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