N8b debts to NAMA, phantom- Airline operators

*Carpets agencies over inefficiency, plans to cripple carriers

Airline Operators under the aegis of Airline Operators of Nigeria (AON) has described the debts they allegedly owe virtually all the aviation agencies as ‘phantom’, one that does not exist. The airlines, including those that have ceased operation owe Nigerian Civil Aviation Authority (NCAA), the Federal Airports Authority of Nigeria (FAAN) and the Nigerian Airspace Management Agency (NAMA) debts amounting to over N30b.

The Chairman of AON, Captain Nogie Meggison said the operators strongly decry the ongoing action by the various government agencies in the aviation sector whereby they threaten to deny airlines services for their operations or completely ground them as this is likely to force airlines out of business.

He noted further that because of the economic hard times of today, airlines have become a soft target and are seen as a cash cow for everyone else to prey on easily.

He called on the agencies on the need to realise that air transport is the engine of the economy, stressing that their effort at disturbing Nigerian airlines is capable of damaging President Muhammadu Buhari’s effort to restore the economy.

Penultimate week, the Federal Government directed its revenue recovery committee in the aviation industry to ensure the recovery of N8.08billion owe the Nigerian Airspace Management Agency (NAMA) by airlines.

The effort seems to be paying off as the committee has recovered N329 million in two months as it intensifies efforts to recover more than half of the monies before the end of the year.

There are indications that the carriers also owe the NCAA and the FAAN N10b and N20b respectively, bringing the debt profile of the airlines to all the agencies to over N38b.

Aside airlines that are still in operation, many others airlines including cargo and charter operators that have ceased operations are also heavily indebted to the agencies.

The agencies are said to be carrying huge liability of more than N40b pension, high cost of operation of manning virtually all the 24 airports across the nation and growing overhead.

Meggison posited that without the airlines, there won’t be aviation in the first place, adding that it is because of the airlines that airports are built and managed by FAAN.

“It is because of the airlines that an agency like NAMA exists to provide navigational services. The airlines also are the reason why we have catering companies, ground services providers, fuel marketers and other ancillary service providers in and around the airport.”

“It is because of the airlines that an agency like NAMA exists to provide navigational services. The airlines also are the reason why we have catering companies, ground services providers, fuel marketers and other ancillary service providers in and around the airport. We call on service providers to tread cautiously in its recent move to recover what can be described as phantom debts from domestic airlines in order not to run them out of business.”

He noted that inspite the fact that the airlines provide jobs for all and sundry, the carriers are perpetually being undermined and milked dry on daily basis occasioned by multiple charges and double taxation of all kinds to various government organs and are forced to pay for several inefficiencies and in some cases for services that are not provided without value for money and with no one coming to their aid.

He disclosed that this kind of cruel hostility has stifled airlines in the past and is one of the issues responsible for many Nigerian airlines going out of business in the past twenty years including the likes of Triax, Sosoliso, Air Nigeria, Premium Air Shuttle, Gas, Okada, Sahara, Oriental, Chanchangi, Savanah, Harco, Harka, Holtrade, Intercontinental, Skyline, Easylink, Chrome Air, Fresh Air, ADC, EAS, Virgin Nigeria among others.

His words, “Majority of these phantom debts are owed by airlines that are dead. Only airlines that are in operations can pay debts. If you deny services to the airlines how do you expect them to operate and make money to pay up their bills in the first place? There are better ways of doing things. Instead of forcing the airlines out of business by denying them access to fly or employing crude arm-twisting tactics, the agencies should be working closely with the airlines to reduce costs and make their operations more efficient.”