Domestic Airlines Must Divest Ownership To Become National Carrier – Chidoka | Independent Newspapers Limited
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Domestic Airlines Must Divest Ownership To Become National Carrier – Chidoka

Posted: May 29, 2015 at 12:00 am   /   by   /   comments (0)

The Aviation Minister, Chief Osita Chidoka, has said that for any of the domestic airlines currently operating domestic flight to become a national carrier, it must divest its ownership structure.

This is just as he said that the Ministry of Aviation was over bloated with departments that are not relevant to the system.

He said this while presenting his aviation score card to stakeholders in Lagos yesterday.

The minister stated that attempt to make Aero a national carrier failed because the minority shareholders refused to agree to restructure the ownership.

He added that Aero was chosen because of its indebtedness to the Federal Government, its safety records and the size of its fleet.

He said that because of that it was advised that Nigeria should explore the multiple carrier option instead of the single national carrier.

Chidoka informed that for any airline to transform into a national carrier, apart from divesting its ownership structure, it must have International Air Transport Association (IATA) Operational Safety Audit (IOSA) certification, it must have evidence of technical partnership, and must meet minimum fleet size and equipment.”

According to him, “For you to be a national carrier, the ownership structure must be divested, you must have IOSA certification ,must have evidence of a technical partner among other recommendations.”

He said that he had appealed to Pension Commission (PenCom)to set aside 3 per cent to invest in airlines, adding that when this was done it would help to grow Nigerian airlines.

On the survival of airlines, the Aviation Minister stated that he would not subscribe to a situation where airlines were allowed to die before trying to rescue them, adding that the regulator should be proactive to intervene in any airline the moment it notice  any sign of problem.

“There is the need to set up Aviation corporate governance and enterprise Risk framework to reduce the probability of aviation corporation failure due to moral hazard.” Chidoka said

On the multiple departments in the Aviation Ministry, Chidoka said that most of the department are not relevant to the ministry and the system.

The Aviation Ministry boss disclosed that the problem with the ministry is not the removal of the minister but the frequent posting and transfer of the permanent secretary.

This, he said had create room for politicians and contractors have taken over the ministry.

On  in- flight catering organisations seeking licence to operate in Nigeria ,he said that he would not give approval to any foreign company seeking approval to operate in the country, adding that when Nigeria In-flight catering company; Airline Services Limited(ASL) tried to operate in Britain ,it was frustrated .