Experts reject FG’s 30% airline debt relief
By Dickson Omobola
Barely two weeks after Federal Government approved a 30 per cent discount on outstanding statutory fees owed by domestic airlines to aviation agencies, experts in the air transport sector have faulted the decision.
The stakeholders described it as a wrong move by government, saying it amounts to waiving 30 per cent of public funds to airlines.
A few days ago, President Bola Tinubu approved the relief to reduce operational pressures in the aviation sector, especially to cushion the impact of the ongoing Jet-A1 crisis, which has increased operating costs for domestic carriers.
The relief covers accumulated debts, including parking charges payable to the Federal Airports Authority of Nigeria, FAAN, navigational charges owed to the Nigerian Airspace Management Agency, NAMA, and other regulatory obligations.
Meanwhile, a pilot with the former national carrier, Nigeria Airways, Capt. Mohammed Badamasi, in a chat with Vanguard, questioned the focus of the intervention, asking what becomes of debts owed to ground handling companies and oil marketing firms.
Badamasi said: “I agree with the Association of Nigeria Aviation Professionals, ANAP, that it’s wrong to waive 30 per cent of public money to airlines. They deliberately conspired with the aviation government agencies not to remit the five per cent service charge to the agencies.
“If it’s not a conspiracy, then it is corruption. The agencies’ heads can’t just behave as if it is normal not to collect the five per cent service charge if there’s no form of gratification for the agencies’ heads.
“The airlines demand total debt cancellation. Where in the world is this done? Were the passengers not made to pay for this five per cent tax? It is a corporate responsibility failure on the part of the airlines and the federal government agencies.
“What mechanisms are being put in place to mitigate future occurrences, as we have short memories? This case is being treated with kid gloves. This discussion is only about the debt to the agencies. What about the ground handling companies and oil marketing companies? Are they expecting a waiver or cancellation?
“In business, expect market waves. If your focus is to be at the top of the ladder all the time, you are in the wrong place. This is the thinking of many Nigerian airline operators. They want to eat their cake and have it. If they don’t get their act together and put their thinking caps on, they will face more difficult years ahead.”
Also speaking to Vanguard, Chief Executive Officer of Centurion Security Limited, Capt John Ojikutu, retd, said: “30 per cent of what debt? What is the value? Which year? Is it for one year or two years? I can tell you that these debts may not be less than 300 billion. They have given airlines this type of relief in the past. It was 300 billion, and nothing came out of it. The airlines that were given collapsed before these new ones came in. The problem is more with the regulatory authority. If the regulatory body is allowed to function under the law without the interference of the Ministry of Aviation, we will not be where we are today.”
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