Olumide Aduloju

Perhaps not since independence has there been such huge expectations placed on the shoulders of an incoming government as it is placed on that of the incoming administration of General Muhamadu Buhari (rtd). Many Nigerians are of the opinion that if the General is to succeed in leading the country into economic prosperity, he must hit the ground running. Not to be left out, experts and stakeholders in the aviation industry have begun to set agenda for the incoming government and what they hope it will deliver when it assumes office on May 29.

Need to build on past achievements

Many agree that the outgoing administration took giant steps in moving the aviation industry forward in the last six years. Industry stakeholders are of the opinion that the President-elect needs to start from where his predecessor stopped and build on his achievements so that the investments already in place would not go down the drain.

Experts say the government need not drop any of the policies but rather do an appraisal and put them in the right perspective for the benefit of the industry and the macro economy. The stakeholders urged the incoming administration not to act like some before it, by throwing away the baby with the bath water, because such may set the industry backward and at the end, not allow it to contribute to the Gross Domestic Product (GDP) of the country.

Addressing unemployment

Many stakeholders are looking forward to a successful administration that would leverage the aviation sector to national development, make the sector a major contributor to the national economy and a vista for job creation for the teeming population of unemployed youths.

The Airline Operators of Nigeria (AON) call on the Federal Government to put in place a proactive policy that will address the hundreds of Nigerian licensed pilots that are unemployed. Chairman of AON, Captain Noggie Meggison said the number of unemployed pilots will increase from the current 200 when the over 100 student pilots sent to Jordan by the Kano State government would graduate later this year.

This is in addition to the 52 youths trained under the Federal Government Amnesty Programme as well as the fresh batch of 100 students graduating from the Nigerian College of Aviation Technology ( NCAT), and the 40 from International Aviation College ( IAC), in Ilorin, Kwara State. Meggison said unless something fast is done, such development constitutes a disincentive to the growth and development of the Nigerian aviation industry.

“The government should compel foreign carriers to set up a line station for aircraft maintenance in the country and employ local engineers to assist in turning around the growth of the sector. They should look into other avenues also, if policies are not put in place the challenge of unemployment of pilots and engineers may not be resolved as soon as possible. It is shameful that Nigerian licensed youth pilots are now driving kabukabu to make ends meet . This is totally unacceptable. Not that there are no jobs but jobs are taken by foreigners,” Meggison lamented.

The issue of national carrier

Opinions are divided on the issue of the proposed national carrier. While some stakeholders believe that the country needs a national carrier, others believe it is not essential considering the level of corruption and waste government enterprises suffer in the hands of public servants. They said though the incoming administration has promised to tackle headlong the issue of corruption, it is even better if the government provides the enabling environment for the growth of existing and up-coming airlines in the country rather than establishing a national carrier.

Manny Phillipson, a social commentator, is of the opinion that the Federal Government needs not create a new national carrier. He, however, suggests that the incoming administration should create room for mergers and enabling environment that would allow the airlines to compete favourably.

“In my opinion, we don’t need a national carrier at this time. Rather, the government should create an enabling environment for operators to compete favourably. The weaker carriers can merge for comparative advantage. Since the airline business is complex and capital-intensive, local carriers can inaugurate alliances with international carriers by way of human capital development and servicing of non-utilised bilateral air services agreement. The government on the other hand should provide the needed infrastructure at the ports and possibly develop the economy so that Nigeria can become a hub of sort,” Phillipson said

On the other hand, a former Air Force Commander of the Murtala Muhammed International Airport, Lagos, Group Capt John Ojikutu (rtd), who though supports the establishment of a national carrier, also believes that government’s involvement in the project should not be more than 30 per cent.

“A national airline is desirable, but not essential. If we must have one, the government must not have controlling shares so as not to compromise safety, security and commercial regulations with the inherent and incurable corruption in the national system. A national airline should have public interest/government fund not more than 30 per cent, airline staff 10 per cent and private investors or technical partners 60 per cent,” he suggested.

Strengthening regulatory agencies and government parastatals

Stakeholders believe that regulatory agencies such as the Nigerian Civil Aviation Authority(NCAA), Nigerian Airspace Management Agency (NAMA) and the Federal Airports Authority of Nigeria (FAAN) should be strengthened so that they can carry out their functions more effectively. The stakeholders say the agencies need to have stable leadership and should be strengthened to generate revenue and become independent. The government also needs to ensure that only required qualified personnel who would help carry out their functions in the industry are recruited into the agencies.

Speaking in this regard, Ojikutu lamented that an in-depth look at NCAA showed that the agency had some deficiencies which needed to be addressed as quickly as possible.

“Any in-depth audit into NCAA now would show that the agency has shortage of technical staff and therefore problems with the certification and oversight of airlines, airport security and even the transportation of dangerous goods. Nigerian Civil Aviation Authority must not wait for the International Civil Association Organisation (ICAO) June Audit before it raises its concerns relating to its deficiencies in operators certification procedure. Surely, ICAO does not review airlines level of operations or their safety, but the capability of state civil aviation authority to adequately have the resources and management to carry out aviation safety oversight responsibilities in their jurisdiction. International Civil Association Organisation report would trigger increase in physical inspection of domestic airlines operations and safety programmes and possibly ban on those on regional, international or intercontinental,” Ojikutu advised.

Engaging stakeholders in the industry

Stakeholders believe that the incoming government needs to engage industry experts and operators in drawing a road map for the sector. They believe the government needs to address the issues agitating the minds of operators in the sector.

Some of those issues are: the need for aircraft maintenance hangar in the country, the exclusion of domestic airlines by the Central Bank of Nigeria (CBN) window, improvement of service delivery by aeronautical agencies, access to single digit loan by financial institutions, engagement of more Nigerian pilots/engineers by foreign carriers (over 500 pilots and engineers unemployed), multiple entry points granted foreign carriers, inadequate airport facilities and day time only operation of most airports, stimulus package/intervention for domestic airlines.

Aircraft maintenance facilities

By Olumide Aduloju

Stakeholders believe that Nigeria with its huge market still take airplanes to South Africa, US, Turkey, Ethiopia and other European countries for major checks such as C and D Checks. Nigerian carriers maintaining their aircraft abroad encourage capital flight. Therefore, they urged the incoming government to establish aircraft maintenance facilities that will encourage airlines to service their planes in the country as well as attract other countries, especially in Africa, to bring their planes to Nigeria for maintenance.

Sky-rocketing aviation fuel and high cost of borrowing

The price of aviation fuel per litre in the country is one of the highest. A litre of the product is as high as N170 and this alone is taking 40 per cent of domestic airlines’ cost of operation.

Also, the interest rate charged by commercial banks and other financial institutions in the country does not only discourage airlines from borrowing, it also prevents them from expanding. Local airlines have continually complained of the skyrocketing price of aviation fuel and the multiple tax regime by aviation authorities to domestic carriers.

Source: http://aviationplatformnews.com/with-buharis-victory-glimmer-of-hope-in-aviation-sector/