The International Air Transport Association (IATA), has called on the National Assembly to protect Nigeria’s airlines, saying that the carriers are operating under a slim profit margin.
Speaking on Thursday in Ibadan, the Oyo State capital, at the 50th Annual General Meeting (AGM) of the National Association of Nigeria Travel Agencies (NANTA), the Area Manager, West and Central Africa, IATA, Dr. Samson Fatokun, said that the National Assembly needed to support the nation’s airlines in the area of legislation in order to remain in business.
He pointed out that for the airlines’ $2.5 billion, which represents 0.7 per cent contributions to the nation’s Gross Domestic Product (GDP) to be sustained and improved upon, the National Assembly needed to do more for the airlines.
According to him, the current ongoing crisis in the Middle East occasioned by the Israel/United States and Iran war, had distorted the 2026 projection for the industry globally, stressing that for any airline to continue seamless operations, they needed the support of the governments.
Fatokun explained that for instance, Jet A1 price in Africa was 17 per cent more expensive than anywhere else in the world, while taxes, charges and fees on the continent are between 12-15 per cent higher than the rest of the globe.
Fatokun pointed out further that air navigational charges on the continent is equally 10 per cent higher than the rest of the world, while carriers on the continent pay between six-10 per cent more for aircraft maintenance, insurance and cost of capital.
He added: “Besides, as of today, African governments still hold back $954 million of blocked funds. All these make air ticket prices higher in Africa than the rest of the world.
“The National Assembly should take up this with the Nigeria’s Federal government. We need to protect our carriers in Nigeria. The airlines are operating with very thing profit margin.”
Also, in his speech, the Chairman, Senate Committee on Aviation, Abdulfatai Buhari, advised NANTA to officially write to the National Assembly on the challenges in the sub-sector and promised that the assembly would address them.
He also rebuked some of the foreign airlines that charge dollar-only transactions in Nigeria, saying that the practise was killing the nation’s economy.
He specifically mentioned Delta, United and Emirates airlines as culprits in this practise, noting that it was necessary NANTA to escalate this before the National Assembly in order to address it.
He said: “How can some foreign airlines that operate into Nigeria insist on dollar-only transactions in our country? Can any airline go to India and say it would not transact in rupee?
“If we don’t take steps, the National Assembly can’t address these challenges all alone. The government alone cannot tackle all these issues, without the cooperation of everyone.”
Earlier, the President of NANTA, Dr Yinka Folami said that it was necessary for all players in the sector, especially the travel agencies to extinguish touting in the sub-sector.
He assured that NANTA as a body would specifically take up this challenge and ensure sanity prevailed in the industry.