The federal government has confirmed that airlines which have stopped operations and which do not have current Air Operators’ Certificate (AOC) would not benefit from the planned palliatives aimed at providing financial succour for domestic carriers that have suffered heavy revenue loss due to COVID-19 lockdown.
This was disclosed by the Director-General of the Nigerian Civil Aviation Authority (NCAA), Captain Musa Nuhu in Lagos on Wednesday during an interaction with League of Airport and Aviation Correspondents (LAAC).
Nuhu reiterated the readiness of the government to grant operators the palliatives to cushion the effect of Covid-19 on their operations, but insisted that airlines without valid AOC would not be allowed to benefit from the funds.
The federal government has earlier approved the sum of N27 billion as palliative for the entire aviation industry in Nigeria, while reports indicated that N10 billion out of the sum was earmarked for indigenous airline operators.
Information made available to THISDAY confirmed that some of the airlines without valid AOCs, had also applied for funds from the palliatives, but the Director General dismissed the possibility of such airlines benefitting from it whenever the funds were released by the federal government.
Presently, scheduled airlines with valid AOC include Overland, Air Peace, Med-View, Aero Contractors, Max Air, Azman Air, Arik Air and Dana Air.
Nuhu who said the policy was driven for the industry by the Minister of Aviation, Senator Hadi Sirika noted that the government and the agency would work with the umbrella body of local carriers, Airline Operators of Nigeria (AON) to disburse the palliatives to the beneficiaries.
“This issue of palliative is a policy driven by Sen. Hadi Sirika for all players in the industry. Existing and defunct airlines are free to apply for the fund, but it is airlines with valid AOC that will benefit from it. Also, I believe AON has its guidelines, but if you don’t have a functional AOC, you should forget it.”
The Director General also reacted to the tendency of foreign countries to frustrate Nigerian airlines that apply to operate to destinations in those countries and said that if the Nigerian carriers follow due process by involving NCAA, the Ministry of Aviation, the Nigerian ambassadors in those countries, they would not be denied their request, but if their requests are denied, the Nigerian government would react in similar manner by denying airlines from those countries the right to operate to destinations in Nigeria.
“The airlines should always carry the NCAA, the Ministry of Aviation and the Nigerian embassy in the country they are flying into along, we are here to help them grow, they should carry us along, it will be very helpful when the airlines carry the regulatory body along.
“And when they have difficulties, they should complain to us, we will sit with them and guide them and even go with them; there must be fairness from both sides”, he said.
Speaking on the health status of the airlines, the Director General said the situation in Nigeria is not different from what is happening across the globe, adding that even the airlines that have received millions of dollars in palliatives abroad are yet to get out of the woods.
“The financial health of airlines is not limited to Nigerian carriers, it is a global issue, especially due to the impact of COVID-19. We have seen airlines that have gotten millions of subsidies from their governments, yet they are having issues. Many airlines have sacked workers, BA, Emirates; Lufthansa sacked workers and are withdrawing some aircraft. It is a global thing. But government is working on the palliative ‘, he added.
On whether the NCAA autonomy is not being threatened, Nuhu said the regulatory body is still fully autonomous but it cannot insulate itself from the Ministry of Aviation.
“We cannot totally insulate ourselves from the Ministry but in terms of regulating, we are doing that without interference from the Ministry, but some things will be difficult to implement without political support from the Ministry. We implement our regulations irrespective of who is in the Ministry. All the agencies are under the Ministry, so we cannot operate in isolation, we have some relationship with Ministry, it is not realistic to divorce completely from the Ministry”, Captain Nuhu added.
