ORANSANYE REPORT & APPROVAL: UNPLEASANT

It was with shock and angst that the industry received the report of the presidential committee on restructuring and rationalisation of federal government owned parastatals, commissions and agencies. In its submission to Government, the committee advised that NCAA, NIMET and NAMA be merged, while FAAN should be privatised. Government accepted the merging of the three agencies and rejected the privatisation of FAAN, based on perceived security challenges. An implementation committee was instantly set up which is not the norm in this dispensation. The setting up of the Oransanye committee was noble with erudite personalities.The objective is to reduce governance cost, which is also laudable. Unfortunately, with respect to the aviation industry, the report is unfavourable, archaic and capable of dragging the industry backwards with attendant loss of confidence and increased cost of operation. I will not want to bore the public again with ICAO rules of engagement, other writers have dwelt on that since the report became public, while our representatives in the different international organisations can also use their instrument of office overtly or covertly to pass the message on ICAO statutes and other working materials to the Federal Government. The regulator and service provider cannot be under one roof or management.This, in essence,makes a mockery of regulation and certification. The international community has applauded our development and strides; we do not need the Oransanye report to drag us back. The industry players, starting from the immediate past and interim ministers, the two Special Assistants to the president on aviation related issues, the ex-agency heads, unions, analysts, stakeholders and all cadres of professionals cannot be exonerated. You may ask why. It is a shame that nobody saw this coming despite their closeness to power, presentations to the committee and frequent travels to Abuja or was there a subtle connivance? Aviation is not limited to Nigeria; it is global with recommended standards and practices. Government can still drive the cost of governance down in the industry, while also retaining the cherished certifications and qualifications, if they accept the following recommendations: NIMET provides meteorological services to aviation, maritime, agriculture, construction e.t.c. The agency relates with the world meteorological body and numerous bodies within the; country that cut across different sectors of the economy. Our benevolence over the years in giving subsidy to the organisation through the passenger ticket tax should not be mistaken for ownership, therefore NIMET can standalone or be attached to the Ministry of Transport, while we pay for services rendered to the industry, just like others do. NAMA is a provider of air navigation services, which is done at a fee to local and international airlines. Government should reduce the number of directorates and top management staff, which grew astronomically under the last CEO without commensurate level of service and revenue generation, while the organisation should makes efforts to recoup funds owed by local carriers. NCAA is the regulator and backbone of the industry. We must put our best foot forward and be bold enough to engage foreign technical assistance, if need be. It is advisable to advertise openings and recruitments for able and competent hands, rather than politicise employment. The organisation's organogram is skewed and inappropriately placed due to the political employment witnessed in the last two years. Government should take Aviation security out of FAAN and proceed with a PPP arrangement as advised, which should be transparent, open and effective. The organisation is self sustaining, if it is free from Government interference.The same organisation that is not ready for privatisation due to security threats can collect international facility with interest to build five new international terminals and revamp twenty one airports at the same time. It is a commercial world record,in view of the perceived security threats. The organisation is also held down by excessive directorates and inappropriate placement of political staff. If Government is sincere about driving the cost of governance down, please scrap the Ministry of Aviation with immediate effect. We can effectively operate without a standalone ministry. What we get from the ministry is signing of unfavorable BASA that is detrimental to our carriers, impulsive interference in the day to day administration of the agencies, insatiable appetite for spending BASA funds and coercing agencies to pay for chartered flights and other services. Nigeria is just an irony in all ramifications, while the rest of the world closed their aviation ministries, we kept ours. While they appreciate and applaud the unbundling of agencies and services, we have decided to warehouse and keep the meddlesome ministry. The unions have spoken on the demerits of a merger but have not addressed governance cost and demerits of numerous AGMs, DGMs and GMs, in all the agencies, which is also inimical to the progess of their members.So so so sad.

Re: Nigerian Aviation Still Too Far?

Mr. Iredia message is principally centered on seamless air travel and the provision of aviation facilities, using Dubai and Abuja airports as bases of comparism. To get a fair assessment we should use country name. Does Nigeria have the same standard with the United Arab Emirates in projects and facilities? Can the NTA be compared with Arabian TV network? Neither can we compare communications, power or even selfless leadership. In aviation, we will swallow the humble pie and humbly accept they are far ahead of us, but they must also give us credit for opening UAE to Nigerians and the sub-region in general. The defunct Nigeria Airways invested a lot in opening and developing the UAE route by operating direct flights to that country. Nigerian government through WT built that route and lost everything to UAE in terms of investments, tourism, business, etc. The most painful is the present aerial rape on the route; today we have Emirates, Etihad, Kenya Airways. Air Maroc, Egypt Air, Ethiopian, Libyan Airlines, Sudan Airways, Saudia, Qatar, MEA. Even Rwanda Air that recently survived the worst genocide in black Africa has joined in ferrying Nigerians to UAE, these carriers are using the 4th, 5th, 6th air freedom. It’s so sad that we don’t have a single Nigerian carrier on that route despite being designated. It’s a collective problem, the low finances of our carriers, unprotective policies of the ministry of aviation, penchant for flying business class on foreign carriers using government funds, the concurrent blackmail by state governors, legislators and other ethnic parrots for flights to their domain have weakened the capacity and operational prowess of our carriers. For foreign airlines wanting frequencies to cities outside the negotiated ones, should honourably, relinquish same number of frequencies to Lagos and use it for the new city of choice, rather than capitalize on our ethnic divide to the detriment of our airlines and the industry in general, but a skewed benefit to the ministry who are extremely excited in collecting and quickly spending the BASA fund.this will reduce the incidence of graft allegation and increase boldness to speak. I will reiterate that the agreement with Israel and Singapore signed last year by the government is more beneficial to Ethiopian Airlines than Nigerian Carriers. Ethiopia Airlines got Enugu route almost simultaneously while they also opened and signed codeshare on these routes thereafter. The Singaporean Minister made it clear that Ethiopian airlines are coming to Singapore to operate Addis-Ababa –Lagos. Did the government carry Nigerian airlines along during these negotiations? Did they pick our best to negotiate and to compete? On concession, we all applauded the dismantling of concessions that did not go through the refine process of transparency, competitiveness and productivity. Sadly somewhere along the line the ugly process came back. How was the Abuja GAT concessioned? Also the great carcass opposite MM2 (not my words), in all fairness is an investment and the sweat of some fellow Nigerians, FAAN should negotiate to pay off rather than jeer and attempt to confiscate. If they are eager to have a befitting HQ as espoused by their incoherent unions they should take their income and expenditure slip to their Chinese clients or any of the Nigerian banks. On the national carrier, it’s the same old broken tune. These elites never flew Nigeria Airways only if the ticket was free or rebated which is usually influenced by the corporate affairs department, their comfort zone. A government that cannot strengthen its flag carriers with strong corporate policy will further weaken and in debt us all with a national carrier.

The Task before the New Aviation Minister

Our time is running short considering the presidential election is next year and the usual pre and post cabinet shakeup in our polity makes long time planning and execution a mirage. Therefore, Mr President should as a matter of urgency confirm and name our Minister, so the ball can start rolling, while he can still be ruminating on other ministries. The new minister should as a priority give NCAA the needed support as they prepare for FAA reassessment coming up in three weeks. Also, our contacts in ICAO and other bodies should be co-opted to ensure we retain our CAT 1 status, while we also do the needful with respect to the templates. The minister should as a matter of urgency convene a stakeholders meeting. All issues related to the industry will be discussed unfettered in a syndicated session and implemented, if generally accepted. The Minister should endeavour to complete on going infrastructural projects cut across the country with a proviso, which is the reassessment of the cost and quality of job done. this is necessary considering the huge expenses incurred in maintaining those that have been commisioned and the quality of materials used in others. The Minister should review our lopsided BASA agreements taking cognisance of the recent trend of using governors and politicians to blackmail the Ministry into frequency capitulation. The Minister should understand that even with our CAT 1 and other improved economic indicators, investors are still avoiding our carriers. The solution is within if we look inwards and think deep. The Minister should also take a critical review of placements, appointments and concessions that are not regular, inappropriate and transparent enough to sustain professionalism, integrity and profitability. The Minister should also as a matter of urgency take the running of the Ministry and agencies from the media, its a recent malaise that has never been seen in the industry. A cursory look at the balance sheet will give the answer. Finally, please give credit to garlands and achievements on ground, the rot proponents will come over again and say everywhere was rotten, while they have been in the system all these years. This boisterous posture attracted flack from the public The BMW scandal did not start and end with the former minister. There are other people within the system who did not uphold due process, or most importantly, defend the agencies governing act. This should not be swept under the carpet.

RE: UNION CALL FOR A TECHNOCRAT

The recent call by unions and some stakeholders calling for the appointment of an industry expert to head the ministry of aviation and their pseudo submission of nominees is self severing and not a true reflection of recent achievements and genuine yearning of the industry in totality. The unions went further by threaten to shut down the industry if a technocrat is not appointed, following the same hollow path and position taken before the appointment of Ms Oduah. She did not forgive the unions for that pronouncement and ensured a wedge was planted between the ministry and the unions, thereafter members resorted to one -one leg relationship with the ministry. Having a technocrat at the helms of the ministry is not the panacea to our problem, the last technocrat only facilitated the increment of Nigeria Airways pilots remunerations thereafter "na Sidon look" till handover . A technocrat is nice to have not need to have; the president must not be compelled by threats but should rather be left alone to make his choice, putting in perspective the federal character concept as enshrined in the constitution. What we need is an administrator and entrepreneur who will supervise the agencies and also attract investors into the sector and will not be mentally ambushed. He or she will correct the lapses therein and complete ongoing projects considering the time frame of this administration. The unions should rather roll their sleeves for issues related to corporate existence of the agencies, career progression of their members’ e.t.c which should be addressed by reviewing recent appointments, concessions and agreements. The incoming minister must also checkmate the recent trend of running the industry on the pages of newspaper and ensure the sanctity of the act governing the agencies. Also our CAT 1 certification is under threat, India just lost it despite not having a major air mishap, our carriers are on lookers on their own soil while the Ethiopians, Gulf and Europeans carriers are operating freely to different airports in our country by capitalising on our ethnic differences, this we collectively need to work on rather than bicker on appointees

ADVANCED PASSENGER INFORMATION (API) FOR NON SCHEDULE OPERATOR

The furore over the enforcement not introduction of API for non schedule operators by the government has obviously not died down considering statements and articles directed at this policy of late. The API for non schedule operations is primarily meant for safety and security while as a secondary measure aids the tracking of revenue. It smacks logic in the head when critical safety and security stakeholders pin this commendable policy on politics. I beg to differ, we should rather encourage an across the board implementation and enforcement. I also expect any government in power irrespective of party affiliation to continue the process in the interest of the industry and the country in general. In continuing the process, we need to move swiftly to the e-API, which is faster, saves times and reduce operational cost. It is also important to state that it’s not a Nigerian policy neither did it emanate from here. It was elevated after the 9/11 strike in the US and other audacious terrorist drills in different countries with aircrafts and airspace as primary weapons. Different countries have adopted it, the difference is the time frame given for filing the API which is determined by the effectiveness of IT portal, communication and other related infrastructure, the Mexicans recently revised the rules. The booming non schedule market has some challenges ranging from capturing appropriate revenue for government, safety, security e.t.c, using the reigning lexicon the rot is being addressed , hopefully it will transform to the benefit of the country if we are objective in our commentary, the focus here should be the message. NAMA should be encouraged to continue the enforcement, accelerate the e-API portability and ensure all leakages mostly associated to late night and weekend flights are blocked

National Carrier or National Airline Policy

The combinations and other equations that are presently being molded for a caesarean delivery of a national carrier should be reviewed and reconsidered in the interest of the industry and the nation at large. In a statement from an unnamed official, Ethiopian Airlines will provide long haul aircrafts for the new baby, while a gulf carrier has also consented to participate in the project. The new carrier will primarily be built around the ashes of Air Nigeria and the financially troubled Aero Contractors. These carriers are heavily indebted to banks, hence the takeover by the Asset Management Company (AMCON), yet we are always reminded that government is not involved in the new carrier. Who owns AMCON? In a recent interview with a national newspaper, the CEO of AMCON, said the Ministry of Aviation approached his organisation on the need to have a national carrier from the fused airlines. In giving his consent, he asked if the deal will be transparent, in the national interest and good for AMCON. The Ministry expectedly gave an affirmative answer. The CEO AMCON tacitly supported the deal by misinforming the public that he was reliably informed that the new national carrier will have landing rights anywhere in the world, codeshare with international airlines, spur competition and reverse a decade of embarrassment without a national carrier. In another interview the CEO said the priority of his organisation is to save depositors' funds, the financial system and legitimate borrowers, whose business offered a safety net. He concluded in that interview that the recovery process starts with getting advisers, advertising the organisation and getting requisite approval from regulatory agencies. From the above, which reputable organisation did AMCON contact on this issue for advice? Why was Air Nigeria and Aero not advertised like other troubled organisations in their fold, to ascertain if the offers will not be far better than the risky concoction called national carrier ? How did AMCON come to the conclusion that this debt ridden project is in the national interest? Landing rights are principally negotiated between government of two or more countries on behalf of their respective designated airlines, private or public. The airline so designated becomes the flag carrier and will be given all the necessary support and protection as enshrined in all bilateral or multilateral agreements. Landing rights are therefore not and never reserved for a national carrier. Our negotiating prowess, based on reciprocity, as enshrined in ICAO civil aviation policy gives landing rights. Codeshare is an agreement between two airlines, with commercial synergy. It is usually influenced by the requisite international safety certification, membership of a clearing house such as IATA, scheduling potency at hub airport and most importantly corporate governance with reputable reference. Virgin Nigeria despite her young age and 'Tokunboh' aircrafts was able to codeshare easily because of these qualities, internal system and processes provided by the Virgin team. It also ensured IOSA certification in record time. Being a national carrier will not give an airline codeshare partners, neither will an array of brand new aircraft. Competition thrives when airlines and passengers are served with by a voluntary or regulatory consolidation process that builds strong flag and other scheduled carriers owned by Nigerians which will attract foreign investors and partners. We currently have family owned carriers who got facilities from banks owned by Nigerians, which were not properly managed and intend to use public funds to support recovery process. A national carrier has exclusivity, protection and regulatory impunity, which will shackle other carriers and competition. The AMCON chief also mentioned transparency thrice in that interview, on what basis are we protecting a particular family via pseudo public funds when others were allowed to bite the dust or are about to bit the dust. If the ministry approached AMCON directly who is the mysterious facilitator that is entitled to ten percent of the new carrier shares? The matter of embarrassment actually spans over three decades, because Nigeria Airways was an embarrassment long before liquidation. Numerous efforts at restarting a new carrier side by side with Nigeria Airways ended in catastrophy. Therefore, a country can also be embarrassed by its national carrier; we can ask the Italians, Greek, Mexicans and all the countries in our sub-region. Most of the people calling for a new national carrier today and linking it to the payment of terminal benefits of former Nigeria Airways staff, worked assiduously to frustrate government efforts in the past. The industry world over has moved from national to legacy to flag and low cost carriers. Countries that share our present mentality of setting up a new national carrier include Malawi, Zambia, Congo, Ghana and Gambia. Do we choose to belong to this crowd? We have opened our skies too wide and fallen treacherously in love with BASA funds at the expense of competing and empowering, which have literally weakened our carriers and made them unattractive to foreign carriers. The Ethiopians are in Togo (ASKY) and almost concluding arrangements with the Malawian Government for a carrier, all they want to give back is leased long haul aircraft. The Chinese that are giving us loans for the terminals and also executing it have invested in an airline in Ghana. Etihad has invested in Seychelles and Air France in Congo, Burkina Faso, Mali etc. They only ask for frequencies and multiple entries into Nigeria with our politicians happily receiving their inaugural flights. What we need is a national airline policy that will strengthen the industry and our airlines, not a national carrier. The policy should include reduction of taxes, modernisation of ATC, regulatory burden reforms, stabilisaton of aviation fuel prices, provision of market for the flag carriers through a Fly Nigeria Act, economic growth stimulation with accompany jobs and pay, while also ensuring our carriers consolidate and compete globally through partners. Permit me to digress into the industry rot that is a recurring statement lately used by politicians and surprisingly by some agency heads, whom practically grew through the system at every forum to render the industry stagnant over the years, while the certifications and international accolades inherited are flagged. I quite agree that we have made some appreciable improvements under the present minister, and also acknowledge the rot in the terminals is being transformed, there are others waiting. These include airport certification, fragmented carriers, lack of insurance for agencies, skewed bilateral, executive interference and impunity.

ARIK AIR CLARION CALL: A REFLECTION FOR ALL

In commemorating its seventh anniversary, Arik Air Chairman and Managing Director granted a joint press conference where the following pertinent issues affecting the airline in particular and the industry in general were raised. TAXES AND CHARGES: The cost of operating flights in the country has generally been described as too high and is principally attributed to numerous taxes and charges. The operators, stakeholders and other participants have asked for a downward review. I also agree, but we can help by providing a comparative table of charges and taxes for all to see and generally access. We should not forget that in addressing this issue holistically, we must include the subsidies, waivers, loans and grants given by or obtained from Government by our carriers and the debit account with the agencies vis a vis the untaxable fuel surcharge hidden somewhere in the domestic fares and has been used to rip the pocket of passengers and public treasury. PREFERENCE FOR FOREIGN CARRIERS: It is an open secret that the Government and corporate Nigeria lean towards foreign carriers - from filling their upper cabins to bilaterals, slots and counter allocations at our gateways, which are improperly skewed in favour of foreign carriers. How do we explain that Government gave Medview, an indigenous airline the right to operate Enugu - Singapore route, while the airline was still preparing. The government and other politicians were reeking with excitement at Enugu airport, welcoming Ethiopian Airlines with pomp and pageantry, the same Ethiopians will commence Singapore flights sometime this month, to add salt to our injury the Singaporean authorities said they have commenced discussion with the Ethiopians regarding flights into Nigeria from Singapore (see The Guardian of Wednesday, 6th November 2013). The bilateral air services agreement between Nigeria and Singapore was signed last week without giving consideration to our carriers or the mandatory protection but celebrated more as a political investment and as a blank cheque for Ethiopian Airlines. The Ethiopians want our routes, frequencies and passengers, but chose to invest in and empower the Togolese through ASKY. South African Airways is planning to have a hub in West Africa, we should naturally be the choice considering what we have done for MTN, SAA, Shoprite, Multichoice e.t.c, and sadly they are looking at other countries in the region. The foreign carriers have gone further by capitilising on our ethnic divide to seek extra frequencies into Kano and Enugu without reciprocity - which is the hallmark of BASA - while we shamelessly bicker over not allowing them to operate to our respective constituencies and the legitimacy of collecting royalties. NATIONAL CARRIER: Arik Chairman said "this is a deliberate ploy to kill Arik, since they cannot get it". Arik is too big and too important to kill at the moment, our economy will be severally affected, and in my opinion domestic airlines will be systematically weakened by the protection and exclusivity that will sheepishly accompanying the national carrier status. We do not need to protect Aero Contractors and the ashes of Air Nigeria under the acronym of national carrier. Why do we want to protect the liabilities of the two airlines at the expense of other airlines and taxpayers? These airlines and other airlines in Nigeria, including Arik belong to individuals and their families. They collected funds from banks owned by numerous Nigerians, stabilisation fund from tax payers and AMCON has gone to mop it again with public funds. We do not need a national carrier; neither do we need to protect families that have mismanaged their airlines. Arik MD, who was bold enough to tell us they were being forced to relinquish five percent shares to a top Government official which was resisted and applauded generally , should also make it very clear to the Chairman that Arik will get the necessary and needed support from Nigerians if they do open doors for participation and ownership. Virgin does not belong to Richard Branson alone. PASSENGER SERVICE RIGHTS: We have shortchanged Nigerian passengers in the past and still do, the bill on passenger rights has been around for over a year. The airlines charge their fare without consulting the passengers, while the regulator has been too lenient in enforcement. NCAA recently increased enlightenment while FAAN literally directs passengers to NCAA or to the airlines to seek redress not incitement as alleged by Arik. We look forward to enforcement, while also addressing critical infrastructure that can cause delay. Passengers need to remain courteous and polite to airline staff to key into the Bill. LACK OF MARKET: We need to give charter and public sector travel to our operators; this will stimulate growth in the industry, save funds and most importantly attract investment to our carriers. A phased implementation of the Fly Nigeria Act should apply to airlines owned by various Nigerians; those owned by families should not be considered. We can start with all categories of Government charter, thereafter the West Coast routes. AIRLINE OPERATORS OF NIGERIA (AON): This body is troubled and dysfunctional. In the past, it was headed and managed by scheduled operators; today its membership and leadership tilt towards the non schedule and charter operators, who operate luxury services, yet expect duty waivers, stabilisation fund and subsidies from tax payers. Arik aloofness has not helped the AON. The airline in conjunction with other schedule operators should kick start a new AON, while the non-schedule form their business operator association. It is the norm, we cannot be different. On the international scene, I will commend Arik for taking us off the polluter and noisy aircraft list of airlines operating into Heathrow Airport. Airlines from Poland, Israel and South Africa were on that list. This was not achieved by the liquidated Nigeria Airways, or its pretentious successor on that route, Bellview Airlines. Arik has the potential of being profitable, supported and backed as a flag carrier. If they do the needful, which among other things are ownership expansion, functional board, improved Industrial Relations and stop its discriminatory debt servicing policy. I will reiterate that the grounding of DANA Airlines was borne out of spontaneous emotionalism, rather than safety. It is ridiculous to keep them grounded with over five hundred Nigerians and their families denied the right to earn a living, while external auditors and NCAA staff are earning their salaries, and have not commenced the audit. Air India's new B787 fleet has recorded more air incidences than DANA MD 83, yet the regulators and manufacturers are still supporting and assisting. NCAA should remember the IATA resolution that says "regulatory work is best practiced when aligned to global standards by government working in cooperation with the industry".