The Airline Operators of Nigeria, AON, wants the Federal Government to start putting measures in place to jump start the country’s economy after the covid-19 restrictions.
The body say they are worried that the pandemic restrictions have led to an almost complete shutdown of economic activities around the country, closure of Abuja, Lagos airports and suspension of aviation activities which are critical drivers and catalysts of the Nigerian economy.
Chairman of AON, Captain Nogie Meggison in a statement says to mitigate the impact of the pandemic on the Nigerian economy and the aviation sector, President Muhammadu Buhari’s Executive Order on Removal of Value Added Tax, VAT from all forms of transportation; must be implemented, adding that the domestic airlines are still the only form of Transportation paying VAT.
He suggested among other palliatives to cushion the effects of the pandemic on the industry to include the Suspension of all NCAA, FAAN, and NAMA charges for domestic operations within the country for 180 days and Subsidy for payment of workers salaries at least to cover 6 months from March to September 2020 so that staff are not sacked.
Others are support towards augmenting insurance premiums which are dollar denominated, as well as augmenting payment for international leases and rentals on the over 120 grounded commercial aircraft that must be paid and Access to Foreign Exchange at the first tier rate given to Agric, Pilgrims among others.
“It is our firm conviction that it is better to keep the aviation industry going today than to kill the goose that lays the golden egg at the expense of over 251,000 Nigeria Aviation jobs and recovery of our fragile economy today.”
He said the call for government to act fast now based on the projections of the International Monetary Fund, IMF projection of the Nigeria economy receding 3% by 2020 and the International Air Transport Association, IATA’s airline passenger revenues loss by $314.
“In response to this reality therefore, it is a known fact that Governments around the world have taken the bull by the horn and taken the initiative by putting aviation in the forefront of their country’s recovery and putting in place support for the sector as a major tool to jumpstart their economy.
For instance, the US 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.”
The AON Chairman urged Government to use its machinery to consider and immediately approve the rescue plan for recovery of the Nigerian Economy and the Nigerian aviation industry post COVID19 and to support domestic airlines to survive which is a catalyst of any economy worldwide.
