Wednesday, June 25, 2014

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.

Thursday, June 19, 2014

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.'