Aero to begin third party maintenance of medium sized aircraft, wants tariff review for domestic aircraft maintenance business
Lagos (WorldStage Newsonline)-- Following its success in aircraft maintenance, Aero Airline said on Wednesday that it's about commencing third party C-Checks.
The Nigerian Civil Aviation Authority (NCAA) in 2011 approved Aero as an Aircraft Maintenance Organization (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). “C” checks on Boeing by the airline will commence soon.
Managing Director of Aero, Capt. Akin George said in Lagos on Wednesday that with the certification of Aero as an AMO, it intended to expand existing hangar to enable it meet the requirements of aircraft maintenance work including third party work, service the West African sub-region market for third party maintenance work, provide employment opportunities, training and staff enhancement programmes for employees.
However, George said: "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.
"The resolution to this issue can be either that spares imported as installed on a plane are subject to import duty, or that Nigerian maintenance businesses would get import duty relief. If Nigeria ever wants to allow for aircraft maintenance business to develop in Nigeria, it needs to create a level playing field between domestic and foreign operations. Right now, Nigeria is subsidizing maintenance businesses abroad and as a result is not allowing the same business develop in Nigeria.”