Why is a National Carrier Needed? To absorb employees of failed major carriers by providing employment and assuages nerves of restive unions or to act as a means of providing additional fleet, capacity, and frequency in support of other registered carriers or to fill a vacuum and avert the monopolistic tendencies of surviving airlines.
The first scenario has been overtaken by events while second and third is the crux of the present agitation for another national carrier, considering the present set of flag carriers have not done anything to reflect national ownership like their counterpart in the banking industry which naturally muster public support and protection. Also they are floundering with suffocating debts, with the international routes and frequencies that should be money spinners, are apparently controlled by foreign airlines. We also lack undiluted low cost carriers, adequate regional jets or props services, finance and a regulated consolidation regime that will bolster the critical mass of our carriers and improve passenger enplanement to the benefit of all stakeholders in general and the economy in particular.
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Let us learn from Mexico and India, they had two national carriers each. India has merged Air India and Indian Airlines, while the Mexican government has sold Mexicana and Aero Mexico, the surviving ones are either heavily indebted or liquidated. Also countries like Greece, Argentina, Ghana, Senegal, Cameroun, Gabon, Tanzania and Zambia have liquidated their national carriers and have tried unsuccessfully to have another viable carrier despite sinking lots of public funds in their respective new national carrier.
We should not forgot that our shipping industry have failed thrice in their attempt to set up a national carrier while the twitted comment of our Honourable Minister should be the fourth attempt in the industry, after the failed attempt of Capt Joji and Mrs. Kema Chikwe. The reality check is, Nigeria Airways failed with absolute monopoly of the bilateral air services agreement, government subsidy and protection therefore the new national carrier will fail woefully in the present competitive, open skies ridden aviation industry, if the government is not meticulous with the options therein.
If we must have a national carrier, then we should ponder over the cost, risk and lessons from other climes, also we should dust the report of the International Finance Company that was contacted to work out modalities of a new carrier in the early days of the present democratic setting.
The timeline of this administration, present policy makers and the penchant of reversing or abandoning policies of previous government, even when they share the same political ideology are the inherent problems, also the protection needed by the new carrier will shackle and compound the problems of the local airlines. It is a better option for the government to buy into existing flag carriers, namely Aero, Air Nigeria e.t.c, after due diligence rather than starting from ground zero.
Thereafter, the government can look for a reputable institutions to manage their interest in them till they are ripen for a public offer, while Government continue to protect, legislate and provide the coveted public travel to these carriers in the absence of an essential air services programme.
Government in the interim should consider a consolidation process. The last consolidation exercise was a ruse as the only beneficiary of that process is the Corporate Affairs Commission (CAC), due to the hefty taxes collected from airlines. It is pertinent to note that barely six months after the paper consolidation process; two domestic airlines that passed the process were grounded over maintenance related issues, five other airlines have beaten the dust thereafter.
Sunday, December 11, 2011
Friday, November 25, 2011
RE BASA: THUMBS UP TO THE GOVT, BUT!!
What else can I say than to give thumbs up to the government for securing seven Abuja -London slots at the Heathrow Airport, the slots will be used by Arik Air.
The British authorities needed a bite, from a country that has been barking over the years, the bite was sudden and effective. to our surprise, the off-tone statement associating slots to an independent company in England was jettisoned, when we also jettisoned diplomatic language and dug deep with aerial arsenal that were deployed to sanctify the tenets of reciprocity as enshrined in the Bilateral Air Service Agreement (BASA).
Slots transfer, including auctioning is meant to help airlines with little or no service gain a competitive foothold at airports with limited space, the airlines are encouraged to operate either with their own aircraft or through a code-sharing agreement, in order to ensure that a purchaser will be able to provide meaningful new competition, which will bring down fares.
The British authorities and most EU countries have reversed this principle to protect legacy or flag carriers using factors such as fleet size, financial muscle, and nationality clause e.t.c, codified as grand father rights. This protection has given them the impetus to discriminate and increase fare arbitrarily
It's a new beginning and I hope the government will go ahead to review other lopsided BASA's. The NCAA has gone further with the issue of discriminatory fares on the London route, they have imposed fines on British Airways and Virgin Atlantic after a painstaking investigation, that's another plus for the country, while we wait for their responses, the NCAA should go further, by extending the investigations to other routes.
The beauty of this investigation is the proactive action of the regulator, who did not wait for the whistle blowing airline to come to them and were not fooled by the cheese-like bickering or is it rivalry that has been used to fool the public in the past, by these carriers. Their flamboyant chairman came, danced , wore our traditional cloths , got his airline the second designation with bogus promise of crashing fares on the London route, alas it's colluding to discriminate that we got from the dual designation. They have not been able to bring down fares; rather they bled Virgin Nigeria's London flight by sending them to Gatwick to feed the mother instead of vice versa and are presently angling for an open skies agreement with the federal government.
On our part we need to be cautious, the initial press release from the Ministry of Aviation, intimating the public of government decision to withdraw some BA flights was not properly handled, that must have accounted for huge criticism and negative commentaries from Nigerians that the government was trying to protect, this was later corrected by the ministry and Arik management.
Also, the Honourable Minister should begin to warm up to the unions and aviation correspondents to get the raw feelers in the industry rather than getting ambushed by self seeking experts or selected media guru. I also noticed that the government is now talking about a dual-hub policy, precisely the cities of Lagos and Abuja. This sounds more political than economic, considering we don't have carriers to implement the dual hub dream. If the government insists, implementation should be gradual with more emphasis on Lagos as his primary hub while Abuja becomes the secondary hub.
In furtherance, we need carriers to develop these hubs, these carriers will have an effective spoke policy to feed the domestic west coast routes, code share while also preparing to join any of the established alliance network. Virgin Nigeria was built on this platform before they were muscled out of MMA thereafter abandoned by the virgin empire with a mounting operational debt that hunts them till date. Therefore what can we do to get at least three strong airlines, that will attract credible investors?
We must as a necessity start a process of economic re-regulation of our domestic carriers with subtle regulatory mergers. We can go further by preparing a market for them, this market -is the public expenditure travel, it's a critical lifeline for the airlines and a stimulus for investment, should we be reminded that the first and business class seats on these foreign carriers are dominated by this category of travelers.
If the Honourable Minister's promise of ensuring that aviation adds value to the country's GDP, is to be taken seriously then we must step up our operational prowess by improving infrastructure, fine-tune existing and open up new concession programmes while also beefing up our carriers to participate rather than wait to collect toll (BASA FUND) at the bus stop like NURTW men. The BASA funds are collected directly from ticket fares by the foreign carriers and remitted to government at a later date. It's the Nigerian passengers we rob to build the funds.
Why are the foreign carriers operating profitably into Nigeria with 85% load factor on B747,777,A340 and we are reciprocating with B737 or with 40% load factor on bigger jets? We need to keep this new BASA spirit and victory alive by supporting our carriers not parroting the support. I align with DG NCAA, that our skies our open for exploration not exploitation
The British authorities needed a bite, from a country that has been barking over the years, the bite was sudden and effective. to our surprise, the off-tone statement associating slots to an independent company in England was jettisoned, when we also jettisoned diplomatic language and dug deep with aerial arsenal that were deployed to sanctify the tenets of reciprocity as enshrined in the Bilateral Air Service Agreement (BASA).
Slots transfer, including auctioning is meant to help airlines with little or no service gain a competitive foothold at airports with limited space, the airlines are encouraged to operate either with their own aircraft or through a code-sharing agreement, in order to ensure that a purchaser will be able to provide meaningful new competition, which will bring down fares.
The British authorities and most EU countries have reversed this principle to protect legacy or flag carriers using factors such as fleet size, financial muscle, and nationality clause e.t.c, codified as grand father rights. This protection has given them the impetus to discriminate and increase fare arbitrarily
It's a new beginning and I hope the government will go ahead to review other lopsided BASA's. The NCAA has gone further with the issue of discriminatory fares on the London route, they have imposed fines on British Airways and Virgin Atlantic after a painstaking investigation, that's another plus for the country, while we wait for their responses, the NCAA should go further, by extending the investigations to other routes.
The beauty of this investigation is the proactive action of the regulator, who did not wait for the whistle blowing airline to come to them and were not fooled by the cheese-like bickering or is it rivalry that has been used to fool the public in the past, by these carriers. Their flamboyant chairman came, danced , wore our traditional cloths , got his airline the second designation with bogus promise of crashing fares on the London route, alas it's colluding to discriminate that we got from the dual designation. They have not been able to bring down fares; rather they bled Virgin Nigeria's London flight by sending them to Gatwick to feed the mother instead of vice versa and are presently angling for an open skies agreement with the federal government.
On our part we need to be cautious, the initial press release from the Ministry of Aviation, intimating the public of government decision to withdraw some BA flights was not properly handled, that must have accounted for huge criticism and negative commentaries from Nigerians that the government was trying to protect, this was later corrected by the ministry and Arik management.
Also, the Honourable Minister should begin to warm up to the unions and aviation correspondents to get the raw feelers in the industry rather than getting ambushed by self seeking experts or selected media guru. I also noticed that the government is now talking about a dual-hub policy, precisely the cities of Lagos and Abuja. This sounds more political than economic, considering we don't have carriers to implement the dual hub dream. If the government insists, implementation should be gradual with more emphasis on Lagos as his primary hub while Abuja becomes the secondary hub.
In furtherance, we need carriers to develop these hubs, these carriers will have an effective spoke policy to feed the domestic west coast routes, code share while also preparing to join any of the established alliance network. Virgin Nigeria was built on this platform before they were muscled out of MMA thereafter abandoned by the virgin empire with a mounting operational debt that hunts them till date. Therefore what can we do to get at least three strong airlines, that will attract credible investors?
We must as a necessity start a process of economic re-regulation of our domestic carriers with subtle regulatory mergers. We can go further by preparing a market for them, this market -is the public expenditure travel, it's a critical lifeline for the airlines and a stimulus for investment, should we be reminded that the first and business class seats on these foreign carriers are dominated by this category of travelers.
If the Honourable Minister's promise of ensuring that aviation adds value to the country's GDP, is to be taken seriously then we must step up our operational prowess by improving infrastructure, fine-tune existing and open up new concession programmes while also beefing up our carriers to participate rather than wait to collect toll (BASA FUND) at the bus stop like NURTW men. The BASA funds are collected directly from ticket fares by the foreign carriers and remitted to government at a later date. It's the Nigerian passengers we rob to build the funds.
Why are the foreign carriers operating profitably into Nigeria with 85% load factor on B747,777,A340 and we are reciprocating with B737 or with 40% load factor on bigger jets? We need to keep this new BASA spirit and victory alive by supporting our carriers not parroting the support. I align with DG NCAA, that our skies our open for exploration not exploitation
Tuesday, November 8, 2011
BASA CONTROVERSIES: We Have To Be Cautious&Firm
It’s with great relief to hear and see that the government is finally listening and understanding the aspirations of the industry, but there is a need to be cautious with the implementation process.
The industry genuinely yearns for a general review of some Bilateral Air Service Agreement (BASA) signed with some countries which has been detrimental to the growth of our carriers and other facets of the industry while deceptively enriching our acrimonious and deeply secretive BASA account.
It’s unfair not to give our carriers landing slots in Heathrow or required to bid for it at exorbitant prices, if that is the situation then the government should factor the cost and other entry points in the next round of negotiation.
In reviewing the agreement the government should quite naturally involve all parties, by building a team comprising of requisite government agencies, departments, designated airlines and probably a representative of the other Nigerian Airlines.
Our carriers should not only be willing but must demonstrate their ability to reciprocate our own side of the agreements by either operating directly or through a code share. Arik need to look inwards and address the perennial delayed departure and other operational lapses which ultimately affects arrival time, disrupt operational activities in slot constrained airports.
Our flag carriers should know that the operational laxity being overlooked by MMIA management team will not be replicated by an airport owned and managed by private hands, whose only objective is to maximize profit while proving excellent service.
We need to renegotiate all unfavorable agreements, using diplomatic and legal timelines that will not embarrass the country, the corporate arrogance of British Airways as exemplified in the first press release while also using Nigerians who are highly placed BA frequent milers to push their selfish position in private and public to the detriment of the country, is irritating and condemnable.
The government should go further and investigate discriminatory fares on the London route and other routes, using fines as appropriate sanctions. We should manage this crisis well, so fares will not rise on the LOS- LHR route and also avoid a situation where the other European and the rising Middle Eastern airlines operating into the country will capitalize on the crisis by smiling to bank to the detriment of Nigerian people and carriers.
The alarm bell is ringing, we should start looking at how to heal our limping carriers by regulation and finance, so they can attract foreign investors, partners or carriers rather than wait for money launderers to deceive us again.
Are we still surprised that our carriers are not operating to the Middle East, other European cities and even abandoned the high yield ABV - LHR route. Well, it is glaring that our economy is financed by public funds and government travel constitutes a large chunk of upper end cabin. Its time to re-regulate our carriers economically which should be backed by a Fly-Nigeria- Act
The industry genuinely yearns for a general review of some Bilateral Air Service Agreement (BASA) signed with some countries which has been detrimental to the growth of our carriers and other facets of the industry while deceptively enriching our acrimonious and deeply secretive BASA account.
It’s unfair not to give our carriers landing slots in Heathrow or required to bid for it at exorbitant prices, if that is the situation then the government should factor the cost and other entry points in the next round of negotiation.
In reviewing the agreement the government should quite naturally involve all parties, by building a team comprising of requisite government agencies, departments, designated airlines and probably a representative of the other Nigerian Airlines.
Our carriers should not only be willing but must demonstrate their ability to reciprocate our own side of the agreements by either operating directly or through a code share. Arik need to look inwards and address the perennial delayed departure and other operational lapses which ultimately affects arrival time, disrupt operational activities in slot constrained airports.
Our flag carriers should know that the operational laxity being overlooked by MMIA management team will not be replicated by an airport owned and managed by private hands, whose only objective is to maximize profit while proving excellent service.
We need to renegotiate all unfavorable agreements, using diplomatic and legal timelines that will not embarrass the country, the corporate arrogance of British Airways as exemplified in the first press release while also using Nigerians who are highly placed BA frequent milers to push their selfish position in private and public to the detriment of the country, is irritating and condemnable.
The government should go further and investigate discriminatory fares on the London route and other routes, using fines as appropriate sanctions. We should manage this crisis well, so fares will not rise on the LOS- LHR route and also avoid a situation where the other European and the rising Middle Eastern airlines operating into the country will capitalize on the crisis by smiling to bank to the detriment of Nigerian people and carriers.
The alarm bell is ringing, we should start looking at how to heal our limping carriers by regulation and finance, so they can attract foreign investors, partners or carriers rather than wait for money launderers to deceive us again.
Are we still surprised that our carriers are not operating to the Middle East, other European cities and even abandoned the high yield ABV - LHR route. Well, it is glaring that our economy is financed by public funds and government travel constitutes a large chunk of upper end cabin. Its time to re-regulate our carriers economically which should be backed by a Fly-Nigeria- Act
Thursday, May 26, 2011
AGENDA FOR MR PRESIDENT
Mr President’s agenda for the industry will definitely be determined by the quality of personnel appointed to replace the outgoing minister, senior special assistant in conjunction with the new leadership of the various agencies. They should be professionals who have inclinations that align with the industry’s aspiration, definitely not raw or recurrent politicians.
They should drive the new aviation programme, in the absence of a position or policy trust for the industry during the last electioneering campaign, the onus lies on the new appointees and other stakeholders to push new programmes for implementation.
Therefore we must push policies and strategies that will operationally strengthen our carriers. Airline issues are viewed and operated as an instrument of national strategy and often times integrated vertically across commerce and tourism. It must also be integrated into the country’s foreign policy like the Middle Eastern government are doing with their carriers. Since the demise of Nigeria Airways and the still birth of its replacement, the government has practically abandoned the domestic carriers except for the bailout fund that was recently granted, which is difficult to utilise due to loan re-financing or toxic debt condition attached.
The govt should continue to encourage concession, should not be deterred by the messy agreements in place, rather than cancel them, they should be renegotiated .Concession is more enduring, improves capital accessibility and ensures public funds are directed at essential services.
We are preparing for ICAO audit, with feelers from the mock audit, the country will definitely come out in flying colours, and then we will clap and pat ourselves on the back again. We must go further by complimenting our safety achievement with making the airlines commercially viable and the airport self sustaining, that we must do by drafting and implementing a stand-alone aviation action plan.
The plan should address the rising tax burden, arbitrary fuel price increment, reduce the industry's regulatory burden, improve air traffic &airport management system and attract investments in our carriers.
They should drive the new aviation programme, in the absence of a position or policy trust for the industry during the last electioneering campaign, the onus lies on the new appointees and other stakeholders to push new programmes for implementation.
Therefore we must push policies and strategies that will operationally strengthen our carriers. Airline issues are viewed and operated as an instrument of national strategy and often times integrated vertically across commerce and tourism. It must also be integrated into the country’s foreign policy like the Middle Eastern government are doing with their carriers. Since the demise of Nigeria Airways and the still birth of its replacement, the government has practically abandoned the domestic carriers except for the bailout fund that was recently granted, which is difficult to utilise due to loan re-financing or toxic debt condition attached.
The govt should continue to encourage concession, should not be deterred by the messy agreements in place, rather than cancel them, they should be renegotiated .Concession is more enduring, improves capital accessibility and ensures public funds are directed at essential services.
We are preparing for ICAO audit, with feelers from the mock audit, the country will definitely come out in flying colours, and then we will clap and pat ourselves on the back again. We must go further by complimenting our safety achievement with making the airlines commercially viable and the airport self sustaining, that we must do by drafting and implementing a stand-alone aviation action plan.
The plan should address the rising tax burden, arbitrary fuel price increment, reduce the industry's regulatory burden, improve air traffic &airport management system and attract investments in our carriers.
ARIK’S TIMELY PLEA BARGAIN
The pains and agonies of our domestic carriers seem unending; luckily none have bitten the dust of late.
We were still basking in the glory of a new carrier, First Nation, which will be flying the Nigerian skies very soon with aircrafts that will puncture the dominance of the Boeing 737, increase competition and most probably improve service delivery, when the rumour or the news filtered that the government was planning to convert Arik to a national carrier. Barely five days later, a national daily informed Nigerians that the government has decided to buy the airline’s toxic debt through AMCON.
The airline has not come out categorically to deny the stories rather the spokesperson came out with a veiled statement, that “we are not aware”. It is an open secret that the carrier is indeed having liquidity problems, considering recurrent delays of staff salaries, debts or related issues with agencies and other service providers have become a norm rather than an exception.
It is also true that the industry is predominantly financed by different financial instruments, therefore owing and servicing these debt is a noble commitment of all organisations properly managed and willing to remain in business.
How did Arik get to this stage? Let me start with the government that has refused to enshrine policies and strategies that will operationally strengthen our carriers. Airline issues are viewed and operated as an instrument of national strategy and often times integrated vertically across commerce and tourism. It is also integrated into the country’s foreign policy. Since the demise of Nigeria Airways and the still birth of its replacement, the government has practically abandoned the domestic carriers except for the bailout fund that was recently granted, which is difficult to utilise due to loan re-financing condition attached.
Arik’s growth was too fast and equally too furious coupled with managerial and corporate arrogance. They started operations by being top heavy with expatriates from failed European airlines, and later got some ex -Virgin Nigeria mercenaries who had left VN with huge debts accumulated from operational and leasing expenses. Not surprisingly, the mercenaries and most of the first generation of expatriates did not last, as they were enmeshed in financial or social mess that haunt Arik till date.
The owner manager syndrome is another structural cankerworm inherited by the airline from our skies, the effects of this syndrome are: access to capital will be difficult and expensive; executive discipline lacking in the absence of a functional board; collaborative discussions are primarily trimmed to the owner’s wish list, rather than commercial benefits; mergers & consolidations are rare, except when they are legislated. It also whittles down public support or legislative backing as they are seen as Mr. A airline and not Nigerian flag carrier
Ironically, Arik opposed bailout for domestic carriers, by working assiduously to frustrate Capt Boyo led committee on bailout modalities, today the airline, is limping critically towards the fund, we should also not forget that, rather than battle foreign carriers for the control of the Nigerian market they wanted to completely annihilate the domestic carriers with grave monopolistic consequences .
Compared to other carriers’ world over, Arik is a small carrier but a behemoth in Nigerian airspace. It should not be allowed to die. Every option must be explored to save the airline with an exception, Nationalisation.
Nationalisation did not work in Greece, Argentina, Senegal Gabon etc; it will also not work here, with a bloated executive, an insatiable legislative arm and an army of ex this-ex that. It will send us back to the era of free tickets, flight diversion and aircraft commandeering.
Arik can also take a cue from Vijay Mallya, the CEO of Kingfisher Airlines in India, who has managed to convince banks to grant him a breather on the carrier’s debt of $1.55 billion, partly by converting some of it into equity, incidentally the A340 kingfisher ordered and later backed out at the point of delivery, was picked by Arik.
AMCON intervention is timely and necessary, which is tantamount to a plea bargain from Arik. The airline is admitting guilt and may be financially sentenced without serving the term, but the record will be there.
We were still basking in the glory of a new carrier, First Nation, which will be flying the Nigerian skies very soon with aircrafts that will puncture the dominance of the Boeing 737, increase competition and most probably improve service delivery, when the rumour or the news filtered that the government was planning to convert Arik to a national carrier. Barely five days later, a national daily informed Nigerians that the government has decided to buy the airline’s toxic debt through AMCON.
The airline has not come out categorically to deny the stories rather the spokesperson came out with a veiled statement, that “we are not aware”. It is an open secret that the carrier is indeed having liquidity problems, considering recurrent delays of staff salaries, debts or related issues with agencies and other service providers have become a norm rather than an exception.
It is also true that the industry is predominantly financed by different financial instruments, therefore owing and servicing these debt is a noble commitment of all organisations properly managed and willing to remain in business.
How did Arik get to this stage? Let me start with the government that has refused to enshrine policies and strategies that will operationally strengthen our carriers. Airline issues are viewed and operated as an instrument of national strategy and often times integrated vertically across commerce and tourism. It is also integrated into the country’s foreign policy. Since the demise of Nigeria Airways and the still birth of its replacement, the government has practically abandoned the domestic carriers except for the bailout fund that was recently granted, which is difficult to utilise due to loan re-financing condition attached.
Arik’s growth was too fast and equally too furious coupled with managerial and corporate arrogance. They started operations by being top heavy with expatriates from failed European airlines, and later got some ex -Virgin Nigeria mercenaries who had left VN with huge debts accumulated from operational and leasing expenses. Not surprisingly, the mercenaries and most of the first generation of expatriates did not last, as they were enmeshed in financial or social mess that haunt Arik till date.
The owner manager syndrome is another structural cankerworm inherited by the airline from our skies, the effects of this syndrome are: access to capital will be difficult and expensive; executive discipline lacking in the absence of a functional board; collaborative discussions are primarily trimmed to the owner’s wish list, rather than commercial benefits; mergers & consolidations are rare, except when they are legislated. It also whittles down public support or legislative backing as they are seen as Mr. A airline and not Nigerian flag carrier
Ironically, Arik opposed bailout for domestic carriers, by working assiduously to frustrate Capt Boyo led committee on bailout modalities, today the airline, is limping critically towards the fund, we should also not forget that, rather than battle foreign carriers for the control of the Nigerian market they wanted to completely annihilate the domestic carriers with grave monopolistic consequences .
Compared to other carriers’ world over, Arik is a small carrier but a behemoth in Nigerian airspace. It should not be allowed to die. Every option must be explored to save the airline with an exception, Nationalisation.
Nationalisation did not work in Greece, Argentina, Senegal Gabon etc; it will also not work here, with a bloated executive, an insatiable legislative arm and an army of ex this-ex that. It will send us back to the era of free tickets, flight diversion and aircraft commandeering.
Arik can also take a cue from Vijay Mallya, the CEO of Kingfisher Airlines in India, who has managed to convince banks to grant him a breather on the carrier’s debt of $1.55 billion, partly by converting some of it into equity, incidentally the A340 kingfisher ordered and later backed out at the point of delivery, was picked by Arik.
AMCON intervention is timely and necessary, which is tantamount to a plea bargain from Arik. The airline is admitting guilt and may be financially sentenced without serving the term, but the record will be there.
Monday, April 25, 2011
FUEL SURCHARGE: EFCC’S INVITATION TO BRITISH CARRIERS
Its kudos to the Economic and Financial Crime Commission (EFCC) for inviting te management of these airlines with respect to refunding fuel surcharge collected sometime ago on the Nigerian route just as they have done on some other routes.
I expect the NCAA to provide the commission with the needed support and information not just harassing domestic carriers that impose such charges.
Corporate travel managers, travel agents, stakeholders and the consumers themselves should coordinate and support the agency with necessary information.
The Central Bank of Nigeria (CBN) should also, look at the remittance history of these carriers if it conforms to the country’s foreign exchange management laws or start a process stifling the remittance process.
We should wake up and understand that, it’s not the passengers demand alone that attracts the request for extra frequencies by the foreign carriers but the ease at which they remit and ferry ticket sales and associated surcharges out of the country. If we cannot protect our carriers, we should at least protect the passengers and the economy.
The reserve bank of India an equivalent of CBN recently advised the foreign airlines to discontinue immediately the practice of using overseas banks for settlement of India rupee transactions on account of sale of air tickets in India, while the Venezuelan government strict remittance policy has discouraged request for extra currency.
It’s another wake up call for the government and relevant agencies
I expect the NCAA to provide the commission with the needed support and information not just harassing domestic carriers that impose such charges.
Corporate travel managers, travel agents, stakeholders and the consumers themselves should coordinate and support the agency with necessary information.
The Central Bank of Nigeria (CBN) should also, look at the remittance history of these carriers if it conforms to the country’s foreign exchange management laws or start a process stifling the remittance process.
We should wake up and understand that, it’s not the passengers demand alone that attracts the request for extra frequencies by the foreign carriers but the ease at which they remit and ferry ticket sales and associated surcharges out of the country. If we cannot protect our carriers, we should at least protect the passengers and the economy.
The reserve bank of India an equivalent of CBN recently advised the foreign airlines to discontinue immediately the practice of using overseas banks for settlement of India rupee transactions on account of sale of air tickets in India, while the Venezuelan government strict remittance policy has discouraged request for extra currency.
It’s another wake up call for the government and relevant agencies
Thursday, April 21, 2011
CONGRATS MR PRESIDENT: WHAT’S NEXT ?
Now that, Mr President has won the elections with a transparent and undisputable mandate and has also promised a single term. He has inadvertently shaken off the political baggage that impinges on effective decision making. I expect his policy thrust for the industry to be business like, radical, proactive and protective.
The politically motivated decisions and concessions taken in the months preceding the elections were not in the best interest of the industry. He must urgently start a process of developing the airport infrastructure without recourse to public funds which must be complemented by having vibrant flag carriers.
Therefore the government should immediately initiate a process of moving our airlines from individually owned to airlines owned by Nigerians. It’s a tonic needed for them to successfully key into public oriented palliatives and policies.
The politically motivated decisions and concessions taken in the months preceding the elections were not in the best interest of the industry. He must urgently start a process of developing the airport infrastructure without recourse to public funds which must be complemented by having vibrant flag carriers.
Therefore the government should immediately initiate a process of moving our airlines from individually owned to airlines owned by Nigerians. It’s a tonic needed for them to successfully key into public oriented palliatives and policies.
Tuesday, April 5, 2011
MAEVIS: The Rumoured Cancellation
The rumoured plan of the government to cancel the maevis deal is discriminatory and punitive.
The industry is plagued with messy concessional agreements that need to be reviewed and renegotiated not cancellation as recommended by the honourable minister of aviation.
The cancellation option will lure the industry into another prolonged litigation process, that will once again, take FAAN’s assets and bank accounts hostage, as witnessed in the past.
The president and his cabinet members will have moved on while FAAN and other stakeholders bear the brunt of the litigation.
I will like to reinstate that all parties must shift grounds and be prepared to renegotiate all agreements.
We must accept that at a stage in the concession process fairness and equity were breeched, which must have necessitated the rushed commissioning of some projects and the vehicles given as gift to top government officials for facilitating , approving and turning the blind eyes to the legal bobby traps in the agreements.
Maevis should not be singled out, all the concessions must be reviewed while also empowering the ICRC by updating the ICRC act rather than have the senate and house committees harassing everybody thru incoherent probes laced with selfish motives.
The concessionaires have added infrastructural value to our airports risking their assets through loans from our troubled banks, the reverberating effect if not properly handled will be a collateral damage to the nation.
Mr. President rather than cancel, please renegotiate the controversial concessions in the industry, this will nurture peace and stimulate the necessary infrastructural growth.
In concluding, let me quote a recent presentation of IATA DG to the Brazilian government that is preparing airport facilities for the next world cup, that “Concessions is the way forward, they must be accompanied by transparent, robust and independent economic regulation supported by effective industry consultations”.
The industry is plagued with messy concessional agreements that need to be reviewed and renegotiated not cancellation as recommended by the honourable minister of aviation.
The cancellation option will lure the industry into another prolonged litigation process, that will once again, take FAAN’s assets and bank accounts hostage, as witnessed in the past.
The president and his cabinet members will have moved on while FAAN and other stakeholders bear the brunt of the litigation.
I will like to reinstate that all parties must shift grounds and be prepared to renegotiate all agreements.
We must accept that at a stage in the concession process fairness and equity were breeched, which must have necessitated the rushed commissioning of some projects and the vehicles given as gift to top government officials for facilitating , approving and turning the blind eyes to the legal bobby traps in the agreements.
Maevis should not be singled out, all the concessions must be reviewed while also empowering the ICRC by updating the ICRC act rather than have the senate and house committees harassing everybody thru incoherent probes laced with selfish motives.
The concessionaires have added infrastructural value to our airports risking their assets through loans from our troubled banks, the reverberating effect if not properly handled will be a collateral damage to the nation.
Mr. President rather than cancel, please renegotiate the controversial concessions in the industry, this will nurture peace and stimulate the necessary infrastructural growth.
In concluding, let me quote a recent presentation of IATA DG to the Brazilian government that is preparing airport facilities for the next world cup, that “Concessions is the way forward, they must be accompanied by transparent, robust and independent economic regulation supported by effective industry consultations”.
Monday, March 7, 2011
HAJJ FLIGHTS: IT’S A RECKLESS SUBSIDY
HAJJ FLIGHTS: IT’S A RECKLESS SUBSIDY
The recent decision of the government to grant additional waivers to airlines and organisations that lobbied through a shredded bidding process for Hajj flights despite getting regulatory waivers from the National Hajj Commission(NAHCON) and the NCAA is another unnecessary presidential intervention and a concurrent political misstep in the industry, which has gradually become the hallmark of this administration.
The NCAA issued a statement that only airlines with Air Operators Certificate (AOC) will be eligible to bid for the hajj flights, while NAHCON barely two months ago, issued a statement that, only airlines that have cleared financial backlogs with the government agencies will operate those flights. To our chagrin, It’s the same agencies Mr. President have now given directives to grant a whopping 65% discount on operational charges, what a policy somersault. A curious look at the list of would be Hajj operators, shows that the two bodies have either reversed themselves policy-wise or have granted an executive induced waiver.
The government should be notified that airlines publicly owned or substantially owned by Nigerians are the only ones qualified for public subsidy not airlines owned by individuals. Also airlines operating national or emergency assignments are also considered for such subsidy or those operating public service obligation routes.
The government weakness or is it panicky frame is due to the coming elections and the unending Zoning brouhaha of the ruling party, which has necessitated this hajj gift, at the expense of public income. If they have to grant such subsidy, it should support weak routes on the west coast and in Nigeria, such as Makurdi, Bauchi, Akure e.t.c.
This waiver is simply reckless and unwarranted, the government should be prepared to give this wasteful gift to Christian pilgrim operators whether owned by Nigerians or not. Also the management of the agencies will be put under pressure to meet operational expenses that might breed industrial disharmony which may have grave safety implications for the industry.
The government should please, realise that the operators of Hajj and Christian pilgrimages were not decreed to operate these flights but voluntarily participated in a process that has been generating substantial revenue for them despite the poor allowances being paid to overworked operating Nigerian crew compared to the operating crew of wet leased aircrafts used often times to augment operations that have grown larger than their operational capacity.
The government recently evacuated Nigerians from Egypt and Libya using foreign airlines even from countries that do not have Cat 1 certification like us, they went as far as Bangladesh to get aircraft, yet Nigerian operators would have been given night and day flights to spilt thereby keeping the critical and necessary funds with our carriers rather than granting waivers
If the government feels they have solved all our problems and can afford to give foreign carriers charter flights and domestic charter operators’ waiver, I will like to quote, the president of the black mayors who visited Oshogbo, the western part of Nigeria, recently for the black Mayor’s conference. He said “as we drove around we envision not the reality of clean water, lack of consistent electrical power, lack of smooth highways and street, lack of sanitary sewer system, severe poverty, the missing educational systems, lack of proper health care, lack of housing, but what we see is the enormous opportunity to work together and solve these problems”. Do I need to add any other thing?
Finally all stakeholders should get up and be counted in the struggle for a Fly Nigeria Act just as they have given it to shipping industry in section 33 of the NIMASA act, while the operators must as a matter of urgency expand ownership to reflect Nigerians before keying into public support and facilities.
The recent decision of the government to grant additional waivers to airlines and organisations that lobbied through a shredded bidding process for Hajj flights despite getting regulatory waivers from the National Hajj Commission(NAHCON) and the NCAA is another unnecessary presidential intervention and a concurrent political misstep in the industry, which has gradually become the hallmark of this administration.
The NCAA issued a statement that only airlines with Air Operators Certificate (AOC) will be eligible to bid for the hajj flights, while NAHCON barely two months ago, issued a statement that, only airlines that have cleared financial backlogs with the government agencies will operate those flights. To our chagrin, It’s the same agencies Mr. President have now given directives to grant a whopping 65% discount on operational charges, what a policy somersault. A curious look at the list of would be Hajj operators, shows that the two bodies have either reversed themselves policy-wise or have granted an executive induced waiver.
The government should be notified that airlines publicly owned or substantially owned by Nigerians are the only ones qualified for public subsidy not airlines owned by individuals. Also airlines operating national or emergency assignments are also considered for such subsidy or those operating public service obligation routes.
The government weakness or is it panicky frame is due to the coming elections and the unending Zoning brouhaha of the ruling party, which has necessitated this hajj gift, at the expense of public income. If they have to grant such subsidy, it should support weak routes on the west coast and in Nigeria, such as Makurdi, Bauchi, Akure e.t.c.
This waiver is simply reckless and unwarranted, the government should be prepared to give this wasteful gift to Christian pilgrim operators whether owned by Nigerians or not. Also the management of the agencies will be put under pressure to meet operational expenses that might breed industrial disharmony which may have grave safety implications for the industry.
The government should please, realise that the operators of Hajj and Christian pilgrimages were not decreed to operate these flights but voluntarily participated in a process that has been generating substantial revenue for them despite the poor allowances being paid to overworked operating Nigerian crew compared to the operating crew of wet leased aircrafts used often times to augment operations that have grown larger than their operational capacity.
The government recently evacuated Nigerians from Egypt and Libya using foreign airlines even from countries that do not have Cat 1 certification like us, they went as far as Bangladesh to get aircraft, yet Nigerian operators would have been given night and day flights to spilt thereby keeping the critical and necessary funds with our carriers rather than granting waivers
If the government feels they have solved all our problems and can afford to give foreign carriers charter flights and domestic charter operators’ waiver, I will like to quote, the president of the black mayors who visited Oshogbo, the western part of Nigeria, recently for the black Mayor’s conference. He said “as we drove around we envision not the reality of clean water, lack of consistent electrical power, lack of smooth highways and street, lack of sanitary sewer system, severe poverty, the missing educational systems, lack of proper health care, lack of housing, but what we see is the enormous opportunity to work together and solve these problems”. Do I need to add any other thing?
Finally all stakeholders should get up and be counted in the struggle for a Fly Nigeria Act just as they have given it to shipping industry in section 33 of the NIMASA act, while the operators must as a matter of urgency expand ownership to reflect Nigerians before keying into public support and facilities.
Tuesday, February 22, 2011
GAT:FAAN GOT IT WRONG AGAIN
The recent directive of FAAN is puzzling and dictatorial, considering these airlines have tenancy and operational agreements with FAAN, also operational issues are not with immediate effect as directed, they are well planned with both parties coming to an agreement that will give the least operational and disruption cost.
I just hope the directive is not sequel to the recent reconciliatory and interactive session of ICRC board in Lagos. That is a body saddled with the responsibility of monitoring and regulating concession agreements, which definitely cannot bite due to the delay in amending the ICRC Act; it has also lost the barking prowess to the house and senate committee on aviation respectively.
It was also alleged that some of those carriers board and park their aircraft at MM2, while they only sell tickets at GAT, in a nut shell generating revenue for Bi-courtey through and at the expense of FAAN owned ,GAT. Well, that brand of marketing is not new to the industry, it’s an age long marketing strategy employed by the local carriers. It’s not a bad idea provided they pay for those counters; FAAN can only refuse to rent out the counters at the expiration of their tenancy not using the forceful eviction mode.
It is also a sad realization that all concessions in the industry have been very messy which is a reflection of the process from begining, therefore all parties must be humble enough to accept that at a point in the concession process fairness and transparency which is the hallmark of an efficient concession process was breached.
We have come to the realisation that the managers of FAAN and the Ministry at the period, when these concessions were signed, compromised and also exhibited little knowledge of the legal booby traps in the agreement, which has come to haunt us now, like the Virgin Nigeria agreement, when an Honourable Minister dozily signed an addendum to the agreement, that was drafted in London on a Virgin Atlantic letter head.
The industry needs to move forward and all parties must be ready to shift ground and negotiate, looking for legal interpretation will give the concessionaires a tarred highway at the expense of a continuous sabotage from stakeholders and "under the table" concessionaires. If they refuse to shift ground or negotiate, then the entire industry “will be caught right dead fighting for their right of way".
Curiously, why was Arik a private carrier without any form of public participation excluded from the decree issued by FAAN ruling council to other privately owned carriers? Was it due to a pending court case, instituted by Arik? Or is it an attempt to surreptitiously hand over the GAT terminal to them? Whichever way fairness and transparency must be paramount or the attempt will join the industry's ever increasing messy concession statistics.
I just hope the directive is not sequel to the recent reconciliatory and interactive session of ICRC board in Lagos. That is a body saddled with the responsibility of monitoring and regulating concession agreements, which definitely cannot bite due to the delay in amending the ICRC Act; it has also lost the barking prowess to the house and senate committee on aviation respectively.
It was also alleged that some of those carriers board and park their aircraft at MM2, while they only sell tickets at GAT, in a nut shell generating revenue for Bi-courtey through and at the expense of FAAN owned ,GAT. Well, that brand of marketing is not new to the industry, it’s an age long marketing strategy employed by the local carriers. It’s not a bad idea provided they pay for those counters; FAAN can only refuse to rent out the counters at the expiration of their tenancy not using the forceful eviction mode.
It is also a sad realization that all concessions in the industry have been very messy which is a reflection of the process from begining, therefore all parties must be humble enough to accept that at a point in the concession process fairness and transparency which is the hallmark of an efficient concession process was breached.
We have come to the realisation that the managers of FAAN and the Ministry at the period, when these concessions were signed, compromised and also exhibited little knowledge of the legal booby traps in the agreement, which has come to haunt us now, like the Virgin Nigeria agreement, when an Honourable Minister dozily signed an addendum to the agreement, that was drafted in London on a Virgin Atlantic letter head.
The industry needs to move forward and all parties must be ready to shift ground and negotiate, looking for legal interpretation will give the concessionaires a tarred highway at the expense of a continuous sabotage from stakeholders and "under the table" concessionaires. If they refuse to shift ground or negotiate, then the entire industry “will be caught right dead fighting for their right of way".
Curiously, why was Arik a private carrier without any form of public participation excluded from the decree issued by FAAN ruling council to other privately owned carriers? Was it due to a pending court case, instituted by Arik? Or is it an attempt to surreptitiously hand over the GAT terminal to them? Whichever way fairness and transparency must be paramount or the attempt will join the industry's ever increasing messy concession statistics.
Tuesday, February 8, 2011
NON REMITTANCES OF TAXES AND CHARGES
on all tickets paper or paperless, it is clearly stated that this taxes or charges are owned by the different agencies, though collected on their behalf as obtained in other climes, the only difference is while in other climes the taxes and charges are remitted regularly or on agreed terms, in Nigeria the reverse is the case. We love "playing with other people's money", thereafter they will run to the ministry, presidency, e.t.c for protection and intervention when its time to pay up. The presidency should realise their intervention is clear case of robbing peter to pay Paul.
FAAN and related organisations must work out modalities of getting these charges as quickly as possible; in fact before the aircraft departs will not be a bad idea due to the embarrassing backlog. The action will inadvertently aid the efficient management of our airlines as they will be saddled with the responsibility using revenue generated from sales, loans while also working assiduously towards improving revenue form other ancillary options.
We should also understand that the airline industry is usually funded and dependent on loans to meet immediate and future operational targets while revenue generated are used to service these loans, run operational expenses and also act as necessary liquidity in an adverse period. If taxes and charges are to be used at all it is temporal with clear understanding of other parties.
The airlines should pay for their services and should equally demand for compensations when the service providers’ actions or in-actions affect or slows down their operations. The BAA chief executive Colin Matthews instigated an inquiry into the airport shutdown last month. He also agreed to forgo his annual bonus during the public outcry that culminated in flight delays and Virgin Atlantic was even bold enough to announce that it will hold BAA charges in his possession until a form of compensation was worked out.
It is a lesson for us all to be bold enough to accept responsibility and listen to public outcry. the agencies should also consider reducing their present charges which is not reflective of market realities while also waiving a certain percentage of these charges or taxes collected by the airlines, just as they have done with concessionaires, EFCC and other debt retrieving partners.
FAAN and related organisations must work out modalities of getting these charges as quickly as possible; in fact before the aircraft departs will not be a bad idea due to the embarrassing backlog. The action will inadvertently aid the efficient management of our airlines as they will be saddled with the responsibility using revenue generated from sales, loans while also working assiduously towards improving revenue form other ancillary options.
We should also understand that the airline industry is usually funded and dependent on loans to meet immediate and future operational targets while revenue generated are used to service these loans, run operational expenses and also act as necessary liquidity in an adverse period. If taxes and charges are to be used at all it is temporal with clear understanding of other parties.
The airlines should pay for their services and should equally demand for compensations when the service providers’ actions or in-actions affect or slows down their operations. The BAA chief executive Colin Matthews instigated an inquiry into the airport shutdown last month. He also agreed to forgo his annual bonus during the public outcry that culminated in flight delays and Virgin Atlantic was even bold enough to announce that it will hold BAA charges in his possession until a form of compensation was worked out.
It is a lesson for us all to be bold enough to accept responsibility and listen to public outcry. the agencies should also consider reducing their present charges which is not reflective of market realities while also waiving a certain percentage of these charges or taxes collected by the airlines, just as they have done with concessionaires, EFCC and other debt retrieving partners.
Wednesday, January 26, 2011
SAFETY: WE CANT BE COMPLACENT
The arrow head of our internationally acceptable level of aviation safety is Dr Demuren, using his professional competence and international clout. The federal government, staff and head of all agencies in the industry have also supported the process, not to forget the airlines, unions, the media and the different security bodies.
We should not be complacent, because we have to avoid losing this certification by sustaining and improving our ability to respond to significant increase in activity as well as improvement in technology, while also addressing noticeable gaps in other ICAO annexes outside Annex 1, 6&8.
Serious incidents and accidents are issues for the AIB and they should take the lead role not the NCAA, it’s very important to enhance safety by avoiding cross functionalism. The handling of the last Aero "smoke in the cockpit" incident, by the two bodies brought to fore the need for effective coordination. The AIB should take a cue from the NTSB.
The NTSB has been very firm in its responsibility and recently issued rules mandating airlines to provide it with timely reports about midair near-collisions information that in the past usually went directly to regulators.
Finally, the NCAA should endevour to make its Airworthiness directives and safety related fines open and assessable to the public, just like some other regulators have done, considering its has a mandate to coordinate and take a leading role in sub region. It also aids in informing and educating the public and stakeholders
We should not be complacent, because we have to avoid losing this certification by sustaining and improving our ability to respond to significant increase in activity as well as improvement in technology, while also addressing noticeable gaps in other ICAO annexes outside Annex 1, 6&8.
Serious incidents and accidents are issues for the AIB and they should take the lead role not the NCAA, it’s very important to enhance safety by avoiding cross functionalism. The handling of the last Aero "smoke in the cockpit" incident, by the two bodies brought to fore the need for effective coordination. The AIB should take a cue from the NTSB.
The NTSB has been very firm in its responsibility and recently issued rules mandating airlines to provide it with timely reports about midair near-collisions information that in the past usually went directly to regulators.
Finally, the NCAA should endevour to make its Airworthiness directives and safety related fines open and assessable to the public, just like some other regulators have done, considering its has a mandate to coordinate and take a leading role in sub region. It also aids in informing and educating the public and stakeholders
AVIATION 2010: FULL OF PROMISES POOR IN DELIVERY
The year started with the reverberating backlash of the failed underwear bomber, whereby Nigeria was placed on the Terror Watch List, we reacted using home grown- Initial Gra Gra (IGG) threatening to break diplomatic relations and impose trade sanctions on the US, which obviously failed, we later opted for the sensible and appropriate diplomatic maneuvers and inter agency cooperation. Thereafter we succumbed to having Air Marshals on board US bound flights, agreeing to pass an Anti terror bill which is presently gathering dust in the legislative chambers, intelligence sharing with international security agencies and also, purchasing scanning machines for our international gateways, that stayed idle for over six months in our airports.
The ministry later presented the clustering concession programme to act as an alternative to the messy PPP inherited from the Obasanjo administration, we were waiting for the implementation and applauding Mr. Omotoba and the committee headed by Capt Dele Ore for the novel idea in our landscape, when the scandalous Abuja runway project broke-out. It eventually swept that administration from office
It was also later revealed by the House Committee on Aviation that the same minister granted Lufthansa Airlines waiver from paying royalties for extra frequencies, in exchange for facilitating a national hanger which is still-born and the ridiculous hub development of Abuja for a nonexistent national or flag carrier. Quite intelligently, the Lufthansa team quickly signed the agreement, starting with the extra frequency that was used to quickly storm the Irish market with promo fares to Abuja and other entry points, considering the lack of direct flights between Ireland and Nigeria, despite the huge potentials.
Also during the year and for the first time, in a very long period, the reshuffling at the ministry, which usually brings a new minister, did not come with the accompanying restructuring at the agencies, despite the jitters, lobbying and ambush that usually characterize such appointments. Unsurprisingly, the new minister followed the trend of commissioning partially completed, sponsored or debt financed projects with so much fanfare usually supported and financed by the agency heads.
The government was able to improve navigation through the Total Rader Coverage programme with the acronym TRACON. Also they improved weather reporting& prediction process by providing necessary equipment while aiding the Accident Investigation Bureau (AIB) with an investigative laboratory. They were also able to transfer ownership seamlessly after a protracted privatization process to the new owners Sky power Handling Company.
The airlines were unable to get out of the financial tail spin, even with the bailout offered by government through the Central Bank of Nigeria. The stringent condition of refinancing debts using fixed assets has made the fund inaccessible to the carriers while giving the banks a second layer of protection. The CBN, need to talk to their counterpart in India who has replicated the same process without any complaints from the airlines. The problem of the operators was further compounded by the disorganized cartel called Airline Operators of Nigeria (AON) that body is completely marooned and need to anchor at the nearest port.
On the Aero-diplomacy front, the DG NCAA, Dr Harold Demuren was nominated unanimously, as the first African to chair the ICAO assembly. On the other side, our own Nick Fadugba resigned as the secretary of African Airline Association (AFRAA) barely three months in office, we were unable to replace him with a Nigerian, due to the poor membership of Nigerian airlines in that body. The airlines disappointingly did not attend African Airline Association (AFRAA) assembly, the Airport Council International (ACI) conference hosted by Nigeria neither were they present at the World Travel Market (WTM).
The comatose Sky power Catering was overran by a detachment of armed air-force personnel, just as they have done with other landed properties of FAAN spread across the country. I sincerely hope it can be reversed to aid the PPP arrangement of the present government.
The Air Transport Services Senior Staff Association of Nigeria (ATSSSAN) did not disappoint as they were able to confront the ministry, erring airlines, the air force and controversial concessionaires, in coordination with other like minds.
The year ended with the airport remodeling tool being used fervently by the government to assuage the discomfort suffered by the traveling public and its concomitants inefficiency and insecurity.
The foreign carriers who have benefited immensely from the anemic state of Nigerian carriers and have been able to get extra frequencies by offering, frequent flyers, exotic visit to their head office and country, GSA partnership e.t.c, to our officials, had to send a delegation to the minister complaining about the state of our airports, as expected the word remodeling was once again flagged by the minister while also hammering on capital flight-a self inflicted policy.
The Ethiopians, who have never claimed to be the giant of Africa, but are real giants in aviation, with a vibrant national carrier, has invested in a Togolese based carrier, to gain access to the West Coast market while at the same time nurturing our only IATA certified carrier ‘Air Nigeria’, the Ethiopian Airport Enterprise, recently announced $27.8 million remodeling of the Addis-Ababa international airport without necessarily parroting remodeling for close to a year.
We will not also forget the stowaway who lost his life while, trying to get to South Africa via the wheel well of an Arik aircraft and the embarrassing disappearance of DDC machines, right on the airside of the country’s premier international gateway. Some juveniles are being hurled to the magistrate or is it juvenile court, to show the world how effective the investigative agencies are, the government should also hurl itself before the court of the Universal Safety Oversight Programme of ICAO to know its level of compliance and ask itself why the airports are neither certified nor insured.
The incident is another wake up call to the industry, users and the government in particular that, category 1 certification alone without compliance with other ICAO annexes is tantamount to parting of the Red Sea. We should go further by crossing the red sea and get to the Promised Land.
The government need to keep the critical public travel expenditure with our carriers by passing ‘The Fly Nigeria Act’, while also encouraging a regulated consolidation to separate the boys from the men, if in doubt, they should ask the Indonesians or the Chinese what they have done, for the airports, Mrs. Re-model should follow the footsteps of the Ethiopians by acting rather than talking.
The ministry later presented the clustering concession programme to act as an alternative to the messy PPP inherited from the Obasanjo administration, we were waiting for the implementation and applauding Mr. Omotoba and the committee headed by Capt Dele Ore for the novel idea in our landscape, when the scandalous Abuja runway project broke-out. It eventually swept that administration from office
It was also later revealed by the House Committee on Aviation that the same minister granted Lufthansa Airlines waiver from paying royalties for extra frequencies, in exchange for facilitating a national hanger which is still-born and the ridiculous hub development of Abuja for a nonexistent national or flag carrier. Quite intelligently, the Lufthansa team quickly signed the agreement, starting with the extra frequency that was used to quickly storm the Irish market with promo fares to Abuja and other entry points, considering the lack of direct flights between Ireland and Nigeria, despite the huge potentials.
Also during the year and for the first time, in a very long period, the reshuffling at the ministry, which usually brings a new minister, did not come with the accompanying restructuring at the agencies, despite the jitters, lobbying and ambush that usually characterize such appointments. Unsurprisingly, the new minister followed the trend of commissioning partially completed, sponsored or debt financed projects with so much fanfare usually supported and financed by the agency heads.
The government was able to improve navigation through the Total Rader Coverage programme with the acronym TRACON. Also they improved weather reporting& prediction process by providing necessary equipment while aiding the Accident Investigation Bureau (AIB) with an investigative laboratory. They were also able to transfer ownership seamlessly after a protracted privatization process to the new owners Sky power Handling Company.
The airlines were unable to get out of the financial tail spin, even with the bailout offered by government through the Central Bank of Nigeria. The stringent condition of refinancing debts using fixed assets has made the fund inaccessible to the carriers while giving the banks a second layer of protection. The CBN, need to talk to their counterpart in India who has replicated the same process without any complaints from the airlines. The problem of the operators was further compounded by the disorganized cartel called Airline Operators of Nigeria (AON) that body is completely marooned and need to anchor at the nearest port.
On the Aero-diplomacy front, the DG NCAA, Dr Harold Demuren was nominated unanimously, as the first African to chair the ICAO assembly. On the other side, our own Nick Fadugba resigned as the secretary of African Airline Association (AFRAA) barely three months in office, we were unable to replace him with a Nigerian, due to the poor membership of Nigerian airlines in that body. The airlines disappointingly did not attend African Airline Association (AFRAA) assembly, the Airport Council International (ACI) conference hosted by Nigeria neither were they present at the World Travel Market (WTM).
The comatose Sky power Catering was overran by a detachment of armed air-force personnel, just as they have done with other landed properties of FAAN spread across the country. I sincerely hope it can be reversed to aid the PPP arrangement of the present government.
The Air Transport Services Senior Staff Association of Nigeria (ATSSSAN) did not disappoint as they were able to confront the ministry, erring airlines, the air force and controversial concessionaires, in coordination with other like minds.
The year ended with the airport remodeling tool being used fervently by the government to assuage the discomfort suffered by the traveling public and its concomitants inefficiency and insecurity.
The foreign carriers who have benefited immensely from the anemic state of Nigerian carriers and have been able to get extra frequencies by offering, frequent flyers, exotic visit to their head office and country, GSA partnership e.t.c, to our officials, had to send a delegation to the minister complaining about the state of our airports, as expected the word remodeling was once again flagged by the minister while also hammering on capital flight-a self inflicted policy.
The Ethiopians, who have never claimed to be the giant of Africa, but are real giants in aviation, with a vibrant national carrier, has invested in a Togolese based carrier, to gain access to the West Coast market while at the same time nurturing our only IATA certified carrier ‘Air Nigeria’, the Ethiopian Airport Enterprise, recently announced $27.8 million remodeling of the Addis-Ababa international airport without necessarily parroting remodeling for close to a year.
We will not also forget the stowaway who lost his life while, trying to get to South Africa via the wheel well of an Arik aircraft and the embarrassing disappearance of DDC machines, right on the airside of the country’s premier international gateway. Some juveniles are being hurled to the magistrate or is it juvenile court, to show the world how effective the investigative agencies are, the government should also hurl itself before the court of the Universal Safety Oversight Programme of ICAO to know its level of compliance and ask itself why the airports are neither certified nor insured.
The incident is another wake up call to the industry, users and the government in particular that, category 1 certification alone without compliance with other ICAO annexes is tantamount to parting of the Red Sea. We should go further by crossing the red sea and get to the Promised Land.
The government need to keep the critical public travel expenditure with our carriers by passing ‘The Fly Nigeria Act’, while also encouraging a regulated consolidation to separate the boys from the men, if in doubt, they should ask the Indonesians or the Chinese what they have done, for the airports, Mrs. Re-model should follow the footsteps of the Ethiopians by acting rather than talking.
IMPERATIVES FOR AIR SAFETY- THE NIGERIAN FACTOR
Being a presentation by Olu Ohunayo
Head Research and Corporate Travel
Zenith Travel &Tours
At the Federal Ministry of Aviation Nov 29th, 2010
What is safety?
“it is a state in which the possibility of harm to persons or of property damage is reduced to, and maintained at or below, an acceptable level through a continuing process of hazard identification and safety risk management.”
Concept of Safety in Air Transportation
Regulatory compliance
Zero accidents or serious incidents
Freedom from hazards i.e. threats to safety
Error avoidance
Attitudes of employees of aviation
The Era’s of Safety
1st Era - safety improved as new technology and standard solves problem of previous equipment while isolated reactive improvement made in procedure and training which is usually after an accident or incident.
2nd Era – this is usually termed the management system era, where organizations are more proactive and focused. They monitor service experience, making improvement while assessing management risk.
3rd Era – here attention is paid to an organisation’s safety culture which nourishes the SMS in place. The SMS concept is an extension of the applicable management system.
We can safely draw the following conclusions from the three eras:
The relationship between technology and management system is straightforward.
The relationship between management and culture is interwoven.
That technology, management systems and culture are independent philosophies.
Organisations must seek continuous improvement in each era to maintain high safety standard.
Safety Management Systems (SMS)
Is a businesslike approach to safety? It is a systematic, explicit and comprehensive process for managing safety risks. As with all management systems, a safety management system provides for goal setting, planning, and measuring performance. A safety management system is woven into the fabric of an organization. It becomes part of the culture, the way people do their jobs (wikipedia).
SMS is intended to support a move away from prescriptive regulations (which specify criteria that must be adhered to) toward performance-based regulations which describe objectives and allow each regulated entity to develop its own system for achieving the objectives. In other words, industry must develop its own policies and systems to reduce risk, which should include implementing systems for reporting and correcting shortcomings. The regulator then changes its emphasis from verifying adherence to the criteria to examining the organizational systems and their effectiveness.
SMS
The most recent innovation with human factors approach in aviation safety is the introduction of Safety Management Systems (SMS).
SMS is the focus on people rather than products or processes.
Not a one size fit all, requires some flexibility.
It is another layer in the safety process and not a replacement.
Integrates human factors considerations across the whole organisation - Airline, AMO, ANSP, ETC.
Defines sound system practices and procedures.
Must not be induced by regulations alone, organizations should strive to make it a culture.
Safety culture is simply the way we do things = the Nigerian factor
To have a safe culture we need management and leadership to compliment all other factors.
Management and leadership have different functions.
Management copes with complexity while leadership is about coping with change.
Management place emphasis on analysis and control of resources.
Leadership place emphasis on people with the objective of influencing the behavioral pattern.
Management controls the SMS while leadership drives safety culture.
The Nigerian Civil Aviation Authority (NCAA)
Presently drives our safety culture in conjunction with other organizations.
Using the informed and reporting process as a pivot.
Collect, analyse relevant data and disseminate safety information promptly.
By encouraging non punitive reporting process to enhance safety.
By encouraging the principle of just culture; where errors will not be punished if unintentional.
By encouraging Airlines, Service providers and other organisations to do same.
Recently attained the necessary Category 1 status for Nigeria, which confirms our compliance with Annex 1, 6, 8.
CAT 1
It covers eight critical elements of safety oversight system
- Primary aviation legislation,
- Specific operating regulations,
- Civil aviation system and safety oversight functions,
-qualifications and training of technical personnel,
- Procedures and technical guidance,
- Licensing and certification obligations,
- Surveillance obligations, and
- Resolution of safety concerns.
CHALLENGES BEFORE US
We must strive to sustain and retain the CAT 1 status.
We should work towards the ICAO universal safety oversight audit programme (USOAP) which is on going and covers all other safety related annexes.
Co-ordination and co-operation among the agencies within the industry should be enhanced.
Airlines should endeavour to pay for services provided promptly while also remitting taxes owed and collected on behalf of the agencies.
Need to quickly fix the airports with models to rebuild, remodel and maintain them without recourse to public funds.
We must address the sophisticated touting problem prevalent at our airports.
Organizations should encourage and open communication with their respective unions and staff.
Economic audit of our carriers should be improved upon to stop the rot.
Ownership of our carriers should be open to all Nigerians to attract necessary public support.
Addendum
The Fly America Act is applicable to all travel funded by United States federal government funds and requires the use of "U.S. flag" airlines (not to be confused with flag carriers) with a few exceptions. These individuals include U.S. federal government employees, their dependents, consultants, contractors, grantees, and others. It is also applicable to all US government contracts issued to US and non US companies
Nigerian Maritime Admin&Safety Agency (NIMASA)
Section 36 of NIMASA ACT
Gives exclusive right to Nigerian owned shipping companies to lift cargo belonging to the federal, state and local government. It also includes publicly funded agencies.
We need a Fly Nigeria Act
Keep that publicly funded market with our carriers.
To strengthen our carriers financially.
To attract foreign investors and partners to our carriers.
To generate employment for Nigerians.
To reduce capital flight.
Thank you for Listening
Head Research and Corporate Travel
Zenith Travel &Tours
At the Federal Ministry of Aviation Nov 29th, 2010
What is safety?
“it is a state in which the possibility of harm to persons or of property damage is reduced to, and maintained at or below, an acceptable level through a continuing process of hazard identification and safety risk management.”
Concept of Safety in Air Transportation
Regulatory compliance
Zero accidents or serious incidents
Freedom from hazards i.e. threats to safety
Error avoidance
Attitudes of employees of aviation
The Era’s of Safety
1st Era - safety improved as new technology and standard solves problem of previous equipment while isolated reactive improvement made in procedure and training which is usually after an accident or incident.
2nd Era – this is usually termed the management system era, where organizations are more proactive and focused. They monitor service experience, making improvement while assessing management risk.
3rd Era – here attention is paid to an organisation’s safety culture which nourishes the SMS in place. The SMS concept is an extension of the applicable management system.
We can safely draw the following conclusions from the three eras:
The relationship between technology and management system is straightforward.
The relationship between management and culture is interwoven.
That technology, management systems and culture are independent philosophies.
Organisations must seek continuous improvement in each era to maintain high safety standard.
Safety Management Systems (SMS)
Is a businesslike approach to safety? It is a systematic, explicit and comprehensive process for managing safety risks. As with all management systems, a safety management system provides for goal setting, planning, and measuring performance. A safety management system is woven into the fabric of an organization. It becomes part of the culture, the way people do their jobs (wikipedia).
SMS is intended to support a move away from prescriptive regulations (which specify criteria that must be adhered to) toward performance-based regulations which describe objectives and allow each regulated entity to develop its own system for achieving the objectives. In other words, industry must develop its own policies and systems to reduce risk, which should include implementing systems for reporting and correcting shortcomings. The regulator then changes its emphasis from verifying adherence to the criteria to examining the organizational systems and their effectiveness.
SMS
The most recent innovation with human factors approach in aviation safety is the introduction of Safety Management Systems (SMS).
SMS is the focus on people rather than products or processes.
Not a one size fit all, requires some flexibility.
It is another layer in the safety process and not a replacement.
Integrates human factors considerations across the whole organisation - Airline, AMO, ANSP, ETC.
Defines sound system practices and procedures.
Must not be induced by regulations alone, organizations should strive to make it a culture.
Safety culture is simply the way we do things = the Nigerian factor
To have a safe culture we need management and leadership to compliment all other factors.
Management and leadership have different functions.
Management copes with complexity while leadership is about coping with change.
Management place emphasis on analysis and control of resources.
Leadership place emphasis on people with the objective of influencing the behavioral pattern.
Management controls the SMS while leadership drives safety culture.
The Nigerian Civil Aviation Authority (NCAA)
Presently drives our safety culture in conjunction with other organizations.
Using the informed and reporting process as a pivot.
Collect, analyse relevant data and disseminate safety information promptly.
By encouraging non punitive reporting process to enhance safety.
By encouraging the principle of just culture; where errors will not be punished if unintentional.
By encouraging Airlines, Service providers and other organisations to do same.
Recently attained the necessary Category 1 status for Nigeria, which confirms our compliance with Annex 1, 6, 8.
CAT 1
It covers eight critical elements of safety oversight system
- Primary aviation legislation,
- Specific operating regulations,
- Civil aviation system and safety oversight functions,
-qualifications and training of technical personnel,
- Procedures and technical guidance,
- Licensing and certification obligations,
- Surveillance obligations, and
- Resolution of safety concerns.
CHALLENGES BEFORE US
We must strive to sustain and retain the CAT 1 status.
We should work towards the ICAO universal safety oversight audit programme (USOAP) which is on going and covers all other safety related annexes.
Co-ordination and co-operation among the agencies within the industry should be enhanced.
Airlines should endeavour to pay for services provided promptly while also remitting taxes owed and collected on behalf of the agencies.
Need to quickly fix the airports with models to rebuild, remodel and maintain them without recourse to public funds.
We must address the sophisticated touting problem prevalent at our airports.
Organizations should encourage and open communication with their respective unions and staff.
Economic audit of our carriers should be improved upon to stop the rot.
Ownership of our carriers should be open to all Nigerians to attract necessary public support.
Addendum
The Fly America Act is applicable to all travel funded by United States federal government funds and requires the use of "U.S. flag" airlines (not to be confused with flag carriers) with a few exceptions. These individuals include U.S. federal government employees, their dependents, consultants, contractors, grantees, and others. It is also applicable to all US government contracts issued to US and non US companies
Nigerian Maritime Admin&Safety Agency (NIMASA)
Section 36 of NIMASA ACT
Gives exclusive right to Nigerian owned shipping companies to lift cargo belonging to the federal, state and local government. It also includes publicly funded agencies.
We need a Fly Nigeria Act
Keep that publicly funded market with our carriers.
To strengthen our carriers financially.
To attract foreign investors and partners to our carriers.
To generate employment for Nigerians.
To reduce capital flight.
Thank you for Listening
The Role of Security in Foreign Investment & the Economy as a Whole
Presented By Mr. Olumide Ohunayo
At the Zonal Security Seminar with the Theme-
“Security Awareness Creation – The Way Forward”
15th – 17th December, 2010 @ the Confluence Beach Hotel,
Lokoja – Kogi State
Obligation of a State
The primary obligation of a state has always been and will continue to be the provision of security. The quest for security has always been an issue of concern in human existence. The Federal Republic of Nigeria is no exception as our constitution as stated this loudly; Section 14 Subsection 2 (b) of the 1999, constitution, states that “the security and welfare of the people shall be the primary purpose and responsibility of the government.”
To Attract Foreign Investments
The State need to have sound economic and fiscal policies in place, coupled with infrastructural development, in a safe and secured environment.
The state must protect people from physical or psychological violence, whether from individuals, state or external state.
The state must protect people from short & long term ravages of nature, man made threats in nature and the deterioration of the natural environment.
The state must have a national security programme which basically maintains the cohesion of a nation –state through the use of economic, military and political power mingled with diplomacy.
Measures Taken by Nation-States to Ensure National Security:
Using intelligence services to detect, defeat or avoid threats and espionage
Protect classified information
Protect the nation from internal threats
Maintaining an effective armed forces
Implementing civil defence and emergency preparedness
Using diplomacy to rally allies and isolate threats
Marshaling economic power to facilitate or compel cooperation
Legislating in tandem with international community (Anti –terror bill)
National Security (Nigeria’s Position or Wish?)
Our national defence policy; sees national security as an all encompassing condition in which citizens can live in freedom, peace and safety, participate fully in the protection of fundamental rights, have access to resources, necessities of life and inhabit an environment that is conducive to their health and well being.
A grand strategy – is the aggregate of the security interests of all individuals, communities, ethnic groups, political entities and the prosperity of individuals and institutions within Nigeria and what belongs to Nigeria and Nigerians abroad.
Structures Put in Place by Government to Enhance Security
Nigeria Police
The Armed forces
Nigeria Intelligence Agency
State Security Services
Nigeria Immigration Service
Nigeria Custom Service
Nigeria Prison Services
Nigeria Civil Defence Corps
Federal Road Safety Corps
National Drug Law Enforcement Agency
Economic & Financial Crime Commission
Independent Corrupt Practices & Other Related Offences Commission
The Judiciary
The Legislature
Vibrant & Proactive Foreign Policy
The Media
The Executive
(Other agencies NAFDAC, NCAA and NCC)
How to Overcome the Challenges
Government should consider joint security programme with all tiers of government
Promote a culture of religious and ethnic tolerance
Improve cooperation and coordination between the different agencies and their foreign counterpart
Effective poverty eradication programme
Unrelenting war against corruption at all levels
Promotion of bilateral and multi-lateral cooperation through diplomacy
Adequate and alternate funding of the relevant agencies
Proactive and preventive intelligence gathering
Good governance supported by transparent elections and succession
Provision of energy, power supply with efficient road network backed by alternate modes.
Conclusion
Foreign investment is the tonic needed to drive a country’s economy, in driving that economy you are inadvertently eliminating poverty, unemployment and corruption. These axis of evil, breeds insecurity, unrest and generally makes a country unsafe. Therefore we must ensure we keep our country safe and security conscious always.
Thank You for Your Attention
At the Zonal Security Seminar with the Theme-
“Security Awareness Creation – The Way Forward”
15th – 17th December, 2010 @ the Confluence Beach Hotel,
Lokoja – Kogi State
Obligation of a State
The primary obligation of a state has always been and will continue to be the provision of security. The quest for security has always been an issue of concern in human existence. The Federal Republic of Nigeria is no exception as our constitution as stated this loudly; Section 14 Subsection 2 (b) of the 1999, constitution, states that “the security and welfare of the people shall be the primary purpose and responsibility of the government.”
To Attract Foreign Investments
The State need to have sound economic and fiscal policies in place, coupled with infrastructural development, in a safe and secured environment.
The state must protect people from physical or psychological violence, whether from individuals, state or external state.
The state must protect people from short & long term ravages of nature, man made threats in nature and the deterioration of the natural environment.
The state must have a national security programme which basically maintains the cohesion of a nation –state through the use of economic, military and political power mingled with diplomacy.
Measures Taken by Nation-States to Ensure National Security:
Using intelligence services to detect, defeat or avoid threats and espionage
Protect classified information
Protect the nation from internal threats
Maintaining an effective armed forces
Implementing civil defence and emergency preparedness
Using diplomacy to rally allies and isolate threats
Marshaling economic power to facilitate or compel cooperation
Legislating in tandem with international community (Anti –terror bill)
National Security (Nigeria’s Position or Wish?)
Our national defence policy; sees national security as an all encompassing condition in which citizens can live in freedom, peace and safety, participate fully in the protection of fundamental rights, have access to resources, necessities of life and inhabit an environment that is conducive to their health and well being.
A grand strategy – is the aggregate of the security interests of all individuals, communities, ethnic groups, political entities and the prosperity of individuals and institutions within Nigeria and what belongs to Nigeria and Nigerians abroad.
Structures Put in Place by Government to Enhance Security
Nigeria Police
The Armed forces
Nigeria Intelligence Agency
State Security Services
Nigeria Immigration Service
Nigeria Custom Service
Nigeria Prison Services
Nigeria Civil Defence Corps
Federal Road Safety Corps
National Drug Law Enforcement Agency
Economic & Financial Crime Commission
Independent Corrupt Practices & Other Related Offences Commission
The Judiciary
The Legislature
Vibrant & Proactive Foreign Policy
The Media
The Executive
(Other agencies NAFDAC, NCAA and NCC)
How to Overcome the Challenges
Government should consider joint security programme with all tiers of government
Promote a culture of religious and ethnic tolerance
Improve cooperation and coordination between the different agencies and their foreign counterpart
Effective poverty eradication programme
Unrelenting war against corruption at all levels
Promotion of bilateral and multi-lateral cooperation through diplomacy
Adequate and alternate funding of the relevant agencies
Proactive and preventive intelligence gathering
Good governance supported by transparent elections and succession
Provision of energy, power supply with efficient road network backed by alternate modes.
Conclusion
Foreign investment is the tonic needed to drive a country’s economy, in driving that economy you are inadvertently eliminating poverty, unemployment and corruption. These axis of evil, breeds insecurity, unrest and generally makes a country unsafe. Therefore we must ensure we keep our country safe and security conscious always.
Thank You for Your Attention
Tuesday, January 25, 2011
CONVEYOR BELT PROBLEM
The conveyor belt is an essential equipment in the facilitation
process; also it improves safety and security of the passenger baggage
and the airport itself.
Sadly, down here it is trapped in the airport remodeling debacle that
has been heard many times but not seen rather, we politically added to
the burden by increasing the number of international gateways without
a clear cut programme of maintaining and improving the existing ones.
The two handling companies should work out an urgent PPP arrangement
with FAAN to improve this critical facilitation equipment rather than
wait endlessly for the un-ending remodeling toga.
process; also it improves safety and security of the passenger baggage
and the airport itself.
Sadly, down here it is trapped in the airport remodeling debacle that
has been heard many times but not seen rather, we politically added to
the burden by increasing the number of international gateways without
a clear cut programme of maintaining and improving the existing ones.
The two handling companies should work out an urgent PPP arrangement
with FAAN to improve this critical facilitation equipment rather than
wait endlessly for the un-ending remodeling toga.
STOLEN DDC MACHINE
It’s so sad to that aviation security will be associated to the group of Nigerians working to scuttle elections in the country next year. Stealing and pilfering of baggage and goods, at our airports is an age long thing that we have not been able to resolve, despite our heightened security at the airports and cargo areas.
The quantity of machines missing shows some level of connivance with some unscrupulous aviation staff, which is detrimental to aerodrome safety, since some equipment were used to ferry these machines over the fence. Those equipment and personnel would obviously have circumvented the airside rules and can contribute to future runway debris, which is dangerous for aircraft tires.
It is another wake up call for the airport authorities in Nigeria and other countries with similar problems, on need to improve security in & round the airports, profiling of staff, and increase usage of security cameras. Also unused airport lands should not be fallow; we should start thinking outside the box while waiting for the governments’ policy thrust which is presently confusing.
It’s also appalling to hear the handling agents throw banters at each other, when they should be working together to resolve glaring security lapses in the cargo areas.
We should really wake up and leave the joyous cocoon of our achievement in complying with the requirements of Annex 1, 6, 8 and seriously work towards improving our lapses in other ICAO annexes which will make us comply fully with Universal Safety Oversight Audit programme.
The quantity of machines missing shows some level of connivance with some unscrupulous aviation staff, which is detrimental to aerodrome safety, since some equipment were used to ferry these machines over the fence. Those equipment and personnel would obviously have circumvented the airside rules and can contribute to future runway debris, which is dangerous for aircraft tires.
It is another wake up call for the airport authorities in Nigeria and other countries with similar problems, on need to improve security in & round the airports, profiling of staff, and increase usage of security cameras. Also unused airport lands should not be fallow; we should start thinking outside the box while waiting for the governments’ policy thrust which is presently confusing.
It’s also appalling to hear the handling agents throw banters at each other, when they should be working together to resolve glaring security lapses in the cargo areas.
We should really wake up and leave the joyous cocoon of our achievement in complying with the requirements of Annex 1, 6, 8 and seriously work towards improving our lapses in other ICAO annexes which will make us comply fully with Universal Safety Oversight Audit programme.
EXPECTATIONS FOR 2011
Hopefully, the government should urgently start the remodeling of the
airports ,considering, we used the whole of last year to plan and
adopt the remodeling option after nullifying the clustering concession
programme adopted by Mr. Omotoba’s team.
The airports should be taken in totality, I am very uncomfortable with
the first and second phase programme as enunciated by the government,
they should realise they can’t do it alone. Therefore a form of
partnership must involve other tiers of government and the private
sector which must be open, fair and transparent.
Our carriers should expand ownership to be rightly regarded as flag
carriers. If Mr. Branson can dilute then our carriers can do same. It
will aid the clamour for a fly Nigeria act and other publicly
supported initiatives, which will unlock the shackles in our aviation
policy which has given the foreign airlines unfettered access to the
Nigerian gateways. the airline industry is in a recovery period we
must key into this critical period.
The regulatory body should sustain the CAT 1 certification, improve
the economic regulatory aspect of the carriers and should in
conjunction with the ministry start a regulated consolidation regime.
Lastly, I expect an improvement in our compliance with related
annexes, we should complement the CAT 1 status by working on other
annexes that will ensure we meet the standard set in the ICAO
universal safety oversight programme.
airports ,considering, we used the whole of last year to plan and
adopt the remodeling option after nullifying the clustering concession
programme adopted by Mr. Omotoba’s team.
The airports should be taken in totality, I am very uncomfortable with
the first and second phase programme as enunciated by the government,
they should realise they can’t do it alone. Therefore a form of
partnership must involve other tiers of government and the private
sector which must be open, fair and transparent.
Our carriers should expand ownership to be rightly regarded as flag
carriers. If Mr. Branson can dilute then our carriers can do same. It
will aid the clamour for a fly Nigeria act and other publicly
supported initiatives, which will unlock the shackles in our aviation
policy which has given the foreign airlines unfettered access to the
Nigerian gateways. the airline industry is in a recovery period we
must key into this critical period.
The regulatory body should sustain the CAT 1 certification, improve
the economic regulatory aspect of the carriers and should in
conjunction with the ministry start a regulated consolidation regime.
Lastly, I expect an improvement in our compliance with related
annexes, we should complement the CAT 1 status by working on other
annexes that will ensure we meet the standard set in the ICAO
universal safety oversight programme.
FAAN: PROBLEMS BEYOUND BUDGETARY ALLOCATION
sincerely, FAAN problem goes beyond budgetary allocation from the
federal government because the organization itself lacks transparency.
It has not been able to convince investors due to the non availability
of a verifiable financial statement over the years, considering it’s a
high yield revenue generating organization, coupled with the frequent
changes in the ministry’s leadership. The Ministers have all had
divergent policy trust for the organization, while implementation
always ended on the drawing board.
Also, almost all the concession agreements entered into by the agency
ended up being messy, because they were given to the privileged few
bypassing the rudiments of fair, open and transparent bidding.
The present minister used the first three quarters of last year to
plan, the last quarter ended with the remodeling toga being used
fervently to assuage the traveling public discomfort and its
concomitants inefficiency and insecurity.
The foreign carriers who have benefited immensely from the anemic
state of Nigerian carriers and have been able to get extra frequencies
by offering, frequent flyers, exotic visit to their head office and
country, GSA partnership e.t.c, to our officials, had to send a
delegation to the minister complaining about the state of our
airports, as expected the word remodeling was once again flagged by
the minister while also hammering on capital flight-a self inflicted
policy.
The Ethiopians, who have never claimed to be the giant of Africa, but
are real giants in aviation, with a vibrant national carrier, has
invested in a Togolese based carrier, to gain access to the West Coast
market while at the same time nurturing our only IATA certified
carrier ‘Air Nigeria’, the Ethiopian Airport Enterprise, recently
announced $27.8 million remodeling of the Addis-Ababa international
airport without necessarily parroting remodeling for close to a year.
federal government because the organization itself lacks transparency.
It has not been able to convince investors due to the non availability
of a verifiable financial statement over the years, considering it’s a
high yield revenue generating organization, coupled with the frequent
changes in the ministry’s leadership. The Ministers have all had
divergent policy trust for the organization, while implementation
always ended on the drawing board.
Also, almost all the concession agreements entered into by the agency
ended up being messy, because they were given to the privileged few
bypassing the rudiments of fair, open and transparent bidding.
The present minister used the first three quarters of last year to
plan, the last quarter ended with the remodeling toga being used
fervently to assuage the traveling public discomfort and its
concomitants inefficiency and insecurity.
The foreign carriers who have benefited immensely from the anemic
state of Nigerian carriers and have been able to get extra frequencies
by offering, frequent flyers, exotic visit to their head office and
country, GSA partnership e.t.c, to our officials, had to send a
delegation to the minister complaining about the state of our
airports, as expected the word remodeling was once again flagged by
the minister while also hammering on capital flight-a self inflicted
policy.
The Ethiopians, who have never claimed to be the giant of Africa, but
are real giants in aviation, with a vibrant national carrier, has
invested in a Togolese based carrier, to gain access to the West Coast
market while at the same time nurturing our only IATA certified
carrier ‘Air Nigeria’, the Ethiopian Airport Enterprise, recently
announced $27.8 million remodeling of the Addis-Ababa international
airport without necessarily parroting remodeling for close to a year.
Thursday, January 20, 2011
Ticket Fare Hike
The rising oil price in the international market has continued unabated moving close to the $100 mark; it is usually accompanied by panic, shock and inflationary tendencies. It is a norm for airlines world over to respond by either using the numerous operational fuel saving strategies or effecting increase in fare, which is usually borne by passengers. The airlines use terminologies like fuel surcharge, fuel tax, distance or sector charge etc.
In Nigeria, the oil marketing cartel, held the industry by the jugular using deregulation and closed participation to a profitable advantage even when the international price was stable, while equally frustrating efforts of one or two domestic airlines, who have decided to get their own fuel dump.
It took the intervention of the house committee on aviation, to bring down the price of Jet A1 locally sometime ago despite having stable oil price at the international market. The oil marketers should realise, their actions is depleting the country's expected revenue. Because some foreign airlines prefer going to Accra, Ghana, to pick fuel, thereafter pick passengers, lodge crew and maintenance personnel that would have been provided by related organisations in Nigeria.
The domestic carriers must unite and work towards beating the marketers to their game considering some of them have interest in the oil industry rather than adopting a me, myself and I principle. Air Canada at a time in the past was importing crude oil directly from Nigeria to reduce cost. Also, airlines should endeavour to liaise with related agencies and organisations at the airports to ensure flights are swiftly handled and despatched to reduce fuel consumption, while also adopting conventional fuel saving strategies known to the industry.
The government can give airlines fuel bailout, by regulating, reducing or eliminating fuel tax or releasing a certain quantity to them in batches at a reduced or subsidised rate. This will not be uniquely Nigerian, the Indian, Brazilian and Chinese governments have done it for their carriers. The Bolivians gave conditionality’s such as acquiring newer aircraft before participating in the subsidised fuel programme.
The passengers will not mind a slight adjustment in price and will remain loyal to the industry, provided we maintain, sustain and ensure safety always, while also improving service level. They are aware that the industry benefited from the excess crude account, which was used to improve infrastructure. The airlines must continue to provide different strata of fares as witnessed in the year 2010, with a promise to adjust the fares downwards in line with the international oil price.
Finally, for our carriers that are craving for public funds, bailout, act, support e, t, c. They need to expand ownership by involving Nigerians, none of the airlines operating into the country is owned by an individual even Virgin Atlantic, in the absence of a national carrier we need flag carriers we can identify as truly Nigerian. The Tanzanians are seriously considering abandoning the troubled National Carrier, Air Tanzania, after wikileak exposed the shady conditions given to Boeing. The successful and privately owned, Precision Air, quickly capitalise by offering to give participation to Tanzanians to replicate flag ownership, can our own operators replicate same before requesting for public support.
In Nigeria, the oil marketing cartel, held the industry by the jugular using deregulation and closed participation to a profitable advantage even when the international price was stable, while equally frustrating efforts of one or two domestic airlines, who have decided to get their own fuel dump.
It took the intervention of the house committee on aviation, to bring down the price of Jet A1 locally sometime ago despite having stable oil price at the international market. The oil marketers should realise, their actions is depleting the country's expected revenue. Because some foreign airlines prefer going to Accra, Ghana, to pick fuel, thereafter pick passengers, lodge crew and maintenance personnel that would have been provided by related organisations in Nigeria.
The domestic carriers must unite and work towards beating the marketers to their game considering some of them have interest in the oil industry rather than adopting a me, myself and I principle. Air Canada at a time in the past was importing crude oil directly from Nigeria to reduce cost. Also, airlines should endeavour to liaise with related agencies and organisations at the airports to ensure flights are swiftly handled and despatched to reduce fuel consumption, while also adopting conventional fuel saving strategies known to the industry.
The government can give airlines fuel bailout, by regulating, reducing or eliminating fuel tax or releasing a certain quantity to them in batches at a reduced or subsidised rate. This will not be uniquely Nigerian, the Indian, Brazilian and Chinese governments have done it for their carriers. The Bolivians gave conditionality’s such as acquiring newer aircraft before participating in the subsidised fuel programme.
The passengers will not mind a slight adjustment in price and will remain loyal to the industry, provided we maintain, sustain and ensure safety always, while also improving service level. They are aware that the industry benefited from the excess crude account, which was used to improve infrastructure. The airlines must continue to provide different strata of fares as witnessed in the year 2010, with a promise to adjust the fares downwards in line with the international oil price.
Finally, for our carriers that are craving for public funds, bailout, act, support e, t, c. They need to expand ownership by involving Nigerians, none of the airlines operating into the country is owned by an individual even Virgin Atlantic, in the absence of a national carrier we need flag carriers we can identify as truly Nigerian. The Tanzanians are seriously considering abandoning the troubled National Carrier, Air Tanzania, after wikileak exposed the shady conditions given to Boeing. The successful and privately owned, Precision Air, quickly capitalise by offering to give participation to Tanzanians to replicate flag ownership, can our own operators replicate same before requesting for public support.
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