Finance

Aero commences third party maintenance of medium sized aircraft

By LAWANI MIKAIRU

Operators of Aero Airlines are to start rendering maintenance of medium sized aircraft services to other airlines and aircraft owners. This is coming as the airline has expanded  its existing hanger in Lagos to meet the requirements of aircraft maintenance work including third party C-Checks and servicing the West African sub-regional market for third party maintenance work.

It will be recalled that the Nigerian Civil Aviation Authority ,NCAA, in 2011 approved Aero as an Aircraft Maintenance Organisation, AMO, for “A” and “B” checks on Boeing Airplanes, various levels of checks on other Airplanes, Boroscope, Wheels and Brakes (Assembly, Overhaul, Replacement, NDT), Air Frames (NDT), and Avionics and Battery (Cap Check, Overhaul).  This latest development by Aero will provide employment opportunities for more Nigerians and training and staff enhancement programmes for its employees.

However, the Managing Director of Aero, Capt. Akin George said for the Nigerian airline to set up bigger hanger that will enable them carry out ‘ C’ and ‘D’ Checks locally,  government should give airlines duty waivers on spare parts and tax rebate. According to him ‘’ a lot has been said about carrying out “C” and “D” checks abroad. The expected savings currently anticipated from doing the checks in Nigeria are quite little due to the current taxation policy.

“Nigeria has relatively high import duties on aircraft parts. Airlines typically fly their aircraft to, say, Turkey to have them serviced and relevant parts replaced. Once that aircraft flies back to Nigeria, the new parts are not subject to import duties as they are already installed on the plane.

This puts any Nigerian maintenance provider in a big disadvantage against foreign players. A Nigerian maintenance provider would need to import all spares used in maintenance and thus incur the import duties that those maintaining their aircraft abroad avoid completely.”

Captain George advised that  if Nigeria  wants to allow  aircraft maintenance business to develop in Nigeria, it needs to create a level playing field between domestic and foreign operators. Right now, Nigeria is subsidizing maintenance businesses abroad and as a result, is not allowing the same business develop in Nigeria.