Sunday, 23 August 2015

RESPONSE TO PROPOSED BAIL OUT FOR DOMESTIC AIRLINE OPERATORS IN NIGERIA By Ariyo Akinfenwa


Since the Senate Leader, Senator Ali Ndume made the statement that the Senate is considering support, in form of bail out for the domestic airline operators in the country; there have been reactions from different quarters in support  and against  the proposition.

“Most airlines certainly do need FG intervention, what was done before was not enough and neither did all airlines benefit equally. FG needs to consider an aviation policy like the fine-tuned policies of other industry sectors, why not for airlines too. Airlines need to be motivated to perform long-term for the good of the country and to entice more travellers by air instead of road, as well as to stimulate commerce in the economy and tourism within the country too. Currently airlines are not profitable enough to invest further in new aircrafts and explore additional routes to connect more cities with the country. Banks need to support airlines more too as they currently shy away from supporting the industry. If airlines were better funded, there would be far less than 146 private jets in the country, and neither would there be a need for a national carrier which will unnecessarily burn up the scarce financial resources of the country. If FG wants to help, then they should first help existing airline operators, otherwise even the threat of a national carrier is enough to depress the aviation sector as it deters further  investment by the main airlines.”
Jacky Hathiramani
MD/CEO
Dana Airlines Ltd

“We need to know what sort of bailout , Could it be a repeat of the AMCON failed previous experiments?
Yes the move is positive but a more wholistic diagnosis of the problem is essential because if the hole is not blocked , funds injected will go same way as in the past.
As regards support for the airlines on several challenges. This forms part of the wholistic approach identified above. Uncontrollable cost elements among others do require deliberate government attention for our airlines survival.”
Olowo .G .O Fnim
President ART

“It's better to cut down cost of operating in our airspace. Landing, parking and navigation charges, including fuel.”
Capt. Daniel Omale

“I believe that the NNPC management should be approached to work towards refining JET A1 at Warri petrochemical plant.
If this is done, a bridge finance can be obtained directly by airlines at less than 2 percent to pay fuel marketer.
This would bring down the direct operating costs for airlines.”
Francis Ayigbe

“NO, No, Noooo, to any form of bailouts again to Nigerian owned airlines.
The first bailout ended up not been used for aviation purposes.
Secondly, government   have no business giving public money to selected individuals. Government   is not a lending house. They should approach their banks.
These were the people who killed Nigeria Airways with dangerous systemic manipulation so that they may thrive.
They should either merge or straight acquisition be allowed. It is the tendencies of ownership syndrome for ego sake that is deluding them.”
#wesaynotoaviationbailout2015
Solomon Ohioma
 (former ATSSSAN National President)


“As interesting as the debate may be to bail out the airlines,  we must first ask what happened to the initial bailout the airlines got from the government (AMCON), until they are able to show or tell us what they did with the money, we cannot continue to bailout airlines, if so, government should bailout every market man and woman out there struggling and cannot break even.
I think what is needed is not more of bailout but a declaration of infants status on the airlines, so that they can enjoy full economic privileges,  such as waivers,  tax and charges reduction, etc.
Also a major problem with the airlines is the structure of the management, most of them lack corporate governance as well as accountable management system. The managing director is the all and all, you there question why in any matter, you lose your job.”
Roland M. Ahmed
 (Aircraft engineer)


“I am 100% against it. What has been done to forestall the wastage of the last bail out into private pockets? What happened to individuals and corporates who invested these monies outside their airlines?
Government should focus on policies that will make the industry business friendly. Currently we do not have "functional" airports. If we do not have functional airports, your cost of operation goes high. You end up providing for yourself  the same service you have paid the authority for.
What is the 5% TSC by NCAA for? You pay PSC to FAAN, pay Navigation charges to NAMA and regulator is also collecting revenue? How do you regulate and also be a revenue agency? I really do not get it. NCAA have services that airlines and service providers consume and pay for. Why are they into revenue generation while they are still a regulator? NCAA should face their core service and stop the collection of 5% Ticket Sales Charge.
And let it be an opportunity to shut down the Ministry of Aviation and let it be a department in transport. These agencies always claim the ministry is their biggest challenge as all decisions are made there. Imagine the airports in Port Harcourt, Benin and Kano has no convenience at the departure hall? Who approved this design? The Ministry did and overriding the DAAS department of NCAA.
A lot of mess in the system that needs to be curbed to enable the industry move forward. We should stop solving problems with cash but with instruments and policies. These things last but money does not.”

 Anonymous

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