Bailout: 2trillion grossly inadequate,consider payment of wage bill or loan of less than that 5% interest …ART President

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President, Aviation RoundTable Safety Initiative, ARTI, Elder Gbenga Olowo says the planned injection of funds by the Federal Government as bailout for the industry is highly commendable.

ART President, Elder Gbenga Olowo

He said the bailout funds was necessary for the survival of the industry post COVI-19, adding that if government had not thought of this, it would have been seen that the present administration was insensitive to the problems of the industry.

 “It is a necessary condition for survival of the sector that has not been quite strong and competitive prior to Covid 19. Failure by govt not to would have been unprofessional and insensitive, kudos to Sirika and his team.”

He added, “Arik, Aero were already economically under ICU before Covid 19 and many others with names withheld.”

On steps to take to ensure the bailout is well administered, the ARTI President said, the, N2trillion which is approximately 5Billion US ,may not be enough for Passenger Airlines alone not to talk of quiet Airports, GDSs TMCs, OTAs, Travel Agents, Ground Handlers, Catering and the entire supply chain for loss of business and negative impact of Covid during the lockdown and flight restrictions.

Olowo said, the best approach would be to do 3year average business revenue of stakeholders and prorate their losses for Grants.

“Or pay wage bill for initial period of 6months covering Q2 and Q3 2020 to prevent job losses. Option of loans & loan guarantees at less than 5% interest rate should be considered. 2020 Tax waivers, Vat exemptions, tax holidays, etc.”

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