Airline operators call for clear policy to grow aviation, make Nigeria hub

Airline Operators of Nigeria (AON) has called on the Federal Government to come up with a deliberate economic policy to help grow the aviation subsector of the economy.
Sequel to a visit by airline chief executives to Yemi Osinbajo, the acting President, Nogie Meggison, the AON chairman, said, “There is an urgent need for a deliberate economic policy that will eliminate the many challenges that adversely affect the sector in a bid to guarantee survival of domestic airlines in the country and to make Nigeria the hub for Africa.”
According to Meggison, Nigeria has huge potentials as a country blessed with a natural God-given geographic location at the centre of Africa (4.30hrs to most parts of Africa); with most of its airport at approximately sea level, being the sixth largest producer of crude oil (JetA1), a human population of 190 million, and skilled manpower, yet Nigeria is not a hub for aviation activities on the African continent.
Meggison also noted, “Following the air crashes of 2005/06, the Federal Government came up with a deliberate policy to ensure air safety in Nigeria. As fallout of that singular action, today Nigeria has had an excellent safety record of 93% between 2006 and 2017. The country also secured the Category 1 Status and most of the scheduled airlines are currently IOSA certified as a strong testimony of the country’s commitment to air safety.
“Safety and economic policy go hand-in-hand. Where there is no financial profit for airlines safety would be compromised. A clear economic policy for the survival of domestic airlines is very critical at this time, which has resulted over the years in the death of over 25 airlines in 30 years. Safety and Financial Economic Policy must go hand-in-hand; as airline investors are in the business of aviation for the profit and can’t make profit without safety or have a safe airline without profit.”
He said some of the major issues that need to be addressed to grow the sector include, the removal of Value Added Tax (VAT), as domestic airlines were the only mode of transport paying VAT, the review of 5 percent Ticket Sales Charge (TSC) to a flat rate (in line with the global best practices), and the harmonisation of over 35 Multiple Charges, which add huge burdens on airlines.
Others, he mentioned, are poor navigational and landing aids that limit operations to daylight operation for most airports (Nigerian airlines fly an average of only five hours as against the average of 10 hours worldwide per airplane), high cost and epileptic supply of JetA1; obsolete infrastructure that hampers the ease of doing business and lack of consultations with airlines before introduction of new charges and policies among others, which throws off the feasibility studies of airlines out the window.

 

IFEOMA OKEKE