FG to grant local airlines discount on debts owed aviation agencies

Business

ABUJA, Nigeria (NPA) — The Minister of Aviation and Aerospace Development, Mr Festus Keyamo, says the Federal Government has decided to grant domestic airlines discounts on debts owed aviation agencies.

Keyamo said this in Abuja during a meeting with the Minister of State for Petroleum Resources (Oil), airline operators and other aviation stakeholders.

The News Agency of Nigeria (NAN) reports that the Airline Operators of Nigeria (AON) had earlier planned to suspend flight operations and increase airfares due to the high cost of Jet A1 fuel.

According to the minister, the percentage of the discount for domestic airlines will be determined by President Bola Tinubu.

He said the president had directed airlines to urgently submit formal requests regarding the proposed debt relief.

Keyamo added that the president had also approved the establishment of a committee to review multiple taxes, levies and charges imposed on domestic flight tickets.

He said the committee was aimed at reducing the cost burden on both operators and passengers.

The minister said the federal government intervened swiftly to prevent disruption to air travel following the operators’ warning.

“A generous discount on debts owed to agencies such as the Nigerian Airspace Management Agency (NAMA), Federal Airports Authority of Nigeria (FAAN), and the Nigerian Civil Aviation Authority (NCAA) is under consideration,” he said.

The Minister of State for Petroleum Resources (Oil), Mr Heineken Lokpobiri, said a meeting would be held with oil marketers on Thursday to address pricing concerns.

Lokpobiri was represented by the Permanent Secretary in the ministry, Mrs Patience Oyekunle.

Speaking on behalf of AON, the Chief Executive Officer of Air Peace, Mr Allen Onyema, requested a total waiver of debts owed by airlines.

Onyema also urged the federal government to strengthen the Bank of Industry (BOI) to enable airlines access loans at lower interest rates.

He described the reported 300 per cent increase in aviation fuel price as abnormal and called for caution by oil marketers. (NAN).