The Federal Government has announced drastic measures against Dana Air, including potential asset seizure and sale, to ensure refunds for passengers and travel agents affected by the airline's suspended operations.
Safety Concerns Prompted Drastic Action
Aviation and Aerospace Development Minister Festus Keyamo revealed this development during the ministry's fourth quarter stakeholders' engagement in Abuja on Tuesday. The event, themed "leveraging public feedback to drive excellence in aviation services," became the platform for this significant announcement.
Keyamo emphasized that the decision to suspend Dana Air was driven entirely by safety considerations rather than commercial factors. "For Dana, the problem was that it was a choice between safety and disaster. So we didn't take the commercial thing as priority. The priority was safety, and we all looked at the damning reports that we had met on the table," the minister stated.
Government Moves to Recover Trapped Funds
The minister disclosed that he has directed the Nigeria Civil Aviation Authority (NCAA) to investigate why outstanding refunds to passengers and travel agents remain unpaid. He has specifically tasked Acting NCAA Director-General Chris Najomo with ensuring the recovery of trapped funds.
"I have asked Najomo to dig deep to find out how those passengers and agents will be refunded. He has to dig deep on that," Keyamo asserted during the Abuja engagement.
The government's proposed solution involves identifying and liquidating Dana Air's available assets to compensate affected customers. "We should look at their assets. There are assets that are still available. Let them sell their assets. Let's cannibalize their revenue and pay people. Let's find a way to go after their assets and get money to pay Nigerians who are owed," Keyamo explained.
Strict Measures Against Debt Settlement Evasion
In a strong warning to the airline's management, Keyamo declared that anyone linked to Dana Air would be barred from re-entering the aviation sector until all outstanding debts are settled.
"One solution will also be that if that same individual or those entities are trying to come back to aviation under any guise, whether to go and register a new AOC or use any business within the aviation sector, they have to go and settle their debts first," the minister firmly stated.
The minister expressed grave concerns about the safety records that prompted the suspension, suggesting that continuing operations could have led to catastrophic consequences. "If they continue flying, I don't know whether most of us will be here. Many of us would have been victims of one of those flights. God forbid," Keyamo remarked, underscoring the severity of the safety issues identified.
The NCAA has been mandated to ensure Dana Air cannot evade its financial responsibilities to affected passengers and travel agents, with the minister concluding that "NCAA should do that because they can't get away with it."
