Aviation sector’s loss increases to N63billion in 3months

Nigeria’s aviation sector has continued to suffer huge losses due to the rampaging COVID-19 pandemic with the latest indication from the Ministry of aviation that the sector has lost over N63billion in three months.

According to a report made available to some journalists, the federal government is presently making an arrangement to provide financial support that will help sustain air connectivity for passenger operations and cargo flights.

Describing the air transport value chain as the hardest hit to the pandemic, the report declared that over 90 per cent of operations and activities were adversely affected resulting in losses valued at N21 billion on a monthly basis.

Besides, the financial support proposed for the industry, the report hinted that government was already reworking its plans to fast track the establishment of a private sector-driven national carrier which is expected to generate significant revenue and contribute to Gross Domestic Product (GDP).

The project is expected to create activity in the wider economy for suppliers, importers, exporters and manufacturers.

The report partly reads: “The objective and guiding principles is to save existing aviation industry organizations and jobs, through a targeted stimulus package as well as fast track the establishment of a private sector-driven national carrier. There is a need to strengthen the aviation sector so that it survives and creates job opportunities and supports general economic activity including transport logistics. The Project elements will include: extend grant support including payroll support to the aviation industry including airlines, handlers, caterers and related services.”

The report further declared that: “Government is working to ensure the removal of Value Added Tax from airline tickets as approved by Federal Executive Council. It seeks the provision of COVID – 19 tests for all passengers and crew. It seeks waiver of airport rent fees to all airport operators for the duration of the lockdown plus one month.

The report is also expected to: “Facilitate the processes for establishing the private sector-driven national carrier with the Federal Ministry of Aviation as the implementing structure.”

The report equally put an estimated N27 billion as a bailout package for the sector, which should be delivered within a 12 months timeline.