Nigeria: Local airlines to grind to a halt


  1. AfricaNews Business desk report
    Local airlines in Nigeria are crying for bailout in any form of assistance to survive before they crush out of business. The Airlines Operators of Nigeria (AON) are pushing hard to meet President Umaru Musa Yar'Adua to inform him of their debt and inability to meet the rising cost of doing business.
    nationwide_airlines

    During an emergency meeting held at the Murtala Muhammed Airport, Ikeja, Lagos it was disclosed that the charges include landing and parking charges, fuel surcharge by the Federal Airports Authority of Nigeria (FAAN) and high cost of aviation fuel, the This Day newspaper reported.
     

    The report said AON also complained that the airlines pay huge amounts of money in foreign exchange for the maintenance of aircraft and purchase of aircraft spare parts, which can only be imported into the country. All these take place while they earn revenue in the country's unstable currency - the naira.
     

    In the past, operators enjoyed duty waiver on aircraft parts importation, but it had been scrapped in the last two years, hence the reintroduction of fees. According to the report the local airlines complain about double taxation on aircraft parts (Customs Duties and Value Added Tax) which they said had a huge toll on airlines' finances.

    More charges

    To add to their plight, the report said, the Nigeria Airspace Management Agency recently introduced the Terminal and Navigational charges, which is the payment for the use of navigational aids at the airports by the airlines.
     

    All these problems have resulted in a limping sector neck-deep in debt to aviation agencies and fuel marketers, the newspaper noted. They complained that they might be unable to pay, as many of them now record losses due to low passenger movement since last year. The low passenger situation is attributed to the global economic meltdown.
    About two months ago, the debts airlines owe to these agencies amounted to about N8 billion ($54 million), including passenger service charges, which they collect on behalf of the agencies and Bi-Courtney Aviation Services Limited.
     

    Secretary-General of AON, Captain Mohammed Joji and Deputy Secretary-General, Mohammed Tukur, who addressed newsmen after the meeting, called on the government to give all domestic operators waiver from paying the Terminal Navigational Charges introduced by the Nigerian Airspace Management Agency.





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