Tuesday, May 20, 2014

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.