Dana Air Managing Director, Jacky Hathiramani, has proposed an aviation blueprint for the new federal administration, saying President Muhammadu Buhari’s message of change resonates with the vision of the airline.
Hathiramani urged the federal government to create a business-friendly aviation industry, as the high cost of aviation fuel, interest rate, aircraft lease, insurance, and value added tax (VAT) make the industry less attractive and lucrative.
He noted that Buhari has promised to appoint technocrats to run the different sectors of the economy, including aviation.
He expressed optimism that Buhari will build on the positive achievements of previous governments to deliver a well-designed aviation network with huge benefits for users, as well as for growth and investment in the wider economy.
In his view, the government should build an aerospace maintenance, repair and overhaul (MRO) facility to prevent capital flight, as airlines take their fleet to overseas countries for maintenance.
Hathiramani also asked the government to consider aviation fuel hedging for domestic airlines to help them offset possible losses in the short term while efforts are on to revamp the refineries.
He decried taxes paid on tickets and sought a special intervention fund as loan to airline operators at single-digit interest.
He charged the Buhari administration to review multi designations approved for foreign carriers as most operate to different cities without reciprocity.
Instead, he counselled, the government should encourage international carriers to form alliances with domestic operators to strengthen the sector.
