Barely a few days after the Federal Government made good its promise to disburse N5 billion palliative to airlines, ground handling companies and other auxiliary organisations in the Nigerian aviation industry, stakeholders in the sector have expressed divergent views.
This is as some of the analysts queried the disbursement of just N5 billion, wondering what the government intended to do with the other N22 billion released for the sector.
The Federal Government had, in the last quarter of 2020, announced the release of N27 billion bailout funds to organisations in the industry following the impact of the ravaging COVID-19 pandemic on businesses in the sector.
While a section of players in the industry insisted that the amount of money released for the sector, especially the operating airlines, which got just N4 billion, was inadequate to save the carriers from collapsing, others warned against “dolling out of gifts without stringent measures attached”.
Most of the airline operators have unofficially confirmed receipt of the palliatives to our correspondent but some of them refused to comment publicly on the receipt.
For instance, Dana Air, Med-View Airline, Air Peace, Arik Air, Overland Airways and charter operators have all benefitted from the palliatives, but it was not clear the exact amount of money each of the airlines got from the bailout funds.
An impeccable source at Dana Air confirmed receipt of funds to our correspondent in a chat.
The source was, however, silent on the amount of money received from the government as palliative by the airline, saying that the government mentioned a different amount during its meeting with it.
He said: “Dana Air was one of the beneficiaries, but I am unaware of the exact amount given to Dana Air or how much other airlines got.
“I understand that a total of N5 billion was made available, with N4 billion to airlines and N1 billion to allied sectors like travel agencies, ground handlers, and others.
“There were different amount of money mentioned. Some were COVID-19 relief, some were loans. I am not sure which is which and which was paid at this time.”
Also, Arik Air declined to comment on the issue with our correspondent when contacted.
Rather, the airline referred our correspondent to the Airline Operators of Nigeria (AON), the umbrella body of operators in the industry, saying it could not comment on it.
“You can contact the AON on the issue,” the airline said.
However, Dr. Abdulmunaf Sarina, president of the AON, when contacted, declined to comment despite the phone calls and text messages sent to his mobile line.
But information gathered by our correspondent indicated that Arik Air got some largesse from the government as a palliative measure, while Azman Air, the airline of AON’s president, was among the carriers with substantive benefits.
Commenting on the issue, Group Captain John Ojikutu, aviation analyst, wondered what the bailout fund was meant for.
Ojikutu recalled that the Federal Government had, in 2012, gave out such intervention funds to some of the operators but that the majority of them diverted it without re-investing any amount of money in the sector.
He said: “Just like the aviation intervention of 2012, what is the bailout meant for? To supplement the shortfall in staff salaries or to supplement the cost for the periodic maintenance of aircraft on the ground, or for what?
“Were they considerations for the specific needs of the airlines and not just some kind of jumbo Christmas and New Year gifts?
“There must be specifics with results, especially now that funds are needed for critical social services like the handling of the COVID-19 pandemic under the health services.”
Besides, an industry source who didn’t want to be quoted, insisted that the N4 billion was too little for the operators.
The source said: “N4 billion is really nothing for an airline in Nigeria. That’s less than $9 million.”
Also, when contacted, Dr. James Odaudu, the Director, Media and Publicity, Ministry of Aviation, could not confirm the disbursement of the money to the airlines by the government.
The Federal Government had released the sum of N27 billion as palliative measures for the entire aviation industry in Nigeria to alleviate the impact of the COVID-19 pandemic on their operations.
The Ministry of Aviation set up a committee to discuss how the sum would be disbursed to all beneficiaries.
The sum of N4 billion was allocated to scheduled and non-scheduled carriers, N1 billion for ground handlers and auxiliary organisations, while the other N22 billion was allegedly set aside for the troubled national carrier.
