FG cannot tax airlines to fund parastatals – Aero MD

After failed attempt to establish NG Eagle, AMCON Returns Former MD to Aero

The federal government cannot continue to tax airlines to fund aviation agencies, the managing director of Aero Contractors, Captain Ado Sanusi said.

Sanusi also condemned that the airlines are overtaxed by the government, while they also face difficulty in accessing foreign exchange.

Sanusi stated this at the Murtala Muhammed Airport (MMA), Lagos during the re-launch ceremony for Aero Contractors, scheduled for Monday next week.

The big issue: According to Sanusi, the airlines are overtaxed by the government, stressing that this leads to a high death rate among carriers.

He maintained that the difficult operating environment has made the country’s airlines unprofitable for the past 30 years and called for a change in approach from the government.

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He said industry players must come together as a team to meet the challenges of the aviation sub-industry in the last three decades, saying that Aero Contractors cannot be isolated from such challenges in the industry. .

  • He said: “The challenge for all airlines is finance, and Aero Contractors have voluntarily suspended operations due to finance. So, every airline in this country is experiencing financial challenges, foreign exchange, and a lot of taxes .
  • “Every airline has had a financial challenge in the last 30 years. I don’t think any airline has posted a profit during that period. What does that tell you? It means something is wrong, maybe the environment we operate in. Some airlines even in Africa post profits.
  • “Back to Aero Contractors, yes, we have a financial challenge. Now, our cost structure, we are trying to reduce it. We are also trying to look at outsourcing to reduce costs. The four strategic units of business that we have will support the airline so that through that we can reduce external spending.”

Sanusi explained that the airline will return to service with six Boeing B737 and Dash 8 (Q- 300/400) aircraft to 10 destinations, which have satisfied the regulatory requirements of the Nigerian Civil Aviation Authority (NCAA).

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Recall that the airline suspended scheduled services on July 20, 2022, so that it could restructure and reposition the carrier, while the NCAA stepped in to audit operations.

Sanusi added that the company now has four strategic business models to strengthen its operations.

Sanusi, who disclosed that Aero has commenced operations under new management, said it will relaunch services to Warri, Lagos, Port Harcourt, Abuja, Benin, Yola, Kano, Asaba, and Calabar.

New management: Aero Contractors began operations with a new managing director/chief executive officer, Capt. Ado Sanusi, a former managing director of the airline; and new chief finance officer, Mr. Charles Grant.

Aero’s boss also revealed that the airline plans to relaunch operations in the region in the last quarter of 2023, adding that it is also targeting a large portion of the domestic market, especially during this period of Its new product plans to be unveiled soon. .


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