Airline operators demand inclusion in CBN’s N50bn stimulus package

Airline operators in the country have called on the Nigerian Government for an opportunity to be included among the beneficiaries of the N50 billion COVID-19 Intervention Fund facilitated by the central bank at an interest rate of 5%.

Nogie Meggison, the Chairman of the Airlines Operators of Nigeria (AON) made the request in a statement issued in Lagos on Monday, saying it was part of the association’s strategies to ensure smooth running of operations in the sector once the COVID-19 crisis was over.

“We appreciate the CBN’s approval of N1.1 trillion stimulus and the recent N50 billion COVID-19 Intervention Fund to jumpstart the economy.

“AON would appreciate immediate and simple access of the funds to Aviation at an interest rate of not more than five per cent.

“Also, some quick low hanging palliatives that the Federal Government may consider to mitigate the impact of the pandemic on the Nigerian economy and the aviation sector include implementation of President Muhammadu Buhari’s Executive Order on Removal of VAT from all forms of transportation,” Mr Meggison said.

Read also: NSE: Guinness, PZ, Fidelity top losers as negative sentiment return

According to him, the AON was also demanding the suspension of all Federal Airports Authority of Nigeria, Nigeria Civil Aviation Authority and Nigerian Airspace Management Agency charges for domestic operations for 180 days.

The AON also sought subsidy that would cover the payment of employees’ salaries for a minimum of six months beginning from March to September 2020 in order to forestall staff retrenchment.

Meggison further stated that the International Air Transport Association (IATA) projected airline passenger revenue would fall by $314 billion in 2020, consequently putting 25 million aviation-dependent jobs at risk around the world.

“As a way forward, government can take a cue from the American model of offering 50 per cent funding and grants and 50 per cent palliatives through waivers and suspension of taxes, levies and fees, etc.

“For instance, the U.S. Government granted a $58 billion bailout to the airline industry as well as loans and grants for airlines. Similarly, UK airlines asked for 7.5 billion Pounds; while India made available $1.6 billion rescue plan for aviation.

“Also, Singapore announced $112 million for aviation, while Australia granted a bailout plan of AUD298 million for the sector.’

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now