Aviation Roundtable reviews 2012

Captain Dele Ore, President, Aviation Roundtable

1. INTRODUCTION

Since our last press release on the 11^th of July 2012, a lot of events had taken place in the aviation sector. In the spirit of the season we welcome you heartily to the third and final press briefing of the year 2012. From our records of previous press releases since 2002, it is pertinent to say once again that issues raised then are still mostly unresolved till date. We are however, articulating for emphasis once again the following issues which are of utmost concern to us.

2.     NATIONAL CIVIL AVIATION POLICY -REVIEW

The last time there was a concerted effort to have a comprehensive National Civil Aviation Policy was in 2001. Since then there has been several policy somersault on the appointment of any new minister of Aviation. This is definitely not a comfortable state of affairs. A policy should ideally last a period of Ten (10) years. The National Civil Aviation Policy and other document relating to various aspects of operation in the industry should be arrived at with the active involvement and participation of all key stakeholders so that the policies can be seen to veritably address current and future issues, challenges and development and also point out the way to long time success. The Civil Aviation Act 2006 part 1 Section 1 stipulates ; “The Minister shall be responsible for the formulation of policies and strategies for the promotion and encouragement of Civil Aviation in Nigeria and the fostering of sound economic policies that assure the provision of efficient and safe services  by air carriers and other aviation and allied service providers as well  as greater access to air transport in a sustainable manner and to assist with ensuring that Nigeria’s obligations under international agreement are  implemented and adhered to.”

For this reason the National Civil Aviation Policy should be well defined, continuous, structured and articulated, monitored by stakeholders who should be empowered to continuously review all policy decisions before implementation. A structured mechanism is appropriate in achieving this.

For this reason also, the Ministry of Aviation should be re-engineered by the introduction of experienced professionals to head all departments that directly impact on the aviation industry. In otherwords, professionalize the Ministry of Aviation.

3. THE NAVY AUGUSTA HELICOPTER CRASH

ART wishes to commiserate with the Federal Government of Nigeria, the Kaduna State Government and the families of former Kaduna State Governor, late Patrick Ibrahim Yakowa, the former National Security Adviser to the President late (Rtd) General Andrew Owoye Azazi their Aids and the pilots of the ill-fated Naval Helicopter.

According to the PUNCH of Monday 17^th   of December, 2012, the Chief of Naval Staff, was quoted explaining the position of the military in the assignment of roles in military or civilian situations in which the Nigerian Navy is involved.

Be that as it may, certain pertinent questions need to be asked and answers proffered for public enlightenment. In the event of civilian casualties in a Military Aircraft Crash what becomes the fate of such civilians in terms of Insurance and Entitlements? What are the conditions guiding situations for eligibility or otherwise?

4. MANPOWER DEVELOPEMT

There is no doubt that there is serious shortage of core Aviation personnel now in the aviation sector. What you have now is ageing local manpower such as the Pilots, Licensed Aircraft Engineers, Licensed Avionics Engineers, skilled ancillary support services. Since the liquidation of the former National Carrier, Nigeria Airways, many of the trained and experienced staff have either died or retired, leaving a few that are now threatened out of existence by the influx of their foreign counterparts. In fact the domination of foreigners in the Aviation sector is a present danger to Nigeria as it is believed that less Nigerians are now employed by the airlines especially the private and chatter operations.

Therefore there is need to provide Aviation Training Facilities such as more flying schools, Aviation Training Organizations (ATO) to cope with ageing manpower and dwindling technical skills.

The foremost Aviation Training School in Nigeria, the NCAT (Nigerian Civil Aviation Technology) Zaria should be upgraded in every possible way to enable it regain its pride of place as Africa's No.1 training centre. The influx of expatriate pilots and engineers has become so worrisome that Expatriate quota has become a big issue in the Aviation Industry. Its effect in Airline Economics can better be imagined. Apart from the huge costs to our airlines, it inevitably leads to capital flight out of the country because of the dearth of Nigerian professionals. Notwithstanding the issues our observations are still valid.

5.     BILATERAL AIR SERVICES AGREEMENT (BASA)

It is noteworthy that Nigeria has over 60 BASA across the globe to different countries for economic and Air transportation benefits. Sadly only about 15 are being serviced while the others are virtually of little benefits except for commercial income of $20.00 per seats carried by the foreign Airline on routes not plied by Nigerian Airline. For over two decades this trend has continued leading to capital flight, underdevelopment of the Aviation Sector, youth unemployment and death of domestic operators within 5years of starting operations. The Federal Government must ensure a review of all BASA conditions, aircraft types, routes, meals on board, frequency of flights per week, double entry / designation into Nigeria.

6.     FOREIGN AIRLINES INVESTMENTS IN NIGERIA

The Foreign Airlines Investments in Nigeria is very insignificant to their profit margin. It is calculated to be less than 10%.

The Foreign Airlines need to invest part of their profits in;

1.     Airport Terminals Development

2.     Hotels, Catering and Hospitality Services

3.     Airport Shuttle Services

4.     Ground Handling Services

5.     Banking and Insurance Companies

6.     Airport Fire Services

7.     Investments in Domestic Airlines

                                                         

The Federal Ministry of Aviation must hold a serious meeting with Board of Airline Representatives (BAR) to develop new areas of cooperation and investments in 2013.   

The Aviation Sector in Nigeria is once again at a crossroad with infrastructures, and virtually all aspects still dismal even with current efforts at development in areas such as Airports Rehabilitation, there are still areas yearning for urgent intervention which should be embarked upon commensurate with these efforts to create a balance so that some sectors are not left behind. ART’s observations and stand are highlighted as below.

7.     REMODELING OF AIRPORTS, TERMINALS

The remodeling of 11 or 12 airports which have been penciled down is indeed a welcome development, when viewed against the dilapidation and rot of facilities at most of our Airports. The extent of the breakdown of Terminal Buildings, Passengers Lounge, Toilet Facilities, unserviceable Conveyor Belts or lack of electricity at our airports had reached an alarming rate, and were crying to high heavens for urgent rehabilitation. And so the immediate response to the situation by HMA, Princess Stella Oduah cannot but be applauded. The recently commissioned GAT terminal building is impressive in terms of expanded building, architectural design and value, and one hopes that efficiency of the facilities installed there are high and maintenance culture put in the front burner, at N700million per terminal it is a huge deployment of public funds.

However, ART’s wonders what has become of PPP (Public, Private, Partnership) which would have limited tax payer’s money in the Airports Remodelling projects. Or the concession option which would have meant that available funds are channeled into sectors which also impact on safety such as Airfield lighting {Runway 18L} which has been stalled for many years now, wild life control, perimeter fencing etc. Meanwhile the Government continues to lament paucity of funds for the development of facilities and critical infrastructure.

However, in the spirit of Transparency, Accountability and due process of the present Administration the processes of contract tenders and award ought to have been made open and available to stakeholders for monitoring purposes.

           

      8. $500 MILLION BORROWED FROM CHINA TO ACQUIRE AIRCRAFT FOR        OUR AIRLINES.

There has been Newspaper reports that this huge amount of money has been given to Nigeria as loan to enable the acquisition of aircraft through FAAN as the Director of Operations of FAAN, Mr. Henry Omeogu was reported to have said. If this is true, this is definitely an anomaly, and a usurpation of statutory functions. Where do you place the NCAA in all of this whose purview is the supervision, airworthiness and Importation of Aircraft into Nigeria? Again, what are the processes and conditions attached to the loan? The public deserves to know.

9.       NATIONAL CARRIER

Aviation Round Table will like to put on record once again that we are neither opposed to or in support of a new National Carrier but we must sound a note of warning which we have done for several times.

1.     The idea of a National Carrier is archaic and not in consonance with best practices worldwide.

2.     National Carriers of most countries collapsed due to global events and lack of resources by their owners, Nigeria should not repeat yet another costly mistake by creating a new National Carrier being secretly put together.

3.     No National Carrier which is usually threatened with instability, interference, insincerity due to selfish interest has always managed to turn investment into colossal loss and abyss for waste.

4.     No National Carrier can have the advantages to access the international or multilateral financial institution that can provide the resource base support and linkages that are open to private enterprises and operators.

5.     The present steps will finally result into yet more future “National debt”.

PLEASE NOTE: Nigeria should support and strengthen the private operators by opening the way to them and by designating them as FLAG CARRIERS. The questions therefore are: - what are the criteria for such designation?

          ii.      What should be the size of an airline in terms of fleet size, capital               base etc to qualify for such designation?

iii.             What should be the level of operational experience before designation.

We thank you for your co-operation and attention.

Capt Dele Ore                                                    Mr. Sam Akerele

President                                                             Sec. General