming after the Airline Operators of Nigeria (AON), rejected the fee, insisting it was commercially injurious to chopper operators and the Nigerian economy in general.
Keyamo announced the suspension in a statement signed by Odutayo Oluseyi, the Ministry’s Spokesman.
He said further actions on the matter would be taken after a review committee submits its report for scrutiny.
“The statement read: “Following a meeting with the AON executive on the issue bordering on Helicopter landing levies collection at Aerodromes, Helipads, Air Strips, etc, Minister of Aviation and Aerospace Development, Festus Keyamo, has temporarily suspended the enforcement granted Messers NAEBI Dynamic Concept Ltd, by the Federal Government, as consultants to collect such levies.
“The suspension is with effect from 30th May, 2024. This, the Minister said is a result of clamor for review by some stakeholders in the industry.
“Accordingly, Keyamo has constituted a Committee with members drawn up from the Ministry of Aviation and Aerospace Development and its relevant Agencies, Airline Operators of Nigeria (AON), International Oil Companies (IOCs) and Messers NAEBI Dynamic Concept Ltd who are charged to look into the issues raised by concerned Stakeholders and submit a Report on or before end of June 2024.
“Messers NAEBI Dynamic Concept Ltd was granted the exclusive right by the Federal Government as consultants to collect such levies which stakeholders have expressed their reservation on the appropriateness of the levies. “The recommendation(s) of the Committee would proffer a way forward”.
Keyamo had earlier asked those thinking the Ministry was bluffing when it recently unveiled the new $300 per landing fee for helicopter operators to have a rethink as the levy has come to stay.
He said the new rule, which is also a cost recovery measure, is consistent with international best practices and designed to enhance the quality of helicopter operations in Nigeria.
The Minister in a statement emphasised that helicopter landing levies are commonplace in countries such as the United States, the United Kingdom, India, and various regions worldwide, wondering why Nigeria should be an exception.
BuisnessDay’s checks show that every domestic airline company in the country is exposed to a total of 13.5 per cent in taxes including five per cent ticket (charter/cargo) sales charge, 7.5 per cent value-added tax (VAT), one per cent development tax, even before the applicable corporate taxes, PAYE, pension scheme, etc.
Meanwhile, every single flight is in turn exposed to other fees such as flight clearance, navigation, parking or landing, etc. Other personnel and equipment-specific charges such as licensing, training, aircraft certifications, insurance, etc., are also applicable.
These airlines still have to deal with operational expenses including fuel, maintenance and depreciation, amongst others.
When all these are aggregated, airlines end up with taxes at about 32.7 per cent of domestic airlines’ gross revenues.
The world average airline profitability is between 1.5 – 2.5 per cent for major carriers with size and scope. Boeing determines that the effects of size and scope kick into an airline’s operations when it operates a single fleet of a minimum of 50 aircraft.
