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FG may renew charges on illegal aircraft charter operators

By BusinessNews Staff on August 1, 2015

Feelers from the Ministry of Aviation indicate that the charges imposed on illegal private charter operators by outgone Goodluck Jonathan administration may still subsist under the present administration to discourage foreign registered aircraft from operating in the airspace and enhance employment of indigenous pilots and engineers.

Although all efforts to enforce the charges in the past were resisted by operators who used their connection in the National Assembly to intimidate top officials in the Ministry of Aviation, THISDAY learnt that the new government of President Muhammadu Buhari may reaffirm the charges after a new minister has been appointed to drive the policy.

Illegal charter operators are those who use their privately registered aircraft for charter services and collect payment for same. In most cases , they use foreign registered aircraft so the country where the aircraft is registered provide the flight crew.

It is estimated that Nigeria loses over N15 billion annually because those who engage in such illicit operation do not pay any charges to government.

Before he left office the former Minister of Aviation, Osita Chidoka had issued ultimatum to private aircraft owners with foreign registration to take Nigerian registration number. He also warned illegal charter operators to stop forthwith or risk sanctions.

Out of about 150 private jets in Nigeria, 70 per cent are believed to be used for illegal operation, which means that their owners do not pay the mandatory charges, yet they take business away from the registered charter service providers that pay charges most of whose aircraft are locally registered and provide employment for indigenous pilots and engineers.

Also, when Senator Stella Oduah was the Minister of Aviation, charges were imposed on illegal charter operators but they rebuffed it and made political capital out of the whole process. But with foreign registered aircraft, these owners engage largely expatriates and use the funds generated locally to pay the flight crew, maintain aircraft overseas and pay for the foreign registration of their aircraft.

“The policy on private jets will be implemented immediately a new Minister of Aviation is appointment. It will be more serious this time because this government wants to eliminate corruption and most of these private airplanes are used to take away funds from this country. I am sure Buhari administration will do something about it,” a source at the Nigerian Civil Aviation Authority (NCAA) said.

The NCAA sources confirmed that many of the private jet owners give them out for illegal charter services whereas they were documented as privately owned aircraft for personal use according to the NCAA records.

A Ministry source said these illegal operators rip off Nigeria of well-deserved revenue and also deny businesses to legally registered commercial charter operators that abide by the regulations as enunciated by NCAA.

In 2012 the Ministry of Aviation directed non-scheduled aircraft services to pay certain fees at take-off, stating that foreign registered aircraft should pay $4,000 for every take off, except round trips; while locally registered aircraft shall pay $3,000, a directive that many operators describe as stringent and impracticable.

The aim, the Ministry explained then was to stop the exploitation of the country and also to grow the business of registered charter operators. The illegal operators also abstain from paying import duties, five per cent VAT charges and also five per cent charges to the NCAA.

[ThisDay]

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