RE: IT’S TIME NATIONAL AIRLINE IS PRIVATIZED

The Tanzanian experience in the article published on www.nigerianaviationnews.blogspot.com has further proven the futility in liquidating and starting national carriers all over again when factors such as government ownership, protection of the skies and other competitive issues are not properly factored before taking emotional decisions that will hunt the country financially and reduce operational efficiency of other domestic carriers. Countries such as Greece, Ghana, Cote d Ivoire, Belgium, Switzerland, Cameroon, Senegal, Zambia e.t.c have gone through the painful process and have bitten the dust like the Tanzanians are doing presently as reflected in the article. The disparity in fares saga has again woken the passion for a national carrier with our unionist making quick reference to airlines in Ethiopia, South Africa, Egypt and other Middle Eastern countries as models of vibrant national carriers. Ethiopian Airlines was managed by foreigners for 25 years before reverting to the Ethiopians who have doggedly maintained and improved on the operational standard, same for South African Airways. The Middle Eastern government, chair a functioning board while competent professional are recruited from all over the globe to manage these carriers without any interference. Also, some of these countries have protected these carriers by not polluting their skies, slots, frequencies and most importantly commercial agreements. The South Africans have refused to sign the open skies with the Americans, same with Russia, China, Hong Kong, Mexico their neighbour and some other countries. Brazil signed earlier this year with full implementation scheduled for 2015 despite its closeness to America and stronger economy when compared to Nigeria. For China it’s the American labour unions not the Chinese that are resisting the open skies agreement because of perceived jobs losses and cheap wages that will accompany the agreement, yet some of our agency heads told the senate committee that opening the skies is the way to go. It’s also important to note that Japan, India, Australia, Switzerland and EU with bigger economy and obviously stronger aviation industry, signed the open skies after us after using strong negotiating tactics that ensured commercial valves were sealed for their carriers. The Philippines government through its central bank introduced financial instruments that made transfer of ticket sales less flexible; the foreign airlines grumbled and reduced frequencies while on the other hand San Miguel Inc is adding a billion dollar investment to its flag carrier, Philippines Airlines, for the purchase of a hundred aircrafts. This country has CAT 2 certification and flight restriction into Europe, yet they were able to protect their flag carrier to attract such investment. The tonic here is commercial protection rather than enriching BASA fund. A new national carrier from the scratch will require protection and route exclusivity which is a requisite subsidy, for it to survive the first decade. We will shackle our present flag carriers for the new carrier to survive, if it will even survive. A regulatory consolidation process like the Chinese and Thai government have done will allow a viable national carrier or carriers that will have a functioning board to evolve naturally while funds meant for this risky business that will probably come from some 6000 pounds gorillas (a term used for sub-optimal investors), who will make government stand as guarantors can be invested in the consolidated carriers.