The Director Common of the Nigerian Airspace Administration Company (NAMA), Farouk Umar, has acknowledged that the present cost of N11,000 imposed on airways per flight is outdated and now not sustainable in view of prevailing financial realities.
Mr Umar made this recognized on Tuesday in Abuja throughout a retreat organised by the Home of Representatives Committee on Aviation.
The retreat was themed “Rising Tendencies in International Aviation: Sustainability, Know-how and Digital Transformation.”
Talking on the occasion, the NAMA boss defined that the prevailing tariff, which was launched in 2008, has remained unchanged regardless of the numerous rise in the price of aviation operations, inflation, and technological investments through the years.
He famous that whereas airways have adjusted their ticket costs a number of occasions to mirror altering market circumstances, the company continues to function below an out of date price construction that undermines its capability to ship on its mandate.
“In 2008, NAMA launched the N11,000 cost. It will be important for the general public to grasp that this quantity is charged per flight, not per passenger.
“As an illustration, from Lagos to Abuja, an airline pays simply N11,000 to NAMA, regardless of whether or not the plane carries 50 passengers or 200 passengers. On the time, airways have been charging a median of N16,000 for an financial system class ticket. At present, nonetheless, the identical financial system ticket prices between N150,000 and N200,000, but the cost to NAMA has remained stagnant at N11,000,” he mentioned.
The DG careworn that as a cost-recovery company, NAMA has continued to speculate closely in modernising the nation’s aviation infrastructure, together with procuring superior touchdown programs, communication tools, and surveillance expertise, to fulfill worldwide requirements and guarantee air security.
He mentioned regardless of these enormous investments, the company has been unable to regulate its charges accordingly.
“”Now, from 2008 thus far, you and I do know that they’re accumulating nearly N150,000, or it’s hovering between N150,000 and N200,000 financial ticket, and but we’re nonetheless the place we have been, N11,000, and given the truth that we’re price restoration brokers, we’re alleged to get well from what we now have invested. We’ve invested vastly in procuring improved touchdown system, surveillance system, communication system, and but we hold modernising,” he mentioned.
On the problem of stakeholder engagement, Mr Umar defined that NAMA has made repeated efforts to seek the advice of with airways on the necessity to assessment the costs. Nonetheless, he accused the airways of being uncooperative and unfair of their responses.
“The reality of the matter is, the airways haven’t been honest to the company as a result of we’re not a charity organisation. We’re a price restoration company, and but they’ve been responding to financial prevailing circumstances, financial scenario, and but they don’t need to perceive that we additionally go to the identical markets. We procure these tools vastly, and subsequently there’s what you name price restoration,” he warned.
Earlier, in his welcome tackle, the Chairman of the Home of Representatives Committee on Aviation, Abdullahi Garba, described the retreat as an important collaboration in the direction of strengthening Nigeria’s aviation trade.
Represented by his deputy, Festus Akingbaso, the lawmaker mentioned the train was aimed toward equipping stakeholders with the information and techniques required to enhance airspace administration and improve legislative oversight.
“Our objective is to develop actionable plans and reinforce priorities that improve aviation security, infrastructure and regulatory compliance,” Mr Akingbaso mentioned.
The N11,000 cost
The N11,000 price presently charged by NAMA on every home flight was launched in 2008 as a cost-recovery measure for companies supplied by the company.
These companies embrace air visitors management, navigation aids, aeronautical communication, and surveillance, features vital to the protection and effectivity of Nigeria’s aviation system.
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On the time of its introduction, the N11,000 tariff was thought-about honest as a result of airline ticket costs averaged about N16,000 for financial system class, and operational prices have been considerably decrease.
The cost was not imposed per passenger however per plane, that means that whether or not a aircraft carried 100 or 200 passengers, the airline paid solely N11,000 for your entire journey.
This construction was designed to encourage compliance, guarantee affordability, and preserve concord between regulators and operators.
Nonetheless, through the years, the aviation sector has undergone drastic modifications. Rising gas prices, inflation, forex devaluation, and the necessity for steady funding in fashionable expertise have elevated the monetary burden on NAMA.
In the meantime, airways have adjusted ticket fares to mirror these realities, with financial system tickets now priced between N150,000 and N200,000 on fashionable home routes comparable to Lagos–Abuja.
Regardless of this sharp enhance in revenues for airways, NAMA’s cost has remained static for 17 years.
