Wednesday, July 23, 2014

DG NCAA: SELF SERVING UNIONS

The unions are at it again - negotiating, arm twisting and queuing behind their preferred candidate for the position of DG NCAA. One of them was bold enough to remove the mask, the others hid behind a new body in a recurring shadow boxing between these unions. The executives of these unions always want the DG in their pockets, so spouses can get accelerated promotions, juicy courses and other illicit benefits. The joint aviation union body (AUGA) comprising of all unions and associations in the industry was formed some years ago to spearhead collective issues in the industry. Their last action was a couple of months ago when they requested for an aviator to replace Ms Oduah in the ministry. It is an empty and unnecessary threat for a single union to give a 21-day ultimatum to ground the industry without getting NEC approval, or carrying other principal associations and unions along. The inter union rivalry played out after the DANA crash, which resulted in the unceremonious exit of the respected and acclaimed Dr. Demuren. It repeated itself during the last cabinet reshuffle, providentially all their preferred candidates lost. The DG NCAA is the most sensitive position in the industry and we must be cautious in our selection process to avert a repetition of the calamitous entry and exit of the last DG, in an industry already divided into four groups with differences on replacement process and persons. The first group is angling for the nominee, Capt. Muktar, whose name has not been submitted to the Senate for confirmation. It is not smooth sailing for him. There are alleged petitions from his colleagues concerning his eligibility based on his work ethics and other cockpit issues. I feel for him though, considering he has already handed over his job at Accident Investigation Bureau. He should not be left in the cold, a soft landing will be more appropriate if he does not get the confirmation. He can be a good replacement for any of the two aviation Special Assistants in the Presidency. One of them has over stayed and is completely detached from the industry, while the other used the position as pensionable gift. The second group is agitating for the Acting DG, Engr. Adeyileka to remain and continue in the acting capacity till thy kingdom come. Are we too short sighted to see the dangers of keeping him for too long in that capacity? It breeds instability and encourages corruption and servitude. We are all witnesses to the last Acting DG's purchase of bullet proof and other vehicles as if they were going extinct. The acting capacity is too long and unhelpful to the industry. The third group, using a serving governor as arrowhead wants Capt. Fola Akinkuotu, who was unjustifiably removed to be reinstated to complete his tenure. The baggage here is that during the few months he spent in office, he did not show the spirit of an ''OMO AKIN'' neither did we see the ''Egin'', a symbol of strength usually exhibited by his people. Incidentally, he is from my maternal home. He kept himself away from core industry players, and stayed in the cocoon of Abuja players in a bid to protect his job. Sadly, the job lost him. Under his watch NCAA lost leadership to NAMA, while a legal consultant held him hostage, holding extended meetings, without attending to critical files. Directors and other critical staff watched bemused. The story of that consultant and intrigues is for another day. The fourth group, which I proudly align with, wants the position advertised for our best brains to come forward. It should be open to all Nigerians within and outside the country. The head hunting should be given to a reputable organisation and the report submitted for auditing. In strengthening that organisation, we must go further by advertising all top positions, while efforts must be made to bring officers that have soiled their hands yet walk with irritating swagger in the organisation to book. All groups must at least be united in the defense of the NCAA Act, autonomy and sanctity of their regulations and processes. The position of DG has tenure and therefore needs clearance from Senate and removal should follow due process as espoused in the NCAA Act. The incoming DG needs to be bold, independent, and conversant with all regulations and most importantly, defend our carriers and ensure growth by having a delicate balance in safety and economic regulations. We do not need a DG that regularly goes to Abuja to see the Minister and implements all directives from the Ministry to the detriment of the industry. International sanctions may apply, if we continue to shackle the regulator. The next DG should be given enough space to perform and the process of appointing a new one must start immediately.

Wednesday, June 25, 2014

CONFAB: TRANSPORT COMMITTEE REPORT

The ongoing National Conference in Abuja set up a Transport Committee headed by Senator Musa Abebe, a non-schedule operator chieftain in the industry. On submission of the report the conferees debated and resolutions were taken. RETURN OF MERGED AGENCIES TO STATUSQUO Asking Government to return to statusquo without proffering cost reduction measures is merely glossing the issue. The NCAA should remain autonomous, while NIMET should either be merged with NAMA or a related agency in the Ministry of Transport. The Ministry of Aviation should be scrapped with immediate effect. A transparent and competitive public private partnership programme should be initiated for FAAN, and the huge debt owed by the organisation due to the remodelling exercise should be addressed. On NCAT, the Federal Government is going to Ogbaru in Anambra State to set up a second aviation training school. The choice of Ogbaru, is not an issue at the moment, but the essence of owning a second training school when they have not been able to fund NCAT satisfactorily? NCAT and the new school in Ogbaru should be privatised, not commercialised. They can sustain themselves and attain international recognition if the privatisation process is properly and transparently handled. It is also better to affiliate the new school in Ogbaru with Anambra State University of Technology, Uli or Nnamdi Azikwe University, Awka, instead of Oko Polytechnic, as proposed. REVIEW OF THE NATIONAL CIVIL AVIATION POLICY The Committee also recommended the review of the 2013 Civil Aviation Policy, a good decision, based on the premise that stakeholders will be called from all facets of the industry to make an input. I also concur, but I must also say that there are some good policies in that document that must be appreciated and sustained. I really look forward to the independent and effective economic regulatory body which will stem the drift toward predatory tendencies. NATIONAL CARRIER The Committee tried in vain to convince other conferees on the need of having another national carrier to replace the dead and improperly buried Nigeria Airways. The option was rejected and I agree in totality with the conferees. We need strong flag carriers to be built from the present carriers through a regulated consolidation process. We cannot wait for the NCAA anymore, since they lack the balls. The conferees and the National Assembly should urgently initiate the process. NIGERIAN CONTENT In consonance with the proposed National Assembly bill, the conferees are asking for an increase in Nigerian participation in operation and services. This call would be unnecessary if NCAA had lived up to its responsibility by implementing the Civil Aviation Act to the letter. If the NCAA cannot monitor and implement now, how will a bill or the Confab decision change that mentality? The Nigerian content should not be limited to personnel alone, but other operational services with the enshrined principle of reciprocity and investment. CONSTRUCTION OF PERIMETER FENCE AND ROADS The conferees also want the government as a matter of security urgency to provide perimeter fencing and roads for all airports in Nigeria. This call is necessary and timely considering the upsurge in attacks by insurgents and the ease with which stowaways get to airfields. In the PPP arrangement I advocated earlier, the perimeter fencing, AVSEC and related issues will be retained and controlled by Government, while all other revenue generating aspects of the airport should be ceded. REVIVAL OF THE ABANDONED ONITSHA CARGO AIRPORT This is simply comical and an emotional decision. Asaba airport is barely 10 minutes away, while Benin, Enugu and Owerri airports are about an hour’s drive from the proposed Onitsha Airport. Two of these airports are designated as cargo airports. The Princess of Ogbaru must have been properly briefed, for Onitsha not to have been included. The conferees should just delete this wasteful section from the report, so we can move on to other important issues. LINKAGE OF ALL INTERNATIONAL AIRPORTS TO RAIL LINES This is good and futuristic considering the huge funds needed to actualise this dream. In the interim, surface connectivity between the domestic and international terminals should be activated, while other connections within cities should be developed to ease movement and encourage tourist and transit passengers. COMPLETION OF NATIONAL HANGAR PROJECT AT UYO AIRPORT Senator Abebe must have used his influence of heading the Committee to smuggle this home grown paragraph into the report. The proponents of Uyo Airport had a business model when they initiated the project. A National Hangar was not envisioned; rather it was Uyo Hangar to generate additional revenue for the airport. The agitation for a National Hangar preceded the dream of building Uyo Airport. Yes, we need a National Hangar that will be internationally certified and recognised. It will save cost, generate revenue for the industry and develop our personnel. If Uyo Airport gets it by virtue of infrastructure, so be it. The national hanger should be privately driven and has not been designated to any airport or state.

WORLD CUP: OUR AIRLINES BYPASSED AGAIN

The world cup has started in Brazil with qualifying teams arriving proudly in their respective flag carriers or chartered aircraft domiciled in their country. On arrival, the cameras are beamed at the aircraft front exit door where the air stair is positioned and flag emblazoned. It was in excitement I watched the arrival of different countries on their respective carriers until the documentary got to our Super Eagles. I initially thought it was an error when they announced the arrival of the Nigerian team, because of the American flag proudly emblazoned on the aircraft’s fuselage. Alas, I was wrong. Shortly after, Team USA proudly touched down in an aircraft with the same flag. We have invested a lot of fortune in qualifying and preparing for this tournament, while we also lost precious lives of fans that were blown away at different viewing centres across the Northern part of the country by insurgents. In the end, it is the American and Ethiopian airlines that reaped from where their government, corporate organisations and fans did not sow. A flag, despite its simplicity, on a massive structure like an aircraft’s fuselage, seen by millions of people can eclipse an impressive aircraft design. It is an identity, mark of place, pride and strength. It is an expression of a nation’s capabilities wherever it touches down. At the last tournament in South Africa four years ago, it was providence that gave us the pride of a Nigerian carrier taking the team to the tournament. It was the only option left for Government after a foreign airline provided an aircraft much older than the oldest aircraft in Arik fleet. The aircraft broke down at the eleventh hour. A Nigerian airline that was initially overlooked redeemed our image, but we lost the funds paid to the foreign airline. To add salt to injury; the undemocratic Nigerian Football & Other Sports Supporters Club (NFSSC) that is funded perpetually with handouts from Federal Government, while also getting support from different Nigerian corporate organisations, which has also given a lifeline to the club that has a leadership model fashioned after the one used by one of our political parties called “Oga so pe” (oga said), has consistently used our home grown funds to fly foreign carriers. They recently flew two hundred supporters to Brazil on Ethiopian Airlines (ET), also bypassing our carriers like their Siamese twin, Nigeria Football Federation. A Nigerian carrier could have taken them straight to Brazil without a stopover. Our carriers are struggling financially, while the Ethiopian carrier recently declared record revenue of $2.3 billion. ET is now the most profitable carrier in Africa. The airline’s revenue is the 37th highest in the world. ET has 37 frequencies into Nigeria alone, excluding that of ASKY airline, pseudo owned by Ethiopia. The airline takes everything away from Nigeria, while investing in airlines in Togo and Malawi, bypassing our carriers in preference to the ministry of aviation extra frequencies and entries. “Nigeria ro nu” (think) A phased implementation of a “Fly Nigeria Act” is imperative for the development of the industry and reduction in capital flight. It will, by law, whip people and organisations into line to the benefit of all Nigerians.

Thursday, June 19, 2014

Senate Aviaiton Committee: Playing the Ostrich

The Senate Aviation Committee recently visited the Ministry of Aviation and other agencies on a supposed oversight function. During the visit, statements were made that sounded like revelations, but those that can discern this publicity stunt garnished in a typical ostrich game know that the Committee was merely playing to the gallery. This Committee was constituted about four years ago by the Senate President and members have not changed till today. Surprisingly, they feign ignorance about the remodelling of the airports, assaulting media hype, suffocating debts, flawed procedure of awarding contracts, surreptitious concessioning of Abuja GAT and fund allocation. This is the same airspace and airports they have traversed every day, while also participating in the commissioning, contracting and receiving foreign airlines that operate into 'emotional' airports. In my last article on mergers, I stated that “FAAN is self-sustaining, if it is free from Government interference. The same organisation that is not ready for privatisation due to security threats, but can collect international facility with interest to build five new international terminals, while also revamping twenty one airports at the same time is a commercial architechural world record, in view of the perceived security threats.” The hen has come home to roost. The Committee is challenged to come clean by washing their hands like Pilate did in public before going for corrective measures. They also need to tell the Presidency to review the merging of the regulator with service providers, and also protect FAAN from Government interference, so it can run commercially as advised by the Committee. Since the Executive and Legislature have foisted the leadership of NCAA on us over the years despite our advice to allow our best legs compete through advertisement, rather than through nomination which has weakened the regulatory and autonomous prowess of the NCAA. We implore the Committee to immediately initiate a regulatory consolidation process for our airlines, by raising the bar to a minimum of seven aircrafts. The recent excitement over the granting of AOCs to three airlines , which practically limped to make the minimum regulation of two aircraft is simply appalling. Foreign airlines are all over our airspace enjoying our political cabotage, while bypassing our weak carriers due to their size, financial prowess and processes. We need to break the scale. Is it not a shame that we do not have a Nigerian carrier in IATA Clearing House and only one of them is IOSA certified, yet we have delegations with allowances that are in DOHA sitting at IATA gatherings with shoulders raised as Nigerians. The Committee should also look into manpower distribution, which is improperly skewed and bleeding the agencies dry. Rather than merge, they can cut cost drastically by restructuring and placing political employees on the appropriate scale. BASA fund has run dry and has not been used for critical safety issues as espoused by agigators who did not want it domiciled with the CBN. It was instead gulped by commercial projects. Considering the interest and passion we have for that fund, I do not see our airlines going beyond the triangular routes. The Permanent Secretary in the Ministry, Mrs. Jamila Shua’ra should be left alone to her job, she cannot turn rocks to cash. Using a section of the media, that was in the past used to hype the transformation, to run her down, while exonerating the Supervising Minister is sheer blackmail. We have bitten more than we can chew, so let us clear the bowels before proceeding on medication. I also want to advise the Supervising Minister to limit his press statement on the projects and cargo airport, they are becoming incoherent. Lest I forget, the the Chinese contractors handling the new terminal at MMIA have erected a billboard stating clearly the client, developer and other contracting partners. This is the norm and a clear departure from the transformation remodellers, whose identities are shrouded in secrecy . The Senate Committe members did not see anything wrong, neither did they invite the Minister to the hallowed chamber to defend this anomaly. On the matter of inspectors sponsored by operators with business class tickets to inspect aircrafts, I am of the opinion that ICT, networking and professionalism have taken care of this issue worldwide. In the beginning it was acceptable, they could go and inspect. Not anymore. The rules of engagement should be given to the operators and the regulator should be diligent before giving a temporary approval that can be reversed if need be. Physical inspection is not in isolation, it is part of a process with many options,which may make it unnecessary to travel out. This option puts all liabilities and risks on the airline. Professionalism is more transparent, compared to the past, when they collected DTA and tickets from the operator - a pseudo compromise albino. Inspectors should only travel in exceptional cases at the behest of the operator. On CAT 1, there is nothing to cheer other than the 'big boy' pride and swagger along the West Coast . It is over ten years since we signed 'open skies' and four years since we attained CAT 1 certification, yet only one Nigerian airline operates scheduled flights into the US. The airline has neither increased frequency, points of entry or been winked at for code share and other commercial alliances by American carriers. It is not the fault of the Americans, but a Nigerian problem. Let us get our policy act together. I cannot end without mentioning the unfair advantage given to Ethiopian airlines and Emirates in frequencies and points of entry. The Ethiopians have four entries and a decoy in ASKY airlines, which competes with our carriers on the West Coast. They invested in a Togolese carrier, with only one point of entry, Lome, while Nigeria with four points of entry that generate a lot of revenue is not good for investment. My heart bleeds when I consider that Emirates and Ethiad from the same country has increased frequencies and points of entry, while investing in other countries with lower frequencies. This is simply aerial 'boko haram.'

Tuesday, May 20, 2014

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.

Friday, March 14, 2014

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.