Business
Union Demands Merger Of Airlines
The leadership of
National Association of Aircraft Pilots and Engineers (NAAPE) has demanded for the merger of existing airlines to ensure efficiency and service delivery in the aviation sector.
A statement issued by the union’s National President Comrade Balami Isaac David, in Abuja on Monday said the union’s position was necessitated by the need to ensure that one or two strong and active airlines remain in the nation’s airspace.
David said that similar reforms were carried out in the banking and insurance sector few years back and that reform had saved those two sectors from what was an imminent collapse as about to be witnessed in the aviation sector.
The union boss said the Federal Minister of Aviation should do the needful in the sector by fostering an arrangement through incentives that will bring about mergers of airlines that could culminate in the emergence of one or two mega carriers which can become global players.
He explained that the federal government through relevant agencies could offer soft loans to merger carriers that achieve a certain level of capitalization set by the government while those airlines that fail to meet the prescribed capitalization after a given time could have their Air Operator Certificate (AOC) suspended or restrict such airlines to a particular hubs only.
The NAAPE President also urged the Federal Government to urgently review the multiple taxation regimes presently in place, stressing that government should stop charging Value Added Tax (VAT) on air transportation.
He explained further that road, rail and waterway transportation services are VAT exempted but stressed that air transport is the only transport service presently paying VAT, which he considers is against the principle of equity.
The Aviation sector organised labour union president bemoaned the high tariff being paid for landing, parking space and other charges and called on the relevant authorities in the sector to effect a downward review of such charges to commensurate with what is obtainable in other places.
Philip Okparaji
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