Daily Trust (Abuja)

Nigeria: FG to Sanction Airlines Over N8 Billion Debt

Mohammed S. Shehu

8 October 2008


Airlines operators owing the Federal Government N8bn debt in service charges have been warned to settle their debt or face sanction.The Minister of State for Aviation, Mr Felix Hassan Hyet issued the warning yesterday at the unveiling ceremony of the Virgin Nigeria new Embraer 190 jet at the Nnamdi Azikwe International Airport, Abuja.

Hyet said most of the airlines in Nigeria owed the government through parastatals of the aviation ministry.

On the controversy trailing the disbursement of the Bilateral Air Services Fund (BASA), Hyet said the fund is for critical projects and the ministry would not share the money with any parastatal.

"The BASA fund is for critical projects, to ensure safety and security and any parastatal that thinks the BASA Fund would be shared, that parastatal is joking," he said.

Hyet was reacting to the tussle over which agency should be in charge of the $34million BASA fund that is now waiting for legislation by the National Assembly.

He called on the lawmakers to ensure the speedy passage of the bill to enable the industry embark on critical safety projects. The fund is made up of monies accruing to the nation over the years from foreign carriers flying into the country based on the bi-lateral air agreements between the airlines and Nigeria.

He said the new aircraft was a sign of new commitment of Virgin Nigeria to the aviation industry and called on other domestic airlines to emulate the gesture.

In his speech after launching the plane, Senate President David Mark called on domestic airlines to follow suit and ensure comfort for their passengers. He also promised the industry proper legislation to support competition and protect public investment. In his welcome address, the Chief Executive Officer of Virgin, Mr Clifford Conrad said the plane was part of the 24 to be introduced by Virgin into Nigeria.

He described the plane as the first of its kind to operate domestic operations in the country.

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