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High Airfare: Experts Demand Review, Suspension Of Aviation Taxes, Tariffs

by Yusuf Babalola
1 year ago
in Business
Airfare
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In order to lower the current astronomical rise in airfare on the domestic scene, the Aviation Safety Round Table Initiative (ARTI), on Thursday, called on the federal government to review and suspend taxes, tariffs and charges on local airlines and some other operators in the sector.

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Speaking at the Business Breakfast Meeting (BBM), titled, ‘Manpower Strategy Training, Succession and Development In Aviation,’ the president of ARTI, Air Comm. Demola Onitiju (rtd), said the review and suspension of such taxes will create a conducive environment for aviation and tourism to thrive.

According to him, the government should also constitute agencies’ governing boards as it will help to formulate policies for the agencies and also serve as a barometer for good corporate governance, transparency, accountability and responsibility.

“In order to create a conducive environment for aviation and tourism to thrive, the ART urge the Renewed Hope Agenda of President Bola Tinubu to initiate deliberate policies to review and suspend taxes, tariffs and charges (within a given timeframe) in order to bring succour to aviation and allied businesses in Nigeria.

“Such policies should address airline survival and growth with a view to lowering the recent astronomical increase in air fare on the domestic scene. The Consumer Rights Protection directorate in the Nigerian Civil Aviation Authority (NCAA) should live up to its billing in ensuring maximum comfort and compensation for the travelling public promptly where infractions are established,” Onitiju noted.

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Speaking on the news for governing boards in all aviation agencies, the retired air commodore stated, “we have advocated times without number, the importance of constituting governing boards for the Nigerian Civil Aviation Authority and other aviation agencies in the Nigerian aviation sector.

“These Boards will not only assist the DGCA and other CEOs in formulating enduring policies for the agencies but will also serve as the barometer for ensuring the good corporate governance practice of transparency, accountability and responsibility which will cascade down to all segments in the sector.

“Corruptive tendencies often associated with political interference will be appropriately checked and curbed by a focused and knowledgeable board. We urge the Minister of Aviation to do the needful. For us in the ART, the interest of the Nigerian State and her people must be paramount at all times.”
ART also called for a comprehensive review of Bilateral and Plurilateral Air Services Agreements to suit the nation’s present circumstances.

“This necessitated our renewed call for a comprehensive review of Bilateral and Plurilateral Air Services Agreements to suit our present circumstances.
ART has, on several occasions, recommended the development of a local hub to effectively protect local airlines against the predatory foreign airlines granted multiple entry into local destinations.

The ART has variously embarked on policy advocacy on the need to balance the interests of local tourism players and the need to encourage the growth of budget airlines. Attractive as Open skies might appear to be, modifications as would stimulate fair competition and reciprocal rights must be observed. In our view, Open skies are not devoid of regulation. There must be a balance between its tenets and the national interest.

“The recent commendable audacity of the Air Peace Airline to embark on the Lagos- London Gatwick route and the dust it generated is a case in point. The Nigerian State must rise up in defence of its own without apology.

“Also, knee-jerk reaction to aircraft incidents and accidents is dangerous and hurtful. Incidences of runway incursion and excursion are not unusual in aviation practice.

“Runway excursion prevention is complex because the effect of the risk and resilience factors is highly cumulative. Some of the factors that contribute to runway excursions include but are not limited to -the runway condition, maintenance and reporting.

“To this list, add- aircraft performance and operations, collaborative approach path management and adherence to robust policies for safe descent and approach planning, stabilised approach, safe landing and go-around. The solution to these challenges can only be done together by the NCAA and the NSIB in a coordinated way not through arbitrary pronouncements that are not only meddlesome, dangerous and risky but violate due process.

“At the ART, we aggregate consensus on global best practices and interventions on regulatory recommendations in furtherance of our cardinal objectives which is the advancement of aviation in Nigeria through constant engagement with the government and leveraging on platforms such as today’s event to embark on knowledge sharing with the industry’s stakeholders eminently represented in this hall, by your good selves,” he stated.

 


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