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FG’S N4bn bailout causes agitation among airline operators

Ifeoma Okeke
3 Min Read

The Federal Government has commenced the disbursement of N4 billion palliative to domestic airlines in a bid to cushion the effects of COVID-19 on their operations.

However, the disbursement of these funds has so far not been without intrigues as some airlines may have received the bailout funds while others are yet to get.

Businessday checks show that the government had set up a committee consisting of some members of domestic airlines and top staff of aviation agencies to ensure the process of disbursement is transparent and without rancour.

However, some airlines with valid Air Operators Certificate (AOC) are alleging that they have been sidestepped in the disbursement of the funds even after meticulously following the process and submitting their request for the funds, and are agitated about the unorthodox 70-30 sharing formula that has popped up without recourse to them.

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Recall that during the height of the COVID-19 when airlines were forced to stop all operations, the government agreed on palliative to cushion the effects on the industry being one of the worse hit, but provisos were made that for airlines to access such palliative they needed to have a functional AOC.

An operator who craved anonymity said the Airline Operators of Nigeria (AON) Board of Trustees (BOT) and the executive numbering 10 had disagreed some days back over the sharing of N3 billion to some scheduled operators out of the N4 billion released.

For now, most charter operators are yet to get anything from the fund and seem to be amiss as to what is actually happening.

James Odaudu, director of press, Ministry of Aviation, explained the Ministry’s position, stating that the bailout had been disbursed and it would go to airlines with functioning AOCS, but was not aware of the intricate details on it.

Odaudu said, “What I can confirm at this time is that it was released to individual airlines. The consideration is for individual airlines and airlines that have AOC.” On whether charters were included, he said, “I can’t confirm.”

Another source said the process could have been handled more professionally to avoid the controversies it is generating among airlines, as a list of qualified candidates should have been put out by the Ministry in charge so everyone knows who is qualified instead of shrouding the process in secrecy and creating doubt.

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