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N10billion Debt: Tukur Pleads With FAAN Not To Ground Airlines
04/05/10
N10billion Debt: Tukur Pleads With FAAN Not To Ground Airlines
By Lateef Lawal
The Federal Airports Authority of Nigeria(FAAN) has been urged not to resort to grounding of debtor airlines as a means of recovering its debts.
The advise was given by the assistant general secretary of the Airline Operators of Nigeria(AON), Alhaji Mohammed Tukur while reacting to the directive given by the Board of Directors of FAAN last month to the Management of the Authority to embark on aggressive debt recovery of over N10 billion owed it by airlines and concessionaires. ( Continues below..... )
Photo Above: An Airborne Plane
Tukur said that the Authority could only lock office accommodations rented by such debtor airline(s) in pursuit of its debts and that the only body that could ground airlines on critical safety issues is the regulatory agency, Nigerian Civil Aviation Authority(NCAA). In addition, he noted that grounding debtor airlines would further compound their problems because already many airlines in the country were distressed.
He advised that FAAN management should invite individual airlines involved for reconciliation of accounts, and work out payment plan, so as to give the airline 'soft landing' toward settling their debts.
Turkur further advised that it was high time NCAA set up an audit to monitor airlines periodically within the year to ascertain their financial stability, with the aim of knowing whether they could continue to fly economically within safety margin, pay salaries of their staff and also service their debts. ( Continues below..... )
Photo Above: FAAN logo On A Nigerian Map in Nigerian Flag Colours
He said this was necessary because some airline executives were really guilty of siphoning money within their system through several unorthodox means. According to him, that left little or nothing in reserve for the payment of salaries, office accommodation, aircraft maintenance, insurance, debt servicing and other operational costs.
On the bailout being sought from the Federal Government for airlines, Tukur said some people misunderstand the Airline Operators of Nigeria on the matter. The operators, he said were not asking for cash or financial bail out by government. He explained that “what we are asking for among others, are debt freeze, cancellation of double taxation on aircraft components and rotables, and the reduction of all charges by 50% among others.”
Lateef Lawal (NigerianAviationNews)
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*Tags: Nigerians, FAAN, Airlines, Debt, Abuja, Lagos, Africa, Masterweb
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