Aviation Ministry handling Airline operators’ bailout policy, says NCAA DG
Capt. Musa Nuhu, the Director-General, Nigerian Civil Aviation Authority (NCAA), says the bailout for Airline Operators, as a policy matter, is being handled by the Ministry of Aviation.
Nuhu made the clarification on Thursday at the Presidential Task Force (PTF) on COVID-19 briefing in Abuja.
Newsmen recalls that the Minister of Aviation, Mr Hadi Sirika, had said that N5 billion ($13.157 million) had been approved by the government as bailout for airline operators and other business owners in the aviation sector.
This is to cushion the effects of COVID-19 on the Nigerian aviation industry.
Sirika also said that N4 billion was approved as bailout for airline operators, while N1 billion was approved for other business owners in the aviation sector.
Nuhu said: “I know a committee was set up to work out modalities on how the bailout will be shared among those who are entitled to the N5 billion bailout for airlines and other service providers within the industry.
“I know the committee has finished or about finishing, and shortly, we should be hearing from the minister.”
On air ticket prices, he said: “Yes, ticket prices have gone up over the last one week or so, that is one of the consequences of the COVID-19 pandemic.
“The aviation, tourism and travel industry are some of the most devastated industries by COVID-19.
“Because, we shut down for several months, the airlines were not making money and there are fixed costs that they have to deal with.
“They have to maintain the aircraft, and unfortunately, most of these aircraft are maintained outside the country.
“Two issues we have had, because of the shutdown; they don’t even have slots to take their aircraft out and the dollar rate has gone up and they need to raise enough money.
“So, the problem, basically is that of supply and demand. The supply for airline seats internationally have significantly gone down, while the demand, domestically since we opened, have gone up.
“So it’s simple basic economics 101, when the demand exceeds supply, the prices go up,” he explained.
On the issue of 300 sacked workers, the NCAA director-general said though, there was an issue, the staff were never sacked.
He said: “There was a threat between one of the airlines and the staff and some disagreements, but however, the NCAA intervened.
“We spoke with both the management and labour unions, and they have agreed to go back to the discussion table.
“The last report we received is that they have made significant progress in closing the gaps; we hope they conclude and nobody is sacked,” he said.
