Government, Airline Operators Chart Path To Viable Sector

Apparently worried by the challenges facing the aviation sector in particular and economy in general, airline operators have urged the Federal Government to come up with a clear policy direction for the industry’s development and growth.

The operators, under the aegis of Airline Operators of Nigeria (AON), said that the guide was imperative to make the sector viable and generate employment opportunities in the country.

Specifically, the AON wants a three to four-year plan for local production of JetA1 fuel, foreign exchange availability to the sector, implementation of tax waiver plan on aircraft parts and exemption from value added tax among others.

The operators, at a meeting with officials of the Ministry of State for Aviation, lamented the current state of economy, reiterating that it was not the best of times for the entrepreneurs.

The situation notwithstanding, they are optimistic that the sector has a potential of raising contribution to Gross Domestic product (GDP) from 0.4 per cent to 14 per cent, creating at least 10,000 direct and 100,000 indirect jobs, if authorities put their hearts together.

Chairman of AON, Captain Nogie Meggison, said it was high time the aviation ministry had restrategised to make the industry attractive and conducive for operations.

Necessary quick fixes towards this end, according to Meggison, include addressing challenges of access to foreign exchange, upgrading of airports, 24-hour operations and Value Added Tax (VAT) waiver.

Taxes on aviation services in the country have been rated as one of the highest in the country. In fact, the International Air Transport Association (IATA) last week named the country as one of the beneficiaries of yearly $19b raked in under the Illegal Wildlife Trade (IWT) made up charges from about 230 sundry charges on air ticket every year around the world.

Meggison said that if the current challenges are not properly handled, aviation industry would face more crises that would compel operators to stop business in the coming months.

But, “If the challenges are addressed, the aviation sector has the capacity of contributing 40 per cent to the Gross Domestic Product (GDP) as against the current 0.4 per cent.

“If the government policies are properly planned and implemented, aviation sector should be able to create 10,000 direct jobs and 100,000 indirect jobs between now and 2019,” he said.

The Minister of State for Aviation, Sen. Hadi Sirika, who shares the vision of the operators, assured that every step necessary were currently been taken to ease the pains of the operators.

For instance in the area of scarce foreign exchange, he said that the ministry was already in talks with the Central Bank of Nigeria (CBN) to ease access to the funds – for both foreign and local operators.

Sirika said: “I have been to CBN to resolve forex matter, and I would not stop. I have put a call across to the Governor of CBN, and I would ensure that both domestic and foreign airline operators have access to forex as against the rumoured disparity in terms of access.