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Merger of aviation agencies is retrogressive – ART

By BusinessNews Staff on September 2, 2014

Industry think tank, Aviation Round Table (ART) has again opposed the planned merger of aviation parastatals to cut down huge expenses incurred in running them and described the policy as retrogressive.

The federal government approved the merger of agencies in the aviation industry in line with the recommendation of the Stephen Oronsaye-led Committee on Restructuring and Rationalisation of Federal Government Parastatals, Commissions and Agencies. The committee had recommended among others, the streamlining of these agencies to cut down the huge financial resources expended in managing them.

However, the ART has argued that merging these agencies would have grave consequences on the industry and could jeopardise Nigeria’s plan to renew its Category One safety status from the US Federal Aviation Administration (FAA), which has identified Nigeria as a country with improved safety standard in air travels.

“ART strongly believes the idea of merging the parastatals as muted by the federal government should not be. The consequences are going to be grave as this will have adverse effect on Nigeria’s FAA CAT 1 status,” the body said.

ART also urged the federal government to reconsider the policy on double and multiple entry points granted foreign airlines at the detriment of domestic carriers.
It also advised government to invest more in security infrastructure and to review the current security challenges at the airports.

It noted: “The continued approval to foreign carriers is killing the domestic airlines and there is need to grow the industry through the strengthening of our domestic airlines.”
The body added: “In as much as we appreciate the remodeling of our airports, we feel you could do the industry a lot of good if aviation security is given the attention it presently requires in view of the current security challenges of the nation and global terrorism threats.”

ART, which in the past criticised the National Civil Aviation Policy 2013, has therefore called on the Minister of Aviation, Osita Chidoka to review the new policy.
“There is the urgent need to review the National Civil Aviation Policy 2013 because several provisions of the Policy are inconsistent with both the Civil Aviation Act 2006 and Nigerian Civil Aviation Regulations,” it stated.

ART also sought updates on national carrier projects and the proposed removal of payment of royalties by some foreign airlines. It suggested that the plan to remove the payment be revisited.

It urged government to tackle the aviation manpower development challenges in order to prevent future embarrassment and negative growth of the industry. Part of the challenges is that over 500 pilots are currently unemployed.

On the establishment of aircraft maintenance facility, ART argued that such facility was overdue in the country, adding it would save maintenance costs for domestic airlines while it would also create employment. The body also spoke on the development of hub for West Africa in Nigeria and the reduction in the cost of aviation and its availability.

“There is urgent requirement of a Maintenance, Repair and Overhaul (MRO) facility for various aircraft types, up to long haul aircraft. Concerted efforts should be made to create a hub in Nigeria which has been elusive because of many unfavourable policies. Reduction in the cost of aviation fuel which forms a large percentage of airline operational cost will help domestic airlines,” it said.

[This Day]

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