Ojikutu kicks against monetary bailout for airlines, says direct intervention for staff salaries needed

SECRETARY General of the Aviation Round Table Safety Initiative (ART), Group Captain John Ojikutu (RTD) has canvassed non fiscal monetary bailout for airlines, especially those not indebted to government service providers stating that palliatives can come for them in form of waivers on charges

Ojikutu made his submissions known in a debate raging over what form the intervention being canvassed for the aviation industry will come stating that Government Direct Financial Intervention may be necessary as palliatives for the airlines staff salaries only for a period of three (3) months but must be recoverable. Read also: COVID-19: IATA charges Nigeria to implement aviation -specific support amid crisis

The ART scribe in his seven -point response titled Non Fiscal Monetary Bailouts for Aviation Operators (Only for Airlines not Indebted to the Government Services Providers) said :

“The only Government Direct Financial Intervention may be necessary as palliatives for the airlines staff salaries only for three (3) months or the period the lock down lasted but this must be recoverable within 12 months or by June 2021.  COVID-19: Olowo says N2tr economic injection not enough for passenger airlines alone

“The financial palliative should be used to pay only 70% of the staff salaries. Those staff must be confirmed to have been registered with the National Pension Board and their pension contributions are up to date. The balance of 30% in their salaries not added should account for the period they did not pay for transport to go to work.

On government workers he said, “While I do not know the provisions of the current federal government civil service regulations, you may wish to use the appropriate service rules to consider palliatives for the staff of the government services providers.

“Use the same templates, if necessary, for other aviation private operators mainly the airlines ground handlers like NAHCO and SAHCO. Avoid fiscal monies for the private operators and don’t include those that are indebted to the government services providers before the operations lock down or those that are in receivership of AMCON.”

On the form palliatives for airlines would take his submissions were,” Free Airport Landing and Parking and Air Navigational Charges for not more than three (3) months for domestic airlines only after the easing of lock down on operations and 50% Passengers Service Charge (PSC) discount for three (3) months on all Domestic Passengers only.

“Gradual Charges Reversal and the incremental of all the Services Charges to 50% of the normal in the next three (3) months to the three (3) months of Free Fees on all Services Provided by the Government Services Providers.

“Next three (3) months would attract 75% Changes of the normal Charges. The next three (3) months would attract 100% or revert to the Full Changes.  The Passenger Service Charge would revert to 100% after the first 3 three (3) months Concession.

“ Following the Reversals of Fees/Changes to the Normal after 12 months, the Federal Airports should all be graded or classified into 4 Categories; Cat A to D for appropriate Services Changes: (a.) Cat A1; Airports with Annual Passengers Traffic of 5m or more. (Services charges/fees 100%). (b.) Cat B; Passengers Traffic of 1m to 5m. (75% of fees/charges). ( c.) Cat C ; Passengers Traffic of 200,000 to 1m (50% of fees/charges). (d.) Cat D ; Below 200,000 (25% of fees/charges).