Passengers Stranded At Airports
By Wole Shadare
The Federal Airports Authority of Nigeria (FAAN), yesterday grounded the operations of domestic airlines, which owe it over N5 billion debts; making their stranded passengers to make arrangement with other airlines that have long paid their debts.
The situation dislocated some passengers travel plans, but some of the airlines resumed operations later in the day.
The decision was taken by the authority after the ultimatum given to the carriers expired on Friday.
Virtually all the airlines were said to owe the staggering amount, which came from both aeronautical and non-aeronautical services rendered to them.
The airlines sensing huge revenue loss the action might have on their operations promptly went to reconcile their debts before being let off the hook.
Among those said to have been grounded temporarily were Virgin Nigeria, Arik, Afrijet, and IRS Airlines.
Spokesman for FAAN, Akin Olukunle confirmed the development, but added that the situation has since been brought under control.
Mr. Banji Ola, spokesman for Arik told The Guardian that his airline was not owing. He said: "We have settled all our debts to FAAN".
According to Martha Damina one of the operators, she said her carrier was reconciling with FAAN and it is the practice worldwide as it is for parties to agree to repayment terms after reconciliation.
According to her, "Every country is supporting their industry to cope with the current global economic down turn. This type of action shows the industry in crises, which will not serve the economy for long and the general public as well. She called on the government to support the industry.
She added that while the Central Bank of Nigeria supports banks, "our friends in Maritime and road transport sector do not have this type of challenges. While we have had Federal assisted programmes such as ship acquisition funds; and Road mass transit program; for the transportation sector, no programme has been put in place to support the airlines, " she added.
Damina reiterated that the devaluation of the Naira was severe and called on the government to help the industry.
Others which services were suspended yesterday included all the concessionaires, who have refused to remit money to FAAN based on the concession agreement reached with the authority.
According to a source in FAAN, the grounding of flights may be a prelude to reviewing all the concession agreement the concessionaires have had with the airport managers in the revenue generation drive.
Pan Express, a concessionaire with FAAN, which helps her to collect port charges, had seriously come under scrutiny for alleged non-remittance of revenue to FAAN.
Maevis, the firm hired by FAAN to help track revenue on landing and parking charges of airlines, including easy facilitation of passengers through the Lagos airport also came under review following claims and counter claims that money collected has not been remitted to FAAN as well.
The Chief Executive of the firm, Mr. Tunde Fagbemi has however denied the allegation, claiming that FAAN now makes more money that it used to make.
FAAN had late last year given the airlines two weeks to reconcile their account, but up till now, the airlines were yet to respond, but there are indications that the authority meant business this time around following her dwindling revenue generation.
