Aviation minister bans Lufthansa from MMIA and Abuja Airports.

Sky Watch Nigeria

The Minister of Aviation, Mrs. Stella Oduah, has terminated the Memorandum of Association between the federal government and the German airline, Lufthansa. Consequently, the airline, yesterday suspended flights to the Murtala Mohammed International Airport, Lagos and the Nnamdi Azikiwe International Airport,Abuja.

A letter dated 7th November, 2012 addressed to the Vice-President of Deutche Lufthansa, and signed by the Ministry of Aviation’s legal adviser, Bola Odugbesan, stated that the Minister of Aviation has terminated the agreement it entered into with the airline in November, 2008.

The letter, a copy of which was obtained by Peoples Daily, reads: “In accordance with the provisions of Article 5 of the Memorandum of Understanding entered into between the Honourable Minister of Aviation of the Federal Republic of Nigeria and Deutche Lufthansa Aktiengesellschaft (LH) on the 10th 0f November, 2008, the Honourable Minister of Aviation of the Federal Republic of Nigeria hereby terminates the aforementioned Memorandum of Understanding with immediate effect”.

Acknowledging the receipt of the termination letter, in a letter signed by the airlines’ Director of Network Planning and Hub Development Frankfurt, Sebestian Hollmier and Director, Corporate International Relations and Government Affairs, Andreas Bulling, the airline however stated that the said termination by the Nigerian government would become effective on 20th November, 2012 (yesterday).

It could be recalled that in May, Senate Committee on Aviation had ordered Lufthansa Airlines to pay to the Federal Government N2.198 billion ($14.8 million), being debt owed from non-payment of royalty to the Federal Government from its flight operations from 2009 to October 2011 or face sanctions.

Chairman of the committee, Senator Hope Uzodinma, who gave the directive  at a stakeholders’ meeting organised by the Senate Committee on Aviation said it was based upon discoveries that Lufthansa Airlines had violated its Bilateral Air Services Agreement, (BASA), with the Federal Ministry of Aviation in 2008.

Angered by what it discovered, the Uzodinma-led Senate committee ordered Lufthansa to pay N2.198 billion ($14.8 million) debt owed to the FG.  The order was issued less than a week after the foreign airlines were asked to also refund the billions of Naira allegedly held back in tax accruals to the federal government.

Uzodinma, while lamenting that Lufthansa took advantage of the Nigerian market to violate the agreement, ordered the Nigeria Civil Aviation Authority (NCAA), to ground the airline if it failed to pay the debt.

The directive was issued by the chairman after the committee heard that Lufthansa was flying 14 frequencies to the country instead of 4 passenger and 3 cargo flights allowed by the Bilateral Air Service Agreement (BASA).

The committee was told that the former Aviation Minister, Babatunde Omotoba, gave a verbal approval to Lufthansa to be flying additional 7 frequencies and that Lufthansa has refused to pay an accumulated $14.8 million. The committee had thereafter summoned former Minister to appear before it over the violation of aviation laws by Lufthansa.

Uzodinma was angry that the Memorandum of Understanding (MOU) signed with Lufthansa in 2008 in which it agreed to train Nigerian Pilots and provide some equipment at the airports were discarded by the airline and it has also refused to pay its royalties.

The NCAA has claimed at a stakeholders’ meeting that Lufthansa suspended payment of royalties to Nigeria since 2009.

Uzodinma said, “As at 2009 to November 2011, we have an outstanding $14,833,000.00 and the invoices are here issued by NCAA. I want you to support NCAA, retrieve your letter so that they can receive their money because this is an entitlement of government.

“I think that as we call for the review of your MoU and the BASA, we ask Lufthansa to pay all monies due to government. It is unfortunate Lufthansa people are not here, they are quick at sending lawyers.”

According to the chairman, “As at 2009 to November 2011, we have an outstanding $14,833,000.00 and the invoices are here issued by NCAA. I want you to support NCAA, retrieve your letter so that they can receive their money because this is an entitlement of government.

“I think that as we call for the review of your MoU and the BASA, we ask Lufthansa to pay all monies due to government. It is unfortunate Lufthansa people are not here, they are quick at sending lawyers”.

“We have this huge market here that must be protected so when they go and have something convenient for them in Ghana and Togo that is not up to two local governments in Nigeria, you now use it as a model to implement policies in Nigeria and we lose money. This makes us look stupid before the international community.

“I think, as a matter of fact, you must join hands and protect the market which is our own treasure. So in my opinion, you should liaise with the NCAA and recover this money from Lufthansa. If it means grounding all the aircraft to ensure that our laws are obeyed, we will do it. We must develop the will as a people”, Uzodinma had stated.

However, all efforts to contact officials of Lufthansa Airline on the issue and to find out what will happen to those who have booked ahead did not yield any positive result.

Similarly, when our reporter contacted the NCAA spokesman, Mr.  Sam Adurogboye on the issue, he claimed not to be aware of the FG’s ban.

When contacted to comment on the issue, Special Assistant to the Aviation Minister on media, Mr. Joe Obi, said that based on what the MoU contained, any party to the agreement that is not benefiting from a signed MoU has the right to opt out, and since it has come to an end, there is no need of renewing it.

It could be recalled that the Federal Airport Authority of Nigeria (FAAN) had recently named Lufthansa airline as the best International carrier in Nigeria for the year 2011.