Airlines Operators Urge FG to Address High Insurance Premium

Captain Dele Ore 

  

Martha Momoh

Airline Operators have called on the federal government to address the high insurance premium paid on commercial aircraft by the Nigerian airline operators.

They decried the high premium is having a negative effect on their operations as funds needed for other safety issues and training are used for payment of insurance on acquired aircraft.

Their position was contained in the communiqué issued at the end of the interactive forum with the domestic airlines by the Aviation Round Table (ART) in Lagos.

The communiqué signed by the President, Captain Dele Ore noted that insurance premium paid by the local operators was very high and worrisome and called on the relevant authorities and organisations to address the situation.

Ore emphasised that certification of the nation’s airports and other proactive economic indices by the government would go a long way in reducing the high insurance premium paid by airlines.

As at the moment, none of the federal government’s 22 airports is certified by the Nigerian Civil Aviation Authority (NCAA) a situation stakeholders and professionals have overtime insisted led to high insurance premium paid by the airlines.

But recently, the Managing Director, Federal Airports Authority of Nigeria (FAAN), Saleh Dunoma said the certification of the airports would commence with the five international airports across the country, assuring that the country would meet the 2015 deadline as set by the International Civil Aviaton Organisation (ICAO).

Dunoma stated that the agency had in 2006 signed an undertaking with NCAA to certify the country’s international airports.

However, the communiqué further opined that a regulatory fleet consolidation process should be initiated by NCAA with the backing of the National Assembly as a way of strengthening the local operators.

According to the communique, in view of the high cost of aircraft, all service providers to the airlines be it public or private should maintain a comprehensive insurance portfolio to mitigate damages to airlines’ equipment as provided for in Part 18 of the NigCARs 2012.

It added: “The high cost of aviation fuel (JET A1) is affecting the profitability of the airlines. The bridging of supply by fuel trucks and demurrage are part of the problems and should be addressed by government and marketers.

“The multiple entries, frequencies and capacities allocated to foreign airlines are adversely affecting the growth and survival of local operators. Government should therefore urgently review this trend in line with the stoppage of payment of royalties by foreign airlines.

“There is a need to review the certification and operations of private jets as safety and security of the nation is being threatened while non-scheduled operators are being short-changed. The use of foreign registered aircraft with foreign crew denies Nigerians of employment and dilutes the Nigerian content provision.”