The National Union of Air Transport Employees (NUATE) has petitioned Senator Hadi Sirika, the Minister of Aviation over the continuous failure of foreign airlines to repatriate their funds out of the country in the past six months, warning that it’s a disaster waiting to happen.
The union also proposed to the Federal Government to engage in a crude oil swap agreement with the airlines to defray the backlog in the first instance.
NUATE in a letter signed by Comrade Ocheme Aba, the General Secretary, NUATE, dated August 22, 2022 said that the inability of the airlines to repatriate their funds had caused colossal collateral damage to Nigeria’s image.
Ocheme insisted that as the trade union to which all workers in the foreign airlines belong, its stake in this imbroglio was, without question, much higher than most other stakeholders.
NUATE appealed to Sirika to use his industry experience as an aviation professional to intervene in the crisis and resolve the issue to avoid further damages to the country’s image.
The union warned that if the challenge persisted it may lead to the loss of jobs for hundreds of Nigerians working for foreign airlines, adding that it would also affect the numerous service providers like the ground handling companies, catering services, logistics, aviation security and others working directly in the industry.
The union said: “First of all, knowing who you are convinces us that this unpleasant situation must have preoccupied you already, and that your office must already has been working very hard to find a workable solution.
“Secondly, being that you are, yourself, an aviation professional means that we need not bore you with enumerating the many dangers the continuation of this very adverse situation poses to the health of the aviation sector, the national economy, and Nigeria’s standing in the comity of nations.”
The union decried that the sordid situation was already being felt by the reductions of operations that have come into effect in the past weeks by the operating airlines.
The union however admitted that the country was currently going through economic difficulties with regard to the acute shortage of foreign exchange earnings, but emphasised that there is apparent calamity that would befall the nation if the situation was not ameliorated quickly by the government.
On the way out of the present imbroglio, the union suggested for oil swap to defray the debt.
“We urge you to prevail on the Federal Government to take extraordinary measures to resolve the quagmire. Such a measure could include the use of crude oil swap to defray the backlog in the first instance.
“Please, do not be cowered by the enormity of this, and other, problems presently mitigating the sector’s projected growth. We offer our hand of support, whatever that counts for, at this very trying time. We equally make ourselves available for any stakeholders meeting convened to address the matter. And we are hopeful that God helping we shall overcome,” the union said.
The trapped funds of the foreign airlines had skyrocketed to $464 million in recent times, according to the International Air Transport Association (IATA).
Already, Emirates airline had reduced its weekly frequencies into Lagos by three, while it last Thursday announced the plan to suspend flight services into Nigeria effective September 1, 2022.
A statement by the media consultant to the airline in Nigeria alleged that all efforts to repatriate the funds had proved abortive and was compelled to take the decisive decision of suspending all flights into the country.
”Regrettably, there has been no progress. Therefore, Emirates has taken the difficult decision to suspend all flights to and from Nigeria, effective September 1 2022, to limit further losses and impact on our operational costs that continue to accumulate in the market.
”We sincerely regret the inconvenience caused to our customers, however the circumstances are beyond our control at this stage. We will be working to help impacted customers make alternative travel arrangements wherever possible. “
“Should there be any positive developments in the coming days regarding Emirates’ blocked funds in Nigeria, we will of course re-evaluate our decision. We remain keen to serve Nigeria, and our operations provide much needed connectivity for Nigerian travellers, providing access to trade and tourism opportunities to Dubai, and to our broader network of over 130 destinations.”
