Dana Airline on Sunday announced a 50 per cent discount on official flight tickets by ministries, departments and agencies.
The discount for civil servants on official trips was announced at the end of negotiations by the airline and the Efficiency Unit of the Federal Ministry of Finance as part of its cost management initiatives.
The initiative is part of government’s cost-cutting policies to reduce wastage and leakages in public sector expenditure.
At the agreement signing ceremony in Abuja, the Permanent Secretary, Federal Ministry of Finance, Mahmoud Isa-Dutse, said government was doing everything within its power to reduce operational costs while maximizing the gains.
The agreement with Dana Airlines is the first by any airline operating in the country on air ticket cost reduction for government workers on official trips.
Dana Airlines Head of Ground Operations, Ememobong Ettete, said the deal was part of its contributions to government’s effort towards national development.
The Efficiency Unit established n 2016 identified the Federal Government’s large purchasing power, which could be leveraged to secure discounts from suppliers of standard goods, including air travel tickets for which government spends huge resources every year.
To reduce the cost, the Efficiency Unit had sought discounts from airlines operating in Nigeria.
In 2016, the Unit was able to secure discounts ranging between five and 50 per cent from 19 local and foreign airlines.
Mr. Isa-Dutse said negotiations with other airlines were at various stages of finalisation.
“When completed, the savings to government from the discounts is estimated at about N5 billion per annum,” he said.
“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 a savings totalling N15 billion yearly on travels.”
He said while agreements with other airlines were ongoing, the Efficiency Unit was currently making arrangements for additional savings from the procurement of stationery, computers and computer accessories, vehicles and photocopiers, amongst others.
Also present at the agreement signing ceremony were the Head of the Efficiency Unit, Patience Oniha, and a senior official of the airline, Joy Nwogu.