By Olumide Ohunayo
The challenges before the industry are numerous and
surmountable. We must be willing and also accept that we have not been able to
connect the most important link, which is foreign direct investment. Their
carriers increase gauge, entry points and frequency into the country, while
also withdrawing flights from some sister countries. The Chinese gave us loans
with accompanying contractors, yet they went to Ghana and in conjunction with
Ghanaian investors set up a regional carrier with affiliation to a major
Chinese carrier; is it not surprising that with our CAT 1 certification we
cannot attract investors? Yet Tanzania a CAT 3 country got Omanis to invest
$100m despite having a pot holed ridden runway, the Philippines, a CAT 2
country got $1billion. The investment link that is missing may be connected if
we begin to address issues highlighted below:
SAFETY – This is
critical and measured internationally. We cannot and should not politicise it.
What we need to do is support, inform and assist institutions involved in
setting the standard. The House Committees should be on the same page with the
industry. The insistence on sacking the DG and the withdrawal of DANA licence
without cogent and sustainable critical safety reasons is distasteful. If the
honourable members really love the electorate, they should know DANA is pivotal
to the lowering of domestic fares and improved customer services. The
unfortunate crash is not enough to withdraw their licence. The honourable
members should rather present before us an independent body to check anti-competitive
practices that will reduce monopolistic tendencies, economic bulling and exploitation
in price and fares.
MAA - The
military will take care of their own and do not need interference from bloody
civilians is the normal military parlance. This will only hold if they return
to their core competence of protecting our territorial integrity and act as
back up to civil aviation in emergency situations, rather than competing by
operating charter flights at a fee. This will not augur well for the seamless
development and cooperation needed to grow the industry. The military can go
further in certifying its operations by bringing all non-civil operation under
a joint body, to be known as Military Aviation Authority.
GENERAL AVIATION
– It is cheering news to hear the Ministry is reviewing laws that will govern
the operations of corporate jets and non-schedule operators. This category of operators are the cash cows
of civil aviation that are generally taxed, made to pay high tariff for
services rendered and do not enjoy palliatives or subsidies designed for
schedule operators. Also, hangars maintaining or housing them should also pay
requisite charges and taxes-VAT inclusive.
PALLIATIVES&THE
NEW AIRCRAFTS – I am not surprised at the incoherent statement emanating
from the AON on the issue of the 30 aircraft being purchased by the government.
It is a risky and wasteful venture that will increase public debt. The founder
of Easy Jet, a very profitable airline is presently dumping his shares in the
airline, because the Board of Directors is considering buying new aircrafts.
Even Communist China and Russia did not do it for their highly regulated
industry; rather they allowed the banks to nurture leasing companies that dealt
with the airlines commercially, same with the Egyptians. The Central Bank
should be left alone to handle it since the ministry will not get loans to
finance it. Let the airline CEO’s tell Dr. Sanusi to give them aircrafts with a verifiable business plan and
impeccable financial statement they will find out they do not need other
agencies to help them out.
The other palliatives with respect to waivers on spares and
other aircraft parts that need to be gazette, should be done quickly by the
government, while beneficiaries should be schedule operators with passenger
aircraft and equivalent AOC, all non-schedule operators and non-schedule
aircraft in any airline should be excluded.
SKYPOWER CATERING
- The organisation is marooned, they are at home with rental services rather
than providing quality catering services for the industry. Its misfortune
nurtured ASL and other catering organisations, and even encouraged NAF top
brass to take control of its assets. Staff salaries are owed, while they
hallucinate as civil servants. The organisation should not be liquidated,
rather reputable catering organisations should be invited to take it over.
FAAN and
CONCESSIONNAIRES - The agency has described unfavourable concessions as 32
pound gorillas that must be put in the cage. Sadly, it’s Commercial and Legal
Departments combined is the 64 pound gorilla that must be put in a cage that
will free them from political interference, while ensuring that core
professionals get to the top. Upgrading the Legal Department to a directorate
and injection of politicians and Ministry marabouts will not reverse its
concurrent problem with concessionaires. The same problem will confront the new
terminals if adequate plans are not made to maintain, sustain and certify them
by looking beyond the agency.
ACCENTURE REPORT
and THE NATIONAL CARRIER - from the report, which aligns with agitations of
industry watchers, it clearly indicates that consolidation backed by public
listing after a critical financial audit is the panacea for our troubled
carriers. Consolidation will be regulated, while efforts will be geared toward
refining aviation fuel in the country, building a befitting national hangar and
most importantly lowering airport and other charges.
We need to attract credible foreign investors, while also
building a critical mass in our carriers that will reflect Nigerian, not owned
by Mr. A or B, having a new national carrier will shackle and compound the
problems of all airlines and the new one, because it will be given protection
that will reduce competition on the home front, increase fares and strengthen
the foreign competitors, we should rather invest in the consolidated industry
Olumide Ohunayo was
former Chairman, National Association of Nigerian Cabin Crews