Airports concession: Transaction advisors submit report to FG

…2 local airlines owe aviation agencies N513bn –Minister

Louis Ibah

 Minister of State for Aviation, Senator Hadi Sirika, says the activities of some aviation agencies in the country are being hampered by debts totaling about N513 billion being owed by two domestic airlines.

Sirika who stated this in an interview with aviation journalists at the General Aviation Terminal (GAT), of the Murtala Muhammed Airport Lagos, also said the Federal Government had received the outline business case (a form of preliminary feasibility on a proposed project) for the planned concession of the Lagos and Abuja airports.

“The transaction advisors for the concession have brought in the outline business case and we are studying it. We are going to do our full business case and it (the concession) would happen so soon,” Sirika said.

Sirika, however, faulted the business models adopted by most local airlines, noting that such wrong business model was responsible for their poor financial health. He also frowned at the practice by some airline owners who often run to the Presidency to get debt waivers, instead of paying their debts. Although he didn’t mention the airlines by name, industry sources believe Sirika was indirectly referring to the Arik Air and Aero Contractors currently being managed by AMCON appointed receivers managers.

“There is an airline that owes one of the aviation agencies N13 billion. And there is another airline that owes these agencies about N500 billion,” said Sirika.

“I think the airlines have a problem which is getting their priority right and in getting the right business model that would bring money to them. The airlines that are owing have either crashed or being taken over (by AMCON)

 “Under this administration, it is not going to happen to allow them to continue to pile debt and go to the Villa and the debts are either waived off or are post-dated. No Villa staff will call any airline. There is no door open for such practice,” he said.

He therefore advised the airlines to get their act together to “reorganise, re-engineer and take advantage of the Single African Air Transport Market (SAATM), rather than sit tight while the train is moving.”

Sirika also apologised for the Dana Air incident which saw one of its doors fall off shortly after touching down at the Nnamdi Azikiwe Airport in Abuja on Wednesday.

Said Sirika, “It is quite traumatising for an air traveler after landing to see an emergency door falling inside the aircraft. It can be very traumatising, very uncomfortable and very scary.  We apologise for the mishap.  The NCAA is presently investigating and will release its result soon.”