Aviation Safety Group Urges FG To Comply with Provisions of BASA over Airlines’ Trapped $464m
Following the crisis brewing in the aviation sector, the Aviation Safety Round Table Initiative (ART) has called on the federal government to comply with the provisions of the bilateral air services agreement (BASA) as regards foreign airlines’ $464 million revenue trapped in Nigeria.
Olumide Ohunayo, assistant secretary-general of ART, made this appeal in a statement issued on Friday, adding that the agreement makes provision for the repatriation of revenue earned by foreign airlines.
BASA is an air transport agreement between two countries that allows designated airlines to operate commercial flights, covering transportation of passengers and cargoes.
According to the statement “In all bilateral air services agreement an article in the agreement — transfer of earnings — clearly states that ‘each designated airline shall have the right to convert and remit to its country on demand, local revenues in excess of sums locally disbursed. Conversion and remittance shall be permitted without delay in accordance with the prevailing foreign exchange regulations.
“International trade is bound by agreements which are sacrosanct and respected. Nigeria cannot do otherwise if we crave the attention of investors in our industry.
“It’s important to state that foreign airlines sold these tickets at the official IATA rate and cannot be expected to go [to] the parallel market to source, convert and remit as opined in some quarters, the central bank should do the needful as enshrined in the BASA agreements.”
Ohunayo stated further that the funds should have been remitted at the official rate on date of sale immediately the airlines got clearance after paying all the local obligations, including taxes.
He lamented that Nigeria’s aviation sector could shortly witness the dearth of foreign airlines who are now taking stern measures against the market in attempts to recover the $464 million trapped funds.
