Keyamo suspends proposed $300 helicopter landing fee

Minister of Aerospace Development Festus Keyamo on Friday announced the temporary suspension of the controversial $300 helicopter landing fee, which was outsourced to Messer’s NAEBI Dynamic Concept Limited.

The decision, which came into effect on May 30, came after the Airline Operators of Nigeria (AON) opposed the fee on the grounds that it would be commercially damaging to helicopter operators and the Nigerian economy in general.

Keyamo announced the suspension in a statement signed by Odutayo Oluseyi, the ministry’s spokesperson.

He said further action would be taken on the matter after a committee of inquiry submitted its report for scrutiny.

The statement read: “Following a meeting with AON management on an issue of collection of heli landing fees at aerodromes, helipads, runways, etc., the Minister of Aerospace Development, Festus Keyamo, has temporarily stayed the execution warrant issued by the Federal Government against Messer’s NAEBI Dynamic Concept Ltd as a consultant to collect such fees.

“The suspension will take effect on 30 May 2024. The minister said it was the result of calls from some industry stakeholders for a review.

“Therefore, Keyamo has set up a committee with members from the Ministry of Aerospace Development and its relevant agencies, the Airlines of Nigeria (AON), International Oil Companies (IOCs) and Messer’s NAEBI Dynamic Concept Ltd, to investigate the issues raised by the concerned stakeholders and submit a report no later than the end of June 2024.

“Messers NAEBI Dynamic Concept Ltd has been granted exclusive rights by the Federal Government to levy such charges as a consultant, with the parties expressing reservations about the appropriateness of the charges. “The Committee’s recommendation(s) would provide a way forward.”

Keyamo had previously urged those who had fooled around with the introduction of the new $300 per landing fee for helicopter operators to think again, because the fee was now set in stone.

He said the new arrangement, which also serves as a cost recovery measure, is in line with best international practices and is designed to improve the quality of helicopter operations in Nigeria.

The minister stressed in a statement that helipad fees were common practice in countries like the United States, Britain, India and various regions around the world, and asked why Nigeria should be an exception.

BuisnessDay’s research has found that every domestic airline in the country is subject to a total of 13.5 per cent in taxes. This includes a five per cent ticket sales fee (charter/cargo), 7.5 per cent VAT and a one per cent development tax. And this is all before applicable corporation tax, PAYE, pension schemes etc.

Additional fees also apply to each individual flight, such as flight clearance, navigation, parking or landing, etc. In addition, there are other personnel and equipment-specific fees, such as licenses, training, aircraft certifications, insurance, etc.

These airlines still have to deal with operating costs such as fuel, maintenance and depreciation.

In total, taxes amount to around 32.7 percent of airlines’ gross domestic revenues.

The global average profitability of large airlines of equivalent size and reach is between 1.5 and 2.5 percent. Boeing expects the impact of size and reach to impact an airline’s operations when it operates a single fleet of 50 or more aircraft.