ARIK AIR CLARION CALL: A REFLECTION FOR ALL

In commemorating its seventh anniversary, Arik Air Chairman and Managing Director granted a joint press conference where the following pertinent issues affecting the airline in particular and the industry in general were raised. TAXES AND CHARGES: The cost of operating flights in the country has generally been described as too high and is principally attributed to numerous taxes and charges. The operators, stakeholders and other participants have asked for a downward review. I also agree, but we can help by providing a comparative table of charges and taxes for all to see and generally access. We should not forget that in addressing this issue holistically, we must include the subsidies, waivers, loans and grants given by or obtained from Government by our carriers and the debit account with the agencies vis a vis the untaxable fuel surcharge hidden somewhere in the domestic fares and has been used to rip the pocket of passengers and public treasury. PREFERENCE FOR FOREIGN CARRIERS: It is an open secret that the Government and corporate Nigeria lean towards foreign carriers - from filling their upper cabins to bilaterals, slots and counter allocations at our gateways, which are improperly skewed in favour of foreign carriers. How do we explain that Government gave Medview, an indigenous airline the right to operate Enugu - Singapore route, while the airline was still preparing. The government and other politicians were reeking with excitement at Enugu airport, welcoming Ethiopian Airlines with pomp and pageantry, the same Ethiopians will commence Singapore flights sometime this month, to add salt to our injury the Singaporean authorities said they have commenced discussion with the Ethiopians regarding flights into Nigeria from Singapore (see The Guardian of Wednesday, 6th November 2013). The bilateral air services agreement between Nigeria and Singapore was signed last week without giving consideration to our carriers or the mandatory protection but celebrated more as a political investment and as a blank cheque for Ethiopian Airlines. The Ethiopians want our routes, frequencies and passengers, but chose to invest in and empower the Togolese through ASKY. South African Airways is planning to have a hub in West Africa, we should naturally be the choice considering what we have done for MTN, SAA, Shoprite, Multichoice e.t.c, and sadly they are looking at other countries in the region. The foreign carriers have gone further by capitilising on our ethnic divide to seek extra frequencies into Kano and Enugu without reciprocity - which is the hallmark of BASA - while we shamelessly bicker over not allowing them to operate to our respective constituencies and the legitimacy of collecting royalties. NATIONAL CARRIER: Arik Chairman said "this is a deliberate ploy to kill Arik, since they cannot get it". Arik is too big and too important to kill at the moment, our economy will be severally affected, and in my opinion domestic airlines will be systematically weakened by the protection and exclusivity that will sheepishly accompanying the national carrier status. We do not need to protect Aero Contractors and the ashes of Air Nigeria under the acronym of national carrier. Why do we want to protect the liabilities of the two airlines at the expense of other airlines and taxpayers? These airlines and other airlines in Nigeria, including Arik belong to individuals and their families. They collected funds from banks owned by numerous Nigerians, stabilisation fund from tax payers and AMCON has gone to mop it again with public funds. We do not need a national carrier; neither do we need to protect families that have mismanaged their airlines. Arik MD, who was bold enough to tell us they were being forced to relinquish five percent shares to a top Government official which was resisted and applauded generally , should also make it very clear to the Chairman that Arik will get the necessary and needed support from Nigerians if they do open doors for participation and ownership. Virgin does not belong to Richard Branson alone. PASSENGER SERVICE RIGHTS: We have shortchanged Nigerian passengers in the past and still do, the bill on passenger rights has been around for over a year. The airlines charge their fare without consulting the passengers, while the regulator has been too lenient in enforcement. NCAA recently increased enlightenment while FAAN literally directs passengers to NCAA or to the airlines to seek redress not incitement as alleged by Arik. We look forward to enforcement, while also addressing critical infrastructure that can cause delay. Passengers need to remain courteous and polite to airline staff to key into the Bill. LACK OF MARKET: We need to give charter and public sector travel to our operators; this will stimulate growth in the industry, save funds and most importantly attract investment to our carriers. A phased implementation of the Fly Nigeria Act should apply to airlines owned by various Nigerians; those owned by families should not be considered. We can start with all categories of Government charter, thereafter the West Coast routes. AIRLINE OPERATORS OF NIGERIA (AON): This body is troubled and dysfunctional. In the past, it was headed and managed by scheduled operators; today its membership and leadership tilt towards the non schedule and charter operators, who operate luxury services, yet expect duty waivers, stabilisation fund and subsidies from tax payers. Arik aloofness has not helped the AON. The airline in conjunction with other schedule operators should kick start a new AON, while the non-schedule form their business operator association. It is the norm, we cannot be different. On the international scene, I will commend Arik for taking us off the polluter and noisy aircraft list of airlines operating into Heathrow Airport. Airlines from Poland, Israel and South Africa were on that list. This was not achieved by the liquidated Nigeria Airways, or its pretentious successor on that route, Bellview Airlines. Arik has the potential of being profitable, supported and backed as a flag carrier. If they do the needful, which among other things are ownership expansion, functional board, improved Industrial Relations and stop its discriminatory debt servicing policy. I will reiterate that the grounding of DANA Airlines was borne out of spontaneous emotionalism, rather than safety. It is ridiculous to keep them grounded with over five hundred Nigerians and their families denied the right to earn a living, while external auditors and NCAA staff are earning their salaries, and have not commenced the audit. Air India's new B787 fleet has recorded more air incidences than DANA MD 83, yet the regulators and manufacturers are still supporting and assisting. NCAA should remember the IATA resolution that says "regulatory work is best practiced when aligned to global standards by government working in cooperation with the industry".

Re Rumours of Sacrifice, Agagu, Oduah & Fani-Kayode

E: We all owe it a duty to protect the industry and restore confidence in the travelling public. The slings and stones being thrown at each other at this time will only heat the polity and divert attention from the safety challenges that we need to address as quickly as possible. Chief Fani-Kayode's write up has triggered a lot of rejoinders and a verbal reply at an international conferences, of the lot I will pick that of Mr. Joel Obi, though I do not agree with some choice of words but align with the chronicle of activities in the industry, when the chief headed the ministry. Mr. Obi's article omitted the dubious re-capitalisation process that made the Corporate Affairs Commission smile to the bank while the airlines simply filled forms and arranged documents in connivance with their banks, ministry and the hatchet man who was an operator, spilt look alike and a good friend of the chief. I am compelled to add this information because the chief did not do anything for industry rather, he was brash and tried as much as possible to intimidate operators, stakeholders and foreign airlines in a spirited bid to corner largess for self and tag team partners. Mr. Obi, the issues raised by you are the perennial banana peel waiting for all occupiers of that office, the most recurring ones are nepotic / ethnic recruitment or displacement, interference in the agencies, culture of impunity and poor enforcement. These issues either bring them down or haunt them long after, so please keep it in mind. To the whistle blowers that wait for a crash before blowing the whistle, they should bow their heads in shame; such whistles are destructive and usually targeted at bringing down personalities rather than saving lives, improving the system and its processes. It happened after the Dana crash and its happening again with the usual panicky suspension of operational certificate, rash public hearing and removal of office holders. Thereafter we go back to statuesque. My humble suggestion is a reassessment of the non punitive reporting system in place that has made reporting difficult but easier after a crash and usually given to legislative arm with the intention of ridiculing the industry. Also, the agencies and ministry should, please let us hear from AIB only at this hour, its not a time to flag our ratings or certifications neither are we interested in achievements and garlands gathered. We are suppose to be mourning our clients whose remains are still in the morgue awaiting identification and burial. The AIB, should upgrade from its timidity and boldly address and update us regularly not by press releases but facing the camera and taking questions. It’s important, it shows they are in control and autonomous. The disconnect between the economic and safety regulatory units presently domiciled in the NCAA must be addressed, Associated Airline will fail an economic audit just like others still brandishing the AOC. Finally, we must at this point agree that our carriers are weak and start a regulatory consolidation process. It is a better option to have five airlines that are sick than twenty six with epidemic.

NEW AVIATION CHARGES: A NEED FOR CAUTION

The NCAA recently introduced a new user charge for non schedule commercial operators; the action has generated a lot of controversy and a law suit. The NCAA has taken the airlines under the aegis of Airline Operators of Nigeria (AON) to court to determine if the authority is empowered by law to introduce such charges. This is comical, is it NCAA the regulator of the industry that should go to court or AON the aggrieved? I would have expected the NCAA to use the court to retrieve the outstanding ticket sales charge and Value Added Tax running into billions of naira which is trapped with AON members with or without an active AOC. I just hope they consulted outside the box before going to court because the aviation agencies are serial losers when it comes to the dispensation of justice, the judgment debt of the industry and catastrophic concession cases are attestations while the acquittal of an agency head for contempt of court was widely celebrated as if it was the final judgment. Curiously the private jet owners or the ‘ogas’ at the top were exempted from this new tariff, they cannot be exempted from a special luxury tax, because of some these jets surreptitiously operate charter. The AON should have 26 members based on the list of active AOC holders as published by the NCAA last week, a cursory look at that list shows that thirteen of them are small to mid range jets charter operators, three of them are Hajj/Pilgrim operators, seven of them are schedule operators while the remaining three are schedule operators that have suspended operations but have an active AOC due to the charter operations they do on the side or how else can we describe active AOC without operating scheduled flight for more than six months. The non schedule operators from the above have practically hijacked the AON, the ideal thing as obtained in other climes is to have two associations one for the schedule and the other for non schedule operators. This is necessitated by the type of service, clients, support, protection, maintenance, legislation, subsidy etc that cannot and can never be the same of these two categories of operators. The non schedule operators are the honeycomb of civil aviation world over, their service is luxurious and heavily taxed they do not get subsidy, economic protection, stabilization fund neither are they exempted from paying custom duties on spares and machinery. In Nigeria they have forced themselves on us all, by robbing an industry they are to feed, by operating with foreign registered carriers to the detriment of Nigerian professionals, under invoicing the agencies, delaying payment, diversion and extension of flights e.t.c. Is it not absurd that the private jet sector is booming and thriving while the commercial airlines are shrinking and struggling? Yes it is! They are thriving because they get their money from clients and shortchange the system through numerous agents, commissions, round tripping, illegal subsidies, gross under invoicing and supervision by the agencies. The DG in his publication last week said all other charges are embedded in the new fee, which literally means, warehousing of all payments; therefore their operation will now be collated in a coordinated process by the requisite agencies. I just hope the reconciliation period will not be for the long knives. The threat by operators to relocate to Ghana is empty and cannot fly rather they should negotiate, discuss and pay commensurately which is the norm considering it’s a luxury service. They can go further by resisting private jet operators and the military (Air force,Navy & Police) who pseudo operate and are scooping from their market by operating civil non schedule flights. The military in two South American countries registered a civil arm to operate such flights; therefore civilian passengers being ferried are insured and compensated if the need arises. The military are to assist in emergencies or act as back up for terrains too difficult for the civil aircrafts in extreme conditions not compete for civil charter operations. On a last note, Dr Aliu a former Director with the NCAA will be voted as the first black president of ICAO general assembly, my first encounter with him was sometime in the mid 90s, when he came to represent the former DG of NCAA, Late Engr Haruna at a conference organized by my association. Over the years he remains a perfect gentle man, that cannot ruffle feathers, as he ascend to that enviable position he should remember the people, system and agencies he left behind and ensure our participation, certification and recognition in all ICAO related activities It’s a better legacy than courtesy visits or gifts. Congratulations to the new ICAO president.

AVIATION INFO &THE BUDDING GOEBBELS

I was thinking of a deserved rest from aviation related issues and join the growing list of siddon look, when I heard the half-state of emergency declared by Mr. President in the three northern states of Borno, Yobe and Adamawa. I use the word half-state because troops moved enmasse into the affected states under new rules of engagement, while all the governors and other political appointees were allowed to retain their seats. The media was also awash with the half-state of emergency declared by the Ministry of Aviation, where the GM Corporate Communication (FAAN) was appointed the Coordinating Manager for Information and Communication for all agencies under the Ministry, with other officers retaining their seats in the different agencies. This is an aberration and an elevation of propaganda in the industry, while the President is fighting the implacable and unidentifiable terrorists, who is the Ministry fighting? The appointment is a strange novel in the industry; it is also not a surprise considering his penchant for defending the Ministry and propagating their activities at the expense of FAAN, his constituency. The pain here is that barely a week after the World Bank complained of excessive political interference in the agencies, we are declaring a state of emergency in information management. The regulators, NCAA and the new baby NAERU are also to clear their press releases through the new appointee, who represents an agency they regulate. Incidentally, he advised some days ago that aviation should be taken from the Madding Crowd. Please practice what you preach. Regarding Amaechi’s jet, the pyrrhic excitement should stop; we should rather use the opportunity to correct all the ills in private jet operation, which stand till this moment. All the relevant agencies responsible for monitoring and coordinating the operations of this category of operators are guilty and have persistently failed to deliver the dividends of corporate jet operations. That aircraft had clearance up to the 4th of April, 2013, yet it kept flying in the Nigerian airspace till the 26th of April, 2013. On that day with the same clearance and untidy sheet, it departed PH for Owerri, thereafter Akure. Who gave start up in PH and Owerri? The speaker of the House of Representatives simply dropped a member of his team and asked Gov. Ameachi to hop with him from Akure when the governor’s aircraft had issues. Did the speaker’s team present a new manifest to reflect the new passenger? The prosecution option of the Ministry, rather than penalties as accepted in civil aviation coupled with concurrent press statements and the inability to probe other violators in that sector tilts towards witch hunting.

RE: The New Nigeria Civil Aviation Policy (NCAP 2013)

The Honourable Minister of Aviation recently unveiled the new NCAP, which has attracted more condemnation than commendation. A civil aviation policy document is usually midwife by the Honourable Minister through the interplay of various stakeholders. This policy did not go through that refining process, hence the hurried meeting with operators and stakeholders five days after the unveiling. In the minister’s message, which was personally signed, she said “the Federal Government is conscious of the fact that sustainable implementation of this policy will require the collective participation of all stakeholders.” The stakeholders should have been carried along from the beginning rather having selective participation. The policy is out and having gone through it, I will align with those commending the policy, while I also believe we need to tweak some positions taken. Fortunately, it is a policy and not regulations and can be reviewed if it’s not in the best interest of the country. The Nigerian Aviation Economic Regulatory Unit is a refreshing innovation that will curb and punish predatory activities, while gingering competition and most importantly protect domestic carriers and consumers from companies and airlines with significant market power and dominant position. The NCAA should focus on technical and safety oversight, their core competence, incidentally the policy tallies with the World Bank report that was presented to stakeholders last week. If the unit is not politicised or made an appendage of the Ministry, it will be the most important legacy of this administration, and will also act as a purveyor of an encompassing antitrust body that will protect Nigerians in other sectors of the economy. The requirement for a minimum of three aircraft for domestic operators and five for regional and international operators is also commendable, though a little shy of our expectations, but a good beginning for the regulatory consolidation process. The minimum paid up capital does not work here, it is a mere paper document that can be sourced by conniving with the same banks and other institutions they used to siphon bailout fund. The policy statement on foreign registered aircrafts and some operational aspects will ginger the transformation and improve the local content input of the aviation industry. It will also encourage pooling of resources, which is a better ownership option. It is also commendable that after an Initial Gra Gra (IGG), the Ministry has accepted the inevitability of the PPP concept. The World Bank team reechoed it last week, it is the only panacea for maintaining and sustaining our airports, what has always been the problem is transparency and openness. The transformation train should be prepared to berth at FAAN as an organization, while also thrashing out the numerous PPP associated litigations. The route dispersal guidelines and schedule operators permit entrenched in the Public Service Obligation (PSO) programme is also commendable. I will advise that the host state and adjoining local governments close to such airports be made to partake in the programme. Also, with the PSO programme in place, it is not necessary to give incentive to domestic operators of 80 seats and below, the idea is a selfish subsidy. Routes allocated and not utilized by Nigerian carriers should be withdrawn immediately and given to other Nigerian carriers that have shown interest. If reciprocity is the dignifying word we should not shackle carriers that are ready and willing. The policy got this right; I must also commend the idea of encouraging non-schedule operators to ply routes abandoned by schedule operators, the civil aviation regulations in place might make it difficult in the short run, due to the certification needed to operate commercially. The National Aviation Safety Committee will coordinate the activities of the Nigerian Airlines with respect to the NCAP and the Aviation Consumer Council, comprising stakeholders and users are innovations that will aid monitoring and key performance index. After numerous litigations that have increased the country’s public debt, it is with great relief that the policy has asked Service providers in the aviation industry including Airports and the Air Navigation Operators to put in place adequate third party insurance cover. The policy reiterated the waiver on import duties and spares for commercial and private operators. The waiver is a subsidy and should be for commercial operators, not for private operators. Rather, a luxury tax should be added for this category of operators. Yamoussoukro Declaration will be the basis of negotiation with member states, since the policy says so. Then the request of the Ghanaian and Gambian carriers that have applied to operate into the country should be granted without delay in the interest of our leadership position in the sub-region and Nigerian consumers the policy seeks to protect. Passengers flying Banjul and Accra routes are being fleeced by Arik in fares and service. Single and Seamless Sky is a futuristic project that is also commendable, it will improve safety, reduce pollution and fuel burn. NAMA management should begin to look at alternate source of funding, while critically perusing the recent World Bank report. The message in the World Bank report with respect to NAMA calls for reflection rather than grandiose. Some aspects of the policy need to be reviewed, an independent search and rescue agency with offices in the six geo-political zones will only over burden the system with attendant cost implication. Why do we want to protect a new group of private investors at the expense of existing investors using the banner of a National Carrier? The government is starting another flag carrier not national, so the carrier should be free to compete rather than seek government protection. The same protection Virgin Nigeria signed with government only to repudiate to the consternation of the investors. Also, the Fly Nigeria Act that would have aided our commercial airlines was again bypassed, a phased implementation starting with charter flights and some regional routes would have been appropriate. The MD guaranty trust bank last week said “ we will rather invest in the private jet sector rather than the commercial jet sector that are there today and tomorrow no more.” Let’s ponder !!! I also strongly feel that the issue of insurance and passengers to be ferried by the private jet operators should be in the regulations rather than the policy. It would have saved us the unnecessary distractions that it has generated since it’s unveiling. In concluding, NCAP 2013 says, “the policy is designed to provide a platform for the way forward and future prospects of the aviation industry, set new paradigms in air travel standards which will provide consumers with appropriate protections without affecting the ability of airlines to set service levels in a competitive market”. Also, “all civil aviation service providers shall promote effective implementation of the NCAP in their areas of activities and ensure that the spirit of the NCAP is adhered to.” The NCAP 2013 spirit can only be achieved if the ministry can boldly and honestly allow these tripod- implementation, monitoring and review without political interference or imposition.

RE: AMEACHI’S AIRCRAFT AND FLIGHT CLEARANCE

RE: AMEACHI’S AIRCRAFT AND FLIGHT CLEARANCE By Olu Ohunayo Gov Ameachi’s aircraft and the unabated controversies with respect to his last flight to Akure and other operations in the general aviation sector is well known to stakeholders over the years, who have deliberately turned blind eyes or are afraid to act due to the caliber of clients or owners of these private jets whether foreign or Nigerian registered. The government should go ahead with the probe and be bold enough to dig deep, press the rewind button and most importantly make their report public. The necessary sanctions and fines should be applied, which is not witch hunting but will act as a deterrent. Gov Ameachi’s aircraft should not be singled out for the investigation rather it should initiate other probes, majority of the general aviation flights operated spontaneously or over the weekend have the same lapses, so if we are going to investigate we should make it open, even those shouting hosanna will be surprised at the rot. If flight clearance process is a vital safety and security component of civil aviation worldwide and requires the involvement of both the civil aviation authorities and the national security agencies before approval is given, while full disclosure of the aircraft, passengers and crew must be provided as required by law, then how did the incarcerated former governor of Delta State leave the country or is it the recently pardoned former governor of Bayelsa state, who returned to the country through the same “Egbesu route” only to hop on another helicopter that took him to Yenegoa. Mr president ,who was the acting governor at that time had to quietly slip to Otuoke for his own safety. The discrepancies noticed with the flight clearance, plan and registration of Gov Ameachi’s aircraft is a norm and not an exception in general aviation in this country, we should used this opportunity to reverse the trend in the interest of safety ,security and improved revenue generation. I will also not forget to reiterate that the civilians, military retirees inclusive should not be allowed on board military aircraft, since they are not subjected to the civil aviation laws and norms, if the military wants to partake in charter services they should form and register a company for that purpose that will compete and subject itself to the civil and compensation processes. The various agencies and the supervising ministry are over heating the aero-political landscape with the concurrent and similar press releases as if they were all drafted on the same laptop or are they trying to convince the boss ''Oga'' at the top that they are working

Re: re FG keeps Emirates, Turkish out of Kano despite Minister's pledge

The SA to the Hon Minister of Aviation was forced to clear the air for the umpteenth time on this lopsided bilateral agreement that clearly favours the government of UAE and Turkey. Quoting him "once again we are constrained to comment on the above subject matter and make further clarifications since some interest seem bent on making political capital out of an already settled question", while I am not surprised at the political angle being taken by the ministry to survive the concurrent blackmail and pressure by a coordinated group which is detrimental to the growth of our airlines and obviously at variance with the projected GDP contribution of aviation as espoused by the Honourable Minister in her road map for the industry. My surprise is the unbelievable silence of the operators, AON, unions and other interest groups that prefer to wait for bailout, free aircraft s and the new contraption Air Transformation aka national carrier. Emirates and Etihad airlines are from one country, they were granted approval to operate into Lagos, Kano and Abuja respectively without reciprocity, somewhere along the line an enhanced BASA was signed to give Emirates a second daily flight to Lagos. The two carriers operate about 42 flights a week in and out of Lagos alone, while also increasing gauge and in the nearest future will operate into Abuja and Kano. This is simply unfavourable and detrimental to the industry and the country as a whole. If they must operate into Abuja and Kano they must relinquish some frequencies into Lagos. Nigeria Airways built this route using public funds that has not and can never be recouped, we need to separate politics from aviation,reciprocity,commercial partnership and protection is the common denominator in any bilateral. Etihad has bought shares in airlines in Seychelles, Ireland, Germany e.t.c and partnering with carriers in countries like South-Africa, Kenya India e.t.c, but in Nigeria they all want to operate to different cities unhindered. The United States the proponents of the open skies have pressured weaker countries to join the train despite their weakness to compete but have cautiously refused to sign the same agreement with China because the American aviation unions resisted based on perceived job losses. Emirates demand for extra frequencies into Canada and Germany was halted due to the pressure from Air Canada and Lufthansa respectively. It’s the same Lufthansa that operates into Lagos, combines Abuja and PH flight into the country and were recently granted fifth freedom into Accra, yet refused to pay royalties under the ridiculous tag of helping our aviation industry. Delta Airlines has taken a government owned bank EX-IM bank, of USA to court for financial incentives given to Emirates and other foreign carriers. These incentives are meant to encourage the purchase of Boeing aircrafts. These actions are geared towards protection and development of home grown carriers not using archaic options of bailout or formation of national carrier. Least I forget can our policy makers go through the recently signed enhanced BASA between Singapore and India or between France, Mali and Burkina-faso, the rudiments of reciprocity and commercial partnership were clearly stated. It’s what we sow that we will reap, cheap blackmail and executive capitulation without recourse to the rudiments stated above is two steps forward and eight steps backward. The GDP projections are meant for the foreign airlines operations based on our policies and we should not forget that these funds will be repatriated to their respective countries and not kept in Nigeria. We must tweak our policies urgently to attract investors and franchise partners.

AERO: THE NEEDLESS STRIKE

In an article,i wrote about a year ago titled "Aero Unending Counter Chaos",i asked the management to dig deep in finding solutions to the recurring counter problems and to spin off a low cost carrier, that will facilitate cost reduction initiatives,nurture its budding online clients and improve its online facilities in other to improve services,expenses and counter clogging. Surprisingly, up till this moment management,staff and unions have not been able to weave amicable solutions to the present crisis which emanated from a mandatory cost cutting strategies needed to stabilise the airline. One or two of them are either ignorant of the crippling liabilities of the airline or sarcastically unperturbed.it's no secret that the bailout fund could not help and an organisation saddled with the responsibility of sucking toxic debt has stepped in to help the airline creditors. The strike has punctured the life raft of the airline and has quickened the provision of a life support machine.Aero staff should have learnt from there colleagues in Air Nigeria who went on a similar strike and ended up being consumed. The dialogue option would have been stretched,while the unions complement it with coordinated blackmail and clinical subterfuge,which is a better option for a troubled organisation. The strike option chosen by Aero staff was hasty and counterproductive; it is a grave error and a concurrent misstep by airline staff in nigeria,which has contributed to the demise of airlines in the country while also increasing the unemployment market. If Aero will ever return to the skies, it will be as a leaner organisation with some stringent cost cutting measures that would have been difficult to embark upon before the strike.i appeal to the management to reconsider the sack letters while the workers should brace for the hard truth,which is sequestration. The only commendation for the management and staff is their ability to sustain the unblemish safety record of the airline over the years till the present day. Sadly, both parties forgot the passengers by abandoning them at the airports without any explanation and continued to sell tickets online,yet the management remembered the importance of getting a court injunction to stop the strike while the staff were equally mobilising and strategising for the strike without considering the customer that pay the wages. This reckless and insensitive posture of both parties has led to a group of passengers seeking damages worth millions of naira in court. Its a shot in the arm,we must realise that "we no go gree" is industrial dispute. While"sorry we will not be operating and will endevour to put you on other flights or make a refund" is a divine message of care.

NAAPE's Macabre Dance

Finally NAAPE came out of the trenches after shadow boxing all these while through the legislative arm of government, the response has been quick from the graduate engineers, through their professional body while stains and stones have filtered to other unions and professionals that have made comments in support or against any of the warring group. I sincerely hope this age long rift will simmer and all parties will see reasons why they must work together and kick start a seamless safety relationship. We must be careful of what we say, publish and do with respect to safety, or the option will be to kiss CAT 1 status goodbye and start a rigorous process of recertifying. Ghana lost the FAA Category 1 in 2005 and Indonesia sometime in 2007 lost the CAT 1 status and are still struggling to retain it, despite improved efforts and investment. Back in January 2008, the United States Federal Aviation Administration (FAA), after undertaking an International Aviation Safety Assessment on the Philippines, downgraded the country’s rating to Category 2 from Category 1. The US Embassy subsequently issued a warning to US citizens in the Philippines “to refrain from using Philippine-based carriers due to ‘serious concerns’ about the alleged mishandling of the aviation industry,” in effect blacklisting Philippine air carrier the European Union, following the FAA’s lead, also blacklisted the Philippines and banned Philippine carriers from flying to Europe. Other countries such as Korea and Japan have also used the ICAO, FAA and EU findings as basis for not allowing Philippine carriers to expand services into their respective territories, beyond existing traffic rights previously granted. Till date the Philippines is still a CAT 2 country Also in 2008 the US reflected concerns about Israel's oversight of private aviation, rather than about its commercial carriers or security matters, despite his closeness to the US, Israel lost its CAT 1 status. They were frozen out for four years and only returned to the elite club two months ago. Australia almost lost the CAT 1 status too, due to what was described as parliamentary under privileges with the senate by the state owned investigating agency. It had to lobby using all contacts to avert it. Our greatest challenge is non-adherence to airline reciprocity by our carriers and their inability to attract commercial partnership which has hindered the provision of millions of potential new jobs to aviation and other sectors, while at the same time not attracting foreign direct investment, rather frequency and gauge are being increased by foreign carriers. We cannot afford to include safety and it is erroneous and presumptuous to use the DANA accident as a barometer to rundown our safety achievements when investigations is on going.

The Senate Resolutions: Good, Bad & Ugly

The National Assembly recently passed some resolutions with respect to events in the industry; in unison we can applaud some of them while the others are either bad or ugly. The directive to the Central Bank to recover funds given to Air Nigeria is commendable, with four aircraft parked in the cold in Hampshire, England awaiting the lessors’ decision and another parked close to the GAT graveyard without engines. It is clear that Air Nigeria has turned round the turnaround expert. This is a sad story, since this airline was flying without an investor or intervention fund sometime ago in this country and it was managed by a Nigerian. We are all to blame for its demise starting from the staff, unions, AON, UBA, Govt e.t.c. The funds in question are not missing - United Bank of Africa, must be made to pay to the last kobo, they fronted, guaranteed and had a financial adviser stationed with the airline. The directive of giving full disclosure of all investigative report of past air accidents is a soothing balm to the industry and nation in general. It will uphold and safeguard the safety initiatives. It will also expose some pretenders who keep parading the corridors of power for one favour or the other, and in their hallucinating state think we have forgotten about the past. The directive to compel NCAA to ensure all airlines involved in accidents settle all outstanding insurance obligations and ensure that all airlines have adequate insurance cover as required by the regulations is also a good one. They should go further and ensure that owners or managers of such airlines do not return to the industry in another name or designation without offsetting their liabilities. The directive on returning the Air Field Lighting System to FAAN is also commendable. I agree that the air traffic controllers have a better view of the runway and will obviously be in a better position to determine the intensity of the lighting system. The Ministry did not follow due process in transferring the department; these agencies are governed by an act, which should be amended, not by ministerial fiat. On the MD 83’s they are still flying without issues round the world, I stated sometime after the crash that Air Burkina & Air Mali are using those aircrafts to ferry Air France passengers to points beyond Ouagadougou and Bamako, while our airlines with brand new aircrafts are overlooked for such commercial agreements. The same aircraft has been picking Nigerian troops from Abuja and other African troops or officials under the auspices of the United Nations, will the UN use an unsafe aircraft with its LOGO emblazoned on it? The directive setting passenger aircraft age limit at 15 years and cargo at 20 years is not a panacea to air crashes; rather it will drive some carriers out of the market, increase unemployment and fares. Is it the airframe or the engine that must have this age limit? What happens if the airframe is 16 years and the engines are 3years? Please let us leave the status quo and allow the regulators do their job, in line with air worthiness directives from reputable international agencies. The directive asking the government to revoke the licence of DANA Airlines is a bad one; the airline has just been recertified by NCAA and some other airlines are going through that process. If the Legislature views the certification of DANA despite having an international AMO as partner is faulty and the NCAA cannot be trusted, it means all other AOCs issued by the NCAA should be revoked with immediate effect; anything short of this is RACISM. I just pray their country of descent will not target Nigerian investors too. The priority should be payment of compensation to all. The directive demanding for the removal of the DG and the dismissal of the Engineer saddled with the inspection of the ill fated DANA aircraft is distasteful, hasty and ugly. Rather, a speedy investigation and conclusion of the accident report should be our priority; at that point there will be no place to hide for every one anymore. What is playing out right now is the age long rivalry between the academically qualified engineers and those that rose through the ranks, which has metamorphosed into type qualified and type rated. We have gotten to the stage where industry experts and consultants that supplied the Legislature with information should come out boldly and defend their reports, information and allegations individually or collectively rather than hide under the ambit of the hallowed chambers. I do not believe the demand of the Senate is based on tribal sentiments as espoused in some quarters rather it is based on some information that look mischievous emanating from the cocktail of submissions made before, during and after the public hearing. The DG should not be tagged with incompetence based on his record so far, he should rather be decorated with national honours for elevating the regulatory institution rather than being hounded disrespectfully. Let the senate hang proven corruption charges and breach of contract on him, the tide will change ferociously. ROSAVIATSIA, the Russian equivalent of NCAA was almost pushed last year by their parliament, the DUMA to revoke the licences of some airlines due to air mishaps. The Agency resisted and conducted their investigations. Red Wings Airline only last week lost its AOC in that process. The Russian regulator said they are losing the licence, not because of the air crash they had on the 29th of December 2012, but due to the numerous significant violations found during recertification. Also, the airline lacked financial resources to provide ongoing operations consistent with appropriate level of safety. This is processes and procedure without interference but requisite oversight responsibility by all parties. We are scaring investors. We need to stop the bickering and attract them by capitalising on our CAT 1 status.

LET’S STOP THE BICKERING AND ATTRACT INVESTORS

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