Acting President Yemi Osinbajo Meets Airline CEOs, Promises To Address Pressing Industry Challenges & Position Nigeria As Hub In Africa - By Ewos IRORO
The Acting President,
Prof. Yemi Osinbajo, has promised to address the many challenges facing the
aviation industry in Nigeria which have hitherto hampered the growth and
development of the sector, and hindered it from taking advantage of its natural geographical position
as the hub for Africa. He gave the assurance during a meeting in his office at
the Presidential Villa with a delegation of Airline Chief Executives of the
Airline Operators of Nigeria (AON).
Prof.
Osinbajo used the meeting as a fact finding exercise to hear firsthand from the
airline investors what domestic airlines are going through within the sector
and to discover why in spite of the 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 6th 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.
Lending
voice to the challenges being faced by airline operators, the Chairman of AON,
Sir Nogie Meggison said that some of the major issues facing airlines
currently include, but are not limited to the following: removal of Value
Added Tax (VAT) ( as domestic airlines are the only mode of transport
paying VAT – Marine, Road, Rail and even the International airlines don’t
pay VAT); harmonization of over 35 Multiple Charges; reviewing 5%TSC to a
flat rate (in line with the world practices); Poor Navigational and Landing
Aids, high cost and epileptic supply of JetA1, obsolete
infrastructure, limiting operations to daylight operation for most
airports (Nigerian Airlines fly an average of only 5 hours as
against the average of 10 hours worldwide per airplane); and lack of
consultations with airlines before introduction of new charges and policies
among others.
The
AON Chairman said: “There is an urgent need for a
deliberate economic policy that will support the positive growth of
aviation and survival of domestic airlines in the country. For instance,
following the air crashes of 2005/06, government came up with a policy to
ensure air safety. Similarly, the economic policy for the sustenance of the
industry needs to be seriously looked into.
“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 30years. 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.
“This
is the one of the main reason for the short life span of Nigeria
airlines averaging about eight years, Meggison stressed, adding that: “Nigeria
has the same four major catalysts in house that transformed Dubai from a
desert into a hub in the Middle East today.”
Having
carefully listened to the airline operators, the Acting President acknowledged
the difficult situation the airlines face and promised to take a closer look
into the various issues raised in order to find ways of addressing them, making
it more friendly and promoting the ease of doing business in the airline
industry as well as position Nigeria to take advantage of our natural God given
geographical location as the hub in Africa.
In
his summation, the AON Chairman noted that: “Aviation as an economic driver
therefore, we believe Aviation should be supported as much as possible to
thrive in order to reap its many benefits that can easily make aviation the 4th contributor
to the economy and a major contributor to the GDP and to create 200,000 new
jobs for our ailing youths through its direct and indirect link. Hence, rather
than inflict greater burden on Aviation, things should be made easier.”
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