A pressure group Airline Operators of Nigeria (AON ), has urged the government to develop a policy for the growth of the aviation sector.
It said the absence of such a policy to protect domestic carriers from their foreign counterparts, accounts for the low capacity of local airlines which are struggling to remain afloat.
AON frowned at multiple entry points for foreign carriers, which, it said, accounted for over $5 billion in capital flight.
Its Executive Chairman, Capt Nogie Meggison, urged the government to ensure that the policy address how to attract foreign direct investment (FDI) and generate jobs.
He said there was need to deepen participation in the sector through investment-friendly policies.
He said creating a conducive environment for airline operations is imperative because a new administration will be ushered in on May 29.
In his view, the government should design a blueprint that would determine how activities in aviation.
The need to design a new blueprint is coming on the heels of inadequate measures designed the Minister of Aviation, Chief Osita Chidoka.
He had proposed a stimulus package by the government to assist domestic carriers.
Operators said they were yet to be carried along on the details of the package and its proposed impact on the challenges of running airline business in the country.
To accelerate development of the sector, Meggison said the new policies should determine how bilateral air treaties are negotiated in favour of Nigeria, which should benefit from its routes as a hub in Africa.
He said rather than throwing the routes open to foreign carriers through what experts say is ‘obnoxious open skies policy’, the government should put its lucrative routes for bid for carriers that have capacity to operate them.
Such an arrangement, he said, would give rise to joint ventures agreement between foreign carriers and indigenous carriers for the local distribution of passengers flown in by international carriers.
Meggison said the incoming administration should also design a blueprint that would create jobs for aviation professionals as well as create a platform for private sector players to invest in the industry.
He said: “We hope that as the incoming administration settles down in office, he will put a strong aviation policy in place; it would engage AON on how to move the strategic and air transport sector forward to a place where we should be.
“Once again, we congratulate the president-elect as we look forward to a successful administration that would leverage the aviation sector for national development, economic contributor and creating of jobs for our youth.”
He said a strong policy for the sector would make the country a regional leader in Africa, which is naturally positioned as a hub for the continent.
He said a robust policy would generate jobs for teeming aviation professionals as well put in place the right template for the setting up of a national carrier that should be private sector driven.
He said if the right policy is put in place, it would assist to checkmate the over $10 billion that goes out of Africa as capital flight.
He said the right policy would bring about joint venture partnerships for domestic carriers that would distribute the thousands of passengers flown in by foreign carriers.
He said: “The task to rebuild the aviation/airline sector must remain on course in the light of many issues that domestic operators have consistently put on the front burner for government’s attention.
“Against this background, the AON is drawing the government’s attention to issues agitating the minds of operators which are not limited to the need to facilitate the establishment of an aircraft maintenance hangar in the country.
“We call on the government to re- examine the exclusion of domestic carriers from the Central Bank window to access foreign exchange.
“The government should also address the challenge of oscillating price of aviation fuel, which constitute over 40 per cent of our operating costs.”
Meggison said there was need to address the regime of multiple taxation airlines are subjected to by aviation agencies, a development he said is strangulating their operation.
He said the harmonisation of such charges, including ticket sales charge, passenger service charge, landing and parking fees, en route navigational charges, land rent, fuel surcharge, as well as value added tax further compounds the challenges of domestic airlines.
Meggison said: ”There is need for government to re- examine these challenges if it wants the aviation sector to grow.
“There should be removal of value added tax (VAT), because other modes of transportation are not levied value added tax. Why should aviation pay VAT. In other countries, air transport is not taxed.”
He said there was need to improve on service delivery by aeronautical agencies.
The AON chair said the government needs to rework its policy to enable domestic carriers access loans from financial institutions at single digit interest rate.
He said: ”There is urgent need to fast track the directive already in place for the engagement of more Nigerian pilots and engineers. At the moment, there are over 500 Nigerian young pilots and aircraft engineers without jobs.”
He said an enabling policy that would check the influx of foreign pilots and engineers by foreign carriers.
Meggison said there are over 1,000 foreign pilots engaged by both local and foreign registered airlines flying in Nigeria.
He said aside the foreign pilots, there are over 500 foreign aircraft engineers employed in the country.
He said: ”The government should compel foreign carriers to set up a line station for aircraft maintenance in the country and employ local engineers to assist in turning around the growth of the sector.
“They should look into other avenues also. If policies are not put in place the challenge of unemployment of pilots and engineers may not be resolved as soon as possible. It is shameful that Nigerian licensed pilots are now driving Kabu Kabu to make ends meet. This is totally unacceptable. Not that there’re no jobs but jobs are taken by foreigners.
“Over the years, the aviation industry has grown. About six years ago, the number of private jets has increased from 20 to 150.
“Even, commercial airplanes have grown from 20 to 100, but it has not reflected in the employment of our youths, who are trained as pilots.”
He said it was time the Federal Government implemented the local content policies in the aviation sector to create room for the employment of indigenous professionals, as it the practice in most parts of the world.
Meggison cited India, Cameroon, Russia and Egypt where policies on cockpits are a national passport holder. “For any aircraft that is flying in such countries,whether local or foreign registered once the airplane has stayed in the country for more 30 days it must comply with cockpit laws,”he said.
The Managing Director, Medview Airlines, Alhaji Muneer Bankole, said part of what the incoming government should do is to attract aircraft manufacturers to set up maintenance centre in Nigeria.
Bankole said: “One of the ways the government could assist local carriers is to encourage aircraft manufacturers to set up an aircraft maintenance centre in Nigeria to reduce the cost aircraft repairs for operators.
“Another way is to consider the setting up of a national carrier to uplift the image of the country.
One way of doing this is to pull the airtcraft in the fleet of domestic carriers.”
the Nigerian College of Aviation Technology ( NCAT),not even one is yet to get a job.
“Whereas , there are over 500 foreign aircraft engineers working in Nigeria. Most of the foreign carriers are putting flying spanners (engineers ) on board in the business class to fly to Nigeria instead of setting up a line station .
“There is need for government policies to make them open line maintenance stations to provide hands on job training for Nigerians youths.
So that they can gradually start transferring skill to our Nigerian youths
On board any Emirates or Qatar Airways flight, there is always other nationals from other countries who are are aviation professionals exported to other countries .
Whereas Nigerian with her vast population is no where to be found ,on the international aviation scene. It’s time we creation of jobs for youths in the aviation sector .”, he concluded.
