10 airlines get N87 billion

TEN airlines have received N87billion cash from the government to boost their operations and ensure safety, it was learnt at the weekend.
The cash is from the N300b Aviation Intervention Fund, Senior Special Assistant to the President on Aviation, Captain Shehu Iyal said.
The government made the cash available following complaints by airlines, including Aero, Virgin Nigeria and Chachangi, the global economic recession was having adverse effects on their operations as they were being bogged down by debts.
Besides, there were high interest rates, low working capital, absence of medium/long term funding, high custom duties, VAT and other taxes.
Iyal, in a paper submitted to the Senate and House of Representatives’ joint sitting on the June 3 Dana Air crash, noted that some of the major airlines made the request for assistance during the tenure of the late President Umaru Yar’Adua.
Apart from the issues raised by the airlines’ operators at the joint sitting, stakeholders have expressed doubts about a possible diversion of the funds to other means by the beneficiaries.
He also said the country stands to benefit immensely from the Memorandum of Understanding signed with Lufthansa after work on the ongoing review of the MoU might have been concluded.
Source