Cost cutting: Airline gives 50 percent discount on fares to public servants on official trips
*As FG salutes Dana Airlines as first partner in travel cost reduction on official trips
By Kemi Kasumu
“These discounts when considered alongside the restrictions on the class and frequency of travels introduced in 2016 through Circulars issued by the Secretary to the Government of the Federation and the Head of the Civil Service of the Federation, would translate to savings totaling N15 billion yearly on travels.”
The Federal Government has signed an Agreement with Dana Airlines to give 50 percent discount on official air travel tickets to Federal Ministries, Departments and Agencies.
A statement signed by the Director of Information in the Federal Ministry of Finance, Mr. Salisu Na’inna Dambatta, copy of which was made available to The DEFENDER on Sunday, revealed that the discount on air travel ticket for civil servants on official trips was championed by the Efficiency Unit of the Federal Ministry of Finance as part of its cost management initiatives.
The Federal Government, through the Efficiency Unit, it was learned, had implemented several cost cutting policies which had reduced wastage and leakages in public sector expenditure.
According to the statement, the Federal Government was represented at the signing of the agreement by the Permanent Secretary, Federal Ministry of Finance, Alhaji Mahmoud Isa-Dutse and the Head of the Efficiency Unit, Patience Oniha while the Dana Airline was represented by its Head of Ground Operations, Mr. Ememobong Ettete and Mrs. Joy Nwogu.
In his remarks at the signing ceremony, the Permanent Secretary, Isa-Dutse, said the Federal Government was doing everything within its power to reduce operational costs while maximising the gains.
He commended Dana Airlines for being the first airline operating in the country to partner with the Federal Government on air ticket cost reduction for government workers on official trips.
In his response, Mr. Ememobong Ettete said Dana Airline was committed to the agreement and commended the Federal Government for the initiative.
The statement said, “In 2016 the Efficiency Unit had identified the Federal Government’s large purchasing power which could be leveraged to secure discounts from suppliers of standard goods, including air travel tickets and the Efficiency Unit proceeded to request for discounts from airlines operating in Nigeria.
“The initiative paid off as the Efficiency Unit was able to secure discounts ranging from five percent to 50 per cent from a total of 19 local and foreign airlines in 2016.
“Dana is the first of the agreements to be completed, while those for other airlines are at various stages of finalisation. When completed, the savings to government from the discounts is estimated at N5 billion per annum.
“These discounts when considered alongside the restrictions on the class and frequency of travels introduced in 2016 through Circulars issued by the Secretary to the Government of the Federation and the Head of the Civil Service of the Federation, would translate to savings totaling N15 billion yearly on travels.”
While agreements with other airlines are being finalized, the Efficiency Unit, The DEFENDER gathered, was currently making arrangements for additional savings from the procurement of stationery, computers and computer accessories, vehicles and photocopiers, among others.
