VIRGIN ATLANTIC REORGANISATION AND INSENSITIVITY

It is no secret that Virgin Atlantic is undergoing some cost restructuring and has done everything possible to cross the red line. They have closed some routes, reduced frequencies and gauge on some, while practically tearing down the low cost unit of the airline. In Nigeria, frequency has been consistent to Lagos, with increase in gauge, while Port Harcourt, along with Nairobi and Accra routes were axed sometime ago. Last week, the airline closed the Ticketing and Sales Department in Nigeria, throwing some Nigerians in the labour market while increasing the pain of their customers with the non acceptability of Nigerian credit cards. The airline’s spokesperson in Nigeria was quoted thus, “flight bookings, complaints or travel related calls from Nigeria will be directed to Johannesburg in South Africa.” He added that, “…the airline continues to review its business while driving efficiencies. Therefore, we are closing the Lagos Contact Centre and directing calls from Nigeria to the Johannesburg Contact Centre. Having one regional contact centre will mean we can serve our customers 24 hours during week days while delivering efficiencies. Our customers can also make their booking on the Virgin Atlantic website”. In taking some of these decisions the Management of Virgin was simply insensitive to our feelings, support and contribution to their successful operation into Nigeria. I will start by reminding Virgin that they promised that their entry into Nigeria would drive down fares just as they have done in other cities. I was one of those hoodwinked by this sentiment. Virgin instead joined the fray by offering exorbitant and absolutely crazy First and Business Class fares. British Airways resisted Virgin’s entry into Nigeria and lobbied for increased frequency. Our Ministry closed her ears and signed a dual designation with the British government. That decision angered the IFC team working on a new National Carrier project that was hinged on protection and exclusivity. They consequently pulled out of the National Carrier project and we are still going round in circles in search of a solution. The Lagos route, which is Virgin’s most profitable, gives the airline the highest revenue per seat in the region due to the huge demand for the higher class and fares by the public sector, which has made other Nigerians maximise the use of the full economy seats. This egoistic appetite is at the expense of Nigerian aviation industry in general. Sadly, Virgin’s choice of the South African Center to coordinate is to our detriment, and should be reconsidered since we generate huge revenue and commensurate yield for the airline. IATA initially asked the South Africans to coordinate the Bill Settlement Plan (BSP) for travel agencies. The deluge of complaints by Nigerians over the quality of services, time and cultural differences, made them move it to Amman and in the nearest future it will be here in Nigeria. Virgin has not promoted Nigerian staff, nor allowed them to unionise like their colleagues in England. They offer 12 weeks Maternity Leave as against the 6 months approved by British government for their counterpart. Also, salaries, allowances and other emoluments offered to Nigerian staff are much lower and a mere pittance compared to their colleagues in England, including those who work in the same cabins on the Lagos –London route. The staff retrenched recently will walk away with only their December salary, since Virgin declared that gratuity is Nigerian and not British. This regarding the same people who were never paid British salary. The Ministry and NCAA should, as a matter of urgency, take up this issue with the airline. When Virgin stopped operating into Accra, they wanted to lay off Ghanaians with just the last salary, but the Ghanaian government rose up and picked the gauntlet on behalf of the hapless staff. Furthermore, Aviation Logistics Company, which purportedly represents Nigerian interest, should be investigated for culpability. We have been too magnanimous with frequency, gauge and fund repatriation. The Venezuelan, Ghanaian, Indian and Hong Kong governments that protected their citizens and interest cannot be stupid. I must not fail to commend virgin management for coming out boldly to admit they have a problem and are doing everything possible to resolve it. I will also not forget the fact that they are the first international airline operating into Nigeria to employ and sustain Nigerian based cabin crew. It is informative that Mr. Branson who is the face and founder of the airline is not the largest shareholder. He invited British citizens and corporate organizations, and recently sold a large stake to Delta Airlines, a positive example for our numerous father and son airlines that seek cheap public funds and support.

AIRPORT PRIVATISATION: LET US TREAD SOFTLY

The recent announcement by the Bureau of Public Enterprises and subtle confirmation by the Honourable Minister of Aviation on the privatisation of some airports in the country is hasty and may be counterproductive. We are all aware that the remodeling process and associated loans has gulped a lot of money that has consequently sent FAAN to the abyss of debt. The debt should be warehoused by the ministry for now while they also initiate a process of verifying the quality and cost of the remodeling contracts with the hindsight that the contracts and approvals were shrouded in secrecy. The Chinese loans for the new international terminals can be excluded from this process. The question boggling our mind is why the rush to privatise some airports just a few months after turning down the same advice in the Orosanye report? Is the government looking for quick cash to reduce the over N150b debt generated from the remodeling process? Can the privatisation of two viable airports out of about twenty be the solution to indebtedness and inefficiency? FAAN needs help as an organisation, her problems goes beyond budgetary allocation from the federal government because the organisation itself lacks transparency; it has not been able to convince reputable investors. The non availability of a verifiable financial statement over the years, frequent changes in management and leadership in the supervising ministry are other contributory factors. Although the ministers are from the same political party they have divergent policy trust for the organisation, while implementation most times ends on the drawing board. FAAN can survive and generate funds for the treasury if we give reputable airport companies the contract to manage FAAN for a minimum of 10 years. Expertise is required in airport management and in generating non-aviation income. One of the main reasons why BAA is seen as a model is its success in bringing the contribution of non-aviation income to about 70% of total turnover which presently is about 25% in FAAN. Airports world over are seeking to increase non- aviation income. The UK experience of privatising worked well in a matured political society after being a regulated environment for decades. In less developed countries like ours, governments should be tilting towards building and enhancing the transport system rather than just offloading the assets. This is to avoid a situation whereby we move from ugly state-owned airports to even uglier privately owned airports. It is noteworthy that most reputable private sector investors would not consider buying an airport with fewer than one million passengers. This is why airports have often been sold as a package - good and bad, small and large, domestic and international. In achieving the objective, the government should as a first step invite reputable international airport management companies, who will often achieve what governments can no longer take care of - improvements in capacity, efficiency and safety. These private managers are internationally recognized airport operators with track records who can be sourced and verified by a click on the mouse. They will act as advisors or management consultants to government within a limited time frame. I am not referring to the usual masquerades that form a ‘quickie’ consortium and rush to Corporate Affairs Commission for registration and will bid and win using Padi- Padi in government. During this period the bid winner should be given a free hand to manage, restructure and position the organisation for a Public Private Partnership or partial privatisation. The management company will ensure compensations and adjustments are provided for all collaterals. Organizations such as Intervistas, GMR, Macquarie, Ferrovial e.t.c. Another option is a PPP arrangement though it has been turbulent in aviation but quite peaceful in shipping and other sectors of the economy. We must endeavour to find a lasting solution to the turbulent PPP arrangement in the industry. It is also a sad realisation that all concessions in the industry have been very messy which is a reflection of the process from the beginning, 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. The concurrent favorable judgment of Bi-Courtney in court has made me come to the realisation that principal personnel in FAAN and the Ministry at the period, when this concession and others were signed, were either compromised or exhibited little knowledge of the legal booby traps in the agreement. The midwiferies of this process the Bureau for Public Enterprises, Infrastructure Concession Regulatory Commission, National Council on Privatisation, Due Process Unit, Bureau for Public Procurement, Nigeria Civil Aviation Authority and our Ministry need to get their acts together and bite when necessary using requisite acts and ensuring transparency from the scratch. This is a difficult call considering the concurrent misstep of the PPP processes in the industry which has made the process disappointingly slow. Companies that have been badly bruised by our PPP include Aeroport Gateway, HIC, Maevis, Bi-Courtney etc. We should not despair but find that symbolic and smooth nexus between government and investors. It is usually built on project conceptualization, funding, political will and preservation of contract. I must also point out that we are not politically matured for privatisation and cannot manage it, we mismanaged the private jet issue by making it more political than safety which is the bedrock of the industry, it will be replicated in the terminal and parking usage if we privatised. The BPE wants to start with Abuja; an airport that was concessioned to Aeroport Gateway and annulled a couple of months later, only to surreptitiously handover the GAT terminal of the same airport to a private organisation sometime last year without due process. Malaysia Airport Company recently purchased Istanbul airport in Turkey just like the Spanish company did some time ago with some British airports. Our abysmal PPP appraisal will result in severe diplomatic backlash if we short change a foreign organisation. If we insist on privatisation then we should consider the clustering option whereby a major airport will be taken along with other unviable airports within the zone. This will reduce FAAN's liability while they concentrate on regulating, monitoring and securing the airports. Clustering takes the airport in totality rather than the cherry picking option. The Argentines took the 30 airports in totality using funds from the viable to support the unviable ones; the Indians divided the airports into green field and brown field before privatising. To protect the public, airlines and other airport users, the Indian government established an independent regulatory body to monitor and regulate the public and private airports. This will ensure compliance to benchmark service level and generally resist any form of monopolistic tendency. They also set up a scheme called “Viability Gap funding”, to protect, attract and support investors for Non- Viable airports. The government provides funds which can only be accessed by interested investors through a bidding process. Also, the government ensured states where these airports are located are not left out by providing an additional state support agreement to boost the confidence of investors, while also wielding a stick called “Liquidated Damages,” which are charged for defaults. These countries took the airport in totality, the common factor in these agreements are capital injection, improvement of airport facilities, financial returns to government annually, protection of public interest and other operators. Also the agreements were clearly stated and open to the public right from the bidding stage while the use of penalties for default or delay were specified. Luckily some states in Nigeria have been building new airports without waiting for the federal government. States like Jigawa, Imo, Akwa-Ibom, Osun took the bull by the horn. It is laughable and unfair for the federal government to say they are planning to build airports in Bayelsa, Kogi, Nassarawa, Ogun and Kebbi states when these states can emulates their counterparts by building and sourcing investors as partners in developing an efficient airport. If the federal government has funds to waste on those states they can as well use it to improve and expand neighboring airports owned by them. Port Harcourt, Ibadan, Makurdi, Sokoto and Akure airports respectively can benefit from this fund considering their derelict state. We will get it right if we juxtapose these options while ruminating over our socio-economic environment, whichever option we choose must take all the federally owned airports, rather than cherry pick. We also need to take a deep breath and commend the hard working operating staff of FAAN whose allocation come in trickles but are forced to crack their heads, borrow money to manage airports under their watch and maintain the new terminals that should have been bequeathed on the contractors for a minimum of one year. The problem in FAAN is not privatisation but bloated contract debt, political interference and appointees that have made the organisation top heavy. It has increased its running cost, duplicated positions while they subtly run errands for their pay masters through allocation of contracts. We are waiting for the Minister to act its four months now of excessive grammar, garlands gathering and inherited exuberance. He should encourage continuous improvement of 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. In concluding concessions and privatisation is the way forward, they must be accompanied by transparent, robust and independent economic regulation supported by effective industry consultations.

FOREIGN AIRLINES: ABUSE OF NIGERIAN CONTENT AND STAFF

The foreign airlines operating into Nigeria need to brace up and correct glaring anomalies noticed in the treatment of Nigerians working with them and the sanctity of their operational guidelines regarding the Nigerian content as stated in documents submitted to NCAA and the bilateral air services agreement (BASA) signed by our respective countries. Workers of Air France/KLM in Nigeria recently embarked on a warning strike to drive home their agitation for better working conditions and improvement of salaries, under the leadership of NUATE. The management response was simply distasteful. Rather than dialogue and negotiate since it was a warning strike, they tried to break the strike by hiring temporary charlatans to run the system at a considerable security risk to the system, airport and nation at large while also using all intimidating tatics to subdue the staff . Their pilots have given notice for a warning strike, while other staff domiciled in their base have done so in the past without getting the same response from Management. Rather they negotiated and prepared their customers for the strike by cancelling flights, offering refund or allowing change of travel plans without penalty. These carriers lodge their expatriate staff in ikoyi, Victoria Island etc, and also provide police escort and protection right from the airport to any point that catches their fancy; all at a huge cost to and detriment of the local staff take home pay. This opulence is funded by revenue generated from Nigerian passengers and primarily from our public sector that fill the upper cabin irrespective of price and season. Some of the managers brought into the country by these airlines AF/KL inclusive have taken jobs designated for citizens of the host country while the NCAA looks the other way. The NCAA should sit up and protect the nation from the predatory practices of the foreign airlines, they simply need to defend their governing act and ensure compliance. Some years back, Air-France opened a sales outlet in Port-Harcourt in defiance to the rules of engagement, while BA stopped paying commission to our travel agents. These and other acts are the regulatory and competitive loopholes latched onto by the foreign airlines. The blame lies fully with the NCAA and the Ministry that approve while also increasing frequency and gauge without due diligence. If the government does not know how to save Nigerians and the industry in particular then I advise they speak to the Venezuelans who gave stringent conditions for repatriating revenue generated from their soil, The foreign airlines threatened, begged and voluntarily reduced frequencies and gauge. Also the Russians, Chinese and Israelis have fashioned policies to protect their carriers and professionals. Do I need to remind us that Air France operates into Bamako and Ouagadougou only yet have commercial partnership with Air Burkina and Air Mail, these carrier operate the vilified MD 83s which are used to lift Air France passengers to points beyond Bamako and Ouagadougou respectively. KLM invested in Kenya Airways while they (AF/KLM)jointly operate twice daily to Lagos and once daily to Abuja and PortHarcourt. The largesse of the Ministry and consistent bickering between the Federal and State Government gave them and others the leeway. The price for us is the non participation and investment in our carriers while Nigerians working with them are short changed to the detriment of the country. Lufthansa duped us some time ago when their frequent flyer Mr. Omotoba who was then Minister for Aviation signed away extra points and frequencies under a warped agreement that LH will in turn develop our industry commercially. May be his mileage account was developed definitely not this industry. Airlines world over are still investing and partnering, here are some examples; Singapore airlines just partnered with the TATA family to start a new carrier in India; Ethiopian Airlines has just partnered Malawian government to start a new carrier and also uses the Togolese based ASKY airline to undercut us; Etihad pretends to compete with Emirates but for those that can discern they complement each other; they bought shares in Air Seychelles and lately got Alitalia under their belt. Why are Nigerian airlines being bypassed? Even the wobbling and fumbling super eagles went to South Africa last week to play against Bafana Bafana on SAA bypassing Arik that operate to Johannesburg. We shot ourselves in the foot, and we will increase the wound and the debt if we touch the national carrier project. What we need is a national airline policy that will modernize ATC, stabilise fuel price, improve regulatory reforms, strengthen our carriers and increase private participation. If we develop this policy flag carriers will blossom and a national carrier will naturally germinate from there.

DG NCAA: SELF SERVING UNIONS

The unions are at it again - negotiating, arm twisting and queuing behind their preferred candidate for the position of DG NCAA. One of them was bold enough to remove the mask, the others hid behind a new body in a recurring shadow boxing between these unions. The executives of these unions always want the DG in their pockets, so spouses can get accelerated promotions, juicy courses and other illicit benefits. The joint aviation union body (AUGA) comprising of all unions and associations in the industry was formed some years ago to spearhead collective issues in the industry. Their last action was a couple of months ago when they requested for an aviator to replace Ms Oduah in the ministry. It is an empty and unnecessary threat for a single union to give a 21-day ultimatum to ground the industry without getting NEC approval, or carrying other principal associations and unions along. The inter union rivalry played out after the DANA crash, which resulted in the unceremonious exit of the respected and acclaimed Dr. Demuren. It repeated itself during the last cabinet reshuffle, providentially all their preferred candidates lost. The DG NCAA is the most sensitive position in the industry and we must be cautious in our selection process to avert a repetition of the calamitous entry and exit of the last DG, in an industry already divided into four groups with differences on replacement process and persons. The first group is angling for the nominee, Capt. Muktar, whose name has not been submitted to the Senate for confirmation. It is not smooth sailing for him. There are alleged petitions from his colleagues concerning his eligibility based on his work ethics and other cockpit issues. I feel for him though, considering he has already handed over his job at Accident Investigation Bureau. He should not be left in the cold, a soft landing will be more appropriate if he does not get the confirmation. He can be a good replacement for any of the two aviation Special Assistants in the Presidency. One of them has over stayed and is completely detached from the industry, while the other used the position as pensionable gift. The second group is agitating for the Acting DG, Engr. Adeyileka to remain and continue in the acting capacity till thy kingdom come. Are we too short sighted to see the dangers of keeping him for too long in that capacity? It breeds instability and encourages corruption and servitude. We are all witnesses to the last Acting DG's purchase of bullet proof and other vehicles as if they were going extinct. The acting capacity is too long and unhelpful to the industry. The third group, using a serving governor as arrowhead wants Capt. Fola Akinkuotu, who was unjustifiably removed to be reinstated to complete his tenure. The baggage here is that during the few months he spent in office, he did not show the spirit of an ''OMO AKIN'' neither did we see the ''Egin'', a symbol of strength usually exhibited by his people. Incidentally, he is from my maternal home. He kept himself away from core industry players, and stayed in the cocoon of Abuja players in a bid to protect his job. Sadly, the job lost him. Under his watch NCAA lost leadership to NAMA, while a legal consultant held him hostage, holding extended meetings, without attending to critical files. Directors and other critical staff watched bemused. The story of that consultant and intrigues is for another day. The fourth group, which I proudly align with, wants the position advertised for our best brains to come forward. It should be open to all Nigerians within and outside the country. The head hunting should be given to a reputable organisation and the report submitted for auditing. In strengthening that organisation, we must go further by advertising all top positions, while efforts must be made to bring officers that have soiled their hands yet walk with irritating swagger in the organisation to book. All groups must at least be united in the defense of the NCAA Act, autonomy and sanctity of their regulations and processes. The position of DG has tenure and therefore needs clearance from Senate and removal should follow due process as espoused in the NCAA Act. The incoming DG needs to be bold, independent, and conversant with all regulations and most importantly, defend our carriers and ensure growth by having a delicate balance in safety and economic regulations. We do not need a DG that regularly goes to Abuja to see the Minister and implements all directives from the Ministry to the detriment of the industry. International sanctions may apply, if we continue to shackle the regulator. The next DG should be given enough space to perform and the process of appointing a new one must start immediately.

CONFAB: TRANSPORT COMMITTEE REPORT

The ongoing National Conference in Abuja set up a Transport Committee headed by Senator Musa Abebe, a non-schedule operator chieftain in the industry. On submission of the report the conferees debated and resolutions were taken. RETURN OF MERGED AGENCIES TO STATUSQUO Asking Government to return to statusquo without proffering cost reduction measures is merely glossing the issue. The NCAA should remain autonomous, while NIMET should either be merged with NAMA or a related agency in the Ministry of Transport. The Ministry of Aviation should be scrapped with immediate effect. A transparent and competitive public private partnership programme should be initiated for FAAN, and the huge debt owed by the organisation due to the remodelling exercise should be addressed. On NCAT, the Federal Government is going to Ogbaru in Anambra State to set up a second aviation training school. The choice of Ogbaru, is not an issue at the moment, but the essence of owning a second training school when they have not been able to fund NCAT satisfactorily? NCAT and the new school in Ogbaru should be privatised, not commercialised. They can sustain themselves and attain international recognition if the privatisation process is properly and transparently handled. It is also better to affiliate the new school in Ogbaru with Anambra State University of Technology, Uli or Nnamdi Azikwe University, Awka, instead of Oko Polytechnic, as proposed. REVIEW OF THE NATIONAL CIVIL AVIATION POLICY The Committee also recommended the review of the 2013 Civil Aviation Policy, a good decision, based on the premise that stakeholders will be called from all facets of the industry to make an input. I also concur, but I must also say that there are some good policies in that document that must be appreciated and sustained. I really look forward to the independent and effective economic regulatory body which will stem the drift toward predatory tendencies. NATIONAL CARRIER The Committee tried in vain to convince other conferees on the need of having another national carrier to replace the dead and improperly buried Nigeria Airways. The option was rejected and I agree in totality with the conferees. We need strong flag carriers to be built from the present carriers through a regulated consolidation process. We cannot wait for the NCAA anymore, since they lack the balls. The conferees and the National Assembly should urgently initiate the process. NIGERIAN CONTENT In consonance with the proposed National Assembly bill, the conferees are asking for an increase in Nigerian participation in operation and services. This call would be unnecessary if NCAA had lived up to its responsibility by implementing the Civil Aviation Act to the letter. If the NCAA cannot monitor and implement now, how will a bill or the Confab decision change that mentality? The Nigerian content should not be limited to personnel alone, but other operational services with the enshrined principle of reciprocity and investment. CONSTRUCTION OF PERIMETER FENCE AND ROADS The conferees also want the government as a matter of security urgency to provide perimeter fencing and roads for all airports in Nigeria. This call is necessary and timely considering the upsurge in attacks by insurgents and the ease with which stowaways get to airfields. In the PPP arrangement I advocated earlier, the perimeter fencing, AVSEC and related issues will be retained and controlled by Government, while all other revenue generating aspects of the airport should be ceded. REVIVAL OF THE ABANDONED ONITSHA CARGO AIRPORT This is simply comical and an emotional decision. Asaba airport is barely 10 minutes away, while Benin, Enugu and Owerri airports are about an hour’s drive from the proposed Onitsha Airport. Two of these airports are designated as cargo airports. The Princess of Ogbaru must have been properly briefed, for Onitsha not to have been included. The conferees should just delete this wasteful section from the report, so we can move on to other important issues. LINKAGE OF ALL INTERNATIONAL AIRPORTS TO RAIL LINES This is good and futuristic considering the huge funds needed to actualise this dream. In the interim, surface connectivity between the domestic and international terminals should be activated, while other connections within cities should be developed to ease movement and encourage tourist and transit passengers. COMPLETION OF NATIONAL HANGAR PROJECT AT UYO AIRPORT Senator Abebe must have used his influence of heading the Committee to smuggle this home grown paragraph into the report. The proponents of Uyo Airport had a business model when they initiated the project. A National Hangar was not envisioned; rather it was Uyo Hangar to generate additional revenue for the airport. The agitation for a National Hangar preceded the dream of building Uyo Airport. Yes, we need a National Hangar that will be internationally certified and recognised. It will save cost, generate revenue for the industry and develop our personnel. If Uyo Airport gets it by virtue of infrastructure, so be it. The national hanger should be privately driven and has not been designated to any airport or state.

WORLD CUP: OUR AIRLINES BYPASSED AGAIN

The world cup has started in Brazil with qualifying teams arriving proudly in their respective flag carriers or chartered aircraft domiciled in their country. On arrival, the cameras are beamed at the aircraft front exit door where the air stair is positioned and flag emblazoned. It was in excitement I watched the arrival of different countries on their respective carriers until the documentary got to our Super Eagles. I initially thought it was an error when they announced the arrival of the Nigerian team, because of the American flag proudly emblazoned on the aircraft’s fuselage. Alas, I was wrong. Shortly after, Team USA proudly touched down in an aircraft with the same flag. We have invested a lot of fortune in qualifying and preparing for this tournament, while we also lost precious lives of fans that were blown away at different viewing centres across the Northern part of the country by insurgents. In the end, it is the American and Ethiopian airlines that reaped from where their government, corporate organisations and fans did not sow. A flag, despite its simplicity, on a massive structure like an aircraft’s fuselage, seen by millions of people can eclipse an impressive aircraft design. It is an identity, mark of place, pride and strength. It is an expression of a nation’s capabilities wherever it touches down. At the last tournament in South Africa four years ago, it was providence that gave us the pride of a Nigerian carrier taking the team to the tournament. It was the only option left for Government after a foreign airline provided an aircraft much older than the oldest aircraft in Arik fleet. The aircraft broke down at the eleventh hour. A Nigerian airline that was initially overlooked redeemed our image, but we lost the funds paid to the foreign airline. To add salt to injury; the undemocratic Nigerian Football & Other Sports Supporters Club (NFSSC) that is funded perpetually with handouts from Federal Government, while also getting support from different Nigerian corporate organisations, which has also given a lifeline to the club that has a leadership model fashioned after the one used by one of our political parties called “Oga so pe” (oga said), has consistently used our home grown funds to fly foreign carriers. They recently flew two hundred supporters to Brazil on Ethiopian Airlines (ET), also bypassing our carriers like their Siamese twin, Nigeria Football Federation. A Nigerian carrier could have taken them straight to Brazil without a stopover. Our carriers are struggling financially, while the Ethiopian carrier recently declared record revenue of $2.3 billion. ET is now the most profitable carrier in Africa. The airline’s revenue is the 37th highest in the world. ET has 37 frequencies into Nigeria alone, excluding that of ASKY airline, pseudo owned by Ethiopia. The airline takes everything away from Nigeria, while investing in airlines in Togo and Malawi, bypassing our carriers in preference to the ministry of aviation extra frequencies and entries. “Nigeria ro nu” (think) A phased implementation of a “Fly Nigeria Act” is imperative for the development of the industry and reduction in capital flight. It will, by law, whip people and organisations into line to the benefit of all Nigerians.

Senate Aviaiton Committee: Playing the Ostrich

The Senate Aviation Committee recently visited the Ministry of Aviation and other agencies on a supposed oversight function. During the visit, statements were made that sounded like revelations, but those that can discern this publicity stunt garnished in a typical ostrich game know that the Committee was merely playing to the gallery. This Committee was constituted about four years ago by the Senate President and members have not changed till today. Surprisingly, they feign ignorance about the remodelling of the airports, assaulting media hype, suffocating debts, flawed procedure of awarding contracts, surreptitious concessioning of Abuja GAT and fund allocation. This is the same airspace and airports they have traversed every day, while also participating in the commissioning, contracting and receiving foreign airlines that operate into 'emotional' airports. In my last article on mergers, I stated that “FAAN is self-sustaining, if it is free from Government interference. The same organisation that is not ready for privatisation due to security threats, but can collect international facility with interest to build five new international terminals, while also revamping twenty one airports at the same time is a commercial architechural world record, in view of the perceived security threats.” The hen has come home to roost. The Committee is challenged to come clean by washing their hands like Pilate did in public before going for corrective measures. They also need to tell the Presidency to review the merging of the regulator with service providers, and also protect FAAN from Government interference, so it can run commercially as advised by the Committee. Since the Executive and Legislature have foisted the leadership of NCAA on us over the years despite our advice to allow our best legs compete through advertisement, rather than through nomination which has weakened the regulatory and autonomous prowess of the NCAA. We implore the Committee to immediately initiate a regulatory consolidation process for our airlines, by raising the bar to a minimum of seven aircrafts. The recent excitement over the granting of AOCs to three airlines , which practically limped to make the minimum regulation of two aircraft is simply appalling. Foreign airlines are all over our airspace enjoying our political cabotage, while bypassing our weak carriers due to their size, financial prowess and processes. We need to break the scale. Is it not a shame that we do not have a Nigerian carrier in IATA Clearing House and only one of them is IOSA certified, yet we have delegations with allowances that are in DOHA sitting at IATA gatherings with shoulders raised as Nigerians. The Committee should also look into manpower distribution, which is improperly skewed and bleeding the agencies dry. Rather than merge, they can cut cost drastically by restructuring and placing political employees on the appropriate scale. BASA fund has run dry and has not been used for critical safety issues as espoused by agigators who did not want it domiciled with the CBN. It was instead gulped by commercial projects. Considering the interest and passion we have for that fund, I do not see our airlines going beyond the triangular routes. The Permanent Secretary in the Ministry, Mrs. Jamila Shua’ra should be left alone to her job, she cannot turn rocks to cash. Using a section of the media, that was in the past used to hype the transformation, to run her down, while exonerating the Supervising Minister is sheer blackmail. We have bitten more than we can chew, so let us clear the bowels before proceeding on medication. I also want to advise the Supervising Minister to limit his press statement on the projects and cargo airport, they are becoming incoherent. Lest I forget, the the Chinese contractors handling the new terminal at MMIA have erected a billboard stating clearly the client, developer and other contracting partners. This is the norm and a clear departure from the transformation remodellers, whose identities are shrouded in secrecy . The Senate Committe members did not see anything wrong, neither did they invite the Minister to the hallowed chamber to defend this anomaly. On the matter of inspectors sponsored by operators with business class tickets to inspect aircrafts, I am of the opinion that ICT, networking and professionalism have taken care of this issue worldwide. In the beginning it was acceptable, they could go and inspect. Not anymore. The rules of engagement should be given to the operators and the regulator should be diligent before giving a temporary approval that can be reversed if need be. Physical inspection is not in isolation, it is part of a process with many options,which may make it unnecessary to travel out. This option puts all liabilities and risks on the airline. Professionalism is more transparent, compared to the past, when they collected DTA and tickets from the operator - a pseudo compromise albino. Inspectors should only travel in exceptional cases at the behest of the operator. On CAT 1, there is nothing to cheer other than the 'big boy' pride and swagger along the West Coast . It is over ten years since we signed 'open skies' and four years since we attained CAT 1 certification, yet only one Nigerian airline operates scheduled flights into the US. The airline has neither increased frequency, points of entry or been winked at for code share and other commercial alliances by American carriers. It is not the fault of the Americans, but a Nigerian problem. Let us get our policy act together. I cannot end without mentioning the unfair advantage given to Ethiopian airlines and Emirates in frequencies and points of entry. The Ethiopians have four entries and a decoy in ASKY airlines, which competes with our carriers on the West Coast. They invested in a Togolese carrier, with only one point of entry, Lome, while Nigeria with four points of entry that generate a lot of revenue is not good for investment. My heart bleeds when I consider that Emirates and Ethiad from the same country has increased frequencies and points of entry, while investing in other countries with lower frequencies. This is simply aerial 'boko haram.'

ORANSANYE REPORT & APPROVAL: UNPLEASANT

It was with shock and angst that the industry received the report of the presidential committee on restructuring and rationalisation of federal government owned parastatals, commissions and agencies. In its submission to Government, the committee advised that NCAA, NIMET and NAMA be merged, while FAAN should be privatised. Government accepted the merging of the three agencies and rejected the privatisation of FAAN, based on perceived security challenges. An implementation committee was instantly set up which is not the norm in this dispensation. The setting up of the Oransanye committee was noble with erudite personalities.The objective is to reduce governance cost, which is also laudable. Unfortunately, with respect to the aviation industry, the report is unfavourable, archaic and capable of dragging the industry backwards with attendant loss of confidence and increased cost of operation. I will not want to bore the public again with ICAO rules of engagement, other writers have dwelt on that since the report became public, while our representatives in the different international organisations can also use their instrument of office overtly or covertly to pass the message on ICAO statutes and other working materials to the Federal Government. The regulator and service provider cannot be under one roof or management.This, in essence,makes a mockery of regulation and certification. The international community has applauded our development and strides; we do not need the Oransanye report to drag us back. The industry players, starting from the immediate past and interim ministers, the two Special Assistants to the president on aviation related issues, the ex-agency heads, unions, analysts, stakeholders and all cadres of professionals cannot be exonerated. You may ask why. It is a shame that nobody saw this coming despite their closeness to power, presentations to the committee and frequent travels to Abuja or was there a subtle connivance? Aviation is not limited to Nigeria; it is global with recommended standards and practices. Government can still drive the cost of governance down in the industry, while also retaining the cherished certifications and qualifications, if they accept the following recommendations: NIMET provides meteorological services to aviation, maritime, agriculture, construction e.t.c. The agency relates with the world meteorological body and numerous bodies within the; country that cut across different sectors of the economy. Our benevolence over the years in giving subsidy to the organisation through the passenger ticket tax should not be mistaken for ownership, therefore NIMET can standalone or be attached to the Ministry of Transport, while we pay for services rendered to the industry, just like others do. NAMA is a provider of air navigation services, which is done at a fee to local and international airlines. Government should reduce the number of directorates and top management staff, which grew astronomically under the last CEO without commensurate level of service and revenue generation, while the organisation should makes efforts to recoup funds owed by local carriers. NCAA is the regulator and backbone of the industry. We must put our best foot forward and be bold enough to engage foreign technical assistance, if need be. It is advisable to advertise openings and recruitments for able and competent hands, rather than politicise employment. The organisation's organogram is skewed and inappropriately placed due to the political employment witnessed in the last two years. Government should take Aviation security out of FAAN and proceed with a PPP arrangement as advised, which should be transparent, open and effective. The organisation is self sustaining, if it is free from Government interference.The same organisation that is not ready for privatisation due to security threats can collect international facility with interest to build five new international terminals and revamp twenty one airports at the same time. It is a commercial world record,in view of the perceived security threats. The organisation is also held down by excessive directorates and inappropriate placement of political staff. If Government is sincere about driving the cost of governance down, please scrap the Ministry of Aviation with immediate effect. We can effectively operate without a standalone ministry. What we get from the ministry is signing of unfavorable BASA that is detrimental to our carriers, impulsive interference in the day to day administration of the agencies, insatiable appetite for spending BASA funds and coercing agencies to pay for chartered flights and other services. Nigeria is just an irony in all ramifications, while the rest of the world closed their aviation ministries, we kept ours. While they appreciate and applaud the unbundling of agencies and services, we have decided to warehouse and keep the meddlesome ministry. The unions have spoken on the demerits of a merger but have not addressed governance cost and demerits of numerous AGMs, DGMs and GMs, in all the agencies, which is also inimical to the progess of their members.So so so sad.

Re: Nigerian Aviation Still Too Far?

Mr. Iredia message is principally centered on seamless air travel and the provision of aviation facilities, using Dubai and Abuja airports as bases of comparism. To get a fair assessment we should use country name. Does Nigeria have the same standard with the United Arab Emirates in projects and facilities? Can the NTA be compared with Arabian TV network? Neither can we compare communications, power or even selfless leadership. In aviation, we will swallow the humble pie and humbly accept they are far ahead of us, but they must also give us credit for opening UAE to Nigerians and the sub-region in general. The defunct Nigeria Airways invested a lot in opening and developing the UAE route by operating direct flights to that country. Nigerian government through WT built that route and lost everything to UAE in terms of investments, tourism, business, etc. The most painful is the present aerial rape on the route; today we have Emirates, Etihad, Kenya Airways. Air Maroc, Egypt Air, Ethiopian, Libyan Airlines, Sudan Airways, Saudia, Qatar, MEA. Even Rwanda Air that recently survived the worst genocide in black Africa has joined in ferrying Nigerians to UAE, these carriers are using the 4th, 5th, 6th air freedom. It’s so sad that we don’t have a single Nigerian carrier on that route despite being designated. It’s a collective problem, the low finances of our carriers, unprotective policies of the ministry of aviation, penchant for flying business class on foreign carriers using government funds, the concurrent blackmail by state governors, legislators and other ethnic parrots for flights to their domain have weakened the capacity and operational prowess of our carriers. For foreign airlines wanting frequencies to cities outside the negotiated ones, should honourably, relinquish same number of frequencies to Lagos and use it for the new city of choice, rather than capitalize on our ethnic divide to the detriment of our airlines and the industry in general, but a skewed benefit to the ministry who are extremely excited in collecting and quickly spending the BASA fund.this will reduce the incidence of graft allegation and increase boldness to speak. I will reiterate that the agreement with Israel and Singapore signed last year by the government is more beneficial to Ethiopian Airlines than Nigerian Carriers. Ethiopia Airlines got Enugu route almost simultaneously while they also opened and signed codeshare on these routes thereafter. The Singaporean Minister made it clear that Ethiopian airlines are coming to Singapore to operate Addis-Ababa –Lagos. Did the government carry Nigerian airlines along during these negotiations? Did they pick our best to negotiate and to compete? On concession, we all applauded the dismantling of concessions that did not go through the refine process of transparency, competitiveness and productivity. Sadly somewhere along the line the ugly process came back. How was the Abuja GAT concessioned? Also the great carcass opposite MM2 (not my words), in all fairness is an investment and the sweat of some fellow Nigerians, FAAN should negotiate to pay off rather than jeer and attempt to confiscate. If they are eager to have a befitting HQ as espoused by their incoherent unions they should take their income and expenditure slip to their Chinese clients or any of the Nigerian banks. On the national carrier, it’s the same old broken tune. These elites never flew Nigeria Airways only if the ticket was free or rebated which is usually influenced by the corporate affairs department, their comfort zone. A government that cannot strengthen its flag carriers with strong corporate policy will further weaken and in debt us all with a national carrier.

The Task before the New Aviation Minister

Our time is running short considering the presidential election is next year and the usual pre and post cabinet shakeup in our polity makes long time planning and execution a mirage. Therefore, Mr President should as a matter of urgency confirm and name our Minister, so the ball can start rolling, while he can still be ruminating on other ministries. The new minister should as a priority give NCAA the needed support as they prepare for FAA reassessment coming up in three weeks. Also, our contacts in ICAO and other bodies should be co-opted to ensure we retain our CAT 1 status, while we also do the needful with respect to the templates. The minister should as a matter of urgency convene a stakeholders meeting. All issues related to the industry will be discussed unfettered in a syndicated session and implemented, if generally accepted. The Minister should endeavour to complete on going infrastructural projects cut across the country with a proviso, which is the reassessment of the cost and quality of job done. this is necessary considering the huge expenses incurred in maintaining those that have been commisioned and the quality of materials used in others. The Minister should review our lopsided BASA agreements taking cognisance of the recent trend of using governors and politicians to blackmail the Ministry into frequency capitulation. The Minister should understand that even with our CAT 1 and other improved economic indicators, investors are still avoiding our carriers. The solution is within if we look inwards and think deep. The Minister should also take a critical review of placements, appointments and concessions that are not regular, inappropriate and transparent enough to sustain professionalism, integrity and profitability. The Minister should also as a matter of urgency take the running of the Ministry and agencies from the media, its a recent malaise that has never been seen in the industry. A cursory look at the balance sheet will give the answer. Finally, please give credit to garlands and achievements on ground, the rot proponents will come over again and say everywhere was rotten, while they have been in the system all these years. This boisterous posture attracted flack from the public The BMW scandal did not start and end with the former minister. There are other people within the system who did not uphold due process, or most importantly, defend the agencies governing act. This should not be swept under the carpet.

RE: UNION CALL FOR A TECHNOCRAT

The recent call by unions and some stakeholders calling for the appointment of an industry expert to head the ministry of aviation and their pseudo submission of nominees is self severing and not a true reflection of recent achievements and genuine yearning of the industry in totality. The unions went further by threaten to shut down the industry if a technocrat is not appointed, following the same hollow path and position taken before the appointment of Ms Oduah. She did not forgive the unions for that pronouncement and ensured a wedge was planted between the ministry and the unions, thereafter members resorted to one -one leg relationship with the ministry. Having a technocrat at the helms of the ministry is not the panacea to our problem, the last technocrat only facilitated the increment of Nigeria Airways pilots remunerations thereafter "na Sidon look" till handover . A technocrat is nice to have not need to have; the president must not be compelled by threats but should rather be left alone to make his choice, putting in perspective the federal character concept as enshrined in the constitution. What we need is an administrator and entrepreneur who will supervise the agencies and also attract investors into the sector and will not be mentally ambushed. He or she will correct the lapses therein and complete ongoing projects considering the time frame of this administration. The unions should rather roll their sleeves for issues related to corporate existence of the agencies, career progression of their members’ e.t.c which should be addressed by reviewing recent appointments, concessions and agreements. The incoming minister must also checkmate the recent trend of running the industry on the pages of newspaper and ensure the sanctity of the act governing the agencies. Also our CAT 1 certification is under threat, India just lost it despite not having a major air mishap, our carriers are on lookers on their own soil while the Ethiopians, Gulf and Europeans carriers are operating freely to different airports in our country by capitalising on our ethnic differences, this we collectively need to work on rather than bicker on appointees

ADVANCED PASSENGER INFORMATION (API) FOR NON SCHEDULE OPERATOR

The furore over the enforcement not introduction of API for non schedule operators by the government has obviously not died down considering statements and articles directed at this policy of late. The API for non schedule operations is primarily meant for safety and security while as a secondary measure aids the tracking of revenue. It smacks logic in the head when critical safety and security stakeholders pin this commendable policy on politics. I beg to differ, we should rather encourage an across the board implementation and enforcement. I also expect any government in power irrespective of party affiliation to continue the process in the interest of the industry and the country in general. In continuing the process, we need to move swiftly to the e-API, which is faster, saves times and reduce operational cost. It is also important to state that it’s not a Nigerian policy neither did it emanate from here. It was elevated after the 9/11 strike in the US and other audacious terrorist drills in different countries with aircrafts and airspace as primary weapons. Different countries have adopted it, the difference is the time frame given for filing the API which is determined by the effectiveness of IT portal, communication and other related infrastructure, the Mexicans recently revised the rules. The booming non schedule market has some challenges ranging from capturing appropriate revenue for government, safety, security e.t.c, using the reigning lexicon the rot is being addressed , hopefully it will transform to the benefit of the country if we are objective in our commentary, the focus here should be the message. NAMA should be encouraged to continue the enforcement, accelerate the e-API portability and ensure all leakages mostly associated to late night and weekend flights are blocked

National Carrier or National Airline Policy

The combinations and other equations that are presently being molded for a caesarean delivery of a national carrier should be reviewed and reconsidered in the interest of the industry and the nation at large. In a statement from an unnamed official, Ethiopian Airlines will provide long haul aircrafts for the new baby, while a gulf carrier has also consented to participate in the project. The new carrier will primarily be built around the ashes of Air Nigeria and the financially troubled Aero Contractors. These carriers are heavily indebted to banks, hence the takeover by the Asset Management Company (AMCON), yet we are always reminded that government is not involved in the new carrier. Who owns AMCON? In a recent interview with a national newspaper, the CEO of AMCON, said the Ministry of Aviation approached his organisation on the need to have a national carrier from the fused airlines. In giving his consent, he asked if the deal will be transparent, in the national interest and good for AMCON. The Ministry expectedly gave an affirmative answer. The CEO AMCON tacitly supported the deal by misinforming the public that he was reliably informed that the new national carrier will have landing rights anywhere in the world, codeshare with international airlines, spur competition and reverse a decade of embarrassment without a national carrier. In another interview the CEO said the priority of his organisation is to save depositors' funds, the financial system and legitimate borrowers, whose business offered a safety net. He concluded in that interview that the recovery process starts with getting advisers, advertising the organisation and getting requisite approval from regulatory agencies. From the above, which reputable organisation did AMCON contact on this issue for advice? Why was Air Nigeria and Aero not advertised like other troubled organisations in their fold, to ascertain if the offers will not be far better than the risky concoction called national carrier ? How did AMCON come to the conclusion that this debt ridden project is in the national interest? Landing rights are principally negotiated between government of two or more countries on behalf of their respective designated airlines, private or public. The airline so designated becomes the flag carrier and will be given all the necessary support and protection as enshrined in all bilateral or multilateral agreements. Landing rights are therefore not and never reserved for a national carrier. Our negotiating prowess, based on reciprocity, as enshrined in ICAO civil aviation policy gives landing rights. Codeshare is an agreement between two airlines, with commercial synergy. It is usually influenced by the requisite international safety certification, membership of a clearing house such as IATA, scheduling potency at hub airport and most importantly corporate governance with reputable reference. Virgin Nigeria despite her young age and 'Tokunboh' aircrafts was able to codeshare easily because of these qualities, internal system and processes provided by the Virgin team. It also ensured IOSA certification in record time. Being a national carrier will not give an airline codeshare partners, neither will an array of brand new aircraft. Competition thrives when airlines and passengers are served with by a voluntary or regulatory consolidation process that builds strong flag and other scheduled carriers owned by Nigerians which will attract foreign investors and partners. We currently have family owned carriers who got facilities from banks owned by Nigerians, which were not properly managed and intend to use public funds to support recovery process. A national carrier has exclusivity, protection and regulatory impunity, which will shackle other carriers and competition. The AMCON chief also mentioned transparency thrice in that interview, on what basis are we protecting a particular family via pseudo public funds when others were allowed to bite the dust or are about to bit the dust. If the ministry approached AMCON directly who is the mysterious facilitator that is entitled to ten percent of the new carrier shares? The matter of embarrassment actually spans over three decades, because Nigeria Airways was an embarrassment long before liquidation. Numerous efforts at restarting a new carrier side by side with Nigeria Airways ended in catastrophy. Therefore, a country can also be embarrassed by its national carrier; we can ask the Italians, Greek, Mexicans and all the countries in our sub-region. Most of the people calling for a new national carrier today and linking it to the payment of terminal benefits of former Nigeria Airways staff, worked assiduously to frustrate government efforts in the past. The industry world over has moved from national to legacy to flag and low cost carriers. Countries that share our present mentality of setting up a new national carrier include Malawi, Zambia, Congo, Ghana and Gambia. Do we choose to belong to this crowd? We have opened our skies too wide and fallen treacherously in love with BASA funds at the expense of competing and empowering, which have literally weakened our carriers and made them unattractive to foreign carriers. The Ethiopians are in Togo (ASKY) and almost concluding arrangements with the Malawian Government for a carrier, all they want to give back is leased long haul aircraft. The Chinese that are giving us loans for the terminals and also executing it have invested in an airline in Ghana. Etihad has invested in Seychelles and Air France in Congo, Burkina Faso, Mali etc. They only ask for frequencies and multiple entries into Nigeria with our politicians happily receiving their inaugural flights. What we need is a national airline policy that will strengthen the industry and our airlines, not a national carrier. The policy should include reduction of taxes, modernisation of ATC, regulatory burden reforms, stabilisaton of aviation fuel prices, provision of market for the flag carriers through a Fly Nigeria Act, economic growth stimulation with accompany jobs and pay, while also ensuring our carriers consolidate and compete globally through partners. Permit me to digress into the industry rot that is a recurring statement lately used by politicians and surprisingly by some agency heads, whom practically grew through the system at every forum to render the industry stagnant over the years, while the certifications and international accolades inherited are flagged. I quite agree that we have made some appreciable improvements under the present minister, and also acknowledge the rot in the terminals is being transformed, there are others waiting. These include airport certification, fragmented carriers, lack of insurance for agencies, skewed bilateral, executive interference and impunity.