December 03, (THEWILL) – The Managing Director of Aero Contractors, Captain Ado Sanusi, has called on the Federal Government to implement deliberate measures to address the challenges plaguing Nigerian airlines, emphasizing that multiple taxation and high operational costs are pushing operators to the brink.
Sanusi made this known on Tuesday during a media briefing at the airline’s corporate office at Murtala Muhammed Airport, Lagos. He urged the government to focus on creating an enabling environment for the aviation sector instead of treating it as a revenue generator.
He identified multiple taxation as a major obstacle to airline survival, noting that the high cost of running operations, coupled with excessive levies, has hindered growth in the sector.
“It’s not just about building beautiful terminal buildings; airlines need comprehensive infrastructure like navigational systems, airfield lighting, and airport facilities to thrive. Equally important are affordable insurance premiums and funding costs,” Sanusi said.
He added, “The airlines are struggling to pay for services rendered by aviation parastatals, but this funding model is unsustainable. The Federal Government must seek alternative ways to support these agencies. The current 50% revenue deduction from the aviation industry is hurting us deeply and must be reviewed.”
Sanusi further urged the government to view aviation as a catalyst for economic growth, rather than a mere revenue stream.
In the spirit of the season, the airline launched a special Christmas promo, offering tickets at N80,000 across all its destinations.
The promo, which began this month, will run until January 2025, aimed at easing the financial burden on Nigerians during the festive period.
Explaining the rationale behind the initiative, Sanusi said, “We understand the economic hardship Nigerians are facing, especially with high ticket prices. This pocket-friendly initiative is designed to help families reunite and celebrate Christmas without worrying about exorbitant travel costs.”
The MD also highlighted significant achievements by the airline, revealing that it has made a year-to-date profit of 14%, a sharp turnaround from its negative 69% position in 2022.
“This milestone reflects the hard work and dedication of our team as we transition from a stabilization phase to a recovery phase,” he said.
He added that Aero has reduced its liabilities by 33% and achieved an 18% profit margin, setting the stage for attracting foreign investors and boosting its fleet size to 10 aircraft.
Anthony Awunor, is a business correspondent who holds a Bachelor of Arts Degree in Linguistics (UNILAG). He is also an alumnus of the Nigerian College of Aviation Technology (NCAT), Zaria Kaduna State. He lives in Lagos.
