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How Over 100 Airlines Died In Nigeria Due To Poor Funding – Minister Of Aviation Laments

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5 years ago

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Poor funding has been linked to the death of the nation’s aviation sector.
News Rain Nigeria reports that the poor funding and unfavorable environment have been described as major factors that are responsible for the death of the nation’s aviation sectors.
This fact was made known today, Wednesday, 4th, November 2020 by the Hon. Minister of Aviation, Senator. Hadi Sirika, on the third day of the Three – Day Public Hearing on the Amendment of the Civil Aviation Amendment Bills of the six aviation agency in Abuja.

How Over 100 Airlines Died In Nigeria Due To Poor Funding – Minister Of Aviation Laments

Sen. Hadi Sirika said, that the lack of corporate governance and poor funding coupled with the poor sound business models were the factors responsible for the early death of most of the nation’s airlines.
Sen. Sirika maintained that the unfriendly business environment has led to the death of some nation’s airlines, which has also resulted in the loss of jobs, most especially for the qualified personnel in the aviation sector.
Sirika stressed that just recently one domestic airline lost not less than $20m to the acquisition of two aircraft in the country.
While buttressing, the Aviation Minister point at the public hearing amendment bill of aviation, the Managing Director of Overland Airways, Captain. Edward Boyo said no fever that 100 airlines have closed shop in the Nigerian aviation sector, due to high charges and unfavorable operating environments.
Captain Boyo maintained that no fewer than 35 different charges are imposed on the airlines by various government agencies.
Boyo stressed further that the airlines are charged  Ticket Sales Charge (TSA), Cargo Sales Charge (CSC), Value Added Tax (VAT), N2, 000 Airport Tax, Landing fee, Parking fee, Navigation fee, Terminal charges, Security taxes, Fuel surcharges, Handling charges, Corporate income tax, and fuel tax and various other charges.
Boyo was optimistic that if some of the charges were not abolished or amended, more airlines in the industry would close shop soon.
He said: ” Why are airlines dying in Nigeria? Over 100 airlines have come and gone in Nigeria in the past 20 years. What are the efficiencies of these agencies? Are the airlines to pay for the inefficiencies of these agencies? Very soon, there may not be any airline again in Nigeria.
Boyo also said that most Airlines in Nigeria are victims of the environment created bylaws. Some of the laws were promulgated possibly when we were comfortable doing so.
We must look at a way of bringing down costs to the airlines. Our airlines are today suffering because of those charges. Capt. Boyo said.
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