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Flight charter services in Nigeria worth over $3billion

By on April 4, 2015

Flight charter service sub-sector in the  Nigerian aviation industry , simply known as business aviation, is estimated to be worth about $3 billion.

At the estimated revenue of over $3 billion annually, the sub-sector is rapidly on increase as many  top officials of  the private sector and  government officials now patronise private jets instead of schedule commercial airlines.

THISDAY learnt that some top government officials at both the federal and state levels only travel with private jets, which they also use to move money both locally and international. It was gathered that  many of government officials  see travelling in private jets as further improvement of their security.

Although many of the aircraft used for movement was offered by party members,  it has been estimated that over N200 billion was spent on charter services by both All Progressive Congress (APC) and People Democratic Party (PDP) during the electioneering campaign at a return flight of $15,000 (N3,075,000). It is estimated that private jets clock between 40 t0 50 hours of flights daily in Nigeria, airlifting the economic and political movers and shakers of the society.

Unfortunately  the country  and Nigerians are not yet getting the benefits of private jet operation due to ineffective regulations because most cockpit crew that operate private jets in Nigeria are foreigners, while  the private jet owners  do not pay the right  taxes to government because the jets were registered  overseas.

The Chief Executive Officer of  Overland Airways, Captain Edward Boyo recently  noted that business aviation had made a significant impact in the market over the last  five to 10 years.

He said over 200 business and private flight clearances are processed by NCAA monthly and over 50 percent of the civil aircraft registered in Nigeria are used for business and general aviation operations. Similarly, he said more than 80 per cent of helicopters registered in Nigeria are used for business aviation operations.

The Overland CEO stated Nigeria remains one of the largest charter operation market in Africa with continued growth expected over the next 15 to20 years, disclosing that the demand for charter services is principally fuelled by activities in the oil and gas sector.

He, however, remarked that there are expectations that growth in sub-sector in Nigeria would marginally reduce after the general election.

Boyo also said business aviation in Nigeria is growing at a rate of five to 10 percent annually, and this growth is expected to be sustained by growth in the service, extractive, construction industries of the larger economy.

He  remarked that as the number of business aircraft increased  in the last few years, fixed-based operations (FBOs), aircraft and travel management companies and support service providers have continued to increase in Nigeria especially at Lagos, Abuja and Kaduna Airports.

NCAA is yet to enforce the new policy whereby aircraft registered as privately owned would not be used for charter services, while those used for such service should register as commercial so that they would be paying the right charges to government.

Also NCAA has to ensure that dominant cockpit crew in these private jets are Nigerians, so that they will utilise the pool of existing indigenous manpower and give impetus for further training as pilots by Nigerians.

 

[ThisDay]