Moved by the lopsidedness in the Bilateral Air Services Agreement (BASA) with foreign countries, domestic Airline Operators (AON) on Thursday called on the Federal Government to immediately introduce what it called ‘Route Consumption Charge’ on in order to make up for routes and countries that are not being serviced by Nigeria.
Noggie Megisson, chairman of the association, who spoke at the 20th Seminar of the League of Airports and Aviation Correspondents (LAAC) with theme: ‘Aviation Infrastructure and Policy as Stimulus for Economic Growth in Nigeria’ held at Lagos airport, said the association had written a long and strong position on the issue in a letter dated 16th July, 2014 to government, adding that it would be very unfair to Nigerian aviation if this source of income is lost.
He said aviation should be seen as an economic resource that should be tapped, adding that BASA should be equitable and mutually benefiting between Nigeria and other foreign countries as obtainable in the oil sector.
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“Nigerian government should start charging a certain percentage in the name of “Route Consumption Charge, that is 5 percent route consumption charge should be levied on all BASA frequencies that Nigeria currently reciprocates.
“For example British airways and Virgin Atlantic have a total of 21 frequencies in to Nigeria while Arik Air only reciprocates 7 frequencies. Therefore, 7 reciprocated frequencies should be charged at 5 percent, the remaining unreciprocated 14 frequencies should be charged at 25 percent.
“Also, 40 percent route consumption charge should be levied on all BASA frequencies to countries where Nigeria is NOT reciprocating at all; for example Kenya, Ethiopia, France, Turkey, Germany etc,” he said.
Megisson, who noted that the cost of fuel is very high, said it makes up about 40 percent of airlines’ operating cost in Nigeria.
He however advised that instead of the intervention fund or national carrier, the funds can be used to revive the Warri refinery’s Aviation Turbine Fuel (ATF) section.
“This would help to reduce the operating costs of airlines and will generate significant income for the government through selling aviation fuel to foreign carriers operating into Nigeria or through West Africa. This can easily make Nigeria a fuelling hub for airplanes flying in and out of Africa, and would also create jobs,” added.
Sade Williams
