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Import duty removal strengthens airlines’ business, says Caverton boss

BusinessDay
4 Min Read

The removal of import duty on aircraft spare parts by the federal government in 2012 has brought about a huge growth in the airline business in Nigeria.

A particular area of the growth identified by operators and which is already strengthening the airline business improvement in training of personnel and acquisition of more aircraft as amount hitherto paid as duty is now being channelled into critical area to improve safety in the industry.

President Goodluck Jonathan had said he took the decision in order to improve safety, maintenance culture and operation of the airlines.

“All commercial aircraft and aircraft spare parts imported for use in Nigeria will now attract zero percent and zero VAT. This will appreciably improve safety in our skies, newer fleet and less onerous maintenance will prevail,” he had said.

Before now, airlines normally pay 10 percent of any amount  they buy an aircraft or buy a part for.

For instance, if a company buys an aircraft for $400m or $600m, it will pay 10 percent of the amount in cash to customs, if they also want to import a part of that aircraft, they will be made to pay the same 10 percent of the same aircraft they have duty paid on,  and that is big money in dollars.

Speaking recently in Lagos, Kingsley Uwagbale, director of strategy and planning at Caverton, Nigeria leading indigenous helicopter firm, said the policy had in the last two years, paved way for many airlines to concentrate on areas that directly affect operations rather than spend money at ports.

Uwagbale, who spoke when he played host to a delegation of the League of Airport and Aviation Correspondents, (LAAC) said the company has increased the number of women pilots in the rotary wing segment.

“We have deliberately set aside a number of slots for women as we aim to increase the number of female pilots manning rotary aircraft in Nigeria. Currently we have six women in training institution around the world. The next round of recruitment will principally focus on women here.”

He disclosed that the airline has concluded plan to construct a maintenance facility where it aim to train manpower for the industry affirming that in another five years, Nigerians will fly leading airlines in the world.

“We want Nigerians to be flying Emirate, Lufthansa and other international airlines, the facility will bring about huge job opportunities. Nobody needs to go abroad for training  because there will be facility for  C-check here,” he added.

He commended the federal government efforts at providing a conducive environment for airline business in Nigeria and saying that “the Jonathan administration has done a lot in training in the aviation industry; Amnesty has done a lot in training and capacity building especially in the Niger Delta region.

Earlier, Chukwuemeka Iwelunmo, the leader of the LAAC team, commended the giant stride of Caverton helicopters with the acquisition of 40,000 square metres of land at the MMIA to construct its MRO project and for the training of pilots and engineers.

Iwelunmo disclosed that it was long overdue in the country stressing that training of pilots and engineers since the demise of the Nigeria Airways was at its lowest ebb.

He urged the management not to relax in bringing out their best for Nigeria’s aviation sector as it was the only way to move the industry forward.

Sade Williams

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