The Chairman of United Nigeria Airlines, Prof. Obiora Okonkwo, has said Nigeria’s aspiration to attain $1 trillion economy by 2030 cannot be achieved without significant contribution from the aviation industry.
To enable the industry to make the desired contribution, Okonkwo urged the federal government to review downwards the high taxes and charges paid by airline operators, which, according to him, constitute major impediments to the success of the airlines.
Okonkwo said this on Monday in Abuja, during a ceremony to mark the inauguration of the maiden flight of United Nigeria Airlines from Abuja to Accra.
He therefore urged the government to support airlines and create the opportunity for them to access credit facilities from banks at single-digit rate.
“We are appealing to the Nigerian government to continue to support the aviation industry. A $1 trillion economy can never be achieved without aviation.
“Transportation in every part of the world is an enabler. Without it, every other thing you are doing is in vain. We are prepared, we are ready.
“But we can’t fly higher if we are overburdened with certain taxes. If you are overburdened with so many levies more than anywhere in the world.
“As we are seated here, you may have known that the only airline that flies from here to Ghana on a direct flight just announced that United Nigeria is starting today and has cut their price 50 percent,” he said.
Okonkwo also stated that United Nigeria Airlines’ flight to Accra from Abuja was the first time a Nigerian carrier would be operating between the two capitals of the both countries.
He noted that whenever a Nigerian carrier operates international destination, the fares crash on that route and the beneficiaries of these reduced prices are Nigerian travellers.
“The benefit of low fares also goes to Nigerians. Obviously, you are aware of the wonders Air Peace is already creating in terms of fares internationally. These are the benefits.
“But don’t forget that this is a competitive business. If all our other competitors are accessing special funds in their different countries at zero interest rate, government support, and it is easier for them to do it. But today we source our money from the commercial bank market.
“So all the money the people who go to the market to buy artificial hair and borrow money from the bank, that is the same interest rate airlines also borrow money,” the United Nigeria Chairman said.
Speaking at the event, the Minister of Aviation and Aerospace Development, Festus Keyamo, who was represented by the Permanent Secretary, Ministry of Aviation, Dr. Ibrahim Kana, said the priority of the federal government was to ensure that Nigerian airlines develop capacity so that they would be able to compete effectively with their international counterparts.
He added that government was poised to give Nigerian carriers all the support they need to grow.
“Festus Keyamo has always insisted that it is our responsibility as a ministry to support local airlines. If we don’t, nobody else will do that.
“It is in that light that our ministry focuses on the issue of safety. Secondly, it is focusing on supporting local airlines to ensure that they have access to, one, insurance, two, finance, and thirdly, we, the government of Nigeria, has approved import duty-free for all aircraft and spare parts into the country.
“This, no doubt, will support the airlines, no doubt will support the airlines and will give them some kind of leeway and freedom, I mean, air to breathe in this business,” he said.
Kana, said it was the joy of the federal government that United Nigeria Airlines would be flying to Ghana, noting that connection between Nigeria and Ghana would open the relationship further between them.
Also speaking at the event, the Chairman of the Senate Committee on Aviation, Senator Abdul Fattah Buhari, urged Nigerian airlines to work together and in unity, noting that when they work together they push their issues together to government and government will acquiesce to their request.
He added that when government enabled them to acquire more aircraft, the protracted delays and flight cancellations will be eliminated.
The Chairmen and CEO of Air Peace, Dr Allen Onyema, who expressed happiness that United Nigeria Airlines has started regional flight, said the airlines are working together.
He said members of the Airline Operators of Nigeria would reinforce their cooperation so that as they compete they also work together.
“We know that the industry is very competitive but we can also compete and support each other and I want every Nigerian airline to emulate that bond between United Nigerian Airlines and Air Peace.
“Not because the owners come from the same region. No. I remember when I went to the office of the vice President and they wanted to pay me for hajj, I told them if the money is not enough to pay Max Air and Azman, I will not accept payment.
“Both are Kano based airlines and that was why I walked out of the presidency without being paid because it was not enough to go around. I waited till my brother airlines were paid. So, it is not about where people come from but we do these for the love of Nigeria,” he said.
Speaking at the event, the Ambassador of Ghana to Nigeria, Baba Ahmed, said he was happy that United Nigeria Airlines has started operation to Ghana and noted that Nigeria and Ghana are not just neighbours but brothers.
Chinedu Eze
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