By Ime Akpan
Lagos
The managing director of Arik Air, Mr. Chris Ndulue has spoken against the high cost of borrowing in the country saying it has impacted negatively on the operations of airlines especially when shopping for funds to acquire aircraft abroad.
Speaking yesterday at the launch of the airline’s flyer programme, Arik Affinity Wings, Ndulue who appealed to the federal government to ensure the reduction of the cost of borrowing by 50 or 75 per cent, also condemned multiple taxes that local airlines pay to government agencies.
He argued that as one of the key sectors for national development, “it is wrong for the government or its agencies to continue to impose high tax regimes or multiple taxes on the operating carriers.”
“We keep saying that what we expect from the government is just the environment for doing business and as long as the environment is good, everybody, including Arik Air, is happy. I am not asking for specifics or things out of this world; we are only expecting that the business environment is good.
“One of the biggest challenges we have especially if you are an airline that acquires aircraft for operations, is the cost of borrowing, which is very high. This is one of the biggest problems that need to be solved.
“In the Nigerian situation, it can be reduced to 50 or 75 per cent. If that happens, it puts the airlines in a better position to compete with other airlines from outside Nigeria.
“We have also spoken about multiple taxes on Nigerian airlines and I think that government realises that aviation industry is something that requires special support. That is why some time ago there was aviation intervention fund. This means that this is an industry the government should support,” said Ndulue.
