Tuesday, February 26, 2013
NAAPE's Macabre Dance
Finally NAAPE came out of the trenches after shadow boxing all these while through the legislative arm of government, the response has been quick from the graduate engineers, through their professional body while stains and stones have filtered to other unions and professionals that have made comments in support or against any of the warring group.
I sincerely hope this age long rift will simmer and all parties will see reasons why they must work together and kick start a seamless safety relationship. We must be careful of what we say, publish and do with respect to safety, or the option will be to kiss CAT 1 status goodbye and start a rigorous process of recertifying.
Ghana lost the FAA Category 1 in 2005 and Indonesia sometime in 2007 lost the CAT 1 status and are still struggling to retain it, despite improved efforts and investment.
Back in January 2008, the United States Federal Aviation Administration (FAA), after undertaking an International Aviation Safety Assessment on the Philippines, downgraded the country’s rating to Category 2 from Category 1. The US Embassy subsequently issued a warning to US citizens in the Philippines “to refrain from using Philippine-based carriers due to ‘serious concerns’ about the alleged mishandling of the aviation industry,” in effect blacklisting Philippine air carrier the European Union, following the FAA’s lead, also blacklisted the Philippines and banned Philippine carriers from flying to Europe. Other countries such as Korea and Japan have also used the ICAO, FAA and EU findings as basis for not allowing Philippine carriers to expand services into their respective territories, beyond existing traffic rights previously granted. Till date the Philippines is still a CAT 2 country
Also in 2008 the US reflected concerns about Israel's oversight of private aviation, rather than about its commercial carriers or security matters, despite his closeness to the US, Israel lost its CAT 1 status. They were frozen out for four years and only returned to the elite club two months ago.
Australia almost lost the CAT 1 status too, due to what was described as parliamentary under privileges with the senate by the state owned investigating agency. It had to lobby using all contacts to avert it.
Our greatest challenge is non-adherence to airline reciprocity by our carriers and their inability to attract commercial partnership which has hindered the provision of millions of potential new jobs to aviation and other sectors, while at the same time not attracting foreign direct investment, rather frequency and gauge are being increased by foreign carriers.
We cannot afford to include safety and it is erroneous and presumptuous to use the DANA accident as a barometer to rundown our safety achievements when investigations is on going.
Tuesday, February 5, 2013
The Senate Resolutions: Good, Bad & Ugly
The National Assembly recently passed some resolutions with respect to events in the industry; in unison we can applaud some of them while the others are either bad or ugly.
The directive to the Central Bank to recover funds given to Air Nigeria is commendable, with four aircraft parked in the cold in Hampshire, England awaiting the lessors’ decision and another parked close to the GAT graveyard without engines. It is clear that Air Nigeria has turned round the turnaround expert. This is a sad story, since this airline was flying without an investor or intervention fund sometime ago in this country and it was managed by a Nigerian. We are all to blame for its demise starting from the staff, unions, AON, UBA, Govt e.t.c. The funds in question are not missing - United Bank of Africa, must be made to pay to the last kobo, they fronted, guaranteed and had a financial adviser stationed with the airline.
The directive of giving full disclosure of all investigative report of past air accidents is a soothing balm to the industry and nation in general. It will uphold and safeguard the safety initiatives. It will also expose some pretenders who keep parading the corridors of power for one favour or the other, and in their hallucinating state think we have forgotten about the past.
The directive to compel NCAA to ensure all airlines involved in accidents settle all outstanding insurance obligations and ensure that all airlines have adequate insurance cover as required by the regulations is also a good one. They should go further and ensure that owners or managers of such airlines do not return to the industry in another name or designation without offsetting their liabilities.
The directive on returning the Air Field Lighting System to FAAN is also commendable. I agree that the air traffic controllers have a better view of the runway and will obviously be in a better position to determine the intensity of the lighting system. The Ministry did not follow due process in transferring the department; these agencies are governed by an act, which should be amended, not by ministerial fiat.
On the MD 83’s they are still flying without issues round the world, I stated sometime after the crash that Air Burkina & Air Mali are using those aircrafts to ferry Air France passengers to points beyond Ouagadougou and Bamako, while our airlines with brand new aircrafts are overlooked for such commercial agreements. The same aircraft has been picking Nigerian troops from Abuja and other African troops or officials under the auspices of the United Nations, will the UN use an unsafe aircraft with its LOGO emblazoned on it?
The directive setting passenger aircraft age limit at 15 years and cargo at 20 years is not a panacea to air crashes; rather it will drive some carriers out of the market, increase unemployment and fares. Is it the airframe or the engine that must have this age limit? What happens if the airframe is 16 years and the engines are 3years? Please let us leave the status quo and allow the regulators do their job, in line with air worthiness directives from reputable international agencies.
The directive asking the government to revoke the licence of DANA Airlines is a bad one; the airline has just been recertified by NCAA and some other airlines are going through that process. If the Legislature views the certification of DANA despite having an international AMO as partner is faulty and the NCAA cannot be trusted, it means all other AOCs issued by the NCAA should be revoked with immediate effect; anything short of this is RACISM. I just pray their country of descent will not target Nigerian investors too. The priority should be payment of compensation to all.
The directive demanding for the removal of the DG and the dismissal of the Engineer saddled with the inspection of the ill fated DANA aircraft is distasteful, hasty and ugly. Rather, a speedy investigation and conclusion of the accident report should be our priority; at that point there will be no place to hide for every one anymore.
What is playing out right now is the age long rivalry between the academically qualified engineers and those that rose through the ranks, which has metamorphosed into type qualified and type rated. We have gotten to the stage where industry experts and consultants that supplied the Legislature with information should come out boldly and defend their reports, information and allegations individually or collectively rather than hide under the ambit of the hallowed chambers.
I do not believe the demand of the Senate is based on tribal sentiments as espoused in some quarters rather it is based on some information that look mischievous emanating from the cocktail of submissions made before, during and after the public hearing. The DG should not be tagged with incompetence based on his record so far, he should rather be decorated with national honours for elevating the regulatory institution rather than being hounded disrespectfully. Let the senate hang proven corruption charges and breach of contract on him, the tide will change ferociously.
ROSAVIATSIA, the Russian equivalent of NCAA was almost pushed last year by their parliament, the DUMA to revoke the licences of some airlines due to air mishaps. The Agency resisted and conducted their investigations. Red Wings Airline only last week lost its AOC in that process. The Russian regulator said they are losing the licence, not because of the air crash they had on the 29th of December 2012, but due to the numerous significant violations found during recertification. Also, the airline lacked financial resources to provide ongoing operations consistent with appropriate level of safety. This is processes and procedure without interference but requisite oversight responsibility by all parties.
We are scaring investors. We need to stop the bickering and attract them by capitalising on our CAT 1 status.
Wednesday, January 23, 2013
LET’S STOP THE BICKERING AND ATTRACT INVESTORS
The challenges before the industry are numerous and surmountable. We must be willing and also accept that we have not been able to connect the most important link, which is foreign direct investment. Their carriers increase gauge, entry points and frequency into the country, while also withdrawing flights from some sister countries. The Chinese gave us loans with accompanying contractors, yet they went to Ghana and in conjunction with Ghanaian investors set up a regional carrier with affiliation to a major Chinese carrier, is it not surprising that with our CAT 1 certification we cannot attract investors? Yet Tanzania a CAT 3 country got Omanis to invest $100m despite having a pot holed ridden runway, the Philippines, a CAT 2 country got $1billion. The investment link that is missing may be connected if we begin to address issues highlighted below:
SAFETY – This is critical and measured internationally. We cannot and should not politicise it. What we need to do is support, inform and assist institutions involved in setting the standard. The House Committees should be on the same page with the industry. The insistence on sacking the DG and the withdrawal of DANA licence without cogent and sustainable critical safety reasons is distasteful. If the honourable members really love the electorate, they should know DANA is pivotal to the lowering of domestic fares and improved customer services. The unfortunate crash is not enough to withdraw their licence. The honourable members should rather present before us an independent body to check anti competitive practices that will reduce monopolistic tendencies, economic bulling and exploitation in price and fares.
MAA - The military will take care of their own and do not need interference from bloody civilians is the normal military parlance. This will only hold if they return to their core competence of protecting our territorial integrity and act as back up to civil aviation in emergency situations, rather than competing by operating charter flights at a fee. This will not augur well for the seamless development and cooperation needed to grow the industry. The military can go further in certifying its operations by bringing all non civil operation under a joint body, to be known as Military Aviation Authority.
GENERAL AVIATION – It is cheering news to hear the Ministry is reviewing laws that will govern the operations of corporate jets and non schedule operators. This category of operators are the cash cows of civil aviation that are generally taxed, made to pay high tariff for services rendered and do not enjoy palliatives or subsidies designed for schedule operators. Also, hangars maintaining or housing them should also pay requisite charges and taxes-VAT inclusive.
PALLIATIVES&THE NEW AIRCRAFTS – I am not surprised at the incoherent statement emanating from the AON on the issue of the 30 aircraft being purchased by the government. It is a risky and wasteful venture that will increase public debt. The founder of Easy Jet, a very profitable airline is presently dumping his shares in the airline, because the Board of Directors is considering buying new aircrafts. Even Communist China and Russia did not do it for their highly regulated industry; rather they allowed the banks to nurture leasing companies that dealt with the airlines commercially, same with the Egyptians. The Central Bank should be left alone to handle it since the ministry will not get loans to finance it. Let the airline CEO’s tell Dr. Sanusi to give them aircrafts with a verifiable business plan and impeccable financial statement they will find out they do not need other agencies to help them out.
The other palliatives with respect to waivers on spares and other aircraft parts that need to be gazette, should be done quickly by the government, while beneficiaries should be schedule operators with passenger aircraft and equivalent AOC, all non schedule operators and non schedule aircraft in any airline should be excluded.
SKYPOWER CATERING - The organisation is marooned, they are at home with rental services rather than providing quality catering services for the industry. Its misfortune nurtured ASL and other catering organisations, and even encouraged NAF top brass to take control of its assets. Staff salaries are owed, while they hallucinate as civil servants. The organisation should not be liquidated, rather reputable catering organisations should be invited to take it over.
FAAN & CONCESSIONNAIRES - The agency has described unfavourable concessions as 32 pound gorillas that must be put in the cage. Sadly, it’s Commercial and Legal Departments combined is the 64 pound gorilla that must be put in a cage that will free them from political interference, while ensuring that core professionals get to the top. Upgrading the Legal Department to a directorate and injection of politicians and Ministry marabouts will not reverse its concurrent problem with concessionaires. The same problem will confront the new terminals if adequate plans are not made to maintain, sustain and certify them by looking beyond the agency.
ACCENTURE REPORT & THE NATIONAL CARRIER - from the report, which aligns with agitations of industry watchers, it clearly indicates that consolidation backed by public listing after a critical financial audit is the panacea for our troubled carriers. Consolidation will be regulated, while efforts will be geared toward refining aviation fuel in the country, building a befitting national hangar and most importantly lowering airport and other charges.
We need to attract credible foreign investors, while also building a critical mass in our carriers that will reflect Nigerian, not owned by Mr. A or B, having a new national carrier will shackle and compound the problems of all airlines and the new one, because it will be given protection that will reduce competition on the home front, increase fares and strengthen the foreign competitors, we should rather invest in the consolidated industry
Tuesday, November 27, 2012
RE: SENATE COMMITTEE ON AVIATION TOUR OF AGENCIES: ''The Good, The Bad & the Ugly''
NOV
26
Comment from Olu Ohunayo
The former Director Of Airworthiness Standard was mumbling incoherent standard procedure on national television the last time the committee called them and the General Manager that was called to assist did not really impress, now it’s the Director of Finance who would have approved some funds for the Performance Based Navigation (PBN) programme without understanding the meaning.
It’s a nauseating fact in the industry that foreign courses offered as developmental and educational programme are often-time seen as a business trip to heap forex and prepare for little buying and selling on the sideline.
No wonder there is a roaster and a bitter squabble to get and remain on courses with longer days even when it’s not too relevant to their area of specialization.
On another note, the committee in their report also found a director in the Ministry culpable for the bungled Lufthansa MOU agreement.
Its real shame for professionals in the industry, something must be wrong somewhere and we must be ready to correct them even if we have to go fishing for new egg heads.
The word cancellation being brandished by the Ministry for a four year deal signed in 2008 and cancelled in 2012 after running its full circle is simply ludicrous.
I will rather align with the Senate Committee report asking Lufthansa to refund $14.8 million.
The same report ended with a top official saying it is wrong to collect royalties using Ghana as referral; the official should be reminded that Ghana has only one point of entry and much lower frequencies and gauge. The problem is our management of the royalties.
Is re-modeling viable and un-viable airports a critical safety issue when they are quickly inaugurated with dysfunctional equipment? Should we continue to encourage royalties or endeavour to participate?
May be, before we appoint the next Minister ,we should confirm if they are frequent flyers on any of the foreign airlines.
The Lufthansa deal was done when Engineer Omotoba was heading the Ministry. He was at the time on Lufthansa ‘frequent miles’ programme while Mrs. Chikwe showed same bias for Virgin Atlantic.
Senator Uzodinma’s interview has opened a cankerworm that has been hunting the industry and the government should take a critical look at it, if it is eventually submitted by the hallowed chamber.
The Senate should go further by reducing the 14.2 billion naira travel budget of MDA’s as presented in the 2013 budget.
It should be reduced by 50% while a certain percentage of the travel should be on Nigerian carriers. This will aid reduction in fares, increase employment and liquidity within.
On the recent visit of British Airways CEO to the Vice President, I say beware of ‘Greek gift’ coated in sweet messages. It’s another re-modeled Lufthansa MOU. The aim is to increase frequencies and offering nasty slots outside Heathrow.
If we must increase frequency let it be for 5th, 6th and 7th freedom not for the British carriers while also strengthening our carriers to compete. Virgin came to Nigeria promising fall in air fares on the LHR-LOS route, today they virtually compete with BA in milking us dry.
The foreign carriers are owned by individuals but strongly supported by their respective government.
The prime motive of operating into Nigeria with large aircraft, increased frequencies and entry points is profit, profit and profit. They are not aid agencies. Whatever will be offered will be placed in profitability either in the short or long
term.
They only develop facilities that will ease their operations not our aviation.
If they really want to help, they should partner with our carriers commercially or by investment.
Better still set up a feeder airline in partnership with Nigerian investors.
Government shine your eye !
Saturday, October 6, 2012
Arik Air in ''Macabre'' dance over Air Nigeria predicament
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In an interview with Punch Newspapers published on Wednesday, 10th June 2009, I described the de-branding of Virgin Nigeria as “good riddance, for Virgin Nigeria to fork out almost N1billion per-annum from its revenue to keep a brand in a melted environment is simply excruciating.
The new Management should take it in its stride and move on. It should continue the cost reduction process, while improving the West Coast and domestic route networking.
They should as a matter of necessity shop for a core investor that will inject funds, preferably an international airline.” That was my dream for the carrier.
Thereafter, the media was awash a couple of months later, with the news that NICON Group had bought Virgin Nigeria after being renamed Nigeria Eagle. I expressed my reservations in an article titled “Virgin Nigeria and The New Owner” published in Business Travel weekly newsletter on the 10th of May 2010.
I said “It is with trepidation that the news got to the industry that NICON group has bought Virgin Nigeria Airways. Considering the calamitous entry of the group some years ago through the liquidated EAS Airlines, In welcoming the group back to the industry, they need to understand the new dynamics as exemplified by Virgin Nigeria, which is the impeccable systems, processes and human capital that needs some air of freedom in order to continue to maintain, sustain and retain the necessary benchmark put in place such as IOASA certification, IATA membership, AFRAA membership seamless electronic ticketing etc, which has made the airline the willing bride of foreign airlines. It is not UHURU for thecarrier except necessary running funds are immediately injected, ownership expanded to reflect the national carrier status of its founders, anything short of this will make us a laughing stock in the virgin empire and beyond”. I was prophesying may be.
Air Nigeria’s predicament is a culmination of errors, government did not do enough groundwork before giving the go ahead for the transaction. I was expecting questions to be asked with respect to the liabilities of the liquidated Nicon Airways and how ownership will reflect nationalism.
The clearing agencies deliberately put their oversight functions on override thereby sweeping red flag issues under the carpet.
NCAA was a bit hasty in grounding the airline when it had issues with staff. India’s Kingfisher Airlines had more problems to contend with yet, the Indian government and regulatory body provided the critical support till this day.
The NCAA need to ensure by monitoring closely that board members of airlines are truly able to function independently without undue influence from the owners, which is presently absent in our airspace.
The Federal Inland Revenue Service also takes a share of the blame. Virgin Nigeria’s expatriate managers left this country unhindered even though there was a backlog of unpaid taxes. It may have been more effective if they had used the armed men they used to raid Air Nigeria offices at that time, rather than wait for a whistle blower that only remembered he had a whistle when he was arrested for financial malpractises.
That Mafioso move was a bad press for the airline and the country at large. The over 800 members of staff and their families are the greatest losers in this cut off my nose to spite my face game.
They adopted a strategy of taking on the owner rather than the airline, forgetting that the only authority you can appeal to is the owner, not management or public sympathy. They should have taken a cue from some DANA staff that started blabbing after the crash only to realise their folly and later rally round the management.
Also, leading voices in the industry looked the other way, while the AON, a body purportedly set up to defend Nigerian airlines simply cried for DANA and left Air Nigeria to her fate.
The owner and his management team are not abreast with the present aero –political manouvering, and the penchant to stay aloof with some semblance of arrogance has brought the airline to its knees.
They did not give the requisite air of freedom to sustain the airline rather they kept flagging inherited certifications.
It is so disappointing that an airline that was handed to us with the best systems, processes and certification has been reduced to nothing.
We are all guilty and should be ashamed of ourselves. I sincerely hope AMCON can step in and look for an international airline to partner or invest in the carrier.
Let me reiterate, that an international low cost carrier is going to be based in Ghana, while South African Airways is also planning to set up a low budget carrier in that country.
The Chinese have just set up a regional airline in a joint venture with Ghanaian investors, yet the Chinese feel we are only good for loans that will be accompanied by their contractors even with our flamboyant road show.
The pains increased with the phenomenal fares introduced by the local carriers at the demise of Air Nigeria, which was spear headed by Arik on the local and west coast routes. The senate committee wishing to benefit and to reap without sowing, quickly recommended Arik as the new national carrier, which literally means government should absolve all liabilities real or imagined while top government officials were at the same time angling and arm twisting the airline to sell shares to them.
The unions started the agitation for the archaic national carrier project, suddenly woke up from their slumber with the covert support of the hapless agencies that have tried and failed, using all conventional methods of retrieving debts owed it by Arik, by forcefully taking over the airline’s counter as a last resort in saving the sector from crippling debts.
Arik naturally stopped flying and ensured they were begged to return to flying considering it’s over bearing dominance in our airspace.The body language of all participants at the Secretary to the Government of the Federation reconciliation meeting with the exception of the convener shows that all is not well, even with the hurried interview granted by the DG NCAA and the airline’s MD.
The airline did not disappoint thereafter, by issuing a list barring certain Nigerians from boarding their aircraft, topping that list is the MD FAAN.
The macabre dance is on going, I will not be surprised to see my name on a revised list, all I need is for government to clear Lokoja –Abuja road and I will get a newer car to take me to my destination since NCAA can’t protect us.
Tuesday, August 28, 2012
RAISING THE ECONOMIC IMPACT OF FOREIGN AIRLINES IN NiGERIA
RAISING THE ECONOMIC IMPACT OF FOREIGN AIRLINES IN NIGERIA
The foreign airlines started operating into Nigeria before we got our independence from the British colonial powers. The airlines have continued to increase in number while equally increasing frequency and gauge. The European and Middle- Eastern airlines are operating large and long haul aircrafts into the country, their counterpart in Africa often times deploy short and medium range aircrafts, due to distance, low intra Africa connectivity and commerce.
These airlines with the aid of alliances, code-share and other commercial verves have opened the skies by reducing flight hour, improving connectivity and general cost of travel. Also alternate routing and warehousing of travel packages as added incentives have been of immense benefit and comfort to Nigerians.
The foreign airlines have employed and trained a lot of Nigerians and should be credited for sustaining our vibrant travel agencies. Also they have assisted the country in handling issues of exigencies by providing charter for evacuation, religious obligation e.t.c.
On cargo, these airlines have absolute dominance and have over the years been aiding the economy by airlifting goods and services while also investing in a local handling organization.
They have also been paying taxes, tariff, duties and obligations for services rendered by the agencies; these payment often times serves as a lifeline for our cash strapped agencies that endlessly wait for the local airlines to pay their obligations.
We have seen some of them financially supporting our charitable organizations while British Airways sometime ago gave two wet leased B737 to support the hosting of Nigeria 99 U20 world cup as part of their corporate social responsibility. They have also introduced different promos to ginger travelling among Nigerians, while also supporting the travel agents to excel by recognising and rewarding excellence.
We have also seen some strong and potent international mergers among them that have filtered into our airspace. It has increased their frequencies astronomically and strangulated competition in the absence of antitrust law or an implementing organisation. Also some of these airlines are beneficiaries of multiple entry bonanzas that have reduced the local carriers to onlookers in their market.
From the foregoing the foreign airlines have continued to improve and expand operations into and within Nigeria,generating and ferrying billions of naira to their home country, juxtaposing the revenue generated and contribution to the economy in general and aviation in particular, you begin to see an imbalance that needs to be addressed.
In raising the economic impact of the foreign airlines in Nigeria and equally addressing the obvious imbalance in benefits we need to look inwards at the policies we have or have not introduced. Having in mind that the primary objective and probably the only reason, the foreign airlines fly into Nigeria is to make money profitably and not as a social responsibility or necessity, which is the difference between those that fly into Nigeria and those that fly through our airspace.
Therefore we must begin to look at policies that will protect the itinerant and ever willing Nigerian passengers, our financially troubled local airlines and the travelling agents that deliver and coordinate these passengers. These set of Nigerians are the tripod that has been used to build the financial war chest of the foreign airlines and obviously need protection. The word protection is seen as archaic while freedom is the rave that is usually parroted even by the proponents of open skies and slot allocation.
The American labour unions not the Chinese resisted the open skies agreement between China and the USA, because of perceived jobs losses and cheap wages that will accompany the agreement and the US government harkened to their call. It’s also important to note that Japan, India, Australia, Switzerland and EU with bigger economy and obviously stronger aviation industry, signed the open skies after us, using strong negotiating tactics that ensured commercial valves were sealed for their carriers.
These countries have protected their carriers by not polluting their skies, slots, frequencies and most importantly commercial agreements. The South Africans have refused to sign the open skies with the Americans, same with Russia, Hong Kong, Mexico their neighbour and some other countries. Brazil signed earlier this year with full implementation scheduled for 2015 despite its closeness to America and stronger economy when compared to Nigeria.
Slots transfer, including auctioning is meant to help airlines with little or no service gain a competitive foothold at airports with limited space, the airlines are encouraged to operate either with their own aircraft or through a code-sharing agreement, in order to ensure that a purchaser will be able to provide meaningful new competition, which will bring down fares.
The British authorities and most EU countries have reversed this principle to protect legacy or flag carriers using factors such as fleet size, financial muscle, and nationality clause e.t.c, codified as grandfather rights to allocate slots. This protection has given them the impetus to discriminate and increase fare arbitrarily.
The Government of Philippines through its central bank introduced financial instruments that made transfer of ticket sales less flexible; the foreign airlines grumbled and reduced frequencies while on the other hand San Miguel Inc an American investor is adding a billion dollar investment to a Philippines Airline, for the purchase of a hundred aircrafts. This country has CAT 2 certification and flight restriction into Europe, yet they were able to protect their flag carrier to attract such investment. The tonic for raising economic impact is commercial protection.
We also need to protect the passengers and airlines from unfair fares, business practices and commercial muscling by introducing antitrust laws. The absence of an antitrust 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 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 BASA funds are collected directly from ticket fares by the foreign carriers and remitted to government at a later date. We shackle our carriers and rob Nigerian passengers to build the fund. Why are the foreign carriers operating profitably into Nigeria with 85% load factor on B747,777,A340 and we are reciprocating with B737 or with 50% load factor on bigger jets and the passengers being predominantly economy seats?
We must step up the operational prowess of our carrier by improving infrastructure, protective & competitive policies, fine-tune existing and opening new concession programmes while also beefing up our carriers to participate rather than wait to collect toll called BASA FUND
We can go further by preparing a market for them, this market -is the public expenditure travel, it's a critical lifeline for the airlines and a stimulus for investment, and should be reminded that the first and business class seats on these foreign carriers are dominated by this category of travelers.
The agents also need to be protected by ensuring their commissions are paid, foreign airlines restricted to sell tickets in their offices. The present trend where some airlines abuse their perceived dominance should be addressed by the authorities and NANTA.
Do we need a national carrier to redress this imbalance ? NO. National carriers are usually formed 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.
We do not have these scenarios, what we have are carriers willing to fly but hindered by managerial and public policies that have made them financially weak. Also 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.
The protection needed by the new national 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 and Arik
We can only raise the economic impact of the foreign carriers in Nigeria, by strengthen our carriers through the introduction of protective polices and laws that will make them attractive for investment and commercial partnership. When they are strengthed employment
,professionalism,expertise and revenue will increase aastronomically while capital flight will reduce to the benefit of the economy.The foreign airlines are willing to work with our carriers they have done it with smaller airlines in Burkina-faso, Mali, Ghana, Morocco, Seychelles, South Africa why not Nigeria?
Wednesday, August 22, 2012
SEASON OF ABSURDITIES
Since the DANA crash of June 3rd, 2012, the country and populace have been drawn into an unbelievable hysteria and anti-aviation phobia. The phobia has continued to run in all facets of the country despite assurance and support of the international community and organisations that have been steadfast and strongly believe in our system and processes. The government bowed to the hysterical pressure by quickly setting up a committee that was not necessary and whose report cannot be taken seriously beyond the realms of its initiator.
Thereafter the publicity seeking House Committee came up with their version of investigation by quickly suspending DANA’s licence and directing the DG to proceed on suspension. They went further to describe our aircraft as being too old and intend to initiate laws that will lower minimum age to fifteen years. The MD aircraft series were virtually labeled sick and old aircraft designed to kill Nigerians in spite of their safety records and statistics.
It should be known that the MD series used by DANA was the same aircraft that gave that airline the best on time airline in Nigeria over the years without disappointing their esteemed clients, who also voted the airline as the best customer friendly airline. Also, a version of that aircraft is parked on the tarmac of Abuja airport by UN to lift Nigerian and other troops for peace keeping missions up till this moment. Air Burkina and Air Mali use the same aircraft to ferry Air France passengers going to points beyond Ouagadougou and Bamako. Yet Nigerian carriers with younger aircraft and certification have not been considered fit for code share agreements.
Accident Investigation Bureau (AIB), the body saddled with the responsibility of investigating, reporting, updating and publishing incident or accident reports, but chose to make them look more like classified espionage reports, had to be pushed by industry activists to release the preliminary report of DANA accident and unbelievably in an anti-AIB speed released the report of the recent Arik Air incident at Jos Airport. Though it is a norm because it is from AIB, it is obviously a departure from the usual.
The aftermath of DANA accidents also led to the regulatory and voluntary grounding of some carriers, while it is better not to go into details, it is really sad to see that the other airlines flying have cashed in on it by increasing fares phenomenally and annoyingly loading it, under fuel surcharge column, which makes it easy to fleece passengers and government agencies. Fuel surcharge is usually loaded on international fares based on sector length, while on the domestic fare the charge is minimal. Our carriers have reversed this rule in this season of absurdities.
Bomb detectors are meant to enhance safety and reduce to the barest minimum any incident that may arise using IEDs or related devices. FAAN has two detectors stationed at the entrance to their staff quarters, one stationed at the gate leading to the Corporate Head Office, while entry to GAT and other airports that generate the revenue used in purchasing the detectors are left bare.
Air Nigeria is going through a trying period and we must not forget that at conception, it was our national carrier. It was funded and managed by the privileged private placement heroes and a foreign technical partner. Today, the foreign partner has fled, while the private partners have ceded ownership and management. The airline is in crisis with aircraft being repossessed and airline staff who are Nigerians are being thrown out in droves.
Air Nigeria should not die, we must endeavour to get the airline back in the skies irrespective of the fury and annoyance towards the new owner. The absurdity here is for the first time the industry is willing and working assiduously to throw away the baby and bath water. It is simply unacceptable.
The NCAA recently reiterated the need to positively identify a passenger before boarding an aircraft, which is also a fall-out of the DANA manifest. Memos have not worked, and will not work if the appropriate sanctions and monitoring instituted are not elevated. I boarded a flight from Yola last week; my identification was not needed nor requested till I got on board. The comfort of flying was also tainted by our standing at the Abuja airport terminal for 1hr.45mins because Arik station manager was not empowered to purchase FAAN PSC tickets on our way to Yola while on our return a miserable N30 cake and ¼ glass of water was offered in this phenomenal fare regime.
Nigerians will travel and continue to travel. What is important is the share that comes to our carriers. How do we get our carriers positioned to partake in the feast? Is it fair for foreign carriers to keep increasing guage, while we are left to collect tolls called BASA? Is it so bad, that Nigerians now fly to Dubai on Rwanda Airlines? I repeat, RWANDA AIRINES!!
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