-By Adeniyi Onifade
Despite commencing operations in July 2020, the aviation sector has still not recovered from negative impact that bedeviled the sector due to the COVID-19 pandemic.
Although the government has promised palliatives to indigenous carriers, which Hadi Sirika, aviation minsiter said, was some form of intervention to cushion the devastating effects of the COVID -19 pandemic, operators have lamented the inability of government to fulfill the promise a few months after the pronouncements.
The N27 billion packages, it was learnt, was intended as a cushion for payroll grant to support airlines, aviation ground handlers, caterers, provision of single digit interest loans with a long-term repayment plan, deferred payment of taxes and filing dates.
Reports also say that the proposed intervention by the government was also pushing to ensure the removal of Value Added Tax from airline tickets, provision of COVID -19 tests for passengers and crew, waiver of airport rent fees to airport operators.
However, due to the inability of government to fulfill its promise, airlines are still struggling, and the resultant effect is on passengers who have to pay extra to fly.
Worried by this situation, experts in the industry have proposed recovery strategies for regulators and operators so as to ensure smooth operations of the sector.
At a stakeholders forum recently, President, Aviation Safety Round Table Initiative (ASRTI) Gbenga Olowo described the grant proposed by the government as paltry.
He said it would do little to address the losses incurred by airlines and other players in the sector.
Olowo, nevertheless, said Nigerian aviation industry need timely intervention as governments of other countries have done to assist their air transport sector from the challenges thrown up by the COVID-19.
He advised government to consider airlines as a priority in the identified projects the intervention was meant to address.
Executive Chairman Airline Operators of Nigeria (AON), Captain Nogie Meggison said there was no better time to assist indigenous carriers than now.
The boss of the umbrella body of indigenous carriers urged the Federal Government to intensify action on the implementation of a stimulus package for the beleaguered sector.
Meggison said such stimulus grant or palliatives to domestic carriers as cushioning measure post-COVID -19 should be channelled through the Central Bank of Nigeria (CBN) to ameliorate the pangs airlines were experiencing.
He said: “We call on the Central Bank of Nigeria to implement the one year moratorium on principal repayments of intervention loans it plans to give out to airlines. The bank should also reduce the interest rate from nine per cent to five per cent for one year and create an N50 billion target facility to cushion the impact of the virus on airline business post-COVID-19.
“We insist that without government offering stimulus package and incentives to domestic carriers mitigating the impact of the pandemic on our operations and the business would not have achieved much effect.
“It will not be out of place for government to include deliberate sourcing of loans, grants, tax waivers, special foreign exchange windows and rates, reduction of airport taxes or surcharge for airlines.
“We would appreciate the government if it could consider other options, including approving corporate loans through the Central Bank of Nigeria and waiver of some of the charges to guarantee the survival of airlines and avoid over 100,000 direct job losses post-COVID-19.”
Continuing, Meggison said: “What we are asking for is not unprecedented. For instance, in the United States of America, airlines are seeking a $50 billion bailout. As part of its response, an Emergency Stimulus Package Bill was passed by the US Senate and House of Representatives which reduced interest rates to 0.25 per cent. Also, the bill granted their airlines tax credit for their losses during the pandemic.
“Our government can do the same by granting the above-stated reliefs to Nigerian airlines as a way of assisting them to recover from their losses during this very difficult time.
“We are aware that Russia, the United States, Canada, Britain and other countries have come up with one support or another for their airlines and Nigeria will not be at default, if it looks at options of supporting the industry.”
Aldo, Chief Executive Officer (CEO) Belujane Konzults, Mr Chris Aligbe, said the government should cushion the severe effects of COVID-19 on the aviation sector.
Aligbe canvassed a loan of less than five per cent paid over 15-20 years for airlines.
Another pressing issue is the gale of sacking taking place in the industry especially for pilots and engineers operators.
Recalled that three carriers namely Air Peace, Bristow Helicopters and AZMAN Air eased out over 170 pilots from their organisations.
Air Peace sacked over 69 pilots in a move calculated to put the carrier on the path of sustainability.
Citing reasons for the right sizing, Air Peace said it took the painful, but rightful decision in the circumstances the airline has found itself as a result of the devastating effects of the COVID-19 pandemic on its operations and financial health.
Industry analysts, however, described as normal the erasure of jobs in airlines, saying global carriers were embarking on the steps to save their organisations from the collapse in the face of zero-revenue propelled by COVID -19 restrictions on flights.
A pilot, Captain Idris Yuba said there was nothing unusual about airlines asking professionals to step aside to keep the business afloat.
He said:” As at today, all the airlines, including Air Peace, considered to be the biggest in Nigeria are struggling in the face of traveller apathy.
“The carriers are seriously hit after they resumed flights in July because of COVID-19 induced challenges not limited spike in operating costs which continues to increase for aviation fuel, aircraft lease rentals, aircraft maintenance, fluctuating exchange rate, insurance premiums and other obligations to aviation agencies, caterers, feelers, banks and many others.
“Imagine, an airline such as Air Peace with over 120 flights then has come down to about 20. Yet it has a workforce of over 3, 000 and multiple taxes that are not easing out. The airlines are all closer to the brink than when they started.
“Sadly, airline owners are grappling with industrial relations issues such as the insensitivity of aviation workers, especially the pilots and engineers who pose a grave challenge to the survival of the airlines.
“While many of their counterparts worldwide were getting laid off, local pilots are insisting on regular pay despite the obvious. This sheer irresponsibility of pilots and aircraft engineers union and recent threats to shut down the entire industry is sickening. If all carriers shut down, without help from the government, how do Nigerians move around?”
However, he urged a stop to the sacking of pilots as it will only worsen the situation.
Also aviation unions have maintained their stand on shutting down the sector if the airlines fail to reverse the sack of its members as failure to do that will lead to the withdrawal of services across airlines.
Experts believe that if issues of palliatives by the government as well as stop sacking workers and pilots are addressed, it will go a long way in setting the sector on a path of recovery after a long closure due to the Covid-19 pandemic.
