Operators of foreign airlines are planning to halt services over issues bordering on the trapped funds belonging to the international carriers, which has risen to over $567m .
Only recently, the Dubai-based Emirates Airlines announced the suspension of its flight operations in Nigeria indefinitely due to the blocked funds. Operators also stated that other international airlines could halt services too.
Consequently the Federal Government is to meet foreign airlines operators in Nigeria with a view to resolving the issues.
According to data obtained from the International Air Transport Association, the umbrella body for airlines globally, the Punch reports that it showed that as of September 2022, the highest amount of blocked funds ($567m) belonging to foreign carriers was in Nigeria.
IATA said, “The industry’s blocked funds have increased by 27 per cent in the last six months, reaching the amount of $1.851bn.
“The total amount blocked is higher, mainly driven by two factors: increase of sales across most markets and deterioration in Nigeria, Pakistan, Egypt, Russia and Ukraine and two new countries.”
According to reports, the case with Nigeria is different from other countries as the indebtedness of Nigeria to foreign airlines was reportedly higher than what other nations owed the international carriers, a situation analysts claim could greatly hamper safety.
The special assistant to the Ministry of Aviation, James Oduada, assured that the ministry and the apex Bank, CBN, were not sleeping on their oars, according to reports. Oduada said they were doing everything possible to avert a national crisis in the aviation industry.
“Definitely the minister will reach out to them and to the CBN (Central Bank of Nigeria), as well as whoever has a role to play in getting the funds released,” he stated.
The media aide added, “You know he has always been concerned about it and has always stood up to the challenge. The ministry is no longer comfortable with this issue.”
He, however, pointed out that the release of funds was not within the ministry’s purview, adding, “but, of course, when airlines begin to shut down operations it must be a thing of concern to us as a ministry in charge of aviation.”
Oduadu added, “This especially when we know full well that it is going to affect a lot of Nigerians, as some have already booked their trips and are going to have it cancelled, as well as those who have plans to use that airline to travel.
“So I don’t think suspending flights is the solution to the matter, especially as the government is not sleeping on the issue. The CBN has released some money and has also committed to releasing more.
“The bank is taking steps to address the matter and so I don’t think it is fair enough to begin to shut down operations. It is not fair on Nigerians.”
With Reports From Punch