FG plans another bail-out fund for domestic airline

The Federal government may be planning to rescue domestic airlines with another intervention fund. This is in a bid to raise their financial status and stimulate the sector. Osita Chidoka, Aviation minister, who made this known in his paper presented at the London Chatham house, said that this is the way to go as other countries have in recent times, subsidised their carriers. He said what the country’s aviation industry needed was an “economic stimulus” plan to get out of the wood.

“That is just exactly what the industry needs, by introducing some initiatives, we are beginning to feel the pulse of the industry.” Taking a comparative approach to justify the need for his plan, Chidoka said that several thriving airlines around the world have typically enjoyed or continued to enjoy government financial and material support.

He said three US air- lines—Delta Airlines, American Airlines and United Airlines –have received over $40 billion in US government subsidies in the past decade. He unfolded the key components of his idea to include Economic stimulus plan and Strategic framework for the growth of the industry. He said the stimulus plan “would involve a package of financial incentives that will provide support across the aviation value chain.”

The focus areas as identified by Chidoka were: airline operation and safety, aerodrome infrastructure and operation, airspace management, aviation allied services and manpower development. The new strategies; the Nigerian Aviation Industry Strategy Framework and the Economic Stimulus Plan (ESP), will ensure he achieves his plan. Speaking on the plans however, Yakubu Dati, spokesman for aviatik agencies said Chidoka’s ESP would not be the first in the industry, adding that such a plan under the Olusegun Obasanjo administration led to the N17billion aviation intervention fund.

“Sadly, the fund crash- landed, failing to achieve its goal of ameliorating the funding problem of the industry. Chidoka is convinced he should take another shot at fixing the problem. The minister armed with proof of similar actions taken by western countries to assist their own airlines appears determined to convince Nigerians that this is the right flight plan.