Thursday 6 August 2015

STAKEHOLDERS’ RESPONSE TO THE INTENDED NATIONAL CARRIER FOR NIGERIA



Compiled by Ariyo Akinfenwa


“Everyone who has been in, or around, aviation for a while would easily agree that the ill advised liquidation of the defunct national carrier, Nigeria Airways, is the evil wind that has bedeviled the industry till date.

It was not a mere death of an airline. It was the demise of the only know airline superstructure in Nigeria – the best ensemble of airline professionals. It was the demise of Nigeria’s global standard aircraft maintenance system that had already attained B737 check D (highest maintenance procedure) in Nigeria by Nigerians. It was, therefore, the death of Nigeria’s dream to establish and operate an MRO soonest.

The defunct National Carrier was responsible for the production of well trained aviation professionals – in Piloting, Engineering, Marketing, Cabin Crew, Dispatch, and every facet of aircraft operation. Its death also killed this noble endeavour.

And since the forced liquidation of the Nigeria Airways, no Nigerian Carrier has been able to go near its big shoes. None has even started to move in that direction.

It is, therefore, with enthusiastic welcome that one receives the news of the directive of President Buharito the Ministry of Aviation to expedite action on the establishment of a new national carrier which can now spearhead Nigeria’s deserved quest for global reckoning in aviation.

It is expected that the new carrier will strive for mega carrier status which can compete at the global stage. It is also expected that a full scale MRO will be part of the deal for the new carrier.

It is however important to sound this note of caution. Any idea of engaging a foreign airline, or foreign MRO as technical partner should be banished. This is because no sane business person will encourage a viable competitor. Nor will such partners agree to terms that will grant advantage to the new carrier overtheir already vested interests in their home airlines.

It is sincerely hoped that the Ministry of Aviation will be open and transparent in the process of setting up the new national carrier, and would allow participation by genuine industry stakeholders.

I and my organization, NAAPE, welcome this development enthusiastically, and we urge all industry stakeholders to support it with all sense of responsibility.”

Balami Isaac David
President, NAAPE

“With no concrete information from the Government, we are unable to make any comment yet although we feel that the Government should create an enabling environment rather than actually running an airline.”
Obi Mbanuzuo | Chief Commercial Officer (Acting Accountable Manager)
Dana Airlines

“It is a bad idea”

Anonymous airline CEO

“Before this decision/directive, have we done a thorough autopsy on the reasons that led to the death of Nigeria Airways?

National Carrier is going out of fashion in this industry as it has been demonstrated in many quarters.
National carriers succeed in countries were corruption is tightly managed as shown in the case of ET.

When government starts appointing Directors and those start awarding elephant/juicy contracts, the airline will gasp for breath and die.

Running is high cost and any cost that should be avoided has to be avoided. But with National Carrier in an environment like ours, I do not see this happening.
We can only have a competitive National Carrier if and only if;
·         We make our airports efficient and effective. This will make transit facilitation a good experience.
·         Government involvement must not be beyond 25% share.
·         Technical partner owing about 15%
·         Institutional investors take the remaining.

I am not optimistic but you never know.”

Kingsley Chima
Aviation Analyst

“Very simple, until there is a fundamental attitudinal change towards what belongs to government whatever is set up as a Nigerian government airline, therefore Nigeria Airways, will go the same way of the old airline. As long as I'm yet to see any concrete effort towards that change, I will advise President Muhammadu Buhari not to rush into it. In his last interview on Nigeria Television Authority, he admitted that the stealing of the nation's crude oil was still going on under his administration.

Nigeria of his old time as Head of State in 1983/85 is not Nigeria of 2015 where an airline can be conjured and it is established. He needs to reach out to former President Olusegun Obasanjo and ask him why Nigeria Airways was liquidated; he needs to reach out to former President Goodluck Jonathan and ask him why his government was unable to set up a national airline. There are a lot of booby traps on that path that will hurt his administration more than he can imagine if he decides to plunge into it. 

Though, we need a national airline, at what cost at this point in time, when the Naira is counting at over N220 to $1? There are more fundamental needs for the Nigerian people than the government taking up a humongous project of setting up again a national airline at this time or the next four years of President Buhari.

We need to do more roads and connect remote villages and upcoming towns that will create jobs for people; we need to increase our revenue generation opportunities to improve our per capita income; we need to address the the current policing of the country by decentralizing the police force as presently constituted to a stronger regional force supported by modern techniques of securing such a verse area and population to have a safer environment; we need to reevaluate our educational system to make it more productive than mere academic exercise thereby establishing a stronger base for a better, enduring and endearing Nigeria; and to improve on electricity supplies. These will make better impact on the lives of Nigerians than a national airline that will take as much as the same fund to achieve these improvement in the lives of the Nigerian people in the next four years.

The present airlines that operate international routes can be devotedly encouraged by ensuring that government officials only travel Nigerian airlines, especially where the journey terminates in the countries where the airlines operate to. A pronouncement by government will will have a huge effect and impact.”
DEBA Uwadiae
Editor-In-Chief
Business Travel Publication



1 comment:

Unknown said...

Aviation Round Table say NO to another Government Monopoly like FAAN in the sector.
Nigeria has succeeded in breaking government monoply with their numerous deficiencies in banking ,oil,teleccom and lately in power. It should not stay in Aviation.
This same attempt failed woefully under Obasanjo Administration when Virgin Nigeria had couple of preferential advantages over and above other operators .

Among obvious advantages in National Carrier concept and status will be the domiciliation of most lucrative routes, waivers, subsidies,tax exemptions,choice of airport location, etc.

Virgin Nigeria was permitted for example to use MMA intl airport for its domestic connectivity where other operators could not.

National Carrier concept is out dated and ill adviced. We currently parade about 6 -8 private airlines on 5N registration, they are by implication National Carriers as they fly the FLAG across Nations of the world.

Recipe for Nigeria is 2-3 strong Nigeria Flag carriers with a minimum fleet of 50 aircraft each within the next 5 years a la 5/50 Rule. i.e minimum growth fleet of each of these airlines should be 50 every 5 years.

They should complete internally and globally delivering efficient and economic services to the continent. They will reciprocate all Nigeria Air Services Agreement and change the Negative Balance of Trade against Nigeria with all trading partners. They will collaborate and deliver good return on investment to its owners and employees.

A very strong CAA is in position to midwife above objectives if they work closely with Amcon, SEC and Aviation Stakeholders as perennial problem of the sector has been Ownership, Funding and Sustainability dating back to Nigeria Airways era.

. Buhari administration should charge the Aviation section strict measurable deliverables. The sector which is seriously underperforming with meagre 0.4% contribution to the GDP must grow to about 5% before 2025.

Sustained Growth in Airlines.Airports .Etc required serious planning. This is achievable. Aviation world is planning 2050. Nigeria suffers from poor and or lack of planning.

Elder Gabriel O Olowo . mecons. fnim
President Aviation Round Table.