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Import duty waiver: Airlines still pay heavily on importation of spare parts says Usidamen

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By Oyise OGHENE
LAGOS: Following the removal of import duty waiver on aircraft and spare parts by the Federal Government three months ago, investigation revealed yesterday that airlines were groaning as they were still been forced to pay heavily for the importation of their aircraft and spare parts.

This revelation shows that the directive of President Goodluck Jonathan have not been implemented due to the failure of the Ministry of Finance and Nigeria Customs Service (NSC) to fully put such directive into action.

Airlines still pay heavily on importation of spare parts says UsidamenSpeaking to newsmen in his office in Lagos, Head of Corporate Communications, Dana Airline, Mr. Tony Usidamen who confirm the situation said that it was very pathetic that three months down the line, airline operators were still ask to pay enormous amount of money as import duties for the importation of their aircraft and spare parts.

Mr. Usidamen further called on the Federal Government to fast track the full implementation of the removal of import duties on aircraft and its spare parts stressing that if done, it would bring succor to the airlines and the travelling passengers will be better for it at the long run in buying their tickets at cheaper fares.

He said ‘‘Yes the Federal Government have announced that it would remove the duties and waivers for airlines on importation of spare parts, we are looking to that regime commencing because it will go a long way in reducing the operational cost of airlines, keeping the airlines profitable and also making the fares more attractive so that at the end of the day, the average traveler is better-of for it’’

According to him,‘‘To the best of my knowledge, the implementation of the import duty waiver hasn’t taken place yet but we believe strongly that the government will keep its promise in this regard, the leadership of the ministry of aviation has demonstrated commitment towards seeing improvement in the sector and the on-going remodeling of the airports across the country is a sign of it, so we have no doubt that the government is sincere in this regard and we hope that it will come into effect soon’’

It would be recalled that experts in the industry had said that, this is not the first time a President would give a directive on removal of import duty waiver. They cited former President Olusegun Obasanjo giving the same directive in 2006, backing it up with letters that were allegedly not carried out.Air Marshall Paul Dike (rtd) committee set up by Obasanjo to help tackle the decay in aviation sector after the devastating crashes of Bellview and Sosoliso Airlines in 2005, had in its report recommended to the Federal Government in 2006 to cancel the percentage of tax being charged on spare parts in order to assist the commercial airline operators to improve their business in the country.

Commenting on the operations of Dana Airline since its resume operations on January 4 2013, Mr. Usidamen pointed out that the operations had been going on smoothly stressing that the passengers’ traffic to the airline was quite encouraging.

According to him, the airline will soon resume its operations on the Lagos-Port-Harcourt in two weeks as plans to expand it route network.

He said ‘‘I can confirm to you that in about two weeks time, we should be resuming operations to Port-Harcourt city, plans are also on the way to resume operations to the other cities we fly to, in Uyo, Calabar but specific date will be announce in due course, it is our desire to take our quality services to all of these other cities, a lot of our loyal passengers on that route have already sent in several mails, several requests asking us to come back”

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Aviation

Shell Endorses Regional Action Plan for Safe Helicopter Services

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Shell Nigeria Exploration and Production Company Limited (SNEPCo) has welcomed efforts to promote safe helicopter services across Africa in a proposed Regional Action Plan (RAP).

The plan, according to a company statement, is the highlight of a workshop organised in Lagos within the week by the Aviation subcommittee of the International Association of Oil and Gas Producers (IOGP) in partnership with London-based safety advocacy group, HeliOffshore.

Biztellers reports that the two-day Offshore Helicopter Industry Safety Workshop (OHISW) with the theme “Developing a Regional Action Plan,” followed on from a similar session last year which SNEPCo sponsored.

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It also provided administrative and logistical support for this year’s conference which was sponsored by ExxonMobil. SNEPCo, which pioneered Nigeria’s deepwater production at Bonga in 2005, relies on helicopter shuttles for operations and supports the workshop as part of its contributions towards safe services in Nigeria.

In an address at the opening session delivered by General Manager Contracting and Supply Chain, Charles Oranyeli, Managing Director SNEPCo, Ronald Adams said: “By developing a regional action plan, we can move beyond dialogue to alignment, ensuring that the safety leadership, industry standards, and collaborative approaches championed last year are embedded in a common roadmap for collective improvement. The most effective solutions will come not from isolated efforts, but from partnership, standardization, and coordinated action across the region.”

The workshop was attended by more than 80 representatives from oil and gas companies, the Nigerian Content Development and Monitoring Board (NCDMB), the Nigeria Civil Aviation Authority (NCAA), the Nigerian Safety Investigation Bureau (NSIB), helicopter operators and original equipment manufacturers.

The event concluded with participants deciding action items for the proposed Regional Action Plan including Search and Rescue (SAR) initiatives, implementation of IOGP Report 690 standards and establishment of formal industry leadership forums.

The IOGP has been active for over 50 years, supporting its more than 90 members around the world to promote “excellence in safe, efficient and sustainable energy.”

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Aviation

Airfares Likely to Rise as Aviation Fuel Price Spikes by 80%

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The Airline Operators of Nigeria (AON) has declared that airlines operating in Nigeria have come under financial pressure following a sharp increase in the price of Jet-A1, also known as aviation fuel.

According to the group, the price of aviation fuel, has surged to about N1,800 per litre in many parts of the country, from about N1,000 per litre two weeks ago. This amounts to almost an 80 per cent increase within a short period.

Aviation fuel remains the largest cost component in airline operations, accounting for about 30 to 35 per cent of total operating expenses.

Industry stakeholders have linked the latest spike to the ongoing conflict in the Middle East, which has pushed up global energy prices.

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Speaking on Channels Television on Friday, the spokesperson for the Airline Operators of Nigeria, Prof Obiora Okonkwo, said the surge had placed airlines under severe financial strain.

According to him, most carriers have so far refrained from immediately transferring the additional cost burden to passengers, despite the pressure on their operations.

“Two weeks ago, we were getting Jet-A1 at about N1,000 per litre, which today is about N1,800, and even more in some stations. We have experienced an increase of about 80 per cent. That’s quite a spike,” Okonkwo said.
He explained that airlines were currently absorbing the losses in order to avoid worsening the economic burden on the travellers.

“We are not in a business where you can easily adjust your ticket price. Right now what we are doing is that we are bleeding. We are taking the blow. We are selling tickets at very non-profitable prices. We are losing a lot of money,” he said.

Okonkwo warned that the situation might not be sustainable if fuel prices continue to rise without government intervention.

“Obviously, adjustments will be expected anytime soon. But again, we are very sensitive to the economic situation of Nigerians and our travellers,” he added.

He noted that developments in the global oil market, particularly the recent release of reserve crude oil, could influence fuel prices in the coming weeks.

Okonkwo also urged the Federal Government to explore engagement with the Dangote Refinery as part of efforts to stabilise aviation fuel supply locally.

“We were more hopeless in a situation where there was no refinery in Nigeria in the last two years. Now that we have a refinery, we are hopeful that we can find a solution around it,” he said.

According to him, if the spike persists, some airlines may struggle to continue absorbing the losses associated with the rising cost of aviation fuel.

Meanwhile, the AON spokesperson also reacted to the decision by the Federal Competition and Consumer Protection Commission to sanction about five airlines over alleged price fixing.

Okonkwo said while the commission has regulatory powers, the aviation sector remains deregulated, making coordinated price fixing unlikely.

“There is no meeting of airlines where they agree to fix prices. Fixing prices would mean operating as a cartel, and that is not the case,” he said.

He explained that airline ticket pricing varies widely because different aircraft types attract different operating costs.

“Each airline determines its fares based on its own operational costs,” he said.

Okonkwo added that airlines must also demonstrate financial viability to regulators as part of the conditions for maintaining their operating licences.

“At every point in time, you must prove to the regulators that you are financially viable and capable of sustaining operations,” he said.

He urged regulators to take into account the fragile nature of the aviation industry when making policy decisions affecting airlines.

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Aviation

Bird Strike Hinders Air Peace Lagos–Port Harcourt Flight

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An Air Peace flight from Lagos to Port Harcourt has suffered a disruption, after the aircraft was affected by a bird strike on arrival at the Port Harcourt International Airport.

The airline made the disclosure on Thursday in a statement signed by its spokesperson, Osifo-Whiskey Efe.

He added that the incident necessitated safety checks on the affected aircraft and the deployment of another aircraft to convey passengers on subsequent flights.

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“We deeply empathise with passengers affected by this unforeseen incident and are working diligently to minimise disruptions,” Efe said.

The latest incident adds to the growing challenge of bird strikes faced by local airlines.
In December 2025, Air Peace disclosed that it recorded 49 bird strikes across Nigeria between January and September, stressing that even a single strike could ground an aircraft for weeks.

Chairman and Chief Executive Officer of the airline, Allen Onyema, had said on Arise TV that bird strikes constituted a major operational challenge, often leading to costly repairs and serious disruptions to flight schedules.

“One bird strike could cripple your aircraft for the next month. At that moment, there is no two ways about it. These bird strikes often lead to costly delays and serious disruptions in flight schedules,” he said.

He added that losses from such incidents compound other challenges facing Nigerian airlines, including heavy taxation and operational constraints.

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