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NEWS and REPORTS => Nigerian News => Topic started by: TGD on Mar 03, 2011, 08:06 PM

Title: President Jonathan Has Approved 65% Waiver To Airlines For Pilgrimage Operations
Post by: TGD on Mar 03, 2011, 08:06 PM
(http://dl.dropbox.com/u/2618253/ForumPhotos/goodluck_jonathan_23-02-11_200_160.jpg) President Goodluck Jonathan has approved a 65 per cent waiver on all aviation charges payable to relevant government agencies handling Hajj and other pilgrimage operations.

However, the National Hajj Commission of Nigeria (NAHCON) has been mandated to contact the airlines picked for the Hajj operations to reconcile their accounts with the relevant agencies in order to enable the commission effect the final payment due.

The airlines certified by the Nigerian Civil Aviation Authority (NCAA) for the exercise are Max Air, Kabo, Medview, Meridien Air, Tradecraft Air, Travel Aviation and Tours Limited, KS Travel and Tours Limited.

A letter dated February 17, 2011 with the reference NAFCON/CA/155/1/160 signed by the commission's Chairman, Goni Sanda and sent to the airlines participating in the exercise, stated in part: "I am directed to inform you that Mr. President has approved 65 per cent waiver on all aviation charges payable to relevant government agencies handling Hajj operations.

"You are kindly requested to contact the relevant agencies and reconcile your accounts with them in order to enable the commission effect the final payment due."

The carriers were however requested to obtain letters of clearance from state Pilgrims Welfare boards or agencies to indicate the status of 10 kilogrammes and 40 kilogrammes luggage delivery in order to enable the commission effect the final payment due.

But stakeholders have queried the rationale behind giving the huge waiver to the carriers, arguing that the decision would greatly affect the operations of aviation agencies such as the Nigerian Airspace Management Agency (NAMA), the Nigerian Civil Aviation Authority (NCAA) and the Federal Airports Authority of Nigeria (FAAN).

An Aviation Analyst, Olumide Ohunayo, expressed worry over the policy, submitting that it would adversely affect the agencies' capacity.

He observed that government had recently directed the agencies to recoup its money running into billions of naira from airline operators and queried the waiver grant in the light of government's drive for revenue in the aviation sector.

The agencies, according to a top official of one of the parastatals, could cumulatively, lose over $4 million in total revenue from landing and parking charges, usually collected by the FAAN.

The NCAA is expected to give up the mandatory five per cent Ticket Sales Charge (TSC), which is included in the travellers' fares.

The struggling NAMA may also not be able to get paid for the navigational services it will render to the carriers or collect cargo sales charge, among others.

Already, in line with the Presidential directive, the agencies have begun the deployment of logistics to the airports to be used for the exercise.

Just last month, the National Assembly mulled the idea of enacting a law to curb huge losses incurred by the country through import waivers and related freebies granted by government.

Source: Govt grants 65 per cent waiver to airlines for pilgrimage operations (http://www.ngrguardiannews.com/index.php?option=com_content&view=article&id=40368:govt-grants-65-per-cent-waiver-to-airlines-for-pilgrimage-operations&catid=1:national&Itemid=559)