FAAN/MAEVIS DEAL: PUBLIC OR CORPORATE INTEREST ?
The commando takeover of MAEVIS facilities and forceful termination of the agreement despite having a restraining court order is a tragic Nollywood presentation that will surely damage our reputation in the international investors’ forum.
In my article titled “The Rumored Cancellation”, written and published sometime in the first quarter of 2011, I advised both parties to seek re-negotiation rather than cancellation, because that option usually leads to prolonged litigation, freezing of bank accounts and assets as witnessed in the past.
It started with Pan Africa Express, Sanderton a while ago, Nigeria Aviation Handling Company (NAHCO) thereafter and now MAEVIS, the current victim. Going by the press briefing of FAAN MD, they are already preparing to bulldoze other organisations based on the principle of sub-optimal agreement given as bazaar by the Federal Government through its appointees in FAAN and the Ministry.
The MD of FAAN has also forwarded the MAEVIS file to EFCC and ICPC, I sincerely hope the names of the FAAN MD, Director of Commercial, Head Legal and the Minister’s SA at that time were attached to the petition. These people and their backers in the ministry turned a blind to anti public enhancement fee that is principally used for settling the “settlables”.
Going down memory lane, in 1993 NAHCO, FAAN and Spring Fountain the purveyor of MAEVIS were to jointly start a domestic handling company, but after making necessary financial contributions, the deal fell flat and refunds were demanded in a typical Nigerian ding-dong movement between the parties.
NAHCO again under Musa Agboneni, Chris Hassan and AGM Ops Mr. Olu Afolabi sometime in 1995 introduced computerised handling and check-in procedure at MMIA. In their quest to improve and update the facilities, they got a technical partner NATHECH and a North American company ARNIC Systems to assist and ensure the mission is accomplished.
NAHCO invited FAAN and SAHCOL (the latter had her vision blinded by the ill fated Nigeria Airways at that period in time) to come on board with requisite moral and financial contributions. These organisations failed to catch the vision and consequently backed out.
NAHCO in 2003, went ahead to provide the Airport Operations Management System, investing a lot of funds, while also refurbishing all the check-in counters at the MMIA. Their request to include the flight information display system (FIDS) was flatly turned down by FAAN.
Later, SAHCOL became an independent entity with a clear vision of participating and competing in the provision of ground handling services. They petitioned the ministry, alleging that NAHCO was being favoured and given undue advantage at the MMIA.
NAHCO responded by purchasing additional equipment worth $360,000 to enable SAHCOL key into the programme seamlessly. When SAHCOL was asked to pay, they backed out of the deal, again. Thereafter NAHCO went ahead with the processes and system unperturbed, though with a major hitch, the exclusion of non NAHCO passengers.
In 2007, the agreement with MAEVIS was signed to the surprise of industry watchers because MAEVIS won the deal over and above other experienced organisations that applied for the contract; organisations such as SITA, NAHCO-ARNIC etc.
The Company went to work investing and providing services that improved facilitation for passengers and airlines, while also capturing and generating revenue for FAAN before the bubble burst in 2010.
It has been a cat and mouse game ever since, MAEVIS was charging $1.40cent per passenger and the contentious 35% enhancement fee from revenue generated, SITA will be charging the same $1.40cent without enhancement, which is a better deal, while NAHCO was charging below $1 per passenger for the same services.
The MAEVIS/FAAN case is in court. While watching the drama in the legal and public opinion court, we need to be reminded that the equipment NAHCO used before they were forced to move out for the MAEVIS deal are still lying somewhere in the same airport that MAEVIS equipment are lying in right now. Peradventure, SITA’s equipment suffers the same fate this will increase the computerised carcass inventory at MMIA.
Questions that keep recurring in our PPP or is it concession agreements are: Why do we make the same mistake always? How did SITA win this contract? Was it through an open and transparent bidding process? Did SITA deal with FAAN directly, or through their agents which may have hiked the total cost of the deal? When will the toothless Infrastructure Concession Regulatory Commission be able to bark and bite?
MAEVIS was absolutely right in saying enhancement fee was entrenched in most FAAN domiciled concession agreements, so the MD FAAN must also be perfectly right to have promised to review those sub-optimal agreements and for boldly aligning with public interest in contrast to MAEVIS’ position of aligning with corporate interest, which must have necessitated their refusal to renegotiate or is it resort to legal delay tactics.
When the legal processes are completed, I sincerely hope the BASA fund designated for critical safety and infrastructural projects, which is being diverted to offset Government liabilities of late will be sufficient enough to clear liabilities arising from sub optimum agreements.
Concession is the way forward and must be accompanied by transparent, robust and independent economic regulations supported by effective industry consultations.
This is what the concessionaire and concessionee in this soap opera lacked from the beginning when they started their romance in 1993, they should look back and ensure the problem is settled amicably considering MAEVIS have invested a lot resources.
Tuesday, April 3, 2012
Friday, March 23, 2012
CONSUMER PROTECTION:BEFORE THE BILL OF RIGHT
The industry is gearing up to receive the bill of right as espoused by the NCAA. This bill should whip our airlines in line on issues related to services provided to passengers. The bill is expected to address the perennial problems of delays, cancellations, refunds, hidden charges e.t.c
Stakeholders and passengers are eagerly awaiting this bill, the airlines just like their counterpart world over usually are apprehensive and would work against the bill. The DG’s pronouncement on the bill has made tongues to wag. it is important to look at other issues outside the control of the airlines that are contributing to the present operational delays and associated issues. These issues are pertinent and should be addressed by the government and relevant agencies before making the bill an act.
The remodeling of 12 major airports at almost the same time has reduced operational capacity at these airports. The airlines are made to operate from make shift structures or often times wake up to meet alien procedures that usually slows down the facilitation process.
The aluminum graveyard at the GAT terminal where dead and abandoned aircrafts are parked, has made parking difficult for operational aircrafts and increased the incidence of aircraft wings touching each other or the tail of another aircraft.
Private jets used by some governors are also parked at this terminal which increases the operational constraints. Aircrafts taxing to park are made to wait while marshals struggle to get a convenient space. Delta and Imo state government in particular need to be notified.
The boarding gate at Abuja airport is grossly inadequate while the buses provided as an alternate, to ferry passengers from the terminal to the airside are unfriendly to the elderly and the physically challenged passengers.
The epileptic screening machines at our airports is another sore thumb that creates operational hazards for our airlines, their efficiency is ruptured by the equally epileptic power supply.
The Public Address System provided at the government controlled airports is barely audible with clarity problems, efforts made by some airlines to supplement with portable address system are usually resisted by FAAN management.
The presidential movement that closes the airspace for between 30 to 45 mins needs to be addressed, it is understandable that NAMA cannot come out to complain but rather be seen defending and verbally reducing the time used for such movement. It is important to remind all stake holders that the issue is a recurring decimal, the presidency, relevant security bodies and civil aviation authorities need to work out an efficient time management.
It is commendable to see NAMA take over the control of runway lighting, because some of our airports don’t have this critical runway equipment, the airlines are forced to run a clumsy day light operation that has reduced frequencies and capacities that would have corrected some noticeable operational challenges. The other challenges are the NOTAM at Abuja airport that recently necessitated the order of the NCAA that any take off after 9pm should not be permitted and the lack of runway light on 19L, which is the domestic runway in Lagos. These airports are the domestic hub of airline operations and can effectively slow down the entire network of scheduled operators.
NCAA inspectors need to improve and fast track responses and procedures to issues related to aircraft incidences and AOGs. Aircrafts are delayed at off line airports due to delayed or non availability of inspectors to inspect and certify aircraft for ferry.
Aviation fuel is important to airline profitability and of late aircraft delay, therefore the government with the NCAA driving this push must address this issue quickly and decisively. The Indian government has just authorised its carriers to import jet A1 directly to bring down cost and ensure availability while the Argentine government this week ordered the major oil companies to put a price cap on fuel sold to aircrafts registered in the country. The report went further that the cost of a liter of jet A1 must not exceed that of gasoline by 2.7% ,using the rate of the nearest filling station. If that policy is to be applied here, using the present N97 per liter for fuel that will translate to about N100 per liter for jet A1, this will be convenient for our operators. The Argentine anti-trust commission report said that in the USA the difference between petrol and Jet A1 is not more than 2.1% and this should be reflected in the Argentine market. Then we may ask where is the Nigerian anti-trust commission? When will we start protecting consumers in Nigeria using requisite institutions and laws?
Quite naturally, this bill will attract fines and sanctions to recalcitrant domestic carriers, will this bill or a similar one be replicated on foreign airlines who hide under the archaic Cease and Desist Order?
Stakeholders and passengers are eagerly awaiting this bill, the airlines just like their counterpart world over usually are apprehensive and would work against the bill. The DG’s pronouncement on the bill has made tongues to wag. it is important to look at other issues outside the control of the airlines that are contributing to the present operational delays and associated issues. These issues are pertinent and should be addressed by the government and relevant agencies before making the bill an act.
The remodeling of 12 major airports at almost the same time has reduced operational capacity at these airports. The airlines are made to operate from make shift structures or often times wake up to meet alien procedures that usually slows down the facilitation process.
The aluminum graveyard at the GAT terminal where dead and abandoned aircrafts are parked, has made parking difficult for operational aircrafts and increased the incidence of aircraft wings touching each other or the tail of another aircraft.
Private jets used by some governors are also parked at this terminal which increases the operational constraints. Aircrafts taxing to park are made to wait while marshals struggle to get a convenient space. Delta and Imo state government in particular need to be notified.
The boarding gate at Abuja airport is grossly inadequate while the buses provided as an alternate, to ferry passengers from the terminal to the airside are unfriendly to the elderly and the physically challenged passengers.
The epileptic screening machines at our airports is another sore thumb that creates operational hazards for our airlines, their efficiency is ruptured by the equally epileptic power supply.
The Public Address System provided at the government controlled airports is barely audible with clarity problems, efforts made by some airlines to supplement with portable address system are usually resisted by FAAN management.
The presidential movement that closes the airspace for between 30 to 45 mins needs to be addressed, it is understandable that NAMA cannot come out to complain but rather be seen defending and verbally reducing the time used for such movement. It is important to remind all stake holders that the issue is a recurring decimal, the presidency, relevant security bodies and civil aviation authorities need to work out an efficient time management.
It is commendable to see NAMA take over the control of runway lighting, because some of our airports don’t have this critical runway equipment, the airlines are forced to run a clumsy day light operation that has reduced frequencies and capacities that would have corrected some noticeable operational challenges. The other challenges are the NOTAM at Abuja airport that recently necessitated the order of the NCAA that any take off after 9pm should not be permitted and the lack of runway light on 19L, which is the domestic runway in Lagos. These airports are the domestic hub of airline operations and can effectively slow down the entire network of scheduled operators.
NCAA inspectors need to improve and fast track responses and procedures to issues related to aircraft incidences and AOGs. Aircrafts are delayed at off line airports due to delayed or non availability of inspectors to inspect and certify aircraft for ferry.
Aviation fuel is important to airline profitability and of late aircraft delay, therefore the government with the NCAA driving this push must address this issue quickly and decisively. The Indian government has just authorised its carriers to import jet A1 directly to bring down cost and ensure availability while the Argentine government this week ordered the major oil companies to put a price cap on fuel sold to aircrafts registered in the country. The report went further that the cost of a liter of jet A1 must not exceed that of gasoline by 2.7% ,using the rate of the nearest filling station. If that policy is to be applied here, using the present N97 per liter for fuel that will translate to about N100 per liter for jet A1, this will be convenient for our operators. The Argentine anti-trust commission report said that in the USA the difference between petrol and Jet A1 is not more than 2.1% and this should be reflected in the Argentine market. Then we may ask where is the Nigerian anti-trust commission? When will we start protecting consumers in Nigeria using requisite institutions and laws?
Quite naturally, this bill will attract fines and sanctions to recalcitrant domestic carriers, will this bill or a similar one be replicated on foreign airlines who hide under the archaic Cease and Desist Order?
Friday, February 17, 2012
RE: BA-VAA PANEL CEASE AND DESIST ORDER
The report of the administrative panel set up by the Nigeria Civil Aviation Authority (NCAA) to review decisions taken by the regulator with respect to fines imposed on the British carriers for improper conduct wasn’t pleasant to our hearing but fair.
The panelist in their findings concluded that, these carriers colluded, cooperated and coordinated in periodically raising and maintaining the passenger fuel surcharge (PFS). The PFS was used to deprive the NCAA, Federal Government and travel agencies, statutory revenue and commission from base fare while Nigerian passengers were unfairly exploited.
The panelist also unanimously agree that these carriers had a collusive arrangement which undermined the principle of fair pricing and the NCAA was within its regulatory authority and indeed has substantiated its findings. Sadly, the regulator’s hand was tied by Act No 49, of 1999, that was used to establish the authority with a limitation to ask exploiters to Cease and Desist only. Simply put, the fines imposed by NCAA are not backed by law.
The absence of an anti- trust body and competition laws in the country is retrogressive to the development of the industry and other sectors of the economy, the legislative arm need to do something urgently.
A company with significant market power and dominant position operating in a jurisdiction without standard competition law rules and an overarching competition authority can in effect engage in any anti-competitive practice without fear, unfortunately, Nigeria is one of those jurisdictions.
An economy like Nigeria is now overdue for a competition regime: a dedicated law and a competent authority to enforce it judiciously. A competition regime will protect the interests of millions of consumers as well as create a level playing field for all kinds of businesses to flourish. Crucially, it also provides businesses with the opportunity to compete on price and quality, in an open market and on a level playing field without anti-competitive restraints.
The benefit of putting one’s house in order is that, when you speak, you speak with authority and you command respect. Once your house is in order, who will disrespect your authority or decision.
The NCAA should go home with the words Dr Gbadebo-Smith a member of that panel, “that PFS should have been subject to taxation, these airlines in my view owes taxes on that segment of its ticket cost and NCAA is correct in insisting they pay taxes, the means of recovering the taxes is not within the remit of the panel”.
NCAA is authorise to get these taxes from the carriers, therefore the DG and his team should proceed. Also the industry should gear up and start the process of updating the civil aviation laws that will trash archaic orders such as cease and desist.
For BA and VAA, exploiting Nigerians through the weakness of our laws is not right and just. They should make amends and thank their stars we were generous enough to give a Cease and Desist order, in other climes the fines are complemented with jail terms for airline managers who hold sensitive positions during that period.
The panelist in their findings concluded that, these carriers colluded, cooperated and coordinated in periodically raising and maintaining the passenger fuel surcharge (PFS). The PFS was used to deprive the NCAA, Federal Government and travel agencies, statutory revenue and commission from base fare while Nigerian passengers were unfairly exploited.
The panelist also unanimously agree that these carriers had a collusive arrangement which undermined the principle of fair pricing and the NCAA was within its regulatory authority and indeed has substantiated its findings. Sadly, the regulator’s hand was tied by Act No 49, of 1999, that was used to establish the authority with a limitation to ask exploiters to Cease and Desist only. Simply put, the fines imposed by NCAA are not backed by law.
The absence of an anti- trust body and competition laws in the country is retrogressive to the development of the industry and other sectors of the economy, the legislative arm need to do something urgently.
A company with significant market power and dominant position operating in a jurisdiction without standard competition law rules and an overarching competition authority can in effect engage in any anti-competitive practice without fear, unfortunately, Nigeria is one of those jurisdictions.
An economy like Nigeria is now overdue for a competition regime: a dedicated law and a competent authority to enforce it judiciously. A competition regime will protect the interests of millions of consumers as well as create a level playing field for all kinds of businesses to flourish. Crucially, it also provides businesses with the opportunity to compete on price and quality, in an open market and on a level playing field without anti-competitive restraints.
The benefit of putting one’s house in order is that, when you speak, you speak with authority and you command respect. Once your house is in order, who will disrespect your authority or decision.
The NCAA should go home with the words Dr Gbadebo-Smith a member of that panel, “that PFS should have been subject to taxation, these airlines in my view owes taxes on that segment of its ticket cost and NCAA is correct in insisting they pay taxes, the means of recovering the taxes is not within the remit of the panel”.
NCAA is authorise to get these taxes from the carriers, therefore the DG and his team should proceed. Also the industry should gear up and start the process of updating the civil aviation laws that will trash archaic orders such as cease and desist.
For BA and VAA, exploiting Nigerians through the weakness of our laws is not right and just. They should make amends and thank their stars we were generous enough to give a Cease and Desist order, in other climes the fines are complemented with jail terms for airline managers who hold sensitive positions during that period.
Thursday, February 2, 2012
AERO: THE UNENDING COUNTER CHAOS
In my article, “Challenges Before the Industry in 2012” I highlighted the issue of regulations that will protect passengers before, during and after a flight, that issue has come to the front burner now due to the recurring and concurrent chaos at Aero Contractors check in and booking counters in some cities in the country.
Aero needs to urgently find solution to this problem which usually emanates from delays, cancellation, overbooking and bumping of passengers. We appreciate the boldness and innovation of starting and retaining low and very attractive online fares when other carriers backed out due to the ever increasing Jet A1 price that was deregulated by Government, but secretly regulated by oil marketers, who recently went for each other’s jugular over adulteration and excessive profiteering.
On the 3rd of January 2012, a passenger with a baby was booked on Aero’s early morning LOS – ABV flight, she got a text rebooking her for the 6pm same day flight, right at the checking in counter. To her chagrin, the flight did not depart till 2300 HRS. She was left with the menace and risk of leaving Abuja airport in the early hours of the next morning at great risk and at a cost higher than the airfare.
On Saturday, 14th of January at their counter in MM2, which was a day after the five day strike, with very low passenger turn out at the Domestic Airport, there was little or no activity at Aero Check-in-Counter, but the Booking Counter was complete bedlam with passengers throwing fisticuffs. The chaos emanated as usual from refund, re-booking and disregard for the queuing system.
Disregard for the queuing system is a norm in the industry, where egress for operational and airline staff are used by touts and other airline staff to beat the queue in their bid to assist passengers or favoured clients at a fee. This is usually done with the support of some airline staff and duty supervisors.
Aero is not alone, almost all the domestic airlines are guilty of crimes against fare paying passengers and really need to dig deep and begin to reverse the ugly trend. Enugu bound passengers were worst hit during this period due to frequent cancellation of flights to the airport.
It cannot be attributed to the airlines or weather, but the immediate past Minister of Aviation who hastily upgraded that airport to an international airport while also commissioning it for visual operations only, due to lack of necessary and required facilities.
I was also taken aback when I saw Benin bound passengers groaning after waiting for 5hrs for a 35 minute flight (or 4hrs by road). It is more painful when you understand that the LOS-BNI fares are high and not commensurate with flight distance, the Deputy Speaker of Edo State House of Assembly raised an alarm on the fare sometime ago. This is domestic discriminatory fares that will only stop if we strengthen existing and encourage new low fare operators.
Aero should dig deep and begin to weave solutions to the counter problem just like they did when they introduced free seating with its accompanying cabin commotion. They should consider setting up a low fare carrier to nurture its budding online discount passenger clientele or in the interim increase frequencies by having more night flights. Its on-line portal should be updated to provide more options and as much as possible support passenger request rather than having to clog the airport counters for requests that can be treated electronically.
Management should weigh its options of either retaining its strong oil and associated industry high yield passengers and ultra loyalist of its unblemished safety records or the new facebook generation that monitors and follows its online fares assiduously.
NCAA should introduce a monthly publication of delayed departure, lost luggage, complaints etc for all domestic carriers. This will make them very conscious of their responsibilities leading to better service. These publications should go hand in hand with the present diplomatic overtures.
Aero needs to urgently find solution to this problem which usually emanates from delays, cancellation, overbooking and bumping of passengers. We appreciate the boldness and innovation of starting and retaining low and very attractive online fares when other carriers backed out due to the ever increasing Jet A1 price that was deregulated by Government, but secretly regulated by oil marketers, who recently went for each other’s jugular over adulteration and excessive profiteering.
On the 3rd of January 2012, a passenger with a baby was booked on Aero’s early morning LOS – ABV flight, she got a text rebooking her for the 6pm same day flight, right at the checking in counter. To her chagrin, the flight did not depart till 2300 HRS. She was left with the menace and risk of leaving Abuja airport in the early hours of the next morning at great risk and at a cost higher than the airfare.
On Saturday, 14th of January at their counter in MM2, which was a day after the five day strike, with very low passenger turn out at the Domestic Airport, there was little or no activity at Aero Check-in-Counter, but the Booking Counter was complete bedlam with passengers throwing fisticuffs. The chaos emanated as usual from refund, re-booking and disregard for the queuing system.
Disregard for the queuing system is a norm in the industry, where egress for operational and airline staff are used by touts and other airline staff to beat the queue in their bid to assist passengers or favoured clients at a fee. This is usually done with the support of some airline staff and duty supervisors.
Aero is not alone, almost all the domestic airlines are guilty of crimes against fare paying passengers and really need to dig deep and begin to reverse the ugly trend. Enugu bound passengers were worst hit during this period due to frequent cancellation of flights to the airport.
It cannot be attributed to the airlines or weather, but the immediate past Minister of Aviation who hastily upgraded that airport to an international airport while also commissioning it for visual operations only, due to lack of necessary and required facilities.
I was also taken aback when I saw Benin bound passengers groaning after waiting for 5hrs for a 35 minute flight (or 4hrs by road). It is more painful when you understand that the LOS-BNI fares are high and not commensurate with flight distance, the Deputy Speaker of Edo State House of Assembly raised an alarm on the fare sometime ago. This is domestic discriminatory fares that will only stop if we strengthen existing and encourage new low fare operators.
Aero should dig deep and begin to weave solutions to the counter problem just like they did when they introduced free seating with its accompanying cabin commotion. They should consider setting up a low fare carrier to nurture its budding online discount passenger clientele or in the interim increase frequencies by having more night flights. Its on-line portal should be updated to provide more options and as much as possible support passenger request rather than having to clog the airport counters for requests that can be treated electronically.
Management should weigh its options of either retaining its strong oil and associated industry high yield passengers and ultra loyalist of its unblemished safety records or the new facebook generation that monitors and follows its online fares assiduously.
NCAA should introduce a monthly publication of delayed departure, lost luggage, complaints etc for all domestic carriers. This will make them very conscious of their responsibilities leading to better service. These publications should go hand in hand with the present diplomatic overtures.
Monday, January 16, 2012
Ibadan Airport: The Mystery Cow
Ibadan airport is one of the federal government owned airports in the south western part of Nigeria. The airport with large expanse of land has been poached regularly by the villagers and the air force authority; some reasons adduced for this action are long neglect of facilities, poor funding or non release of operational allocation, under utilisation and most importantly the lack of fencing and support from its host- the Oyo State Government.
The staff quarters are derelict while facilities in and around the airport itself are begging for overhaul or outright replacement. It’s in this sorry state that, the runway safety was challenged by a mysterious cow whose dung was the only evidence.
The airport manager and his team rolled up their sleeves to get the mystery cow, after searching for days; they had to call the Nigerian police to join the search team, with a shoot at sight mandate.
The police did not disappoint, just like the boko haram issue, they successfully located the cow in his resting place, fired a volley of bullets that could not produce carcass or blood stained leaves, as expected the usual nauseating rhymes of the police was flown again -the cow escaped with serious injuries later the story changed to the ridiculous. It’s a mystery cow that must be appeased spiritually, despite wasting tax payers’ bullet and the inevitable mobilisation fee.
The manager became restless knowing the safety implications of having a spirit filled and still wandering cow on the runway of an airport that is gradually recovering commercial flights after years of abandonment, without a carcass and the dung littering the runway daily before dawn.
He and his team invited local hunters, provided official vehicle, the only serviceable vehicle anyway for the mission. The hunters armed with shakabula (local gun) were able to find the well fed cow without injuries resting under a parked aircraft.
They carefully guided the cow from the aircraft before delivering the fatal shot. The cow did not go down without fighting, it went straight for the airport manager's official vehicle conveying the hunters and inflicting severe wreckage before finally giving up the ghost. You may ask what happened to the carcass after afterwards. Check Molete meat market.
We are thanking God today because it was only the FAAN vehicle that was damaged, what would have happened, if that attack was on Associated Airlines Embraer 120, Overland Airways Beech craft or Oyo State subsidised Arik Dash 8 flight that was either landing or taking off with the mystery cow on the runway?
These carriers operate props to this airport with some other charter flights that have consistently made the airport operational after long period of non operation. Our hard and well earned new safety records and certification would have been dented; happily the Ibadan FAAN team responded appropriately, un-mindful of the disappointing, conventional security.
Though FAAN has commenced work on the perimeter fencing at the airport, the project is slow and quality of work is not encouraging, considering that some part of the recently erected fence has cracks while some other part caved in during the last rainy season.
It is exciting to hear that the new management has been releasing allocation to the airports on time and regularly unlike in the past, they should also consider looking into the backlogs that have made their airport managers chronic debtors.
Also the unutilised airport land cannot continue to lie fallow. FAAN should begin to think outside the box or the alternative will be the continuous encroachment. Also is it true that some investors are willing to start a hospitality firm around Ibadan airport? if it is true then, the commercial department of FAAN should dust up the file and process the application.
The staff quarters are derelict while facilities in and around the airport itself are begging for overhaul or outright replacement. It’s in this sorry state that, the runway safety was challenged by a mysterious cow whose dung was the only evidence.
The airport manager and his team rolled up their sleeves to get the mystery cow, after searching for days; they had to call the Nigerian police to join the search team, with a shoot at sight mandate.
The police did not disappoint, just like the boko haram issue, they successfully located the cow in his resting place, fired a volley of bullets that could not produce carcass or blood stained leaves, as expected the usual nauseating rhymes of the police was flown again -the cow escaped with serious injuries later the story changed to the ridiculous. It’s a mystery cow that must be appeased spiritually, despite wasting tax payers’ bullet and the inevitable mobilisation fee.
The manager became restless knowing the safety implications of having a spirit filled and still wandering cow on the runway of an airport that is gradually recovering commercial flights after years of abandonment, without a carcass and the dung littering the runway daily before dawn.
He and his team invited local hunters, provided official vehicle, the only serviceable vehicle anyway for the mission. The hunters armed with shakabula (local gun) were able to find the well fed cow without injuries resting under a parked aircraft.
They carefully guided the cow from the aircraft before delivering the fatal shot. The cow did not go down without fighting, it went straight for the airport manager's official vehicle conveying the hunters and inflicting severe wreckage before finally giving up the ghost. You may ask what happened to the carcass after afterwards. Check Molete meat market.
We are thanking God today because it was only the FAAN vehicle that was damaged, what would have happened, if that attack was on Associated Airlines Embraer 120, Overland Airways Beech craft or Oyo State subsidised Arik Dash 8 flight that was either landing or taking off with the mystery cow on the runway?
These carriers operate props to this airport with some other charter flights that have consistently made the airport operational after long period of non operation. Our hard and well earned new safety records and certification would have been dented; happily the Ibadan FAAN team responded appropriately, un-mindful of the disappointing, conventional security.
Though FAAN has commenced work on the perimeter fencing at the airport, the project is slow and quality of work is not encouraging, considering that some part of the recently erected fence has cracks while some other part caved in during the last rainy season.
It is exciting to hear that the new management has been releasing allocation to the airports on time and regularly unlike in the past, they should also consider looking into the backlogs that have made their airport managers chronic debtors.
Also the unutilised airport land cannot continue to lie fallow. FAAN should begin to think outside the box or the alternative will be the continuous encroachment. Also is it true that some investors are willing to start a hospitality firm around Ibadan airport? if it is true then, the commercial department of FAAN should dust up the file and process the application.
Sunday, January 1, 2012
CHALLENGES FOR 2012
The challenges before us in 2012 are numerous. They are however surmountable if we have the will, support and leadership from Government and the owners of the flag carriers.
We should start with the EU sponsored emission tax regime which will be implemented from the 1st of January 2012, under the planned Emission Trading Scheme (ETS). Airlines using EU airspace will have to pay a fee for carbon emissions that exceed a set limit. They will also need to pay for the part of the journey covered in airspace outside the EU. Nigeria has joined a dozen other countries to voice her opposition, it will be good to see the government having a stand alone position to intimate the world they support their flag carriers. The Indian government has just directed Indian carriers not to submit carbon emission data to EU and should also forward any correspondence from the EU to the civil aviation Ministry for further action. This stance is harder and more independent position like that of the American and Chinese government.
Government should improve intelligence gathering, cooperation; provide extra and functioning CCTV cameras while ensuring the perimeter fences within and around the airports are intact. Considering, the heightened terrorist activities in the country they may see airports and aircrafts as soft targets.
Government should also strengthen regulations to protect travelers; this will help ensure that air travelers receive the respect they deserve before, during and after flights. Its regulations should be targeted at hidden fees, charges, delays, cancellation and involuntary bumping. Also investigations into fixing and discriminatory fares should be extended to other carriers, on the other hand, action should be expedited on the anti-trust laws and an independent competition authority, so Nigeria might have the benefit of information- sharing with its counterparts and more importantly tackle exploitative monopolist.
The underground agitation and lobbying to replace the DG NCAA, whose tenure will soon come to an end, should be handled with care. Government should be meticulous in picking a replacement, if they are unable to convince him to stay for a second term. That position requires a well bred technocrat with requisite background, backed with international contacts within the industry not political contact. The industry needs to retain and sustain the present level of safety awareness and acceptance; they must jettison the ethnic balancing option.
The government should continue the remodeling of the airports while an alternate funding arrangement must be devised to sustain the process and the airports in its entirety. The rancorous PPP arrangement in the industry should not tar the beauty of that option.
The owners of the domestic carriers need to leave their cocoon and speak out on issues related to the industry. A lot of the problems in the industry have been driven by management teams caring "a lot more about beating each other up rather than having a functioning industry". Employees, critics, analyst are not relenting in getting the industry back to its feet with the necessary protection from government. It will be more effective if the process is championed by the owners of these carriers, through its umbrella body the AON, which needs an urgent re-branding regime.
Its another year and a challenge for all industry participants to ensure that aviators gets national honours, our skies have been safe and attested to internationally, yet certain personnel and investors have not been recognised when Aki and Paw-Paw have been picked, Haba ! !
We should start with the EU sponsored emission tax regime which will be implemented from the 1st of January 2012, under the planned Emission Trading Scheme (ETS). Airlines using EU airspace will have to pay a fee for carbon emissions that exceed a set limit. They will also need to pay for the part of the journey covered in airspace outside the EU. Nigeria has joined a dozen other countries to voice her opposition, it will be good to see the government having a stand alone position to intimate the world they support their flag carriers. The Indian government has just directed Indian carriers not to submit carbon emission data to EU and should also forward any correspondence from the EU to the civil aviation Ministry for further action. This stance is harder and more independent position like that of the American and Chinese government.
Government should improve intelligence gathering, cooperation; provide extra and functioning CCTV cameras while ensuring the perimeter fences within and around the airports are intact. Considering, the heightened terrorist activities in the country they may see airports and aircrafts as soft targets.
Government should also strengthen regulations to protect travelers; this will help ensure that air travelers receive the respect they deserve before, during and after flights. Its regulations should be targeted at hidden fees, charges, delays, cancellation and involuntary bumping. Also investigations into fixing and discriminatory fares should be extended to other carriers, on the other hand, action should be expedited on the anti-trust laws and an independent competition authority, so Nigeria might have the benefit of information- sharing with its counterparts and more importantly tackle exploitative monopolist.
The underground agitation and lobbying to replace the DG NCAA, whose tenure will soon come to an end, should be handled with care. Government should be meticulous in picking a replacement, if they are unable to convince him to stay for a second term. That position requires a well bred technocrat with requisite background, backed with international contacts within the industry not political contact. The industry needs to retain and sustain the present level of safety awareness and acceptance; they must jettison the ethnic balancing option.
The government should continue the remodeling of the airports while an alternate funding arrangement must be devised to sustain the process and the airports in its entirety. The rancorous PPP arrangement in the industry should not tar the beauty of that option.
The owners of the domestic carriers need to leave their cocoon and speak out on issues related to the industry. A lot of the problems in the industry have been driven by management teams caring "a lot more about beating each other up rather than having a functioning industry". Employees, critics, analyst are not relenting in getting the industry back to its feet with the necessary protection from government. It will be more effective if the process is championed by the owners of these carriers, through its umbrella body the AON, which needs an urgent re-branding regime.
Its another year and a challenge for all industry participants to ensure that aviators gets national honours, our skies have been safe and attested to internationally, yet certain personnel and investors have not been recognised when Aki and Paw-Paw have been picked, Haba ! !
Sunday, December 11, 2011
NATIONAL CARRIER: THE 4th ATTEMPT?
Why is a National Carrier Needed? To absorb employees of failed major carriers by providing employment and assuages nerves of restive unions or to act as a means of providing additional fleet, capacity, and frequency in support of other registered carriers or to fill a vacuum and avert the monopolistic tendencies of surviving airlines.
The first scenario has been overtaken by events while second and third is the crux of the present agitation for another national carrier, considering the present set of flag carriers have not done anything to reflect national ownership like their counterpart in the banking industry which naturally muster public support and protection. Also they are floundering with suffocating debts, with the international routes and frequencies that should be money spinners, are apparently controlled by foreign airlines. We also lack undiluted low cost carriers, adequate regional jets or props services, finance and a regulated consolidation regime that will bolster the critical mass of our carriers and improve passenger enplanement to the benefit of all stakeholders in general and the economy in particular.
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Let us learn from Mexico and India, they had two national carriers each. India has merged Air India and Indian Airlines, while the Mexican government has sold Mexicana and Aero Mexico, the surviving ones are either heavily indebted or liquidated. Also countries like Greece, Argentina, Ghana, Senegal, Cameroun, Gabon, Tanzania and Zambia have liquidated their national carriers and have tried unsuccessfully to have another viable carrier despite sinking lots of public funds in their respective new national carrier.
We should not forgot that our shipping industry have failed thrice in their attempt to set up a national carrier while the twitted comment of our Honourable Minister should be the fourth attempt in the industry, after the failed attempt of Capt Joji and Mrs. Kema Chikwe. The reality check is, Nigeria Airways failed with absolute monopoly of the bilateral air services agreement, government subsidy and protection therefore the new national carrier will fail woefully in the present competitive, open skies ridden aviation industry, if the government is not meticulous with the options therein.
If we must have a national carrier, then we should ponder over the cost, risk and lessons from other climes, also we should dust the report of the International Finance Company that was contacted to work out modalities of a new carrier in the early days of the present democratic setting.
The timeline of this administration, present policy makers and the penchant of reversing or abandoning policies of previous government, even when they share the same political ideology are the inherent problems, also the protection needed by the new carrier will shackle and compound the problems of the local airlines. It is a better option for the government to buy into existing flag carriers, namely Aero, Air Nigeria e.t.c, after due diligence rather than starting from ground zero.
Thereafter, the government can look for a reputable institutions to manage their interest in them till they are ripen for a public offer, while Government continue to protect, legislate and provide the coveted public travel to these carriers in the absence of an essential air services programme.
Government in the interim should consider a consolidation process. The last consolidation exercise was a ruse as the only beneficiary of that process is the Corporate Affairs Commission (CAC), due to the hefty taxes collected from airlines. It is pertinent to note that barely six months after the paper consolidation process; two domestic airlines that passed the process were grounded over maintenance related issues, five other airlines have beaten the dust thereafter.
The first scenario has been overtaken by events while second and third is the crux of the present agitation for another national carrier, considering the present set of flag carriers have not done anything to reflect national ownership like their counterpart in the banking industry which naturally muster public support and protection. Also they are floundering with suffocating debts, with the international routes and frequencies that should be money spinners, are apparently controlled by foreign airlines. We also lack undiluted low cost carriers, adequate regional jets or props services, finance and a regulated consolidation regime that will bolster the critical mass of our carriers and improve passenger enplanement to the benefit of all stakeholders in general and the economy in particular.
.
Let us learn from Mexico and India, they had two national carriers each. India has merged Air India and Indian Airlines, while the Mexican government has sold Mexicana and Aero Mexico, the surviving ones are either heavily indebted or liquidated. Also countries like Greece, Argentina, Ghana, Senegal, Cameroun, Gabon, Tanzania and Zambia have liquidated their national carriers and have tried unsuccessfully to have another viable carrier despite sinking lots of public funds in their respective new national carrier.
We should not forgot that our shipping industry have failed thrice in their attempt to set up a national carrier while the twitted comment of our Honourable Minister should be the fourth attempt in the industry, after the failed attempt of Capt Joji and Mrs. Kema Chikwe. The reality check is, Nigeria Airways failed with absolute monopoly of the bilateral air services agreement, government subsidy and protection therefore the new national carrier will fail woefully in the present competitive, open skies ridden aviation industry, if the government is not meticulous with the options therein.
If we must have a national carrier, then we should ponder over the cost, risk and lessons from other climes, also we should dust the report of the International Finance Company that was contacted to work out modalities of a new carrier in the early days of the present democratic setting.
The timeline of this administration, present policy makers and the penchant of reversing or abandoning policies of previous government, even when they share the same political ideology are the inherent problems, also the protection needed by the new carrier will shackle and compound the problems of the local airlines. It is a better option for the government to buy into existing flag carriers, namely Aero, Air Nigeria e.t.c, after due diligence rather than starting from ground zero.
Thereafter, the government can look for a reputable institutions to manage their interest in them till they are ripen for a public offer, while Government continue to protect, legislate and provide the coveted public travel to these carriers in the absence of an essential air services programme.
Government in the interim should consider a consolidation process. The last consolidation exercise was a ruse as the only beneficiary of that process is the Corporate Affairs Commission (CAC), due to the hefty taxes collected from airlines. It is pertinent to note that barely six months after the paper consolidation process; two domestic airlines that passed the process were grounded over maintenance related issues, five other airlines have beaten the dust thereafter.
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