Airline operators yesterday said no fewer than 50 airlines have collapsed in Nigeria in the last 30 years.
The airline operators said the government must take drastic measures to give the aviation sector lift as some other operators had last week concluded plans of folding up due to unfavourable business environment and new tax regime, duties and none availability of forex.
The operators made these appeals during a courtesy visit to the president of the Senate, Ahmed Lawan. The airline operators were led to the National Assembly by the minister of Aviation, Hadi Sirika.
Chief executive officer of Air Peace and vice president, Airlines Association of Nigeria, Allen Onyema, who spoke on behalf of the team, expressed worries that over the sector has over the years been perceived as an elitist and lucrative business.
According to him, consequently, operators have been meant to deal with unfavourable policies that have affected the growth in the sector in the last decades.
He said, “It is something not to be proud of. In the last thirty years, over fifty airlines have gone down. Owners of these airlines have succeeded in other businesses.
He further said the reasons could be pointed out to many reasons, citing in particular, policies which have not been friendly to the sector.
He said even in the other climes where the government give operators almost everything, the profit margin is about 2%.
“So you can imagine in Nigeria where we are made to pay 20-25 per cent interest rate for loans”
He acknowledged that President Muhammadu Buhari had through his wisdom granted a waiver on vat and duties to help the sector grow in the last few years but the Nigerian Costumes had without recourse for the policy reintroduced a new neck-breaking tax regime, even when the president has not revoke these waivers at the Federal Executive Council.
“We are pleading to you, your Excellency. The Finance Bill is before you, that the vision and wisdom of President Buhari is, to incorporate it into the Finance Bill”.
“All over the world, this is what is happening. Nigeria cannot be excepted. We have been going round and round on this. To be honest, all the airlines wanted to shut down last week but for the intervention of the minister of Aviation, said Mr Oynema.
In his reaction, Senate President Ahmed Lawan, commended the group for the show of appreciation towards the government’s policies in the sector.
“I am pleased to hear that our administration has been very helpful to the industry. And the essence of the government to be supportive is to ensure that the aviation industry work very well to improve the economy of the country.
He said there is a public hearing going on the finance Bill and advised that they present their demands so that they could be incorporated and carried along. He assured the group of Senate commitment to look protect the aviation sector.
“I believe that the Aviation Industry in Nigeria needs support. The Aviation Industry all over the world is going through a crisis because people are no longer flying again.
“We actually have to protect the industry, even for the sake of people who will lose their job.
“I want to advise that your complaint in insurance law should be brought to the house through the Committee Chairman on Aviation.
“We are taking the finance Bill on Tuesday next week and we will look into that.
