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".