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Home Lead-In

Aviation Unions Demand Full Reversal Of 20% Revenue Deduction

by `
9 months ago
in Lead-In
Reading Time: 2 mins read
Aviation
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Aviation workers have rejected the federal government’s recent decision to lower the revenue deduction from aviation agencies from 50 per cent to 20 per cent, insisting that no deductions should be made.
In a memo dated August 14, the unions demanded an end to all deductions, arguing that aviation agencies, which are “cost recovery, not profit-making organisations,” cannot survive with such reductions.
Despite President Bola Tinubu’s approval to decrease the deductions, the unions remain dissatisfied. Festus Keyamo, the Minister of Aviation and Aerospace Development, had urged the unions to remain calm while their concerns were being addressed.
However, general secretary of the National Association of Aircraft Pilots and Engineers (NAAPE), Olayinka Abioye, revealed that the unions have yet to receive an official circular on the implementation of the president’s directive.
Abioye noted that a letter had been sent to the minister, requesting intervention before the end of the month. He emphasised that aviation agencies are not profit-driven but are essential for safety and security, and the 50 per cent deduction had already caused significant hardship for workers.
“We have not received an official statement or circular regarding the reduction. If we had, we would have congratulated the government. But this has not happened,” Abioye said. He criticised the 20 per cent deduction, stating that it should not exist at all, given the sector’s severe challenges.
Abioye described the aviation industry as being “in comatose,” arguing that any reduction in revenue is detrimental to the sector. He pointed out that international regulations mandate that aviation funds should be reinvested in the industry for maintenance, infrastructure, and training.
“There is no justification for any amount being deducted from our finances,” Abioye stated. “The aviation sector needs every penny it generates to function effectively. The government has excess funds, and it should not take money away from an industry that is already struggling.”
While acknowledging the minister’s call for calm, the unions are awaiting a positive resolution by the end of the month.

 

 

 

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