Airline operators fault proposed ‘national carrier’, say it will be counterproductive

The Airline Operators of Nigeria (AON), the umbrella body of airlines in the country, has faulted the Federal Government’s plan to float a ‘National Carrier’ in the country, saying it would result into draining the government’s treasury and creating a huge distortion in the market.

The group, which made the disclosure on Thursday after deliberations by the Chief Executive Officers of airlines in the country, said the plan would be counterproductive to the aviation sector and against the interest of the private entrepreneurs.

It alleged that the government was planning to use the taxpayers’ money to establish a new carrier for the country, stressing that its members would no longer pay Value Added Tax (VAT) as the domestic airline travel was the only mode of transportation subjected to the payment of VAT in the country.

According to AON, “While we are not averse to the government providing a conducive operating business environment and a level playing field for the establishment of a private sector driven flag carrier, the idea of using taxpayers’ money to float a ‘national carrier’ in 2018 is not only counterproductive, but inimical to the overall interests of the present crop of private entrepreneurs.

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“The AON has resolved that effective June 14, 2018, its members shall cease to make VAT remittances as doing so is unfair, as some airlines are paying, while some other airlines are not paying domestic VAT charges.

“Also, Nigerian domestic airline travel is the only mode of transportation paying VAT in the country today as road, rail, marine and international airlines do not pay.”

The Minister of State for Aviation, Hadi Sirika, had disclosed that the Airbus of France had indicated interest in partnering with the government on the proposed national carrier and the establishment of the Maintenance, Repair and Overhaul (MRO) facility for the country.

He also stated that as part of its resolve to establish the new carrier, the Federal Government met with Boeing, an American aircraft manucfacturing company, adding that the new national airline is expected to commence “soon” and would support vital sectors of the Nigerian economy to catalyse economic growth and development.

By Oluwasegun Olakoyenikan…

 

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