Airline operators seek special funding for domestic Operators
The Association of Nigerian Airlines (AON) has requested that the government provide a “special funding” window for the country’s domestic airline industry.
Capt Roland Iyay, CEO of Top Brass Aviation Limited, made the request on behalf of the AON on Monday, at a meeting with Mr Festus Keyomo, Minister of Aviation and Aerospace Development, in Abuja.
The nature of the aviation industry and its expanding contribution to the country’s Gross Domestic Product (GDP), he added, prompted the request for availability of a window of special finance for operators in aviation.
Our request is simple: a single-digit percentage point, readily available funding window.
Please consider giving domestic airlines with the required support to help them gain access to competitive funding from internationally recognised institutions like EXIM Bank, EDC, and AFREXIM Bank.
We demand that the manufacturers’ suggested maintenance service intervals be implemented and that an annual recurring check of the simulator be required for all flight crews.
“Just as it is enshrined in the Aircraft Type Maintenance Planning Document (MPD) by the Nigeria Civil Aviation of Nigeria (NCAA),” he explained.
He urged the FG to immediately examine all industry taxes, fees, and levies to ascertain whether they are applicable and how much they cost, so that they can be brought into line with the cost recovery model of aviation parastatals.
Iyayi restated the Central Bank of Nigeria’s (CBN) commitment to ensuring domestic airline operators have unrestricted access to Foreign Exchange in support of local and international transactions through the establishment of a dedicated support line.
He advocated for the nationwide distribution and availability of Jet-A1, as well as the granting of the AON the authority to acquire import and distribution licences for products.
For the government to effectively handle passengers and their luggage, he says, they must immediately prioritise a modernization initiative for passenger and handling equipment at key airports.
To improve security, lessen aircraft damage, and raise insurance premiums, the government should urgently build and commission bird hazard management equipment and FOD programmes at all airports around the country.
By “embracing the PPP model with prospective investors for the establishment, tooling, and operation of local MRO facilities and providing special incentives to encourage increased investments in the sector,” the government is hoping to attract more capital into the industry.
In addition, he advocated for the immediate revocation of all 8th and 9th freedom rights granted to foreign airlines flying domestic routes and for the encouragement of such airlines to engage in codesharing with domestic airlines.
To bring them into compliance with the Single African Air Transport Market (SATAAM), he demanded an immediate revision of all current Bilateral Aviation Safety Agreements (BASA) and Multi lateral Aviation Safety Agreements (MASA).
He said that domestic airlines hoping to break into the international and sub-regional markets should be given special consideration in the agreement.
He pleaded with authorities to form a group comprised of influential businesspeople.
To ensure that the industry’s civil aviation policy document is reviewed and brought up to date to reflect global norms and trends, he suggested that the International Air Transport Association (AITA) serve as the committee’s chair.
Iyayi has advised the FG to immediately begin conducting thorough fiscal and personnel audits of all aviation Parastatals, in order to assess genuine needs and gaps in line with their cost recovery mechanism as enshrined in their various enabling Acts.
The AON senior member expressed concern over the imbalance of technical personnel.
The official implementation of compensation and terms of service packages in line with Industry standards for effective and qualitative recruiting and retention strategy was proposed, as was the immediate exclusion of all technical aviation Parastatals from the purview of the public service structure.
When asked for a response, Keyamo assured the AON that the federal government will strategically address their concerns in order to improve the aviation sector in a way that would benefit airline operators.
However, he urged the organisation to do something about the frequent airline delays, rescheduled flights, and cancelled flights that frustrate travellers.