Managing Director of Dana Air, Jacky Hathiramani says there is need for Nigerian to build Aerospace Maintenance, Repair and Overhaul (MRO) facility so as to end capital flight arising from oversea maintenance of aircraft
Stories: Anthony Awunor
The Managing Director of Dana Air, Jacky Hathiramani has pointed out that the government needs to urgently build an Aerospace Maintenance, Repair & Overhaul (MRO) facility to safeguard capital flight as the absence of a functional MRO facility in Nigeria is depleting the nation’s foreign reserve. Hathiramani said that the depletion of the reserve is due to the fact that airlines periodically take aircraft in their fleet to far flung countries for heavy maintenance.
The Dana Air CEO was speaking while commending Buhari for his integrity, passion, resilience as well as his determination which led to his historic victory at the polls and eventual inauguration as the President, Commander in Chief of the armed forces of the Federal Republic of Nigeria. He therefore urged the President to deliver a well-designed aviation network with potential huge benefits for users, as well as for growth and investment in the wider economy. He also stressed long overdue review existing Multi-Designations approved for foreign carriers, as most of them operate without reciprocity to different cities in Nigeria.
He implored the new government to instead encourage the international carriers to form alliances with the domestic operators to strengthen the sector. Dana boss also called on the federal to create businessfriendly aviation industry as high cost of aviation fuel, increasing interest rate, high cost of aircraft lease, high insurance cost and imposition Value Added Tax (VAT) on air transport are making the industry less attractive and lucrative.
He maintained that the gove r n m e n t s h o u l d f u r t h e r co n s ider Av i a t i o n fuel hedging for the domestic airlines to help them offset any possible losses in the short term while efforts are on to revamp the refineries. While decrying the current taxes paid on tickets, he called for provision of special intervention funds as single digit interest loans for airline operators.
The initiative according to him will aid availability of working capital for the airlines and improved liquidity. Hathiramani has proposed an Aviation Blue Print for President Muhammadu Buhari’s administration recently. According to him, the proposal was in line with the president’s message of change and the yearnings of many in the aviation industry, given that Mr. President had promised to appoint technocrats to run the different aspects of the economy including the aviation sector.