Medview Tasks FG On Airlines’ Incentives

Worried by the high cost of operating domestic airlines in the country, the Managing Director of Medview Airlines Limited, Alhaji Muniru Bankole, has appealed to the Federal Government for assistance to the operators by giving sufficient incentives that will significantly reduce the cost.

Bankole who was reacting to plans by the government to facilitate a bail out package for domestic airline operators explained  that the current charge regime with significant waivers is one of the ways government could reduce the burden of  operators.

According to him, government should look at how it could assist domestic operators considering the high cost of acquiring a new aircraft.

His words; “Look at it this way, because the airplane you have, you are leasing a brand new airplane for  $50 million, even the ones you can see which is called propeller aircraft, you can only get one for about $20  million”.

He Managing Director noted that the disadvantage they had in the past was not palatable compared with the present day when people need clean airplane to fly, adding, “we can see that the sky is clean, airlines are now flying brand new aircraft”.

He urged the government to tell the service providers-Nigerian Airspace Management Agency (NAMA), Federal Airports Authority of Nigeria (FAAN), the Nigerian Civil Aviation Authority (NCAA) because as he put it, NCAA collects a lot of money from airline operators.

“If there is reduction in the operating charges, it is an indication that the economy is fine. The major carriers should have a kind of partnership with the aviation agencies and the government should now consider practical ways of assisting airlines”.

On allegations  that some of the airlines  do not have management strategy to manage funds injected, Bankole said; “I will tell you honestly that scenario is correct and I can analyse for you. Arik has brand new aircraft and the cost of maintaining one of those aircraft is not less than two million, at least they will go for C-check, D-check”.

He stressed that the cost of paying the crew, buying fuel, paying NAMA charges and others does not cover the aircraft cost, pointing out that the work load to the service providers are more than what the airlines are earning.

Shedie Okpara