United Nigeria CEO asks FG to create single-digit loans for airline operators

Obiora Okonkwo, founder and chairman of United Nigeria Airlines, has called on the federal government to create a single-digit credit window for airlines to have access to loans.

Okonkwo spoke in Abuja on Wednesday at a press conference to commemorate the 4th anniversary of United Nigeria.

The Nigerian businessman also said multiple charges by government agencies remain a nightmare for sector domestic operators in the sector, calling on the federal government to urgently intervene.

“One thing that will help the growth of this industry will be for government to develop the programme that will give a window access to local operators to single-digit loans,” Okonkwo  said.

“They need to cut down on the charges. The operators pay different agencies of government, in all they are about 20.

“So the margin of this business is very low. And if you have to meet all those charges, NCAA, NAMA, FAAN, and so on, you are left with nothing. It’s affecting us.

“We need to have more money to be able to develop, expand, and then also improve a working environment for our staff.

 “So I really think that access to credit is very, very critical, because we are competing with people who have access to foreign exchange credit at cost of 3 percent to 5 percent maximum. So we can compete in the global village.” 

‘FX POLICY HUGE RELIEF FOR AIRLINES’

Okonkwo also said the foreign exchange policy of President Bola Tinubu has provided some relief to the airline industry.

He said the domestication of the Cape Town Convention has helped to reduce cost operations in the industry.

“I think that the forex policy of the Tinubu administration has been of tremendous advantage to the airline industry,” he added.

“Before he came into power, it was a nightmare for us to be able to convert naira to foreign currency to pay our obligations. We lost a whole lot of contracts. 

“We lost because you have your money stuck in naira and cannot get the forex that you need.”

‘WE OVERBEND TO PLEASE PASSENGERS BUT THEY THEY STRESS US’

Speaking further on flight delays and cancellations,  Okonkwo said passengers who experience challenges while travelling, especially at the airport, should blame the authorities for the issues faced.

“When you’re at the airport, it is no more the responsibility of the operator to communicate. It is the FAAN to notify passengers,” he said.

“I can tell you that our biggest challenge as operators are the passengers. 

“The passengers whom we strive day and night to service and please are the same people who will turn around and become unruly for no just reason. 

“You cannot overemphasised the issues of delays. Delays happen in any part of the world but we need to work together with the press to educate the travelling public about their rights and obligations. We know what we owe them as operators.

“We overbend ourselves, you know, we do beyond anything that can be done for local flight, a passenger in any part of the world to satisfy them. But despite all that, their attitude and behaviours put a lot of stress on the operators.

“Sometimes passengers are beaten up, sometimes equipments are destroyed in the airport.

“That’s really our main priority this year. While we work on other areas to improve our services, the government is working on infrastructure improvement.”

On the hike in ticket prices, the airline’s chair said operators do their best to subsidise for passengers to fly.

“We know things are hard and that subsidy we give you is affecting our growth. And if we don’t grow at the proportion and ratio we should, it will affect our services,” he said.

Okonkwo said the airline is working on expansion as he called on the government to improve in areas of infrastructure to ease operations.