Senate seeks increased bailout for airlines operators

Chairman, Senate Committee on Aviation,  Smart Adeyemi has pleaded with the Federal Government to consider an upward review of the bailout for airline operators in the country.

He made the call on Monday in his welcome address at the three days public hearing on the six aviation Executive Bills held at the National Assembly complex in Abuja.

The Senator representing Kogi West said the increased bailout was necessary to save the local airlines from the deleterious effect of the pandemic,  Coronavirus on their operations.

He said: “Let me take this unique opportunity to call on the Federal Government to explore the possibility of providing bailout funds for the Airline Operators.

“The outbreak of the COVID -19 Virus is a global and on-going pandemic and countries all over the world are providing bailout funds for airline operators. Certainly, the aviation industry was the most affected by this virus attack and therefore need all the support possible to resuscitate the Industry. “In the absence of this, so many airlines will struggle to stay in business or worst still, be forced to withdraw their services. Bailout funds will mitigate the devastating and also discourage operators from cutting corners as the consequences can only be better imagined.”

ALSO READ: FG generates N424.71bn as VAT in Q3 2020 ― NBS

Minister for Aviation, Senator Hadi Sirika who revealed that the President Muhammadu Buhari administration has since made N4billion available to the airline operators and another N1billion for allied businesses however maintained that the industry would surmount the challenge thrown up by the  Coronavirus just like it survived challenges that preceded the pandemic.

He recalled that the aviation sector survived the terrorist attacks on the United States otherwise tagged,  the 9/11 and the Special Acute Respiratory Syndrome, ( SARS).

He said: The aviation industry hasn’t witnessed COVID-19 before,  but it has seen SARS and 9/11, but it will bounce back because of its importance to the global economy. It is an all-important sector that can’t be ignored.”

Also reacting to the call for a downward review of the service charge paid by airlines under the aegis of Airlines Operators of Nigeria,  ( AON)  to the industry regulatory agency, the Nigeria Civil Aviation Authority, the Aviation Minister decried the failure of the airline’s operators to remit to the NCAA.

” We have concerns and they are very genuine. NCAA operates on a cost-recovery basis. They (AON) are owing us $6, 993,234 and N19, 365,374,686

“She is proposing that the percentage goes down and the money is not there. These are monies we get from tickets and they ought to be remitting this money so that we can train more inspectors and keep the industry safe.”

Senator Sirika said the federal government has not foreclosed assistance to the airline’s operators but maintained that it was equally contending with the challenge of paucity of fund.

Earlier while justifying the three-day public hearing which would end on Wednesday, Senator Adeyemi said it would enable stakeholders in the aviation sector to give robust opinions that would enrich the Executive Bills.

“It is common knowledge that the leadership of the Senate ascribes enormous importance to any Executive Bill. At various plenary Sessions, it had deliberated exhaustively the general principles of the Bills in question before referring them to this honourable Committee for further Legislative action.

“The essence of this public hearing is, of course, to garner input, encourage the cross-fertilization of ideas based on the experience of technocrats from the Aviation industry, retired experts, stakeholders and the general public with a view to enriching the quality and content of the Bills. We must do this constructively by putting to maximal use, our individual and collective skills and knowledge towards these bills which are fundamental to the development of the Aviation industry

“The repeal and re-enactment of these six Executive Bills are aimed at enhancing the operational framework and the removal of the seeming ambiguities that inhibit the international best practices within the Air transport Sector. The Aviation industry is a dynamic world in itself; consequently, continuous changes and upgrades must be made to meet safety needs and promote economic growth. We must, therefore, continue to strive to go beyond expectations if we are to achieve the best Aviation solutions possible.

“Globally, Air transport is the strongbox of socio and economic activities. To be worthy competitors, we must collectively address the challenges that the industry is currently faced with. Issues such as safety, poor regulatory functions, Viability, operational costs, affordability amongst others must be addressed urgently. There must be responsiveness to the needs of the people and accuracy to procedures so as to ensure that the industry is the most effective, secure and safe means of transportation in Nigeria.”

Checks revealed that among the bills are “A Bill for an Act to repeal the Civil Aviation Act,  2006 and to Enact the Civil Aviation Act for the Regulation of Civil Aviation in Nigeria and for Other Related Matters,  “A Bill for an Act to repeal the Nigerian College of Aviation Technology Act and to Enact the Nigerian Aviation Technology Act to provide for its organisation, control and operation and for related Matters. Also included is a Bill for an Act to repeal the Nigerian Airspace Management Agency Act for the purpose of providing effective Air Navigation.”

_{NIGERIAN TRIBUNE}