Arik Wants Review Of Taxes On Domestic Airlines

The Managing Director
of Arik Air, Mr Chris Ndulue has said that for domestic airlines to grow, the federal government must streamline taxes imposed on operators.
Mr Ndulue also urged the government to exempt local carriers from paying the value added tax (VAT) which is not being paid by other sectors in the transport industry.
Speaking when the airline unveiled its flyer programme, known as Arik Affinity Wings and to mark the 54th anniversary of Nigeria’s Independence in Lagos, Mr Ndulue said it was necessary for the federal government to put in place policies that will help the local airline to grow.
However, he congratulated Nigerians for the renewal of the category one safety status given to the country by the US Federal Aviation Administration (FAA), which enables Nigerian registered aircraft to fly to the United States, noting that since Nigeria obtained the certification in 2010, Arik, the only Nigerian airline that operates international routes, has been flying its aircraft to New York and has planned to expand its route in the US.
“What we expect from government is to provide good environment for doing business. One of the major problems in this environment is borrowing. The borrowing cost is very high; this can be reduced by 75 to 50 per cent”, he said.
According to him, multiple taxation is one of the major problems in the industry. The aviation industry requires special support. It is an industry that government feels should be supported.
The managing director said Arik obtained its IATA Operational Safety Audit (IOSA) which it has renewed three times and it has recently progressed to enhanced IOSA, which means that it has exceeded all the primary requirements of safety and other standards recommended by the International Air Transport Association (IATA).
“We have progressed to enhanced IOSA. That was the basis of the last audit that we did and the team that came for the review was highly impressed by what they saw. We cannot stop talking about safety. We have very good records on safety and what we are doing today is what will enable us to partner with foreign airlines”, he stated.
The Arik Air Managing Director said the airline operates 120 flights a day, airlifts 10,000 per day and processes 7,000 baggages daily.
Meanwhile, the airline has received commendations from travelers who said Arik has significantly improved in its on time performance.