Med-View Airlines shareholders decry N3.7Bn statutory charge

Shareholders of Med-View Airlines have described as exuberant, the payment of N3.7 billion as statutory charges by the Airline to Nigerian Civil Aviation Authority (NCAA), Federal Airport Authority (FAAN) and the Nigerian Airspace Management Agency (NAMA).

The National president of Independent Shareholders association, Mr Boniface Okezie raised the observation at the 2016 Annual General Meeting (AGM) in Lagos yesterday.

Okezie said: “we think the amount is too much and the regulatory authorities need to seriously reconsider the growing concern around excessive charges to airline operators.”

The Airlines, posted an annual revenue of N25.96 billion for the year ended December 31, 2016.

The gross revenue recorded grew significantly by 84.65 per cent to peak at N25.96Bn, from N14.1 billion in 2015, thereby adding extra revenue of N11.86bn in 2016.

The airline cashed in N5.62 bn on Hajj and cargo operations in 2016 against N3.64 billion of 2015; its domestic operations appreciated with a better revenue of N11.62 billion in 2016 compared to N8.55 billion in the previous year while it recorded an approximated N8.73 billion instead of N1.9 billion in 2015.

Meanwhile, the operating cost of the company in last year, a year acknowledged to have been bedeviled by local and international negative economic headwinds rose significantly by 104.67 per cent from N10.7 billion to N21.9 billion in 2015 and 2016 respectively.