Multiple Levies At The Aviation Industry

Airline operators in the country have been lamenting over charges they consider unfriendly to not only their business interests but also the industry’s development. Aviation is a vital sector for general economic growth and development. A transportation system that is low in performance is to say the least a poster exhibit for a failed economy or an ailing one. Either way, the message that goes out to investors, or would-be investors, is a grim one. This observation covers the entire transportation industry which has been anything but effective. The railway sub-sector is not faring as well as it should and this is a system that is supposedly a very important strategic tool for development.
The aviation industry players claim that most of their members are unable to take care of their employees’ welfare because they are operating in an environment that is not conducive enough and which, therefore, poses barriers to their survival.
According to the operators, they are forced to contend with different charges by the different agencies that supervise the industry. And while they also have to contend with the rising cost of aviation fuel (Jet-A1), there is the issue of access to finance. The banks in Nigeria are apparently not interested in long-term loans with less than double-digit interest rates. Nigerian banks are more comfortable with short-term loans; even at that, the interest is exorbitant, ranging between 22 and 24 per cent. The aviation industry cannot survive on such high cost. Added to all these is the state of infrastructure, especially night infrastructure, with about 97per cent of the airports deficient. To further dampen the situation is the low cost of flights and the almost one directional passenger movement.
However, some of the agencies have denied the allegations, claiming that the airline operators are the ones that accumulated debt over the years, are reluctant to pay and now want to whip up sympathy. But we are of the opinion that if these multiple charges and taxes do really exist – even if for perceived genuine reasons, it is time for government to step in and review them in order to ensure harmony in the industry. A situation whereby operators fail to pay their dues timeously is not particularly healthy and here the blame rests squarely on the authorities for allowing such situation that could prove detrimental to both parties in the long run. Another point is that if operators who are major stakeholders in the industry are complaining about these charges, then surely they never bought in on them in the first place and this simply implies a lack of harmony of interests for the general good.
source: leadership.ng/opinions