Monday, February 4, 2013

The Senate Resolutions: Good, Bad and Ugly




By Wale Olu

 The National Assembly recently passed some resolutions with respect to
events in the industry; in unison we can applaud some of them while
the others are either bad or ugly.

The directive to the Central Bank to recover funds given to Air
Nigeria is commendable, with four aircraft parked in the cold in
Hampshire, England awaiting the lessors’ decision and another parked
close to the GAT graveyard without engines. It is clear that Air
Nigeria has turned round the turnaround expert. This is a sad story,
since this airline was flying without an investor or intervention fund
sometime ago in this country and it was managed by a Nigerian.

The directive to compel NCAA to ensure all airlines involved in
accidents settle all outstanding insurance obligations and ensure that
all airlines have adequate insurance cover as required by the
regulations is also a good one. They should go further and ensure that
owners or managers of such airlines do not return to the industry in
another name or designation without offsetting their liabilities.

On the MD 83’s they are still flying  without issues round the world,
I stated sometime after the crash that Air Burkina and Air Mali are
using those aircraft to ferry Air France passengers to points beyond
Ouagadougou and Bamako, while our airlines with brand new aircraft
are overlooked for such commercial agreements. The same aircraft has
been picking Nigerian troops from Abuja and other African troops or
officials under the auspices of the United Nations, will the UN use an
unsafe aircraft with its LOGO emblazoned on it?

The directive setting passenger aircraft age limit at 15 years and
cargo at 20 years is not a panacea to air crashes; rather it will
drive some carriers out of the market, increase unemployment and
fares. Is it the airframe or the engine that must have this age limit?
What happens if the airframe is 16 years and the engines are 3years?
Please let us leave the status quo and allow the regulators do their
job, in line with air worthiness directives from reputable
international agencies.

The directive asking the government to revoke the license of DANA
Airlines is a bad one; the airline has just been re-certified by NCAA
and some other airlines are going through that process. If the
Legislature views the certification of DANA despite having an
international AMO as partner is faulty and the NCAA cannot be trusted,
it means all other AOCs issued by the NCAA should be revoked with
immediate effect; anything short of this is RACISM. I just pray their
country of descent will not target Nigerian investors too. The
priority should be payment of compensation to all.

The directive demanding for the removal of the DG and the dismissal of
the Engineer saddled with the inspection of the ill fated DANA
aircraft is distasteful, hasty and ugly. Rather, a speedy
investigation and conclusion of the accident report should be our
priority; at that point there will be no place to hide for every one
anymore.

I do not believe the demand of the Senate is based on tribal
sentiments as espoused in some quarters rather it is based on some
information that look mischievous emanating from the cocktail of
submissions made before, during and after the public hearing. The DG
should not be tagged with incompetence based on his record so far, he
should rather be decorated with national honours for elevating the
regulatory institution rather than being hounded disrespectfully.  Let
the senate hang proven corruption charges and breach of contract on
him, the tide will change ferociously.

ROSAVIATSIA, the Russian equivalent of NCAA was almost pushed last
year by their parliament, the DUMA to revoke the licenses of some
airlines due to air mishaps. The Agency resisted and conducted their
investigations. Red Wings Airline only last week lost its AOC in that
process. The Russian regulator said they are losing the license, not
because of the air crash they had on the 29th of December 2012, but
due to the numerous significant violations found during
re-certification. Also, the airline lacked financial resources to
provide ongoing operations consistent with appropriate level of
safety. This is processes and procedure without interference but
requisite oversight responsibility by all parties.

We are scaring investors. We need to stop the bickering and attract
them by capitalising on our CAT 1 status.

If the National Assembly really has so much time on their hands and consider 
they are not so busy attending to more pressing urgent matters of national 
interest on the deteriorating economy and nation, including the wide gap between
the rich and the poor, let alone all the corruption in the Executive and the Legislature
then they should look at investigating all the fuel companies who supply aviation fuel
as they are the ones responsible for contaminated fuel causing recent air accidents.  

Wole Olu writes from Lagos, Nigeria

Thursday, January 31, 2013

Flight return as precautionary landing




Passengers on board Dana Air Abuja - Lagos flight shortly after take off



By Dele Ore 

When an aircraft enroute for Abuja after having just taken–off from Lagos made a precautionary landing back in Lagos, a local newspaper had it reported that: “Pilot averts crash, lands plane with one engine”.
This report was alarmist, uninformed and capable of eroding public confidence in the aviation despite every effort being made to ensure flight safety. We need to set the records straight for proper education of a segment of the media as well and reassuring the flying public.
First and foremost we commend the professionalism and airmanship exhibited by the crew of aircraft. The capable handling of the situation makes the crew members to be an asset to the industry.
When a single engine aircraft has lost the only engine, then there could cause for concern but if one engine fails on a twin-engine aircraft there should be no alarm if the crew members have been well trained.
An air return could be as a result of any one or combination of the following as highlighted in Part 5:5:1:4 of the Nigerian Civil Aviation Regulations 2006 captioned “Reporting of failures, malfunctions and defects which may occur after the aircraft must have been airborne.
Any of the conditions could be responsible for an air-return, which must be reported. Those conditions include but not limited to the followings:-
(a) Owners or operators of aircraft over 5,700 kg maximum take-off weight or of any aircraft used in a commercial operation shall report to the Authority any failures, malfunctions, or defects that result in at least the following—
*Fires during flight and whether the related fire-warning system properly operated;
* Fires during flight not protected by a related fire-warning system;
* False fire warning during flight;
* An engine exhaust system that causes damage during flight to the engine, adjacent      structure, equipment, or components;
* An aircraft component that causes accumulation or circulation of smoke, vapour, or toxic or noxious fumes in the crew compartment or passenger cabin during flight;
* Engine shutdown during flight because of flameout;
*Engine shutdown during flight when external damage to the engine or aircraft structure occurs;
*Engine shutdown during flight due to foreign object ingestion or icing;
* Shutdown during flight of more than one engine;
* A propeller feathering malfunction or inability of the system to control over speed during flight;
* A fuel or fuel-dumping system failure that affects fuel flow or causes hazardous leakage during flight;
*An unintended landing gear extension or retraction, or opening or closing of landing gear doors during flight;
* Brake system components failure that results in loss of brake actuating force when the aircraft is in motion on the ground.

 Ore is President, Aviation Round Table

Wednesday, January 23, 2013

Dana Air: Insurers are meeting obligations

 
The management of Dana Air is aware of allegations that its Insurers have refused to pay compensation to the families of victims of the tragic accident of June 3, 2012, and we wish to state that these allegations are not true.
 
The true position is that 84 families have received advance payments of 30,000 USD and payment of final settlement to families who have produced the requisite Letters of Administration (and Letter of Guardianship in the case of minors) has commenced, following authentification of the document by the Probate Registry.
 
Our insurers are continuing to deal with all other claims, including all who incurred losses on ground at Iju-Ishaga, in accordance with the applicable law.
 
We would like to thank the Lagos State Government for the cooperation and assistance rendered so far. With the waiver of statutory fees and fast-track system, families will have the requisite documents expeditiously.
 
Dana Air shares in the pain of all the affected families and we wish to reiterate the readiness of our insurers to settle all claims in accordance with the law, at the earliest opportunity.0

Let’s stop the bickering and attract investors


Olumide Ohunayo

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