Nigeria Content Online

Professionals in
the Nigeria aviation industry have called on the federal government to
get involved in the ongoing brawl between Aero Contractors and Oceanic
bank.

Describing the
disagreement between the carrier and its financier as another threat to
the much depleted airline sector, the experts disclosed that our
country’s aviation image will be tarnished internationally should Aero
become grounded.

“The Nigerian
aviation image and heritage will be further dented with the acronym
liquidation, considering that this will be the fourth carrier within a
year, which makes us a very unstable country in the committee of civil
aviation nations, when small Tanzania can have a profitable carrier
called Precision Air which operates mainly with props,” said Olumide
Ohunayo, former president of the National Cabin Crew Association
(NACCA), over the weekend.

Cognizant that the
airline is “not totally grounded,” Mr. Ohunayo disclosed that if both
parties cannot resolve their differences quickly, the government should
take over the carrier temporarily, while the airline sources for
interim managers and new investors.

Describing the
government’s fund disbursement methods as “sketchy,” the one time NACCA
president disclosed that the government should assist the airline,
considering the excellent track record of the carrier.

“I think the oil
companies should also invest and an insider like Captain Olumide be
invited to assist in the restructuring,” he said.

Commenting on the
issue, Gabriel Olowo, chief operating officer Sabre Travel Network,
disclosed that assistance from the government at this point will be
invaluable considering the economic importance of airlines in a country.

“We’ve been talking
about bailout for Nigerian airlines for upwards of three years, without
result. One can only hope that Aero will also not stop flying before
government will come to their rescue, no matter how little,” he said.

According to Mr.
Olowo, no carrier in Nigeria today is free of debt, adding that if care
is not taken, the industry will become starved of carriers.

“A reputable
airline such as Bellview stopped flying for almost six months already
and no airline in the market can boast of a clean bill of its economic
health as we talk,” he said.

Already, three
indigenous carriers, including Afrijet, Bellview, and Capital airlines,
have suspended operations since January this year.

Meanwhile, Mr.
Olowo disclosed that “economic, and not financial, bailout” in terms of
debt forgiveness on landing, parking, over flight, ticket sales charge,
passenger service charge, value added tax (VAT), double taxation, among
others, are not only necessary but essential for continued survival of
Nigerian airlines.

“The airline income has been badly eroded by too many charges, hence
the sector has not witnessed growth, talk less of development, in the
last 30 years,” he said. “Nigeria’s business environment is also one of
the harshest in the entire world in terms of avoidable costs of
infrastructure, bad politics and bureaucratic bottlenecks that negate
good business delivery.”