Briefing newsmen at the end of the FEC meeting held at the Council Chambers of the State House, Abuja, Aviation and Aerospace Development Minister, Festus Keyamo, highlighted several reasons why the suspended Nigeria Air project conceived by the administration of ex-President Muhammadu Buhari could not be continued by the present government.
- Monopoly Concerns: Minister Festus Keyamo highlighted that the primary objective of the suspended Nigeria Air project, as conceived by the previous administration, was to create a monopoly in the aviation sector. This strategy, formulated during President Buhari's administration, aimed to centralize the market, potentially leading to imbalances within the aviation system.
- Tax Waivers and Market Distortion: The government's plan for Nigeria Air included the ambitious goal of crashing airfares by offering substantial tax waivers for the proposed airline. However, Keyamo argued that implementing tax waivers exclusively for Nigeria Air while neglecting other privately owned airlines would have distorted the market, creating an uneven playing field and disadvantaging competitors.
- Potential Monopoly Impact: Waiving taxes for Nigeria Air, according to Keyamo, could have resulted in a monopoly within the aviation industry. This scenario, where the proposed airline enjoys preferential treatment over others, might lead to other operators being marginalized or even forced out of the market, disrupting the equilibrium in the aviation system.
- System Disequilibrium: The decision to selectively waive taxes for Nigeria Air, as part of the envisioned strategy, raised concerns about creating disequilibrium within the aviation ecosystem. The unequal treatment of different airlines, with one enjoying tax benefits not extended to others, could have introduced imbalances and complications in the functioning of the aviation market.
