TheCable

Allen Onyema, the chief executive officer of Air Peace, has commended the federal government for supporting airline operators.

In November, the federal government approved N4 billion as bailout to operators to cushion the effects of COVID-19 on their business.

With the signing of the finance act 2020 on December 31, 2020, commercial aircrafts, commercial aircraft engines, commercial aircraft spare parts, airline tickets have become VAT-exempt.

In an interview with Channels TV, Onyema said airline operators in Nigeria have never enjoyed it so good.

He said the federal government has created an enabling environment by removing VAT and other expenses affecting airline operations.

Onyema said the federal government also provided loans to airline operators at an interest of five percent.

“A lot of people are looking at the N4 billion given to us but the federal government did something better that will help the airlines. They gave us loans at five percent, that will help the airlines,” he said.

“If the federal government had approved N10 billion for every airline and the enabling environment is not there for us to operate, within a month your N10 billion will vanish.

“The federal government approved, I mean it has gone into our laws now, zero duty on imported aircraft, zero VAT (value-added tax) on imported aircraft, they even went further to add zero VAT on air transport tickets, we have never had it so good. This is going to help us.”

Citing the implication of the federal government support, Onyema said he already purchased 13 new aircrafts.

He said if the president had refused to create an enabling environment for airline operators, “we would have paid through our noses”.