FG can’t tax airlines to fund parastatals – Aero MD

The managing director of Aero Contractors, Capt. Ado Sanusi, has stated that the federal government cannot continue to charge airlines to support aviation organizations.

Sanusi also bemoaned the fact that the government overtaxes the airlines and that they have trouble getting access to foreign currency.

Sanusi made this statement at the re-launch ceremony for Aero Contractors, which is scheduled for Monday of the next week, at the Murtala Muhammed Airport (MMA), in Lagos.

Sanusi asserts that the government overtaxes the airlines and that this has caused a high mortality rate among the carriers.

He said that the country’s airlines had not reported a profit in the previous 30 years due to the challenging operating climate and urged the government to adopt a new strategy.

He asserted that in order to address the issues facing the airline sub-industry over the previous three decades, the stakeholders in the sector needed to work as a team and that Aero Contractors could not be exempt from these issues.

He said: “The challenge for all airlines is finance, and Aero Contractors voluntarily suspended operations partly because of finance. So, every airline in this country is experiencing challenges with finance, foreign exchange, and multiple taxation.

“Every airline has had a challenge with finances for the past 30 years. I don’t think any airline has posted profit within the period. What does that tell you? It means there is something wrong, maybe the environment we operate in. Other airlines even in Africa are posting profits.

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“Back to Aero Contractors, yes, we had a challenge of finance. Now, our cost structure, we have tried to reduce it. We also tried to look at outsourcing to reduce the cost. The four strategic business units we have will support the airline so that through that we can reduce outside spending.”

Sanusi added that after meeting regulatory standards set by the Nigerian Civil Aviation Authority, the airline would resume operations with six Boeing B737 and Dash 8 (Q-300/400) aircraft traveling to ten locations (NCAA).

Recall that on July 20, 2022, the airline ceased regular service so that it could restructure and reposition the carrier while the NCAA intervened to examine the activities.

Sanusi stated that in order to improve its operations, the company currently uses four strategic business models.

Sanusi announced that Aero would relaunch flights to Warri, Lagos, Port Harcourt, Abuja, Benin, Yola, Kano, Asaba, and Calabar. Sanusi also revealed that Aero was beginning operations under new management.

Capt. Ado Sanusi, a former managing director of the airline, is the new managing director/chief executive officer of Aero Contractors, and Mr. Charles Grant is the new chief financial officer.

The Aero CEO also revealed that the airline intends to restart its regional operations by the fourth quarter of 2023. He also stated that the airline is aiming to capture a significant portion of the domestic market, particularly during this holiday season with the new products it intends to introduce soon.