Categories: Business

Airline operators accuse aviation ministry of demonising members to get FG approval for national carrier

Sirika

Nigeria’s airlines under the aegis of Airline Operators of Nigeria (AON) has accused the Ministry of Aviation of deliberately demonising its members just to win both public and government approval for the establishment of the long awaited new national carrier, Nigeria Air.

The operators who said they have been operating under deliberately skewed sever harsh operating environment lamented how they have all been portrayed as weak by the ministry of aviation so as to achieve its goal of floating a national carrier.

Speaking at the first quarter breakfast meeting organized by Aviation Round Table Initiative in Lagos, the operators in a statement jointly issued by their chairman, Alhaji

Abdulmunaf Yunusa Sarina, Chairman, Azman Air and endorsed by ten local airline operators, enumerated some unacceptable standards engaged by the ministry in its quest to float the new national airline.

According to the operators, the process engaged by the ministry of aviation to float the national carrier lacked transparency and its shrouded in secrecy.

IN CASE YOU MISSED THESE FROM NIGERIAN TRIBUNE

“The process is not transparent, is shrouded in secrecy and being championed by Nigerians and foreigners, unknown to Nigerians and various stakeholders. It is pertinent to note that there is no Prospectus issued for public scrutiny or investment appraisal in the process of setting up the proposed carrier.

“The so-called national carrier is a private airline being promoted as a national entity using tax payers and government resources. There is no way an enterprise where the Federal Government is said to hold 5% equity can be called a National Carrier. Private people should not use the commonwealth of Nigeria for their private business.

“Surrendering Our Sovereign Wealth To Foreigners: We, in AON, oppose vehemently any decision or action that is tantamount to selling the country’s commonwealth to any foreign airline for free or for peanuts. Both the domestic and international airline operations network and market value when fully utilized are worth over $400billion dollars every five years. Nigeria and Nigerians should be the main beneficiaries of this massive industry. Therefore, any foreign airline interested in investing up to 49% into the national carrier, which would eventually give the said foreign carrier unlimited access to our grandfather rights to operate both within and outside Nigeria, should be made to pay nothing less than $200billion dollars in cash to be deposited through the CBN.

“The foreign airline’s investment in the national carrier must be through the injection of cash first before any other way. Anything short of the above is like selling off the country’s wealth to another country. Bringing a foreign airline to come and dump their redundant excess capacity (aircraft) on our nation in the name of investing 49% in the proposed carrier will do more harm than good to the nation’s economy. This is a road Nigeria has travelled before with so much regrets and shame through the adventure of Virgin Nigeria. History is about to repeat itself.”

While urging that the efforts of local investors and operators that had invested heavily in the industry and provided millions of direct and indirect jobs to Nigerians should be taken into account, the operators referred to AMCON presently holding huge debts in Arik Air and Aero Contractors “which is a big drain on national resources. Any attempt at setting up a national carrier should first help AMCON to sell its assets and recover some of its debts. It is noted that Arik Air and Aero contractors are already government owned.

Commenting on access to local market, the Nigerian airlines said foreign airlines should not be allowed to have access to both Nigerian international and domestic aviation industry for free and through granting of multiple landing rights saying; “the Nigerian aviation market is recognized internationally as a large and high-yield market. It is therefore a strategic national asset, just like crude oil, and must be guarded jealously and preserved for Nigerians to exploit; and not given to foreigners to enjoy to the detriment of Nigerians.

On the dumping of excess capacity, AON kicke,against a situation where foreign airlines are allowed to dump idle assets in Nigeria as equity in Nigeria by way of either dry or wet lease which “will amount to a further drain on our scarce foreign exchange. A situation where a foreign airline is allowed to dump its excess capacity as equity into the Nigerian market and operate locally in the name of investing in a national carrier is unpatriotic to say the least.

Describing aviation as a strategic industry with serious security, political and economic implications, the AON argued that “Ceding our national prime asset to a foreign entity through a non-competitive will be tantamount to another form of neocolonialism. There is also the problem of ownership and control which is likely to surface later with likely grave consequences for Nigeria as a nation in its relationship with other countries.

“The foreign airline that is said to be an investor in the so called national carrier will be repatriating a lot of scarce foreign exchange out of the country. This will lead to huge capital flight and increased scarcity of Forex.

The AON frowned at what it called last of a level playing field saying: “It is sad to note that AON has become aware that privileged rights have already been allocated to the proposed carrier. A situation where the old international terminals in Lagos and Abuja are being proposed for the proposed national carrier to operate from clearly shows that there is no level playing field in relation to domestic airline investors that have been keeping the industry active and driving the Nigerian economy for over two decades.

AON called for an urgent public debate “on the need for a national carrier and the processes to be adopted to bring it to birth. Regrettably, this has not been done as Nigerians and various relevant MDAs are still kept in the dark about the project.

“Nigerian airlines have the ability and capacity to become designated national carriers and this has been proven by some of our member airlines that currently operate to international destinations using the latest aircraft types comparable to those of any foreign airline.

From the foregoing therefore, we call on the National Assembly to urgently institute a public hearing on this very serious issue of national interest and call for a stay action regarding the setting up of a private airline for foreign entities in the name of a national carrier.”

Shola Adekola