Home Aviation Foreign airlines generate 70% of Nigeria’s aviation revenue

Foreign airlines generate 70% of Nigeria’s aviation revenue

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A very large percentage of the total revenue from Nigeria’s aviation sector comes from the remittances of international carriers, OKECHUKWU NNODIM reports on why this is so
Over 70 per cent of the total revenue generated in Nigeria’s aviation sector comes from international airlines operating in Nigeria, operators in the industry have said.
Domestic airlines are also unable to utilise about 70 per cent of Nigeria’s entitlements as contained in the Bilateral Air Services Agreement which the country signed with other nations of the world in the business of aviation.
Operators told our correspondent that the lack of capacity had stopped Nigerian airlines from taking advantage of their rights in the BASA deals, adding that the country’s aviation sector was grossly under-utilised when it comes to bilateral air services with other nations of the world.
It was further gathered that the limited revenue being generated from indigenous carriers was mainly due to the unwillingness of the local airlines to make adequate remittances to the Federal Government.
This, it was learnt, had made the Gross Domestic Product of Nigeria’s aviation sector to be less than one per cent, a development that had impacted the industry adversely.
Operators, therefore, stated that to remedy the poor GDP contribution, unutilised bilateral air services and abysmal remittances from local airlines, it was important for the country to ensure the full establishment of its national airline.
According to them, the establishment of a national carrier will not only enable the country to take advantage of BASA deals, but also to create jobs, as well as grow the GDP through the industry.
The President, Air Transport Services Senior Staff Association of Nigeria, Ahmadu Illitrus, told our correspondent that when established, a national airline would help grow the revenue contributions of Nigerian airlines as opposed to a situation where most of the income generated in the sector comes from foreign carriers.
He said, “ATSSSAN has no objection to the national carrier project considering the massive value it will add to our industry. When you look at the state of the aviation industry today, we have over 70 per cent of the bilateral air services that Nigeria is entitled to lying fallow. And this is because we don’t have capacity among domestic operators to utilise the rights given to them on those routes.
“You see the foreign airlines coming into Nigeria and moving out seamlessly but our domestic airlines are unable to do that because they don’t have capacity. So basically as an industry today, I can confidently tell you that even in terms of revenue generation, 70 to 80 per cent of this revenue is drawn from the operations of foreign carriers.”…
From nawa4u.com.ng

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