Re Rumours of Sacrifice, Agagu, Oduah & Fani-Kayode

E: We all owe it a duty to protect the industry and restore confidence in the travelling public. The slings and stones being thrown at each other at this time will only heat the polity and divert attention from the safety challenges that we need to address as quickly as possible. Chief Fani-Kayode's write up has triggered a lot of rejoinders and a verbal reply at an international conferences, of the lot I will pick that of Mr. Joel Obi, though I do not agree with some choice of words but align with the chronicle of activities in the industry, when the chief headed the ministry. Mr. Obi's article omitted the dubious re-capitalisation process that made the Corporate Affairs Commission smile to the bank while the airlines simply filled forms and arranged documents in connivance with their banks, ministry and the hatchet man who was an operator, spilt look alike and a good friend of the chief. I am compelled to add this information because the chief did not do anything for industry rather, he was brash and tried as much as possible to intimidate operators, stakeholders and foreign airlines in a spirited bid to corner largess for self and tag team partners. Mr. Obi, the issues raised by you are the perennial banana peel waiting for all occupiers of that office, the most recurring ones are nepotic / ethnic recruitment or displacement, interference in the agencies, culture of impunity and poor enforcement. These issues either bring them down or haunt them long after, so please keep it in mind. To the whistle blowers that wait for a crash before blowing the whistle, they should bow their heads in shame; such whistles are destructive and usually targeted at bringing down personalities rather than saving lives, improving the system and its processes. It happened after the Dana crash and its happening again with the usual panicky suspension of operational certificate, rash public hearing and removal of office holders. Thereafter we go back to statuesque. My humble suggestion is a reassessment of the non punitive reporting system in place that has made reporting difficult but easier after a crash and usually given to legislative arm with the intention of ridiculing the industry. Also, the agencies and ministry should, please let us hear from AIB only at this hour, its not a time to flag our ratings or certifications neither are we interested in achievements and garlands gathered. We are suppose to be mourning our clients whose remains are still in the morgue awaiting identification and burial. The AIB, should upgrade from its timidity and boldly address and update us regularly not by press releases but facing the camera and taking questions. It’s important, it shows they are in control and autonomous. The disconnect between the economic and safety regulatory units presently domiciled in the NCAA must be addressed, Associated Airline will fail an economic audit just like others still brandishing the AOC. Finally, we must at this point agree that our carriers are weak and start a regulatory consolidation process. It is a better option to have five airlines that are sick than twenty six with epidemic.

NEW AVIATION CHARGES: A NEED FOR CAUTION

The NCAA recently introduced a new user charge for non schedule commercial operators; the action has generated a lot of controversy and a law suit. The NCAA has taken the airlines under the aegis of Airline Operators of Nigeria (AON) to court to determine if the authority is empowered by law to introduce such charges. This is comical, is it NCAA the regulator of the industry that should go to court or AON the aggrieved? I would have expected the NCAA to use the court to retrieve the outstanding ticket sales charge and Value Added Tax running into billions of naira which is trapped with AON members with or without an active AOC. I just hope they consulted outside the box before going to court because the aviation agencies are serial losers when it comes to the dispensation of justice, the judgment debt of the industry and catastrophic concession cases are attestations while the acquittal of an agency head for contempt of court was widely celebrated as if it was the final judgment. Curiously the private jet owners or the ‘ogas’ at the top were exempted from this new tariff, they cannot be exempted from a special luxury tax, because of some these jets surreptitiously operate charter. The AON should have 26 members based on the list of active AOC holders as published by the NCAA last week, a cursory look at that list shows that thirteen of them are small to mid range jets charter operators, three of them are Hajj/Pilgrim operators, seven of them are schedule operators while the remaining three are schedule operators that have suspended operations but have an active AOC due to the charter operations they do on the side or how else can we describe active AOC without operating scheduled flight for more than six months. The non schedule operators from the above have practically hijacked the AON, the ideal thing as obtained in other climes is to have two associations one for the schedule and the other for non schedule operators. This is necessitated by the type of service, clients, support, protection, maintenance, legislation, subsidy etc that cannot and can never be the same of these two categories of operators. The non schedule operators are the honeycomb of civil aviation world over, their service is luxurious and heavily taxed they do not get subsidy, economic protection, stabilization fund neither are they exempted from paying custom duties on spares and machinery. In Nigeria they have forced themselves on us all, by robbing an industry they are to feed, by operating with foreign registered carriers to the detriment of Nigerian professionals, under invoicing the agencies, delaying payment, diversion and extension of flights e.t.c. Is it not absurd that the private jet sector is booming and thriving while the commercial airlines are shrinking and struggling? Yes it is! They are thriving because they get their money from clients and shortchange the system through numerous agents, commissions, round tripping, illegal subsidies, gross under invoicing and supervision by the agencies. The DG in his publication last week said all other charges are embedded in the new fee, which literally means, warehousing of all payments; therefore their operation will now be collated in a coordinated process by the requisite agencies. I just hope the reconciliation period will not be for the long knives. The threat by operators to relocate to Ghana is empty and cannot fly rather they should negotiate, discuss and pay commensurately which is the norm considering it’s a luxury service. They can go further by resisting private jet operators and the military (Air force,Navy & Police) who pseudo operate and are scooping from their market by operating civil non schedule flights. The military in two South American countries registered a civil arm to operate such flights; therefore civilian passengers being ferried are insured and compensated if the need arises. The military are to assist in emergencies or act as back up for terrains too difficult for the civil aircrafts in extreme conditions not compete for civil charter operations. On a last note, Dr Aliu a former Director with the NCAA will be voted as the first black president of ICAO general assembly, my first encounter with him was sometime in the mid 90s, when he came to represent the former DG of NCAA, Late Engr Haruna at a conference organized by my association. Over the years he remains a perfect gentle man, that cannot ruffle feathers, as he ascend to that enviable position he should remember the people, system and agencies he left behind and ensure our participation, certification and recognition in all ICAO related activities It’s a better legacy than courtesy visits or gifts. Congratulations to the new ICAO president.

AVIATION INFO &THE BUDDING GOEBBELS

I was thinking of a deserved rest from aviation related issues and join the growing list of siddon look, when I heard the half-state of emergency declared by Mr. President in the three northern states of Borno, Yobe and Adamawa. I use the word half-state because troops moved enmasse into the affected states under new rules of engagement, while all the governors and other political appointees were allowed to retain their seats. The media was also awash with the half-state of emergency declared by the Ministry of Aviation, where the GM Corporate Communication (FAAN) was appointed the Coordinating Manager for Information and Communication for all agencies under the Ministry, with other officers retaining their seats in the different agencies. This is an aberration and an elevation of propaganda in the industry, while the President is fighting the implacable and unidentifiable terrorists, who is the Ministry fighting? The appointment is a strange novel in the industry; it is also not a surprise considering his penchant for defending the Ministry and propagating their activities at the expense of FAAN, his constituency. The pain here is that barely a week after the World Bank complained of excessive political interference in the agencies, we are declaring a state of emergency in information management. The regulators, NCAA and the new baby NAERU are also to clear their press releases through the new appointee, who represents an agency they regulate. Incidentally, he advised some days ago that aviation should be taken from the Madding Crowd. Please practice what you preach. Regarding Amaechi’s jet, the pyrrhic excitement should stop; we should rather use the opportunity to correct all the ills in private jet operation, which stand till this moment. All the relevant agencies responsible for monitoring and coordinating the operations of this category of operators are guilty and have persistently failed to deliver the dividends of corporate jet operations. That aircraft had clearance up to the 4th of April, 2013, yet it kept flying in the Nigerian airspace till the 26th of April, 2013. On that day with the same clearance and untidy sheet, it departed PH for Owerri, thereafter Akure. Who gave start up in PH and Owerri? The speaker of the House of Representatives simply dropped a member of his team and asked Gov. Ameachi to hop with him from Akure when the governor’s aircraft had issues. Did the speaker’s team present a new manifest to reflect the new passenger? The prosecution option of the Ministry, rather than penalties as accepted in civil aviation coupled with concurrent press statements and the inability to probe other violators in that sector tilts towards witch hunting.

RE: The New Nigeria Civil Aviation Policy (NCAP 2013)

The Honourable Minister of Aviation recently unveiled the new NCAP, which has attracted more condemnation than commendation. A civil aviation policy document is usually midwife by the Honourable Minister through the interplay of various stakeholders. This policy did not go through that refining process, hence the hurried meeting with operators and stakeholders five days after the unveiling. In the minister’s message, which was personally signed, she said “the Federal Government is conscious of the fact that sustainable implementation of this policy will require the collective participation of all stakeholders.” The stakeholders should have been carried along from the beginning rather having selective participation. The policy is out and having gone through it, I will align with those commending the policy, while I also believe we need to tweak some positions taken. Fortunately, it is a policy and not regulations and can be reviewed if it’s not in the best interest of the country. The Nigerian Aviation Economic Regulatory Unit is a refreshing innovation that will curb and punish predatory activities, while gingering competition and most importantly protect domestic carriers and consumers from companies and airlines with significant market power and dominant position. The NCAA should focus on technical and safety oversight, their core competence, incidentally the policy tallies with the World Bank report that was presented to stakeholders last week. If the unit is not politicised or made an appendage of the Ministry, it will be the most important legacy of this administration, and will also act as a purveyor of an encompassing antitrust body that will protect Nigerians in other sectors of the economy. The requirement for a minimum of three aircraft for domestic operators and five for regional and international operators is also commendable, though a little shy of our expectations, but a good beginning for the regulatory consolidation process. The minimum paid up capital does not work here, it is a mere paper document that can be sourced by conniving with the same banks and other institutions they used to siphon bailout fund. The policy statement on foreign registered aircrafts and some operational aspects will ginger the transformation and improve the local content input of the aviation industry. It will also encourage pooling of resources, which is a better ownership option. It is also commendable that after an Initial Gra Gra (IGG), the Ministry has accepted the inevitability of the PPP concept. The World Bank team reechoed it last week, it is the only panacea for maintaining and sustaining our airports, what has always been the problem is transparency and openness. The transformation train should be prepared to berth at FAAN as an organization, while also thrashing out the numerous PPP associated litigations. The route dispersal guidelines and schedule operators permit entrenched in the Public Service Obligation (PSO) programme is also commendable. I will advise that the host state and adjoining local governments close to such airports be made to partake in the programme. Also, with the PSO programme in place, it is not necessary to give incentive to domestic operators of 80 seats and below, the idea is a selfish subsidy. Routes allocated and not utilized by Nigerian carriers should be withdrawn immediately and given to other Nigerian carriers that have shown interest. If reciprocity is the dignifying word we should not shackle carriers that are ready and willing. The policy got this right; I must also commend the idea of encouraging non-schedule operators to ply routes abandoned by schedule operators, the civil aviation regulations in place might make it difficult in the short run, due to the certification needed to operate commercially. The National Aviation Safety Committee will coordinate the activities of the Nigerian Airlines with respect to the NCAP and the Aviation Consumer Council, comprising stakeholders and users are innovations that will aid monitoring and key performance index. After numerous litigations that have increased the country’s public debt, it is with great relief that the policy has asked Service providers in the aviation industry including Airports and the Air Navigation Operators to put in place adequate third party insurance cover. The policy reiterated the waiver on import duties and spares for commercial and private operators. The waiver is a subsidy and should be for commercial operators, not for private operators. Rather, a luxury tax should be added for this category of operators. Yamoussoukro Declaration will be the basis of negotiation with member states, since the policy says so. Then the request of the Ghanaian and Gambian carriers that have applied to operate into the country should be granted without delay in the interest of our leadership position in the sub-region and Nigerian consumers the policy seeks to protect. Passengers flying Banjul and Accra routes are being fleeced by Arik in fares and service. Single and Seamless Sky is a futuristic project that is also commendable, it will improve safety, reduce pollution and fuel burn. NAMA management should begin to look at alternate source of funding, while critically perusing the recent World Bank report. The message in the World Bank report with respect to NAMA calls for reflection rather than grandiose. Some aspects of the policy need to be reviewed, an independent search and rescue agency with offices in the six geo-political zones will only over burden the system with attendant cost implication. Why do we want to protect a new group of private investors at the expense of existing investors using the banner of a National Carrier? The government is starting another flag carrier not national, so the carrier should be free to compete rather than seek government protection. The same protection Virgin Nigeria signed with government only to repudiate to the consternation of the investors. Also, the Fly Nigeria Act that would have aided our commercial airlines was again bypassed, a phased implementation starting with charter flights and some regional routes would have been appropriate. The MD guaranty trust bank last week said “ we will rather invest in the private jet sector rather than the commercial jet sector that are there today and tomorrow no more.” Let’s ponder !!! I also strongly feel that the issue of insurance and passengers to be ferried by the private jet operators should be in the regulations rather than the policy. It would have saved us the unnecessary distractions that it has generated since it’s unveiling. In concluding, NCAP 2013 says, “the policy is designed to provide a platform for the way forward and future prospects of the aviation industry, set new paradigms in air travel standards which will provide consumers with appropriate protections without affecting the ability of airlines to set service levels in a competitive market”. Also, “all civil aviation service providers shall promote effective implementation of the NCAP in their areas of activities and ensure that the spirit of the NCAP is adhered to.” The NCAP 2013 spirit can only be achieved if the ministry can boldly and honestly allow these tripod- implementation, monitoring and review without political interference or imposition.

RE: AMEACHI’S AIRCRAFT AND FLIGHT CLEARANCE

RE: AMEACHI’S AIRCRAFT AND FLIGHT CLEARANCE By Olu Ohunayo Gov Ameachi’s aircraft and the unabated controversies with respect to his last flight to Akure and other operations in the general aviation sector is well known to stakeholders over the years, who have deliberately turned blind eyes or are afraid to act due to the caliber of clients or owners of these private jets whether foreign or Nigerian registered. The government should go ahead with the probe and be bold enough to dig deep, press the rewind button and most importantly make their report public. The necessary sanctions and fines should be applied, which is not witch hunting but will act as a deterrent. Gov Ameachi’s aircraft should not be singled out for the investigation rather it should initiate other probes, majority of the general aviation flights operated spontaneously or over the weekend have the same lapses, so if we are going to investigate we should make it open, even those shouting hosanna will be surprised at the rot. If flight clearance process is a vital safety and security component of civil aviation worldwide and requires the involvement of both the civil aviation authorities and the national security agencies before approval is given, while full disclosure of the aircraft, passengers and crew must be provided as required by law, then how did the incarcerated former governor of Delta State leave the country or is it the recently pardoned former governor of Bayelsa state, who returned to the country through the same “Egbesu route” only to hop on another helicopter that took him to Yenegoa. Mr president ,who was the acting governor at that time had to quietly slip to Otuoke for his own safety. The discrepancies noticed with the flight clearance, plan and registration of Gov Ameachi’s aircraft is a norm and not an exception in general aviation in this country, we should used this opportunity to reverse the trend in the interest of safety ,security and improved revenue generation. I will also not forget to reiterate that the civilians, military retirees inclusive should not be allowed on board military aircraft, since they are not subjected to the civil aviation laws and norms, if the military wants to partake in charter services they should form and register a company for that purpose that will compete and subject itself to the civil and compensation processes. The various agencies and the supervising ministry are over heating the aero-political landscape with the concurrent and similar press releases as if they were all drafted on the same laptop or are they trying to convince the boss ''Oga'' at the top that they are working

Re: re FG keeps Emirates, Turkish out of Kano despite Minister's pledge

The SA to the Hon Minister of Aviation was forced to clear the air for the umpteenth time on this lopsided bilateral agreement that clearly favours the government of UAE and Turkey. Quoting him "once again we are constrained to comment on the above subject matter and make further clarifications since some interest seem bent on making political capital out of an already settled question", while I am not surprised at the political angle being taken by the ministry to survive the concurrent blackmail and pressure by a coordinated group which is detrimental to the growth of our airlines and obviously at variance with the projected GDP contribution of aviation as espoused by the Honourable Minister in her road map for the industry. My surprise is the unbelievable silence of the operators, AON, unions and other interest groups that prefer to wait for bailout, free aircraft s and the new contraption Air Transformation aka national carrier. Emirates and Etihad airlines are from one country, they were granted approval to operate into Lagos, Kano and Abuja respectively without reciprocity, somewhere along the line an enhanced BASA was signed to give Emirates a second daily flight to Lagos. The two carriers operate about 42 flights a week in and out of Lagos alone, while also increasing gauge and in the nearest future will operate into Abuja and Kano. This is simply unfavourable and detrimental to the industry and the country as a whole. If they must operate into Abuja and Kano they must relinquish some frequencies into Lagos. Nigeria Airways built this route using public funds that has not and can never be recouped, we need to separate politics from aviation,reciprocity,commercial partnership and protection is the common denominator in any bilateral. Etihad has bought shares in airlines in Seychelles, Ireland, Germany e.t.c and partnering with carriers in countries like South-Africa, Kenya India e.t.c, but in Nigeria they all want to operate to different cities unhindered. The United States the proponents of the open skies have pressured weaker countries to join the train despite their weakness to compete but have cautiously refused to sign the same agreement with China because the American aviation unions resisted based on perceived job losses. Emirates demand for extra frequencies into Canada and Germany was halted due to the pressure from Air Canada and Lufthansa respectively. It’s the same Lufthansa that operates into Lagos, combines Abuja and PH flight into the country and were recently granted fifth freedom into Accra, yet refused to pay royalties under the ridiculous tag of helping our aviation industry. Delta Airlines has taken a government owned bank EX-IM bank, of USA to court for financial incentives given to Emirates and other foreign carriers. These incentives are meant to encourage the purchase of Boeing aircrafts. These actions are geared towards protection and development of home grown carriers not using archaic options of bailout or formation of national carrier. Least I forget can our policy makers go through the recently signed enhanced BASA between Singapore and India or between France, Mali and Burkina-faso, the rudiments of reciprocity and commercial partnership were clearly stated. It’s what we sow that we will reap, cheap blackmail and executive capitulation without recourse to the rudiments stated above is two steps forward and eight steps backward. The GDP projections are meant for the foreign airlines operations based on our policies and we should not forget that these funds will be repatriated to their respective countries and not kept in Nigeria. We must tweak our policies urgently to attract investors and franchise partners.

AERO: THE NEEDLESS STRIKE

In an article,i wrote about a year ago titled "Aero Unending Counter Chaos",i asked the management to dig deep in finding solutions to the recurring counter problems and to spin off a low cost carrier, that will facilitate cost reduction initiatives,nurture its budding online clients and improve its online facilities in other to improve services,expenses and counter clogging. Surprisingly, up till this moment management,staff and unions have not been able to weave amicable solutions to the present crisis which emanated from a mandatory cost cutting strategies needed to stabilise the airline. One or two of them are either ignorant of the crippling liabilities of the airline or sarcastically unperturbed.it's no secret that the bailout fund could not help and an organisation saddled with the responsibility of sucking toxic debt has stepped in to help the airline creditors. The strike has punctured the life raft of the airline and has quickened the provision of a life support machine.Aero staff should have learnt from there colleagues in Air Nigeria who went on a similar strike and ended up being consumed. The dialogue option would have been stretched,while the unions complement it with coordinated blackmail and clinical subterfuge,which is a better option for a troubled organisation. The strike option chosen by Aero staff was hasty and counterproductive; it is a grave error and a concurrent misstep by airline staff in nigeria,which has contributed to the demise of airlines in the country while also increasing the unemployment market. If Aero will ever return to the skies, it will be as a leaner organisation with some stringent cost cutting measures that would have been difficult to embark upon before the strike.i appeal to the management to reconsider the sack letters while the workers should brace for the hard truth,which is sequestration. The only commendation for the management and staff is their ability to sustain the unblemish safety record of the airline over the years till the present day. Sadly, both parties forgot the passengers by abandoning them at the airports without any explanation and continued to sell tickets online,yet the management remembered the importance of getting a court injunction to stop the strike while the staff were equally mobilising and strategising for the strike without considering the customer that pay the wages. This reckless and insensitive posture of both parties has led to a group of passengers seeking damages worth millions of naira in court. Its a shot in the arm,we must realise that "we no go gree" is industrial dispute. While"sorry we will not be operating and will endevour to put you on other flights or make a refund" is a divine message of care.