Home News FG Should Guarantee of Soft loans to Airlines: AMSL Boss

FG Should Guarantee of Soft loans to Airlines: AMSL Boss

by timenews
Spread the love

 

Captain David Olubadewo is the CEO of Airline Management Support Limited (AMSL) and Aerospeed Oil Limited, an experienced pilot and aviator, in this interview with TimeNews, he proffers the way forward for airlines in the new norm while calling for the Federal Government of Nigeria to support airlines to return to profitability.

 

Excerpts

Way forward for the Nigerian airlines because the COVID-19 pandemic most hit our industry:

Airlines should follow protocols approved by the Nigeria Centre for Disease Control (NCDC) in line with the World Health Organisation (WHO) protocols for commercial airlines.

Given that the implementation of the required protocol will cost a lot of money to cushion the effect of the COVID-lockdown, like in the advanced countries, the Federal Government of Nigeria should come up with a bailout which would assist the airlines to reduce the cost of operation and unemployment in the industry. There should be ‘Guarantee of the provision of Soft loans’ – lower interest rates, prolonged repayment duration by banks to the aviation industry. The government should remove Value Added Tax (VAT) on aircraft parts for three months.

In terms of technology or no technology government should not be the one telling the airlines about technology, let the airlines decide and use whatever technology they chose to move forward competitively; what airlines and the aviation industry need is a bailout to guarantee aviation jobs in the industry.

Part of the sacrifices the government should make during this period is to support the airlines with VAT – free aircraft parts, suspension of over-flight charges, suspension of landing and parking charges for the next three months in all Nigerian airports for Nigerian operators to reduce their cost of operations.

 

Job losses:

This is bound to happen, it is inevitable if Federal Government of Nigeria does nothing and because not all aircraft flying pre-COVID-19 lockdown is flying today. Airlines are operating reduced schedule with about 30 per cent of their aircraft in commercial service.
Remember, the passengers have gone away, and when they start coming back, you begin reactivating gradually.

Advice:
These are unparallel and unprecedented times, so it will be difficult to advise airlines and airport operators on the best way forward but to say we all need to start a fresh.

You may also like

Leave a Comment