Airlines’ sweat over FG’s fresh conditions for N27b bail-out fund

• NCAA seeks Act on economic regulation

Some airline operators whose all important Air Operators’ Certificates (AOC) had expired are in race to renew them with a sole purpose of benefiting from the over the N27b bailout funds that are about to be released to airlines that have valid certificates.

The Federal Government had given conditions that must be met for the disbursement  of palliatives. This could help  strengthen domestic airline operations and allow them to remain afloat.

Nigerian airlines are in serious financial dire straits occasioned by COVID-19 that has done incalculable damage to their businesses as some of them are at the brink of extinction.

Before COVID-19, the lack of access to foreign exchange, high cost of spare parts, lack of synergy among the carriers, poor business strategies and lack of capital to run highly capital intensive airline business had been the bane of the airlines.

Some of the carriers’ AOCs’ had expired, prompting the Nigerian Civil Aviation Authority (NCAA) to extend the validity by 90 days because of outbreak of coronavirus pandemic.

The implication of this is that many airlines that are yet to renew their AOC after the 90 days validity extension would not benefit from the largesse that the carriers desperately need to revive their airlines.

Meanwhile,  the Federal Government said that the new NCAA Bill presently before the National Assembly would address some of the economic regulations challenges in the sector when assented to by President Muhammadu Buhari.

Director-General of NCAA, Capt. Musa Nuhu, stated this during a Webinar monitored by Woleshadarenews in Lagos.

He unfolded government’s decision to grant operators, palliatives to cushion the effect of COVID-19 on their operations, but maintained that airlines without valid AOC would not benefit from it.

Federal Government had approved the sum of N27 billion as a palliative for the entire aviation industry in Nigeria, while reports claimed that N10 billion out of the sum was earmarked for indigenous airline operators.

Nuhu reiterated that defunct airlines are not entitled to the fund when it is eventually released for the airlines.

Presently, scheduled airlines with valid AOC are Overland, Air Peace, Med-View, Aero Contractors, Max Air, Azman Air, Arik Air and Dana Air.

Nuhu who expressed that the policy was driven for the industry by Sen. Hadi Sirika, said 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.

He said: “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.”

Besides, he emphasised that the new NCAA Bill, which is presently before the National Assembly would address some of the teething and major challenges in the nation’s aviation industry when approved by the assembly and assented to by the president.

The Federal Government has declared that indigenous airlines without valid Air Operators’ Certificate (AOC) would not benefit from the impending palliatives to operators in the sector.

The government also said that the new Nigerian Civil Aviation Agency (NCAA) Bill presently before the National Assembly would address some of the economic regulations challenges in the sector when assented to by President Muhammadu Buhari.

Capt. Musa Nuhu, the Director-General, NCAA stated this on Wednesday at the agency’s office at the Murtala Muhammed Airport (MMA), Lagos during an interaction with the 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.

It would be recalled that the Federal Government had approved the sum of N27 billion as a palliative for the entire aviation industry in Nigeria, while reports claimed that N10 billion out of the sum was earmarked for indigenous airline operators.

He said: “This issue of palliative is a policy, driven by  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.”

He specifically said that the economic regulation of the industry would be properly handled by the new Act.

Speaking on Nigerian aircraft that was impounded in Dubai, United Arab Emirates (UAE) in July during the Covid-19 pandemic, the NCAA’s helmsman vowed that all those involved in the violation of the country’s civil aviation regulations would be sanctioned accordingly.

He said Nigeria had concluded its investigation and forwarded all relevant documentation to the Dubai Authorities and the State of aircraft registration which is the United States.

He said additional information requested this morning in a letter to the NCAA by Dubai and the US Federal Aviation Administration, FAA had been sent, adding that the impounded aircraft is not a Nigerian aircraft but US registered brought into Nigeria to operate under the Air Operators Certificate, AOC of Nigeria.

On July 19th, 2020,  a chartered aircraft from the Nnamdi Azikiwe International Airport, Abuja, was impounded at the Dubai International Airport shortly after arriving the UAE.

According to reports, it was alleged that after a random ramp inspection by the UAE Civil Aviation authorities, serious safety infractions were discovered on it and subsequently impounded.

The chartered plane was alleged to had flown some Nigerian mineral merchants to Dubai.

Wole Shadare