BusinessAnambra Airport: Air Peace, United Nigeria Passengers Pay N120m Taxes

Anambra Airport: Air Peace, United Nigeria Passengers Pay N120m Taxes

GTBCO FOOD DRINL

January 30, (THEWILL) – Passengers of two major air transport companies, Air Peace Airline and United Nigeria Airline paid a total of not less than N120 million tax and charges in using the new Anambra Airport in one month. The taxes consist of Sales Tax, Airport Service Charge and Fuel Charge, which constitute the amount of the tickets for domestic trips. The passengers used the airport in a total of 146 flights that took-off or arrived at the airport during trips that connect mainly Lagos and Abuja.

According to the Commissioner for Works, Mr Marcel Ifejiofor, the newly inaugurated Anambra Cargo Airport at Umueri near Awka, recorded 142 flights with 3,865 passengers landing and taking off from the airport after one month of the opening of the facility. The airport was opened for commercial services on December 7, 2021.

Mr Ejiofor, who made the disclosure in media interview noted that while the flight and passenger figures surpassed projections when compared with the airport’s contemporaries, it would have been higer, if more airlines joined Air Peace and United Airlines in using the airport

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The taxes and charges were gleaned from the tickets issued to the passengers by the airlines for trips to or from the airport. Although the period coincided with the Yuletide when demand for air transport service is usually high, a study of the airlines’ tickets showed that the taxes and charges followed a consistent pattern, irrespective of the fare.

As of Friday, January 28, 2022, Air Peace ticket for economy class to Lagos or Abuja from Owerri and Anambra cost N23,300. The breakdown of the tickets are Fare N5,400 or 23.17 percent of the total ticket value and NG Sales Tax of N400 representing 1.71 percent of the total amount. Others are QT Airport Service Charge N2,000 and Fuel Charges of N15,500 being 8.58 percent and 66.52 percent of the entire ticket amount respectively.

For business class on the same route by Air Peace, the total ticket value is N70,300. The components of this ticket are Fare N38,200 or 54.33 percent, NG Sales Tax N2,100 and QT Airport Service Charge N2,000. These represent 2.98 percent and 2.86 percent respectively. Fuel Service Charge gulps N28,000 or 39.82 percent.

The fare is virtually the same with that of United Nigeria, with a small variation of about N2,000 less for United Nigeria, depending on the time of purchasing the ticket and the mode of booking – online or across the counter. Although the breakdown was not ascertained, the components for the two airlines followed the same pattern during the festive season last month.

Investigation showed that last December economy class one-way ticket sold for N38,000, while business class passengers paid up to N120,000 for both airlines. Using the subsisting percentage allocation, the breakdown for the N38,000 economy ticket was N8,804 for Fare while NG Sales Tax was N649.80. QT Airport Service Charge was N3,260.40 and Fuel Charge N25,277.60 – all one way. Business class travelers paid about N120,000.

The tax and charges for economy class totally N30,000 per passenger. This means that the 3,865 passengers paid a total of N116 million taxes and charges. Assuming that five percent of the passengers travelled on business class this amounts to additional N9 million, bringing the taxes and charges to a total of N125 million paid by the 3,865 passengers who used the 146 flights during the period.

Mr Ifejiofor, who is also the head of the Anambra State Airport Project Committee, said the airport contributed significantly to easing passenger traffic during the yuletide.

He said that passengers who would have landed at Asaba and Enugu Airports flew straight into the Anambra airport and that those who would have landed at Asaba and Enugu Airports flew straight into the Anambra airport.

“Anambra Airport is a hub, there is no place you can’t go to in Nigeria from Anambra State. We are just scratching the surface in terms of activities that will take place here,” he said.

Also speaking, Mr Martin Nwafor, the Managing Director of the Anambra Airport Management Authority, said the service quality at the airport had continued to improve.

Nwafor said that all the regulatory agencies in the aviation sector, including the Nigerian Civil Aviation Authority, Nigerian Meteorological Agency, Federal Airports Authority of Nigeria, among others, were now domiciled at the airport.

He said there had not been any issue since the opening of the airport and that the airport management was prepared to handle issues as they arose.

Nwafor said that workers deployed to the airport were trained and that they had been given sufficient orientation on how to do their jobs

The Nigeria Civil Aviation Authority, NCAA recently confirmed the upgrading of the Anambra International Cargo and Passenger Airport, Umueri, to Aerodrome rescue and Fire Fighting, ARFF, Category 6, to operate Boeing 737-700 or its equivalent.

The approval was transmitted to the Governor of Anambra State, Willie Obiano, through a letter dated January 24, 2022 and signed by NCAA Director-General, Captain Musa Nuhu.

The NCAA approved the upgrade after assessing facilities and personnel at the fire station in the airport and finding them “appropriate and commensurate with aerodrome rescue and firefighting category 6 operations.”

Captain Nuhu said the approval was based on a satisfactory inspection carried out by aerodrome safety inspectors at the airport on the 21st of January, 2022 to ascertain the preparedness of the airport for the upgrade in fire cover from Cat 5 to Cat 6.

“This is to inform His Excellency that the on-site assessment of the existing facilities and personnel at the fire station revealed that the level of protection is appropriate to and commensurate with aerodrome rescue and firefighting category 6 operation,” the letter partly read.

“In view of the above, the Authority hereby grants approval for the upgrade of the Anambra Internaational Cargo Airport to aerodrome rescue and firefighting (ARFF) category 6 to operate Boeing 737-700 or its equivalent.”

The upgrade reflects the determination of Governor Willie Obiano towards ensuring that the Anambra Airport functions at full capacity to offer residents of the state the best services.

About the Author

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Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.

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Sam Diala, THEWILLhttps://thewillnews.com
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.

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