Being a presentation, at the National Executive Council Meeting & Conference of Air Transport Services Senior Staff Association of Nigeria (6th to 9th Oct,2010), at the Premier Hotel- Ibadan.
What is a PPP?
It is a co-operative venture for the provision of infrastructure or services, built on the expertise of each partner that best meets clearly defined public needs, through the most appropriate allocation of resources, risks, and rewards. The public sector maintains ownership, oversight and quality assessment role, while the private sector is more closely involved in the actual delivery of the service or project.
Concession: refers to a contractual arrangement whereby the project proponent or contractor undertakes the construction, including financing of any infrastructure, facility, the operation and maintenance thereof and includes the supply of any equipment and machinery for any infrastructure and the provision of any services. Infrastructure concession in practice relies principally on the private sector. To ensure that public private partnerships are not abused, the Government's key policy objectives for PPP have to be clearly spelt out in the following terms: " to accelerate investment in new infrastructure and ensure that existing infrastructure is brought up to a satisfactory standard and capable of providing services that meet the needs and aspirations of the public; to improve the availability, quality, and efficiency.
Infrastructure refers to those physical structures that facilitate the production of goods and services, without themselves being part of the production process. Often referred to as the stock of capital goods, they include highways, airports, harbours, utility production and distributive systems.
Infrastructure projects are lumpy, meaning that they are large, immobile, space specific and long lasting, often with life span measures in decades and centuries, and construction often running into years.
The implication for financing is that:
Infrastructure finance tends to have maturities of between 5 years to 40 years.
The initial financial outlay tends to be quite large.
Large amounts of money are typically invested for long period.
Real return on investment usually fixed and as low as near zero, although still positive.
Why Do We Need PPP?
• The economy of every country is broadly divided into the public and the private sectors.
• A major challenge facing policy makers the world over is how to manage role of government in the economy.
• But what happens when government does not have the resources to undertake the various tasks.
• Or where the competition for scarce resources is so high that the demands in a single sub sector alone can decimate a country's available resources?
• This is exactly the situation in most developing countries.
• Nigeria needs to invest in critical areas such as rail, road network, water and electricity to be considered a leading global player.
• Competing demands from education, agriculture, national security, public services and other sectors of the economy.
• Where will these funds come from? This is against the backdrop that the country's external reserves have dipped.
Components of PPP
• Government- federal, state or local.
• Investor – local or foreign individuals or organisations.
• Financial institutions. Domestic, foreign or both consortiums.
PPP Modes
• Lease, Develop, Operate –LDO.
• Build, Own and Transfer –BOT.
• Build, Own and Operate –BOO.
• Management Contract –MC.
• Joint Venture –JV.
• Build, Operate and Transfer –BOT.
• Build, Own, Lease and Transfer –BOLT.
ESSENTIAL ENVIRONMENT FOR PPP
• Legal and Regulatory Framework. (ICRC act of 2005 and others)
• Policy and Institutional Framework. (ICRC,BPP,DPU)
• Availability of long-term and flexible credit.
• Strong competitive market for PPP projects.
• Capacity for project design, implementation and monitoring.
ICRC ACT & KEY ACTIVITIES
• The body was set up to formalise and regulate private sector participation in federal infrastructure.
• Quoting the late President at the at the inauguration of ICRC board, “given the Federal Government's budgetary constraints vis-à-vis the quantum of resources required to rebuild, maintain, upgrade, and expand our critical infrastructure, the concession program as envisaged would leverage effectively on private capital”.
• He added that 'this would necessarily involve the requisite upgrade of government's regulatory and monitoring roles, with the Federal Government focusing on planning and structuring, while the private sector engages in management, investment, construction and finance of infrastructure development.
• The president explained that global demand for basic infrastructure services had grown over the years, quickly outstripping the supply capacity of existing assets. He added that Nigeria's experience is that huge infrastructure deficit has greatly constrained economic growth and development, thus inhibiting the country's ability to improve the quality of life of citizens as envisaged in the Seven- Point Agenda.
ACT: MDAs may enter into a contract with or grant concession to any duly pre-qualified private sector proponent for the financing, construction, operation, and maintenance of any infrastructure that is financially viable or any development facility of the Federal Government. (Section1.1).
Section 19 of ICRC act.
o Provides general policy guidelines, rules and regulations.
o Take custody of every concession agreement.
o Ensure efficient execution of any concession agreement or contract entered by the federal Government.
• Streamline and standardize the process involving PPPs.
• Draft policies, guidelines and procedures to ensure that PPP transactions are carried out in an eminently controlled manner by all MDAs.
• ICRC will ensure all MDAs comply with these procedures before approval is given.
• Review of all projects identified by the MDAs and their structure before presentation to the FEC for approval.
• Review of contract documents before they are signed.
• Coordinate PPP activities across the country and manage the timing and flow of projects to the market.
• Provide technical expertise to MDAs and state governments in their procurement transactions, also they will provide support during negotiations, contract drafting, and financial mediation.
• Ensure that adequate capacity for entering and carrying out PPP projects on the basis of best practices exists both in the MDAs and the Commission itself.
• Review and monitor the tendering process;
• Harmonize the PPP process with other agencies such as the Ministry of Finance, National Planning Commission, and Budget Office e.t.c.
• Take custody of every concession agreement, maintain a project register and ensure that they are implemented in accordance with the law.
The Challenges of PPP-
• New PPPs. (quickie contraption)
• Cash flows and viability of existing PPPs.
• Refinancing of existing PPPs.
• NAF annexation of FAAN properties.
• Transparency.
• Unions reactive not proactive.
• State finances needed not participation.
• Lack of co-ordination between the MDA’s, ICRC, DPU and BPP.
Lessons from India’s PPP -
• to build world class airports with modern technology and management efficiency.
• to make airport user friendly with higher level of customer satisfaction.
• to provide airport capacity ahead of demand.
• to provide multi-modal linkages.
• also state government support agreement(SGSA) was initiated.
• SG to provide support to JVC.
• To remove all encroachment.
• To provide additional land for development.
• Removal of all obstructions outside the airport boundary to ensure safe and efficient air traffic movement.
• To provide improved surface access to the airport.
• To provide all utilities water, power e.t.c.
• To aid the JVC’s in procuring all necessary clearances.
• Completion of Phase-I work of IGI Airport a new integrated Terminal-3 has now become operational. The terminal has 34 million passengers handling capacity per annum covering both international domestic passengers, 168 check-in counters, 24 remote check-in counters, most modern 5 level in-line baggage system, 98 immigration counters, 78 aero bridges, multi-level car parking (4300 cars capacity), 3000 CCTV, 352 screening machines etc.
• This marks a new beginning in creating world-class infrastructure with public private partnership (PPP) in the aviation sector in India.
• The cost of the terminal is estimated at approximately US$ 2.7 billion. Terminal 3 at New Delhi – IGI Airport will be dedicated to the Commonwealth Games for which Air India has been recognised as the official carrier.
• The country has 454 airports and airstrips, of which 16 are designated as international airports
• Opportunities: Investment opportunities of US$ 110 billion are being envisaged up to 2020 with US$ 80 billion towards new aircraft and US$ 30 billion towards the development of airport infrastructure, according to the Investment Commission of India.
• The Vision 2020 statement announced by the Ministry of Civil Aviation, envisages creating infrastructure to handle 280 million passengers by 2020.
• The Planning Commission of India in a recently released report, 'Monitor able Targets & Milestones for 2010-11', has indicated several opportunities in the infrastructure sector consisting of ample scope for investment and growth. For example, in the civil aviation sector a target of US$ 562.20 million for investment for 2010-11 into public private partnerships (PPP) airport projects such as CSI Airport, Mumbai, IGI Airport Delhi, Hyderabad Airport and Bengaluru Airport have been planned.
• In-principle approval has already been given to Greenfield airports such as Gulbarga and Bijapur, Shimoga and Hassan airports in Karnataka, Kannur International Airport in Kerala etc. by the Secretary, Civil Aviation, according to the Planning Commission brief on civil aviation in the report.
• India's expanding aviation sector has almost dozen carriers, which are looking to add to their fleet as the booming economy revives the market for air travel.
• Further, according to Airbus Industrie's global market forecast, India needs 1,032 aircraft by 2028 to serve strong demand for passenger air travel and freight, and to replace ageing fleets. Out of these, 993 are new passenger aircraft valued at US$ 131 billion and 39 are new freighters valued at US$ 9 billion.
• Boeing, which competes with Airbus to sell planes in India, estimates the country will buy 1,150 commercial jets valued at US$ 130 billion over the next 20 years.
The Vietnamese -
• Thomas E Kern, CEO of the Zurich Airport, said the PPP model could be carried out successfully in the development of Viet Nam’s aviation infrastructure with participation from partners in Ha Noi. He expressed is hope that the model would result in high quality aviation infrastructure projects and that Viet Nam’s economy would develop strongly towards the greater use of the PPP model.
• To successfully implement this model Viet Nam would face many difficulties, including creation of a legal framework, a comprehensive policy on PPP, and administrative procedures barriers would need to be lifted in order to ensure a competitive edge for both domestic and foreign investors, said deputy general director of the Bank for Investment and Development of Viet Nam Tran Thanh Van.
• Transparency in the choice of investors would be a prerequisite for successful implementation of the PPP model, he said.
Dear Comrades, this house did not fall under the brutish military era; therefore it cannot fall in a democratic era, but it will rather thrive and support a PPP environment for the well being of its competent members.
Hi Soweto=Hi Apomi should be concessioned to NURTW while Hi Soweto= Hi efficiency should be the Maxim in ATSSSAN.
Monday, October 18, 2010
Sunday, October 10, 2010
ACI CONFERENCE: Unenviable Absence of Nigerian Operators
Our dear country, hosted delegates and other invited guests to the 19th annual conference and exhibition of airport council international (ACI) Africa region, from Sunday, 12th to Saturday, 19th September 2010. On Thursday, the 16th, the conference was opened to the public and formally declared open by the Honourable Minister for Aviation, with the usual Nigerian protocol of having too many welcome and opening remarks by different individuals on the high table. The conference kicked off two hours and thirty minutes behind schedule due to the late arrival of the Minister which culminated in time reduction for speakers and robbed participants the beauty of interaction through questions and answers. This was corrected the next day because they started on schedule without waiting for ceremonial remarks.
The conference attracted speakers from reputable international bodies and organisations with translation made easy courtesy of the facilities provided by the International Conference Centre. Mr. N. Fadugba fired the first salvo with a warning that without airlines, airports will not exist; he reiterated the need for African airlines to start a consolidation process to keep them alive and competitive. Deon Coete, GM Cape Town International Airport, took delegates through the process that prepared South African airports for the last World Cup. He said coordination of all stakeholders, partners and relevant agencies was the driving force, while airport management and administration personnel were redeployed to operational areas to reduce the use of casual staff and improve professionalism. Also, cranes for aircraft recovery and asphalt plants were placed on stand-by at the designated airports with staff wearing bold name badges not floppy tags or pass at all times for easy identification and communication.
IATA and SITA continued preaching their passenger facilitation homily, which is simplifying the travel or business process, using designated pillars and strategy, with the usual ambitious targets based on survey conducted within the industry which very often does not take cognisance of technological and infrastructural hindrance in Africa. The new orientation is having airport agents or handlers sell airline products not taking care of passengers who are now expected to check themselves in using the self service kiosk. To achieve this objective, equipment is being developed to facilitate the process with emphasis on the use of mobile phones.
ICAO as usual gave us frightening news, starting with Africa’s poor safety record embellished with our unenviable lead in air accidents when compared to other regions. It was observed that runway excursion was the highest contributor and a Runway Excursion Risk Reduction (RERR) kit is being introduced to mitigate this. The gap analysis, which is an evaluation that compares existing situation to the desired one, was performed in 47 African states. Not surprisingly, most member states lack the capability and the resources to recertify authorisation holders and have been unable to establish structures or framework necessary for effective and sustainable safety and oversight system.
The United States sponsored Safe Skies for Africa (SSFA) initiative team was also in Abuja. They will send air traffic/navigation experts to some African countries to complement officials of NTSB, FAA, TSA and related agencies stationed in the region for SSFA initiative. They are also considering moving from the FAA category certification process to the universally acceptable ICAO standard and recommended practices. It is good news that Americans are now thinking in global terms, while NAMA should endeavour to key into the navigation programme, since it is a win-win situation.
The American FAA introduced some safety equipment such as Tarsier camera and Qunetic Q which is used for detecting foreign object debris (FOD). When we remember the last Air France Concorde crash, we will appreciate the importance of this equipment. Also, new fire fighting equipment and techniques were on hand. A device made from crushable concrete and other materials, which stops aircraft from overshooting the runway, thereby reducing injuries and fatalities, called the Engineered Material Arresting System (EMAS) was shown to participants. It is very expensive, but very effective considering that it saved a loaded 747 cargo flight of Folar Air Cargo and some other aircraft from going off the runway.
ACI in their presentation is looking forward to a regional standardization of training programmes and policies. The training expert working group has been saddled with this responsibility. They hope to improve professionalism at the airports with a positive succession and replacement policy. They corroborated the earlier assertion of ICAO and IATA on runway safety, that 70% of African states have not implemented runway safety programme while 62% have no established organizational structures for certification and surveillance of the aerodrome. It was also generally observed that airlines are investing in cost reduction processes, while airport investment is in safety and security. This must have compelled the board of ACI to ask members to invest in infrastructure, rather than new airports.
The DG NCAA provided a graphic description of the movement of the underwear bomber, Mr. Abdul-Muttallab showing the effectiveness of our safety equipment, processes and plans put in place by FAAN, before, during and after the botched bombing. He was able to beautify MMIA beyond the usual bad media blitz, same with FAAN MD and Director Aviation Security, in their respective presentation.
Boeing did not hide its de-marketing of the A380 aircraft, while eulogizing the new B747-800, which will be competing with the A380. The NCAA and some other African countries have given approval for the aircraft to come to selected airports. Lufthansa, the German airline that was given a waiver from paying commercial royalties and equally happily saddled with the task of developing Abuja as a hub by the former Aviation Minister, will be the first airline to operate that aircraft into Nigeria by November this year. Whose hub are they developing? Is it for German or Nigerian airlines? The MD, FAAN further advertised Lufthansa at the expense of local carriers in his presentation when he showed a Lufthansa refurbished check-in counter at the MMIA. I honestly hope that was not the intention.
Participants were made to understand that airport certification is not enough to say an airport is safe, if the owners do not monitor regularly for unsafe items and movement, while ensuring that safety policies are made known to users with appropriate signs and colours. Mr. Anga, founder and president of Aviation Law Society ended the paper presentation with a warning to all government agencies to ensure they are conversant with the laws guarding the establishment of the Due Process Unit, Bureau of Public Procurement and Infrastructure Concession & Regulatory Commission, so they do not get caught on the wrong side of the law. He was empathic that the government should urgently come up with a new policy thrust for our airports.
Our carriers were completely absent at the conference and exhibition, while important players like Bi-Courtney, SAHCOL, LANDOVER etc, did not take a stand at the exhibition. Surprisingly, LANDOVER was part of the organizers. Sister aviation agencies, NTDC, foreign airlines and organizations, and other Nigerian companies should be commended for supporting FAAN before and during the conference, while Maevis sent their first eleven to the conference, which was complemented with an excellent stand during the exhibition. It may have necessitated the new rapprochement with SITA, an indirect rival in the past. The maxim no permanent enemy but permanent interest is real after all. I will also not forget the eventful Gala night sponsored by the NCAA; it was good compensation for the lunch served earlier that day.
Miss Temitope Coker, winner of the maiden National Travel Essay competition organized by Travel & Business News, got a standing ovation from the delegates for her closing speech which was really touchy. It is commendable that FAAN successfully hosted a conference that was bungled by Zimbabwe last year; FAAN delegates were also mainly operational staff, for whom the conference was relevant. For the Nigerian companies that missed the programme, I have this African proverb for them, ‘If you will not pick the mangoes that fall on the ground, then you should be strong enough to pluck those on the tree.’ We therefore expect them to be in Cairo in 2011 for the next ACI conference.
The conference attracted speakers from reputable international bodies and organisations with translation made easy courtesy of the facilities provided by the International Conference Centre. Mr. N. Fadugba fired the first salvo with a warning that without airlines, airports will not exist; he reiterated the need for African airlines to start a consolidation process to keep them alive and competitive. Deon Coete, GM Cape Town International Airport, took delegates through the process that prepared South African airports for the last World Cup. He said coordination of all stakeholders, partners and relevant agencies was the driving force, while airport management and administration personnel were redeployed to operational areas to reduce the use of casual staff and improve professionalism. Also, cranes for aircraft recovery and asphalt plants were placed on stand-by at the designated airports with staff wearing bold name badges not floppy tags or pass at all times for easy identification and communication.
IATA and SITA continued preaching their passenger facilitation homily, which is simplifying the travel or business process, using designated pillars and strategy, with the usual ambitious targets based on survey conducted within the industry which very often does not take cognisance of technological and infrastructural hindrance in Africa. The new orientation is having airport agents or handlers sell airline products not taking care of passengers who are now expected to check themselves in using the self service kiosk. To achieve this objective, equipment is being developed to facilitate the process with emphasis on the use of mobile phones.
ICAO as usual gave us frightening news, starting with Africa’s poor safety record embellished with our unenviable lead in air accidents when compared to other regions. It was observed that runway excursion was the highest contributor and a Runway Excursion Risk Reduction (RERR) kit is being introduced to mitigate this. The gap analysis, which is an evaluation that compares existing situation to the desired one, was performed in 47 African states. Not surprisingly, most member states lack the capability and the resources to recertify authorisation holders and have been unable to establish structures or framework necessary for effective and sustainable safety and oversight system.
The United States sponsored Safe Skies for Africa (SSFA) initiative team was also in Abuja. They will send air traffic/navigation experts to some African countries to complement officials of NTSB, FAA, TSA and related agencies stationed in the region for SSFA initiative. They are also considering moving from the FAA category certification process to the universally acceptable ICAO standard and recommended practices. It is good news that Americans are now thinking in global terms, while NAMA should endeavour to key into the navigation programme, since it is a win-win situation.
The American FAA introduced some safety equipment such as Tarsier camera and Qunetic Q which is used for detecting foreign object debris (FOD). When we remember the last Air France Concorde crash, we will appreciate the importance of this equipment. Also, new fire fighting equipment and techniques were on hand. A device made from crushable concrete and other materials, which stops aircraft from overshooting the runway, thereby reducing injuries and fatalities, called the Engineered Material Arresting System (EMAS) was shown to participants. It is very expensive, but very effective considering that it saved a loaded 747 cargo flight of Folar Air Cargo and some other aircraft from going off the runway.
ACI in their presentation is looking forward to a regional standardization of training programmes and policies. The training expert working group has been saddled with this responsibility. They hope to improve professionalism at the airports with a positive succession and replacement policy. They corroborated the earlier assertion of ICAO and IATA on runway safety, that 70% of African states have not implemented runway safety programme while 62% have no established organizational structures for certification and surveillance of the aerodrome. It was also generally observed that airlines are investing in cost reduction processes, while airport investment is in safety and security. This must have compelled the board of ACI to ask members to invest in infrastructure, rather than new airports.
The DG NCAA provided a graphic description of the movement of the underwear bomber, Mr. Abdul-Muttallab showing the effectiveness of our safety equipment, processes and plans put in place by FAAN, before, during and after the botched bombing. He was able to beautify MMIA beyond the usual bad media blitz, same with FAAN MD and Director Aviation Security, in their respective presentation.
Boeing did not hide its de-marketing of the A380 aircraft, while eulogizing the new B747-800, which will be competing with the A380. The NCAA and some other African countries have given approval for the aircraft to come to selected airports. Lufthansa, the German airline that was given a waiver from paying commercial royalties and equally happily saddled with the task of developing Abuja as a hub by the former Aviation Minister, will be the first airline to operate that aircraft into Nigeria by November this year. Whose hub are they developing? Is it for German or Nigerian airlines? The MD, FAAN further advertised Lufthansa at the expense of local carriers in his presentation when he showed a Lufthansa refurbished check-in counter at the MMIA. I honestly hope that was not the intention.
Participants were made to understand that airport certification is not enough to say an airport is safe, if the owners do not monitor regularly for unsafe items and movement, while ensuring that safety policies are made known to users with appropriate signs and colours. Mr. Anga, founder and president of Aviation Law Society ended the paper presentation with a warning to all government agencies to ensure they are conversant with the laws guarding the establishment of the Due Process Unit, Bureau of Public Procurement and Infrastructure Concession & Regulatory Commission, so they do not get caught on the wrong side of the law. He was empathic that the government should urgently come up with a new policy thrust for our airports.
Our carriers were completely absent at the conference and exhibition, while important players like Bi-Courtney, SAHCOL, LANDOVER etc, did not take a stand at the exhibition. Surprisingly, LANDOVER was part of the organizers. Sister aviation agencies, NTDC, foreign airlines and organizations, and other Nigerian companies should be commended for supporting FAAN before and during the conference, while Maevis sent their first eleven to the conference, which was complemented with an excellent stand during the exhibition. It may have necessitated the new rapprochement with SITA, an indirect rival in the past. The maxim no permanent enemy but permanent interest is real after all. I will also not forget the eventful Gala night sponsored by the NCAA; it was good compensation for the lunch served earlier that day.
Miss Temitope Coker, winner of the maiden National Travel Essay competition organized by Travel & Business News, got a standing ovation from the delegates for her closing speech which was really touchy. It is commendable that FAAN successfully hosted a conference that was bungled by Zimbabwe last year; FAAN delegates were also mainly operational staff, for whom the conference was relevant. For the Nigerian companies that missed the programme, I have this African proverb for them, ‘If you will not pick the mangoes that fall on the ground, then you should be strong enough to pluck those on the tree.’ We therefore expect them to be in Cairo in 2011 for the next ACI conference.
Saturday, September 18, 2010
NAMA Navigation Charge: Why The Blackmail
These charges are recognised by ICAO and accepted as an operational cost, so our airlines should brace up to it.
When the honourable minister granted the airlines a three year grace to pay back public funds collected and spent by the airlines, while also lampooning the agency heads for daring to put their foot down .it was glaring, the government had surreptitiously encouraged inefficiency on the platter of blackmail which naturally has come back to hunt them.
The airlines have consistently refused to meet their obligation to agencies; they also would turn around to accuse them of providing sub-standard services.
The airlines should negotiate the charges with NAMA and probably ask for some rebate on routes with low patronage or frequency rather than refusing to pay. It is unfair not to pay those charges considering NAMA is a self funding organization that must be committed to safety in the air and on ground through maintenance of its equipment and motivation of his sensitive workers.
It is also an aeronautical blackmail to claim NAMA is on strike when they are not or to include NAMA charge on your ticket when the business plan or operational budgets should have taken cognizance of navigational charges whether in arrears or in the new format.
The airlines should realise that the pay –as-you –go policy is fallout of their accumulated debts and the irritating penchant of circumventing the system through blackmail and executive intervention.
They should also reorganize themselves, starting with the AON, the umbrella body of the airlines, that body is an embarrassment to the industry with key officers coming on air with different positions just like they did sometime ago when they wanted bailout, which was championed by stakeholders.
Finally, our airlines should reverse the present culture of dodging and blackmailing to coughing out outstanding debts, it’s a prerequisite for running efficient carriers that needs the support of the traveling public, stakeholders and the government.
When the honourable minister granted the airlines a three year grace to pay back public funds collected and spent by the airlines, while also lampooning the agency heads for daring to put their foot down .it was glaring, the government had surreptitiously encouraged inefficiency on the platter of blackmail which naturally has come back to hunt them.
The airlines have consistently refused to meet their obligation to agencies; they also would turn around to accuse them of providing sub-standard services.
The airlines should negotiate the charges with NAMA and probably ask for some rebate on routes with low patronage or frequency rather than refusing to pay. It is unfair not to pay those charges considering NAMA is a self funding organization that must be committed to safety in the air and on ground through maintenance of its equipment and motivation of his sensitive workers.
It is also an aeronautical blackmail to claim NAMA is on strike when they are not or to include NAMA charge on your ticket when the business plan or operational budgets should have taken cognizance of navigational charges whether in arrears or in the new format.
The airlines should realise that the pay –as-you –go policy is fallout of their accumulated debts and the irritating penchant of circumventing the system through blackmail and executive intervention.
They should also reorganize themselves, starting with the AON, the umbrella body of the airlines, that body is an embarrassment to the industry with key officers coming on air with different positions just like they did sometime ago when they wanted bailout, which was championed by stakeholders.
Finally, our airlines should reverse the present culture of dodging and blackmailing to coughing out outstanding debts, it’s a prerequisite for running efficient carriers that needs the support of the traveling public, stakeholders and the government.
RE:House Public Hearing on Multiple Entry
The public hearing is long overdue; I really look forward to it, though with trepidation.
Will the outcome change the present situation considering past public hearing whose outcome has changed nothing. Also, most of the agreements are government to government which usually have a long gestation period and require some diplomatic hurdles before it can be reversed.
Then you have the disunited cartel, called AON, who may come up with different positions just like they did the last time, when they purposely omitted the fly Nigeria act because they felt Mr. A’s airline will be the only beneficiary.
If you look at the checking in counters at the international gateways of Lagos, Abuja, Port-Harcourt and Kano our carriers are tucked at the corners or completely absent compared to the foreign carriers who have taken vantage positions in our own country.
Take a cursory look at cities such as Jo’burg, Nairobi, Addis-Ababa, Cairo, Tripoli you can easily feel the ambience of the home carriers, why are we different?
We need to seat down have a re-think because the BASA fund that is exciting us and surely tripping the head of aviation agencies is pittance when compared with the benefits that will accrue to the country if we empower our carriers and our manpower
Will the outcome change the present situation considering past public hearing whose outcome has changed nothing. Also, most of the agreements are government to government which usually have a long gestation period and require some diplomatic hurdles before it can be reversed.
Then you have the disunited cartel, called AON, who may come up with different positions just like they did the last time, when they purposely omitted the fly Nigeria act because they felt Mr. A’s airline will be the only beneficiary.
If you look at the checking in counters at the international gateways of Lagos, Abuja, Port-Harcourt and Kano our carriers are tucked at the corners or completely absent compared to the foreign carriers who have taken vantage positions in our own country.
Take a cursory look at cities such as Jo’burg, Nairobi, Addis-Ababa, Cairo, Tripoli you can easily feel the ambience of the home carriers, why are we different?
We need to seat down have a re-think because the BASA fund that is exciting us and surely tripping the head of aviation agencies is pittance when compared with the benefits that will accrue to the country if we empower our carriers and our manpower
Sunday, September 5, 2010
legislating to provide consumer protection
I don’t think it’s an airline problem alone; we all need to agitate and participate in pushing our carriers to the zenith of customer services.
Nigerian airlines, like their counterparts world over are busy creating all sort of fares and charges to augment the low fares being provided, in doing this, services that come naturally to passengers in the past are now being paid for, passengers are now restricted to fight delayed departure, denied boarding, hidden charges, lost baggage and probably delinquent safety processes.
In addressing these issues, senate and house committees on aviation need to pass the necessary legislation to protect passengers which will now be enforced by the other arms of government.
To aid the committees the airlines, passengers, stakeholders, regulatory authorities and sister agencies must be able to provide information and necessary statistics to aid the passage of such bills.
It has been practiced successfully in other climes to the benefit of all users and service providers. we can replicate same here.
Nigerian airlines, like their counterparts world over are busy creating all sort of fares and charges to augment the low fares being provided, in doing this, services that come naturally to passengers in the past are now being paid for, passengers are now restricted to fight delayed departure, denied boarding, hidden charges, lost baggage and probably delinquent safety processes.
In addressing these issues, senate and house committees on aviation need to pass the necessary legislation to protect passengers which will now be enforced by the other arms of government.
To aid the committees the airlines, passengers, stakeholders, regulatory authorities and sister agencies must be able to provide information and necessary statistics to aid the passage of such bills.
It has been practiced successfully in other climes to the benefit of all users and service providers. we can replicate same here.
Friday, August 27, 2010
MR SPEAKER: BREACHING SAFETY PROCEDURE
The victory of having a youthful speaker that will liberate and be a model for other youths in different sectors of the economy seems pyrrhic, considering the recent actions and inactions of the Honourable speaker in the recent past. I will digress from his political upheavals and face issues related to the aviation sector.
Mr. Speaker refused a pat-down by British Airways security personnel at the MMIA while proceeding to board their aircraft on his way to London. His refusal necessitated him being denied boarding and the media circus thereof. The speaker not unsurprisingly proceeded almost immediately to fly a British owned carrier- Virgin Atlantic.
To affirm his anti–safety principle, his spokesperson said he was not searched at the other airports in London, without confirming if he passed through a scanning machine which usually overrides a pat-down.
This happened at a time the country was on the verge of getting the elusive Category 1 status that is needed for our carriers to fly to America with Nigerian registered aircraft. We also need to take into consideration the fact that Nigeria is also barely off the terror watch list which was an albatross to Nigerians traveling outside the country.
We got on the terror watch list, not because of the failed under wear bomber alone but due to other reasons such as our lack of cooperation with other security agencies in sharing information, shaky presidential leadership at that period, inadequate security gadgets at the airports and the absence of an enabling law to fight international terrorism.
If Mr. Speaker has to resist anything at all, it should start with the present deplorable state of our airports, the use of public funds to fly foreign carriers on routes that Nigerian carriers operate the delayed certification of Nigeria-by the US FAA, with our generous acceptance of the open skies and Air Marshal Agreements. He should go further by also resisting the delayed passage of Anti- terror bill presently gathering dust in a chamber headed by him.
Mr. Speaker can also resist Lufthansa by ensuring that all outstanding fees from the commercial agreements owed the country, which were swapped for a nonsensical manpower and technical development of Abuja airport by his acolyte and former aviation minister are paid promptly. When a foreign carrier has three entry points to your own country and you cannot reciprocate, you will only aid in developing selfish hub outside Frankfurt.
Furthermore, he should resist carriers under the guise of wet lease contract, with a proliferation of non-Nigerian registered business jets who are operating for hire and reward services within the territory of Nigeria, while encroaching on the legitimate market for domestic operators. In a nutshell, participants in the domestic air charter market that are non-Nigerian registered airlines should be prohibited and enforced.
Mr. Speaker can resist executive recklessness by ensuring that our leaders stop driving onto the tarmac, while also using self recognition to bully FAAN security and other safety related staff from conducting the mandatory security checks. For those who can still remember, a Virgin Nigeria cabin crew almost lost her job due to pressure from the former aviation minister on the airline’s management, who in turn stood resolutely by safety procedure. Her sin was professionally refusing have an oversized cake being ferried on board the regional jet that was used to replace the 737 aircraft.
Mr. Speaker should also resist the shameful idling of expensive scanning machines bought for the international gateways at the height of failed bombing, which have not been utilized. Had they been deployed, Mr. Speaker may have opted for the scanner, rather than have a pat-down. He should ask questions like why are the scanners donated by the US government working and the ones bought with tax payers’ funds not working six months after delivery. In other climes, the scanners are already working.
Mr. Speaker should also resist the non-implementation of some directives of House committee on Aviation and the homily of the executive arm after the committee has exposed the Abuja run-away project.
The country now has the coveted category 1 status, we need to sustain and retain it. While we expect our leadership to support the regulatory authorities in achieving this objective, they must also be seen to be obeying and abiding by all civil aviation safety procedures within and outside the country, to avoid a recurrence of the last embarrassing situation.
Finally, Mr. Speaker, when British Airways denied you boarding, why did you board another British carrier, when Arik, the only Nigerian carrier on that route was available. Considering the Nigerian factor, the MD and other top management would have walked you to the foot of the aircraft with all the paraphernalia you deserve, woe betide the Arik security staff that will search you when his ogas are with you.
Your first class ticket and other tickets for your entourage on British Airways and Virgin Atlantic, purchased with tax payers’ fund, would have paid the salaries of some Arik Air staff if you had shown some patriotism by flying a Nigerian carrier. Please support a consolidation process for our carriers, thereafter the Fly Nigeria Act.
Mr. Speaker refused a pat-down by British Airways security personnel at the MMIA while proceeding to board their aircraft on his way to London. His refusal necessitated him being denied boarding and the media circus thereof. The speaker not unsurprisingly proceeded almost immediately to fly a British owned carrier- Virgin Atlantic.
To affirm his anti–safety principle, his spokesperson said he was not searched at the other airports in London, without confirming if he passed through a scanning machine which usually overrides a pat-down.
This happened at a time the country was on the verge of getting the elusive Category 1 status that is needed for our carriers to fly to America with Nigerian registered aircraft. We also need to take into consideration the fact that Nigeria is also barely off the terror watch list which was an albatross to Nigerians traveling outside the country.
We got on the terror watch list, not because of the failed under wear bomber alone but due to other reasons such as our lack of cooperation with other security agencies in sharing information, shaky presidential leadership at that period, inadequate security gadgets at the airports and the absence of an enabling law to fight international terrorism.
If Mr. Speaker has to resist anything at all, it should start with the present deplorable state of our airports, the use of public funds to fly foreign carriers on routes that Nigerian carriers operate the delayed certification of Nigeria-by the US FAA, with our generous acceptance of the open skies and Air Marshal Agreements. He should go further by also resisting the delayed passage of Anti- terror bill presently gathering dust in a chamber headed by him.
Mr. Speaker can also resist Lufthansa by ensuring that all outstanding fees from the commercial agreements owed the country, which were swapped for a nonsensical manpower and technical development of Abuja airport by his acolyte and former aviation minister are paid promptly. When a foreign carrier has three entry points to your own country and you cannot reciprocate, you will only aid in developing selfish hub outside Frankfurt.
Furthermore, he should resist carriers under the guise of wet lease contract, with a proliferation of non-Nigerian registered business jets who are operating for hire and reward services within the territory of Nigeria, while encroaching on the legitimate market for domestic operators. In a nutshell, participants in the domestic air charter market that are non-Nigerian registered airlines should be prohibited and enforced.
Mr. Speaker can resist executive recklessness by ensuring that our leaders stop driving onto the tarmac, while also using self recognition to bully FAAN security and other safety related staff from conducting the mandatory security checks. For those who can still remember, a Virgin Nigeria cabin crew almost lost her job due to pressure from the former aviation minister on the airline’s management, who in turn stood resolutely by safety procedure. Her sin was professionally refusing have an oversized cake being ferried on board the regional jet that was used to replace the 737 aircraft.
Mr. Speaker should also resist the shameful idling of expensive scanning machines bought for the international gateways at the height of failed bombing, which have not been utilized. Had they been deployed, Mr. Speaker may have opted for the scanner, rather than have a pat-down. He should ask questions like why are the scanners donated by the US government working and the ones bought with tax payers’ funds not working six months after delivery. In other climes, the scanners are already working.
Mr. Speaker should also resist the non-implementation of some directives of House committee on Aviation and the homily of the executive arm after the committee has exposed the Abuja run-away project.
The country now has the coveted category 1 status, we need to sustain and retain it. While we expect our leadership to support the regulatory authorities in achieving this objective, they must also be seen to be obeying and abiding by all civil aviation safety procedures within and outside the country, to avoid a recurrence of the last embarrassing situation.
Finally, Mr. Speaker, when British Airways denied you boarding, why did you board another British carrier, when Arik, the only Nigerian carrier on that route was available. Considering the Nigerian factor, the MD and other top management would have walked you to the foot of the aircraft with all the paraphernalia you deserve, woe betide the Arik security staff that will search you when his ogas are with you.
Your first class ticket and other tickets for your entourage on British Airways and Virgin Atlantic, purchased with tax payers’ fund, would have paid the salaries of some Arik Air staff if you had shown some patriotism by flying a Nigerian carrier. Please support a consolidation process for our carriers, thereafter the Fly Nigeria Act.
Friday, August 20, 2010
AERO AND THE LOW FARES
Aero has once again shown its pioneering role in the unbundling of domestic fares, encouraging cashless transaction, which is a fade with low cost carriers world over and also being practiced by legacy carriers on selected routes and class.
The fuel charge introduced is a reflection of fuel situation in Nigeria and a brilliant attempt to educate the public and the government in particular the impact of jet fuel on our carriers bottom-line, though it’s not a fixed charge. It usually swings with the prevailing fuel price.
I hopefully look forward to a last-minute ticket sales promo and process on their web, which will increase traffic to the site and will most importantly fill no-shows considering the seats become perishable when the flights departs.
It will be interesting to see our airlines on the social marketing sites of twitter, face book e.t.c. it’s a more organic process and our airlines must realized the potential for free marketing these sites provide.
The management of Aero should compliment the commendable unbundling process, by working assiduously to drive down their cost of operation while tinkering with the idea of separating its schedule services from it other chartering, servicing and maintenance services to enhance efficiency, improve profitability with cost reduction.
The NCAA’s stoppage of the fuel surcharge at that time was regrettable and should be reviewed forthwith because foreign airlines operating into Nigeria have been collecting fuel and other charges as ancillary revenue over the years to cushion the biting effects of fuel price, meltdown e.t.c, so why are they stopping Aero? NCAA can as well stop all the promotional fares and revert to the out-dated collusion and regimented flat fare regime as witnessed in the time past.
Aero management should also, learn to give the public some notification period rather than adopt a swift implementation of new fares, charges and policies, which is the norm world over
We need to sustain the noticeable increase in domestic travel across all airports and in doing this we should give the airlines some freedom in commercial decisions without interference.
Aero’s gradual transformation to a low fare carrier is encouraging and should improve I.T facilities that naturally act as driving force for this model. Also they should have it at back of their mind that, in the airspace there are openings for those who look hard, using the right aircraft and delivering the right product.
The fuel charge introduced is a reflection of fuel situation in Nigeria and a brilliant attempt to educate the public and the government in particular the impact of jet fuel on our carriers bottom-line, though it’s not a fixed charge. It usually swings with the prevailing fuel price.
I hopefully look forward to a last-minute ticket sales promo and process on their web, which will increase traffic to the site and will most importantly fill no-shows considering the seats become perishable when the flights departs.
It will be interesting to see our airlines on the social marketing sites of twitter, face book e.t.c. it’s a more organic process and our airlines must realized the potential for free marketing these sites provide.
The management of Aero should compliment the commendable unbundling process, by working assiduously to drive down their cost of operation while tinkering with the idea of separating its schedule services from it other chartering, servicing and maintenance services to enhance efficiency, improve profitability with cost reduction.
The NCAA’s stoppage of the fuel surcharge at that time was regrettable and should be reviewed forthwith because foreign airlines operating into Nigeria have been collecting fuel and other charges as ancillary revenue over the years to cushion the biting effects of fuel price, meltdown e.t.c, so why are they stopping Aero? NCAA can as well stop all the promotional fares and revert to the out-dated collusion and regimented flat fare regime as witnessed in the time past.
Aero management should also, learn to give the public some notification period rather than adopt a swift implementation of new fares, charges and policies, which is the norm world over
We need to sustain the noticeable increase in domestic travel across all airports and in doing this we should give the airlines some freedom in commercial decisions without interference.
Aero’s gradual transformation to a low fare carrier is encouraging and should improve I.T facilities that naturally act as driving force for this model. Also they should have it at back of their mind that, in the airspace there are openings for those who look hard, using the right aircraft and delivering the right product.
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