- Nigeria Loses $2b to Aviation Sector
Over $2 billion generated by foreign airlines, as well as funds expended by domestic airlines for aircraft maintenance, spares and emoluments for expatriate workforce, are repatriated annually.
The Chairman/CEO of Air Peace, Allen Onyema, who stated this, said that is part of the reaon responible for the continous weak naira/ dollar exchange rate, adding that a weakened naira adversely affects the economy as it distorts the prices of goods and services..
Onyema said the difficulty in repatriating airlines’ funds in the past should serve as a reminder that the country should evolve ways to reduce the amount of money repatriated, by empowering local airlines to operate international routes, and as well facilitate the establishment of maintenance, overhaul and repair (MRO) facility in Nigeria.
He lamented that while Nigeria has a huge population of travellers, the country imports every aircraft spare, imports aviation fuel and technical personnel, saying all these mount pressures on the naira.
Onyema said airlines serve as diplomatic tools which countries use to, not only project their image in the international community, but also leverage on to develop and grow their economy. He said for this reason, every country protects its airline industry from being ravaged by foreign competitors.
He said the US, which is the home of aviation globally, has introduced policies that today have curtailed the in-road of such airlines like Emirates, Qatar Airways, Etihadinto the US market.
Onyema said the Nigerian government should take cognisance of this and offer similar protection to the local aviation industry.
Local officials to bear it in mind that every decision they take impacts on the nation’s economy, adding that they should take it as a point of duty to eliminate the exploitation of Nigerian passengers by foreign airlines through exorbitant fares by supporting domestic airlines to join the international and regional market.
He also condemned the too many opportunities given to foreign airlines by the Nigerian government to operate multidesignation in the country, citing example with Ethiopian Airlines, which operates five destinations in Nigeria, noting that in addition to that there is rumour that the Nigerian government wanted to give the East African carrier management contract to take over Arik Air.
According to Onyema, Arik Air’s goodwill and opportunities are worth more than $12 billion, besides its assets, so if Ethiopia wants to manage the airline, it should put such amount of money down before it should be given the opportunity to manage the nation’s major airline.
”Ethiopia Airlines should not be allowed to come through the back door to ravage our country. We have capable Nigerians that can run Arik Air, so Ethiopian Airlines expressing interest to take over Arik Air’s management is not to the best interest of the country. This is similar opportunities that are given to other international airlines like Air France and Lufthansa, which operate from Abuja to Port Harcourt and back to Abuja before they take off to their country everyday; meanwhile, they still operate their Lagos destinations,” he said.
