Three-Tier Airline Licensing Structure Gathers Steam … As 3 Carriers Risk Extinction - Financial Daily News Site

Three-Tier Airline Licensing Structure Gathers Steam … As 3 Carriers Risk Extinction

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June 18, (THEWILL) – The Federal Government has been advised to adopt a 3-tier airline licensing structure through the apex aviation regulatory agency, Nigerian Civil Aviation Authority (NCAA).

The structure is targeted at establishing a 3-tier Airline Licensing Structure based on aircraft capacity to include: Air Taxi which entails 10 – 19 Seater aircraft; Commuter that entails 30 – 50 / 70 Seater aircraft and Regional / International, involving 100 – 250 Seater aircraft.

This is just as there are fears in connection to the imminent closure of three struggling airlines which may go under soon, due to depleting fleet size, increasing cost of Jet A1, lack of forex, poor infrastructure amongst other impediments.

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Overtime, aviation fuel has skyrocketed to N714 per litre in some airports in the country, a situation that is putting most of the airlines on their toes.

While the level of infrastructure at most of the airports limits turnaround time of operators at the apron, scarcity of foreign exchange further reduces the operations and expansion of ground handling businesses in the country.

These submissions were some of the observations made during the ongoing FNAC with the theme: “Nigerian Airport System:

Addressing Nigeria’s Unviable Airports Syndrome – Constraints and Evolving Sustainable Growth Strategies” organised by the FAAN.

Speaking at the ongoing conference , the President and Chief Executive Officer of Top Brass Aviation Limited, Roland Iyayi, made a case for a 3-tier airline licensing structure, emphasising that such move will naturally defines market segments.

Besides, other players like aviation fuel marketers, ground handling companies and catering services in their separate presentations, complained about the state of infrastructure at some of the airports, but said FAAN in the last three years had done a lot to improve the facilities at the aerodromes.

Iyayi pointed out that, there are several policy changes required to salvage the airport system, stating that one of such solutions is is not absolutely funding.

“The role of governments in the 21st Century must evolve from that of being an omnibus provider of citizens’ needs into a force for eliminating the bottlenecks and bureaucracies that impede innovation and market-based solutions,” he noted.

Tags: #ThreeTier #Airline #Licensing #Structure #Gathers #Steam #Carriers #Risk #Extinction

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