Mary Onyia
Aviation stakeholders in the country have demanded far-reaching interventions to save the local air transport sector from imminent collapse.
Speaking under the aegis of Aviation Safety Round-Table Initiative (ASRTI), the think-tank group of the local air transport sector, the stakeholders lamented that the condition of the industry and its commercial operators remain dire and warrants government’s initiatives to ease the pressure of the current harsh operating environment.
The group particularly called for single-digit interest loan facilities for operators and concessions for aircraft maintenance; subsidised aviation fuel that sells for as low as N400/litre; suspension of multiple taxes and charges for the next 24 months; inauguration of board of directors for various aviation agencies and programmes to keep more local airports open to operations beyond the sunset threshold.
Speaking at the opening of the third quarter Business Breakfast Meeting in Lagos, President of ASRTI, Air Commodore Ademola Onitiju (retd), noted that the activation of the Practice Directions on aircraft leasing, among other initiatives of the Minister Festus Keyamo, were commendable.
He, however, said the volume of domestic traveling public is dwindling due to the high cost of air tickets and reduced purchasing power of Nigerian citizens.
Onitiju recalled that the ASRTI had routinely recommended that the government had to be
deliberate in its policy and show the political-will to rescue the aviation sector from collapse.
“We have highlighted the need for the government to emplace policies that create a conducive environment for aviation to thrive, remove the shackles and make air travel affordable.
“To this end, we advocated discriminatory exchange rates for maintenance and related activities including the acquisition of aircraft spares and ground handling equipment to enhance safety and ease of operations.
“It is our believe that these and other benefits will reduce operational costs, enhance proficiency and competitiveness”, he said.
The ASRTI president emphasized that aviation is a catalyst for the growth of the tourism, hospitality and other sectors of the economy, necessitating the need for facilities in all airports nationwide to be equipped and upgraded to dispatch and receive aircraft at 12 midnight and beyond, to maximise the benefits of air travel and revenue generation. Aircraft are best utilised in the air.
He also suggested a single-digit lending rate for the aviation sector to enhance its growth and contribution to Nigeria’s Gross Domestic Product.
According to him, the body believes that the establishment of an Aviation Finance Bank could help in actualising that, though beginning with a purposeful coordination between the aviation sector and other government agencies, especially the Central Bank of Nigeria (CBN) and the Nigeria Civil Aviation Authority (NCAA).
“The domestic market is the target here. Normal global pricing could apply to foreign airlines that traverse the Nigerian air space and vessels outbound Nigeria.
“Details of the discriminatory policy could be worked out by the Ministries of Finance, Aviation and Petroleum Resources.
“In order to safeguard Nigeria’s national interest and economic survival, the Dangote Refinery, which enjoys uncommon support from the Nigerian government operates from the Free Trade Zone and other refineries producing Jet Fuel in Nigeria could be incentivised with further concessions and tax exemption of costs related to the production of aviation jet to enable them sell at less than N400 per litre to domestic operators only”, he said.