Covid 19: Aviation Sector Suffers N24B Loss - Hadi Sirika

PC: Vanguard

"The aviation sector has in a month recorded loss of about 42 billion naira due to the coronavirus pandemic that its return may take a long time" this the Minister of Aviation Hadi Sirika confirmed this week during the daily COVID-19 panel’s briefing at Abuja.

The sector hit by a major financial crisis having lost N24 billion in the month is to remain short to commercial activities for another four weeks, it was announced yesterday.

Sirika, further said: “We are the worst-hit than any other sector. Almost 17bn is being lost monthly by the airlines, thanks to COVID-19. The sector is highly regulated and very coordinated and has such standards that must be followed at all times regardless because they speak to safety. Safety, security, and efficiency of the sector are extremely important regardless of what is going on.”

Giving further details of the financial loss, he said: “Based on the trend of events before COVID-19, the total loss is about N21bn approximately plus about N3bn tangentially and this is divided in this form; N7bn for aviation agencies which they lose in a month, N10bn for airline and N4bn for ground handling, catering and others and the tangential N3bn.

“Also the figures from International Airline Transport Association (AITA) Economics gave economic impact in Africa’s largest aviation market and that for Nigeria; airline revenue loss is $994million, in terms of employment at risk in Nigeria, it is 125,370, loss of contribution to the GDP is $885million.

“These are IATA figures and because the sector has to do service delivery and it has not been able to render services, then the revenue is lost because the service has not been rendered and that means I have lost it. This is the situation of civil aviation, it is a pathetic one, we are all crying and I can guarantee you several airlines are not going to come out of it, unfortunately.”

The minister also explained that certain measures have to be put in place before flight operation resumes.

Sirika said: “They will not be able to just open up after closing for several weeks and start flying. For example, if you keep your car for several weeks and you come back to start it after six months, the car will develop a problem. So, the airplanes have been kept and when we are going to bring them back into service, we will make sure that they are airworthy and they can make those flights safely.

“So also the flight crew; those flying the airplanes. They have certain standards they must conform with. They have their licensing issues to also sort out which will fall due for recurrence within this period. Certainly, they will not just pack their bags and continue where they left. They must conform to the standards and ensure that they are safe to operate in terms of their medicals and proficiency to be able to conduct a safe flight.

“There are protocols we developed which must be adhered to which includes social distancing, so we have to train the staff on such activities. Also inside the aircraft, the cabin crew has to keep passengers alive and not just to serve tea. These people need to be trained on what to do in case anybody shows signs of the virus during flights.

He added: “At the end of 2018 Q4, aviation became the second-fastest-growing sector in the country and Q4 2019 just finished and aviation was the fastest growing sector in Nigeria. This is the figures by the Nigeria Bureau of Statistic. We believe the roadmap we are running will take us to greater heights and it is adding to the GDP and the general wellbeing of our economy. We want to come back quickly but safely and efficiently.”

On the extension of the closure of the airport, the Secretary to the Government of the Federation (SGF) Boss Mustapha said: “Tomorrow marks the last day for the enforcement of the closure of Nigeria’s airspace to flights.

“We have assessed the situation in the aviation industry and we have concluded that given the facts available to us and based on the advice of experts, the ban on all flights will be extended for an additional four weeks.”