The federal government has pledged to bail out the local aviation sector with N27 billion as part of measures to restart air travel and keep the airports safer.
The sum, already proposed to some of the operators, will besides supporting the airlines, also fast-track the establishment of a private sector-driven national carrier.
Recall that the government had in March restricted local and international commercial flight services to slow the spread of the coronavirus pandemic.
The lockdown crippled the aviation sector. Industry estimates showed that the sector lost about N180 billion, with airlines being worst hit.
Over 5000 registered travel agencies furloughed their entire staff, while airlines retained only 20 per cent of workers at slashed salary.
According to The Guardian, N27 billion had been penciled for the sector, though stakeholders complained that the amount was too small.
A breakdown of the project elements under the N27 billion cushion include payroll grant support to airlines, handlers, caterers and related services; provision of single-digit soft loans with long term repayment plan; and deferred payment of taxes and filing dates.
Also, the government is to ensure the removal of Value Added Tax (VAT) from airlines’ tickets as approved by the Federal Executive Council (FEC); provision of COVID-19 tests for all passengers and crew; waiver of airport rent fees to airport operators for the duration of the lockdown plus one month; and beginning of processes for the establishment of a private sector-driven national carrier. The work plan has a 12-month duration.
