The Minister of Aviation, Hadi Sirika, has disclosed that the sector has been the worst hit since the COVID-19 pandemic ravaged the country.
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According to him, the sector has lost N21 billion approximately so far since the pandemic that necessitated the closure of the airports to international flights.
He made the disclosure during the Presidential Task Force briefing on COVID-19.
He said: “Based on the trend of events prior to COVID-19, the total loss is about N21 billion approximately plus about N3 billion (traditionally). It is divided in this form: N7 billion for aviation (what they lose in a month), N10 billion for airlines, N4 billion for ground handling, catering, etc., and then the taxation is N3 billion.
“Also, since you’re interested in dollars, what we got from the International Airline Transport Association (IATA), they’ve given us economic impact in Africa’s largest aviation markets. That for Nigeria, lost airline revenue is $994 million and in terms of employment at risk, 125,370. Loss of contribution to the GDP of the country is $885 million. Now these are IATA figures. And finally to say that, because it is service-nature, that is a service industry, it’s not like Honourable Emeka Majuro’s shop in Aba, which I know he has. If he’s not able to sell his spare parts, they are there. It means it’s only a delayed income so to speak. But because the airline is serviced by income it generates, they have not provided service, they are unable to do so, they have not flown, so have lost it. I cannot regain it. I cannot sell it tomorrow. So, this is the situation of civil aviation. It is really a pathetic one and I can guarantee you that several airlines won’t come out of this unfortunately.”
He added: “We are in very difficult moments like everyone else. All of this started because someone travelled and unfortunately came back home with it and the consequence is what we’ve been going though.
“We are the worst hit, than any other sector. Some N17 billion naira monthly is being lost by the airlines, thanks to COVID-19.”
Explaining further, Sirika noted that the sector is highly regulated and very co-ordinated and has set standards that must be followed at all times, regardless, because it speaks to safety.
Sirika said what this means is that “we will not be able to open up after closing for several weeks and perhaps for some months.
“There are safety issues and concerns. Those airplanes have been kept and when we are going to bring them back into service, we will have to ensure that they are airworthy and that they can make those flights safely.
“So also, for the flight crew, they have certain standards they must conform with. They have licencing issues which will fall due for recurrency to be done within this period, so what do u do with them.
“Certainly they won’t just pick up their bags and continue where they left. They must conform to those standards and ensure that they are safe to operate both in terms of their health and their proficiency to be able to conduct a very safe flight”.
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