Surviving airlines are only doing national service, says Arik
Joseph Arumemi-Ikhide, chairman of Arik Air, one of Nigeria’s surviving airlines, says the policies of the Central Bank of Nigeria (CBN) do not favour local airlines.
Arumemi-Ikhide, who prides himself as the founder of West Africa’s largest airline, also said Nigerian airlines “are just offering national service” as the fares are the lowest in the world.
“Government policies, or central bank policies do not favour us. For example, the CBN said that 60 percent of foreign inflow should be for manufacturers,” he said in an interview on Channels Television.
“They’ve forgotten that the engine of any economy is air travel. Nothing is provided for us, we have to scramble like every other person.
“The same thing in the tax (system); the FIRS has a different rate for company tax, and airlines are seen as services, so by the time you finish, you pay almost 40 percent.
“So, its only air travel that we pay VAT, road transportation and others don’t pay VAT. So the stakes are against airline operators in Nigeria, from government.”
He urged the government to encourage airline operators with the right policies, adding that the landscape is really tough on airlines.
“We have to source our forex and spare parts, all of us, all the commercial airlines. It’s really tough, and our fares are the lowest in the world.
“Let me say something, naira is now about 350 to the dollar, and if you look at Lagos to Abuja, it’s less than 35,000, that is less $100.
“There is nowhere you can get it. I consider that all my colleagues and I (are) doing national service.
“You don’t even get fuel; fuel prices are shooting off the roof. Before the flexible exchange rate was introduced, we were buying fuel for about N110 per litre.
“Now it’s N215 per litre and you can’t even get it. The situation in the country is not favourable to the airlines at all.”
He expressed support of a national carrier, saying that many developed nations possess national careers.
Over the past week, two Nigerian airlines – Aero Contractors and FirstNation – have suspended operations due to challenging economic realities.
Kindly ask this Chairman, why he keeps employing more foreigners and paying them thousands of dollars for what nigerians can do and better than the expariate.. Ask Arik Chairman why for the past 6 yrs he hasnt paid his staff pension, and why he always owe his staff consistently for the past 7 yrs. Ask him why he now want a national carrier, what he has been fighting against, ask him if not bcos he want to make billions from the buy over… He is just a hypocrites and a liar. As at today he is owing his staff june to august salary. He is a money launder.. God will judge you soon!! …..
Pls mr chairman refund my money for cancelled flight of may 2015. Lagos to Abuja. Pls things are hard pay me my money.
I understand there is a scarcity of jet fuel due to high demand and low supply and we should all understand and cooperate. I however don’t see European and other African airlines suffering through this shortage of fuel. I was reading a news on the website
http://www.arik-air.co.uk and found only Arik Air is experiencing the shortage of fuel and probably because of non-payments towards FAAN taxes. I appreciate that Arik Air is struggling to overcome this scarcity and intending to continue their operations as normal