ART scribe kicks against monetary bailout for airlines

The 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 the 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 maybe necessary as palliatives for the airlines’ staff salaries only for a period of three months but must be recoverable.

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The ART scribe in is 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 months or the period, the lockdown 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 per cent 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 per cent 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 lockdown 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 months for domestic airlines only after the easing of lockdown on operations and 50 per cent Passengers Service Charge (PSC) discount for three  months on all Domestic Passengers only.

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

 “Next three months would attract 75 per cent Changes of the normal Charges. The next three months would attract 100 per cent or revert to the Full Changes.  The Passenger Service Charge would revert to 100 per cent after the first three 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 1million to 5million. (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).