Aviation

Airlines Allege Government’s Utterances Threaten Their Operations

Sirika at the 5th Stakeholders Forum
Sirika at the 5th Stakeholders Forum
Sirika at the 5th Stakeholders Forum

Airline operators have urged top government officials in the aviation sector to be careful the way they pillory their operations because such attacks hurt their business with their international partners.

The airlines alleged that from the utterances of some government officials it has become obvious that government does not have confidence in its own airlines and this diminishes the image of the airlines in the international aviation market.

They noted that because of such criticism which is obvious demarketing, insurance companies have upped their premium on aircraft operated in Nigeria; lessors are unwilling to lease aircraft to Nigerian airlines and even when they do it comes at high prices compared to what obtains in other parts of the world.

The airlines also said that suppliers are reluctant to give them spares because of the fear that they may not have the fiscal capacity to pay for the spares.

The Chairman and CEO of Air Peace, Allen Onyema confirmed to THISDAY that in February when a top government official in aviation attacked local carriers and said they were heavily indebted and insolvent, the following day the airline received a mail from its lessors to terminate  a deal to lease aircraft to his company.

“I have mails to show that I was about getting some Boeing B777 but on February 17 the official made a comment that made the lessor to withdraw the deal. The company said their risk department picked the statement from the government official and withdraw the business deal. They terminated the lease agreement,” he said.

The operators have also called on the federal government to make it clear that they have suspended the planned national carrier because anytime issues concerning the project are raised it hurts their business.

Air Peace Aircraft
Air Peace Aircraft

They said that lessors and other international partners believe that a national carrier in Nigeria will kill existing airline so they may not get their money if they lease aircraft and because of suspected inherent risk in operating, in what they described as harsh environment, insurers introduce exorbitant premium.

The CEO of Aero Contractors, Captain Ado Sanusi confirmed to THISDAY that investors hitherto interested in investing in Aero Contractors, which was put up for sell by the Asset Management Corporation of Nigeria (AMCON) withdraw their interest when government announced that it would float a national carrier.

Investment and aviation lawyer, Emeka Nwigwe also told THISDAY that the national carrier question was cited at some of aircraft leasing and investment negotiation he had had in the past two years.

“They always cited the national carrier project, saying that other airlines would play second fiddle when the airline becomes operational. It is because of this fear that some investors withdraw their interest in investing in one Nigerian airline,” Nwigwe said.

When the issue was raised again on November 8, 2018 during the 5th Stakeholders Forum in Abuja by the Minister of State, Aviation, Senator Hadi Sirika, the airlines said that they started getting similar calls from the partners who wanted government to categorically make their plan on the national carrier clear.

Arik Aircraft
Arik Aircraft

“If they want it as private investment let the private investors come and float the airline. We are not against new airlines coming in. We are not against that, but we are against using the privileges of the country and giving it to one man and calling him national carrier. If you said it is private sector driven, so let the private sector person come and incorporate and apply and start running. You don’t need to put government’s money into the hand of an individual.

The Chairman of Airline Operators of Nigeria (AON), Captain Nogie Meggison, had insisted that whether private sector driven or government driven, that a national carrier will not succeed in Nigeria; at a time other countries are doing away with their national airlines because many of them guzzle public fund with nothing in return.

Recently a top government official had called for the liquidation of South Africa Airways because of its drain on public fund and recently Zimbabwe has put its national carrier for sale for $300 million.

Many industry experts said they are sceptical that Nigeria could successfully establish a national carrier at a time such airline ownership has become outmoded in the world.

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