The Nation Newspaper

Category: Aviation

  • Nigeria to begin aviation fuel production soon, says minister

    Nigeria to begin aviation fuel production soon, says minister

    To reduce the cost of aviation fuel, Nigeria will soon begin its production, Minister of State for Aviation Senator Hadi Sirika has said.

    Its  production, he noted, would also regularise its supply and lead to a reduction in air fares

    Sirika,who spoke at a stakeholders’ forum in Abuja, said the government had approved duty waivers’ for importation of aircraft and spares to ensure the survival of domestic airlines

    The government, he said, was working on an aviation masterplan.

    The masterplan, Sirika said,would be incorporated into the National Integrated Infrastructure Master Plan ( NIIMP).

    He said without a sector master plan, it would be difficult for stakeholders to raise ideas or programmes that would be beneficial to the industry. According to him, stakeholders must live up to their responsibilities by demonstrating preparedness to take aviation higher. The minister  said government was concerned about aviation fuel challenges which,  he noted, were affecting the operations of  domestic carriers.

    Sirika said the Ministry of Aviation is working with the Central Bank of Nigeria ( CBN), the Ministry of Budget and National Planning and that of Finance to include airlines on priority list of its foreign exchange allocation, stating that government has opened this window for domestic carriers because of the huge challenges faced  by operators who sell tickets in local currencies  and are expected to purchase aircraft spares and carry out maintenance  in foreign currencies.s

    He spoke of government’s plans   to set up an Aviation Development Fund, for industry entrepreneurs to get long-term funding at reasonable interest rates.

    He said access to capital at single digit for airline operators  will support growth and stability in the industry, saying that government is conscious of the need to protect indigenous operators and professionals, by ensuring that there is enforcement of expatriate quota system and policy review validation  of foreign licence.

    “Currently, there are lots of trained professional aviators especially pilots that are unemployed in Nigeria, while foreign aviation professionals are taking these jobs meant for Nigerians and are paid in foreign currency.”

    However, he said the problems of the sector are not without solution as government is planning to establish an Aviation Leasing Company to address issues bordering on limited  access to capital and high cost of funds, huge debt profile,  inadequate number of aircraft and high cost of leasing.

    He said the need to restructure the industry has become imperative in the face of ageing work force, dearth of professionals as well as unsustainable level of staffing .

    “We need to begin to address these issues by focusing on capacity building, staff verification and biometrics, review of people processes and technology, drive for leaner organisations for the agencies, agencies becoming self accounting for efficiency and review of acts setting up agencies to upscale governance and reduce overlap in functions,” he said.

    He canvassed for the establishment of a university that would produce the needed workforce for efficiency. He said:“This is driven by absence of high level management cadre, absence of research and development capacities to evolve long term plans and strategic vision for the industry.

    “This is to  be achieved with technical and manegement support of the International Civil Aviation Organisation and some donor nations.This item will require legislation and government will provide the enabling enviroment .” The minister also spared a thought for  the huge cost of aircraft maintenance as well as absence of major aircraft repairs facility in Nigeria and West Africa.

    He said: “There is the need to create an enabling enviroment for the setting up of a world class  aircraft maintenance repair and overhaul facility that will attract clientele from all over the world especially Africa,” adding that the facility will further be encouraged to start manufacturing  airplane parts in the long term.

  • ‘Expatriates may take over aviation jobs in 10 years’

    Expatriates may take over  high-end technical positions in  aviation in 10 years because of  lack of well-trained and type-rated technical personnel, former Aviation Round Table (ART) president Captain Dele Ore has said.

    Ore, who spoke in Lagos, said the government’s signing of Bilateral Air Service Agreements (BASAs) with foreign countries and other unfavourable airlines’policies   would continue to hamper growth.

    Ore warned that with expatriates taking over the positions of local technical personnel, the next 10 years might be worse for the industry.

    He explained that many pilots trained at home and abroad were roaming the streets without jobs, noting that local airlines were getting approvals from the Ministry of Foreign Affairs for expatriate quota, which would negatively affect Nigerian professionals in the future.

    He recalled that  as far back as 1984, the defunct Nigeria Airways had put Nigerians in critical positions,lamenting that  the reverse was now the case as foreigners had taken over.

    According to Captain Ore,since the demiseof the Nigeria Airwaysin 1984, local jobs and training  have been  in jeopardy.

    “If care is not taken, soon, we will have half-baked aircraft commanders in the cockpit, ” he said.

    On policy, Ore declared that bad policy formulations and implementations of the government in the past led to the early collapse of operating airlines in the country, stressing that despite this, such bad policies still continued unabated .

    He insisted that there was nothing wrong with signing of BASAs, but said the nation must benefit with such arrangements.

  • Ojikutu advises NCAA on JET A1 standard

    Aviation security expert, Group Capt. John Ojikutu (rtd) has charged the Nigeria Civil Aviation Authority (NCAA) to draw up standards for Jet-A1 quality assurance.The exercise will  start with the transportation vehicles profile;supply and trucking systems; storage and dispensing systems.

    He stated that at the moment, vehicles supplying aviation fuel, otherwise known as Jet-A1 are not sufficiently distinct from those supplying other petroleum products.

    Ojikutu disclosed that the consequence of all these development could result in fuel contamination as some of the Accident Investigation Bureau (AIB) Reports of some aircraft accidents have shown.

    His words, “Up till about 1992, Jet-A1 supply to Murtala Muhammed Airport, was through pipelines from Ejigbo or the Nigeria National Petroleum Corporation (NNPC) depot. The supply from the MMA depot to the hydrants on the apron where fuel is dispensed to aircraft, were done also through the pipelines. The method then was quality assurance in practice.”

    He, however, regretted that unfortunately, since the pipelines got ruptured in 1992, nobody in NNPC, NCAA, Federal Airports Authority of Nigeria (FAAN) and even the airlines, the end users, raised serious concern on why there had been no repairs of the pipelines in 24 years.

    The former commandant, Murtala Muhammed Airport, stated that the neglect of the repair of the pipelines is a major reason for the high cost of Jet-A1 and invariably the airlines operating cost if the costs of transportation and demurrage on the tankers are considered.

  • Lagos: Factional NLC protest disrupts aviation activities

    Lagos: Factional NLC protest disrupts aviation activities

    • Airlines operate skeletal flights amid cancellation
    Unions in the aviation industry yesterday joined factional wing of the Nigerian Labour Congress (NLC), acting under the aegis of Joint Action Front to disrupt vehicular and passenger activities around the Lagos Airport as part of protest against the deregulation of the downstream sector of the petroleum industry.
    The unions are the National Union of Airport Transport Employees (NUATE) and the Association of Senior Services Staff Association of Nigeria (ATSSSAN).
    This is just as they threatened to shut down the Lagos Airport on Thursday, should government fail to reverse the increase in the pump price of Premium Motor Spirit (PMS), otherwise known as petrol.
    The factional wing of NLC, led other protesters to block major roads leading into the Lagos Airport occasioning traffic gridlock on the Mobolaji Bank Anthony Way, Ikeja.
    They took possession on the road in the early hours thus depriving limousine cab operators from taking passengers and airport workers to the airport.
    Besides the protest, some domestic carriers including DANA Air, Arik, Aero, First Nation Airways, Med-View operated skeletal services.
    Most of them had to cancel or re-schedule flights because of limited passengers.
    Most of the aviation agencies including the Federal Airports Authority of Nigeria (FAAN), Nigerian Civil Aviation Authority (NCAA), Nigerian Airspace Management Agency (NAMA), opened their offices for normal activities.
  • Emirates Group profit hits $2.2billion

    Emirates Group profit hits $2.2billion

    Emirates Group profit has hit $2.2 billion. This was attained amid operational challenges.

    In its 2015-16 Annual Report, the Group posted the $2.2 billion profit for the financial year ending March 31,  2016, higher  with 50 per cent than last year’s.

    Its earning was $25.3 billion,  a decrease of  three per cent over last year’s while the cash balance increased to $6.4 billion.

    Emirates Airline Chairman and Chief Executive Sheikh Ibn Ahmed Saeed Al Maktoum said: “Emirates and Dnata, its subsidiary, delivered record profits, solid business results, and continued to grow throughout 2015-16.

    “Against an unfavourable currency situation, which eroded our revenues and profits, an uncertain global economic environment dogged by weak consumer and investor sentiment, as well as ongoing socio-political instability in many regions around the world, the Group’s performance is testament to the success of our business model and strategies.

    “Our ongoing investments to develop our people and enhance our business performance, enable us to react with agility to the new challenges and opportunities that every year brings. In 2015-16, the group collectively invested over $ 4.7 billion in new aircraft and equipment, the acquisition of companies, modern facilities, the latest technologies, and staff initiatives. These will build on our strong foundations, extend our competitive edge, and accelerate our progress towards our long-term goals.”

    The group’s employee base is more than 80 subsidiaries and companies increased by 13 per cent  to over 95,000-strong members of staff, representing over 160 different nationalities.

    He said :“Looking at the year ahead, we expect that the low oil prices will continue to be a double-edged sword – a boom for our operating costs, but a bane for global business and consumer confidence. The strong US dollar against major currencies will remain a challenge, as will the looming threat of protectionism in some countries.

    However, we enter the new financial year with confidence, backed by a robust balance sheet, solid track record, diverse global portfolio, and international talent pool. We will continue to evolve and grow our business profitably, and work even harder to meet and exceed our customers’ expectations.”

    Emirates’ total passenger and cargo capacity, he said, crossed the 56 billion mark to 56.4 billion  at the end of 2015-16, cementing its position as the world’s largest international airline.

    Emirates received 29 new aircraft, its highest number during a financial year, including 16 A380s, 12 Boeing 777-300ERs and one Boeing 777F, bringing its total fleet to 251 at the end of March.

  • How to resolve aviation fuel supply challenges

    How to resolve aviation fuel supply challenges

    Resolving the challenges associated with the supply of aviation fuel to airlines and the attendant negative impact on flight operations took the centre stage at a stakeholders’ meeting in Lagos, where operators tried to chart the way forward, KELVIN OSA-OKUNBOR, reports

    There is a global concern over the quality of aviation fuel, (Jet A – 1) supplied to airlines, using poor infrastructure including trucks and storage facilities that could have microbial effect on it.

    According to experts, such microbial effects on the fuel could occur at the point of transportating it from coastal depots to airfield storage.

    Possible contaminaion of Jet A1, experts said, informed the need for industry players and regulators to extend the scope of research on microbial impact on jet fuel and handling equipment.

    Last week in Lagos, players met under the aegis of stakeholders’ meeting of jet fuel supply in Nigeria to examine the short and long- term measures of resolving the challenges associated with the supply of aviation fuel.

    The convener and  the Managing Director of CITA Aviation Fueling Company Limited, Mr Thomas Ogungbangbe, said stakeholders had continued to express concerns over the quality, safety and reliability of the aviation fuel supply chain.

    According to him, the annual volume of aviation fuel usage in Nigeria, which peaked at about one billion litres in 2005, has declined to half that number 10 years after.

    The aviation fueling industry, he said, is at the crossroads because operators are using short-term measures to manage supply disruptions, while seeking long-term solutions for the enhancement of the supply chain from marine terminals to airports.

    According to him, company has funded a $100,000 research at the University of Ilorin on the biological content of aviation fuel.

    He said: “It is a serious concern and which requires high commitment in the industry to address perennial problems associated with the value chain, from product sourcing to the wings of the aircraft on the tarmac.

    “This is the reason experienced professionals were invited to identify the causes, challenges and proffer permanent solution to the issue of quality and reliability of aviation fuel, not only in Nigeria, but accross the globe.

    “We should, therefore, leverage the resolution at this forum to articulate global best practices that will engender a qualitive value chain strategy to propel and evolve the standard operating procedures of aviation fuel processing that will be of value to operators.”

    The Managing Director, FederalAio\rports Authority of Nigeria (FAAN), Saleh Dunoma,   who represented the Minister of State for Aviation, Senator Hadi Sirika, said the Ministries of Aviation and Petroluem Resources were working on a proposal to carry out integrity test on the abandoned 94-kilometre Jet Fuel pipeline from the Atlas Cove via Mosimi to Lagos Airport.

    Dunoma said the decision was prompted by the need to ensure the smooth delivery of aviation fuel to the airport to eliminate channels of contamination.

    He said FAAN was ready to collaborate with players in the supply chain by providing the right infrastructure for them to operate.

    He said establishing a cordial relationship between operators and the airport authority will bring about signicant reduction in the cost of operation for airlines and improve security.

    Dunoma said: “FAAN and the Ministries of Aviation and Petroluem Resources have met to agree that there should be adequate supply of aviation fuel to airlines. We are looking at revitalising the pipelines to eliminate supply chain challenges and how to reduce the cost of aviation fuel through local refining at the Nigerian National Petroluem Corporation depots in Port Harcourt and Kaduna.”

    The two NNPC refineries, he said, must look at the quickest way of starting aviation fuel production.

    “The ministry will go through the recommendations made at this forum and implement worthy ideas generated. The aviation ministry also had a meeting recently with the Ministry of Petroleum and both ministries decided to work together to ensure that the cost of doing business in the aviation industry is reduced,” he said.

    Albert Olayemi, a professor from  the Department of Microbiology, Obafemi Awolowo University (OAU), in his paper entitled: “The Study of Microbial Contamination of Aviation Fuel and Fuel Handling Systems in Tropical Africa”, said Jet fuel contains microbes, which cause engines to work below capacity and, sometimes, lead to aircraft crashing.

    “You cannot remove water totally from aviation fuel, but the water allowed is 0.1 per cent and that is no guarantee of safety because even at .05 per cent, microbes will still be able to grow and cause havoc,” Olayemi said.

    International Air Transport Association’s (IATA) manager in-charge of Commercial Campaign Mr. Gearardo Mesias said awareness of aviation fuel safety measures had increased across the world in the last five years.

    CITA  Chief Operating Officer Betiku Olasimbo said there was the need to improve on local refining capacity, web-based  data compilation and long-term storage facilities at the airports, as well as increased use of hydrants and evaluation of new supply routes, such as rail from coastal depots to airfield storage points as ways out.

    The Executive Secretary of Major Oil Marketers Association of Nigeria ( MOMAN ), Mr. Obafemi Olawore, said aviation fuel supply could be improved if the government re-inaugurated the Mosimi pipelines as strategic infrastructure to support the industry.

    In the alternative, the government should implement the private management of the pipelines on renovate, operate and transfer basis.

    “Government as a long-term measure should consider licensing more private refineries, which should start modular refining that is jet fuel based. There should be additional jetties in other geo-political zones outside Lagos.”

    The Chief Executive Officer of Eterna Oil, Mahmud Tukur, said there was the need to focus on real supply issues as lack of adequate facilities had increased the cost of doing business.

    He said: “We do not need aviation tank farms if the pipelines meant for transporting aviation fuel from the depot to the airport are working.”

    An official of the Department of Petroluem Resources (DPR), Ali Ndanusa, said examine the quality of aviation fuel supplied to airlines was vital.

    His submission was premised on the proliferation of storage facilities at the airports.

    He said: “It is only when there are issues that DPR looks at supply chain. We need to monitor the right quality delivered to the aircraft. This is because we want aviation fuel to be of the highest quality. But, we are worried over the proliferation of fuel depots at airports. There is a need for FAAN and the Nigerian Civil Aviation Authority to take a critical look at operators that are constructing Jet A-1 supply facilities. They have to be monitored for the safety and quality of the product.”

    Replying, the Director of Flight Operations, NCAA, Capt Abdulahi Sidi, said the authority would ensure quality control in the supply of aviation fuel.

    He said: “Before any operator is given approval, all must be well. NCAA carries out checks to ensure safety of airlines.”

  • Expert proffers solution to airlines’ problems

    Expert proffers solution to airlines’ problems

    The President of Sabre Network West Africa and the current President of Aviation Round Table (ART), a think-tank body in the industry, Gbenga Olowo, has said the fortunes of air transport sector is declining with reduction in fleet and poor service of some domestic routes.

    Olowo attributed Nigerian airlines’ problem to  government’s lack of policy focus and hostile operating environment, which include high charges indiscriminately leveled on the airlines.

    “Airline user charges, for example, are as high as 15 per cent. User charges are revenue collected for other organisations factored into the fare (without commission ), whereas airlines are not revenue collectors. Hence the International Air Transport Association (IATA) Director-General, Tony Tyler described airlines as cash cows.

    “High cost of fuel, high cost of funds, exorbitant airport rent, airspace movement charges require government’s attention. On the other hand, poor management decisions and corporate governance by the airlines owners have resulted into high mortality rate in the industry,” Olowo said.

    He recalled that in  2010, Nigerian airlines had 54 commercial operating aircraft, but by 2013 the fleet had reduced to 39, noting that with the declining fleet size, route expansion would be limited and robust schedule very difficult and down time for maintenance would impact negatively on schedule.

    However, Olowo observed that airline mortality rate in Africa especially Nigeria is relatively high usually 10-15 years but often less for so many reasons and attributed it to very difficult operating environment resulting from government policy inconsistency and lack of direction or focus to absolute lack of support “from what the Bible describe as dull hearing.”

    “The airlines are faced with so many operational issues without government attention. That is not all. There is no corporate governance in most of the airlines. One-man owner calls all the shots and takes a lot of unwholesome decisions. The airlines are relatively small, weak and vulnerable to competition.”

    The ART President said Nigerian airlines cannot cope with the charges, the harsh operational environment and still thrive unless government takes actions to reposition the domestic carriers, which are critical to the economic development of the country.

    This unfavourable situation, he noted, has put airlines in huge debts and they have become insolvent.

    “Insolvency simply put is when an individual or organisation can no longer meet its financial obligations. Do an x-ray of our airlines today; this is precariously what you find. All the airlines owe huge debts to fuellers, workers, government and trade partners. Government should set up revenue collection agent either individual firms or banks to collect user charges being collected on tickets and eroding airline revenue with several debt burden and conflict with government agencies.”

    He said President Muhammadu Buhari should task Transport / Aviation Ministry to deliver at least 1 percent of the GDP by 2020. It is presently 0.4 percent, “a grossly underperforming sector, by implication the sector will be required to grow annually at 25/30 percent and this is achievable. If we apply 5:20 rule to our airlines requesting them to grow fleet by 20 aircrafts every five years, it means three airlines by 2020 will parade a minimum of 60 operational aircrafts each, provide job for 15,000 workers and 30,000 workers with 120 aircrafts by 2025 at the rate of 250 workers per aircraft.”

    In the same vein, he noted that airports, airspace and catalytic activities would also grow simultaneously.

    “This is the only way to rescue market share from foreign airlines that must repatriate up to 95 per cent of their income back to their home countries in dollars and continue the weakening of the Naira. Truth be told, 5-10 aircraft airlines as we have it today cannot be described as strong schedule players. All the existing seven operators should pool their resources together, operate under one AOC (Air Operator Certificate), harmonise their schedule and stop the stupid ongoing competition among themselves. Then we will be having two near strong players,” Olowo urged.

     

  • Aviation fuel scarcity disrupts flights

    Aviation fuel scarcity disrupts flights

    • IATA, stakeholders to discuss jet fuel challenges in Nigeria
    Scarcity of aviation fuel yesterday disrupted flights at airports nationwide.
    Many domestic carriers including DANA Air had their flights between Lagos and Uyo rescheduled  due to the scarcity of JetA -1, another name for aviation.
    Passengers at airport terminals had to wait for hours to meet up with rescheduled flights.
    At the Lagos Airport flights were also adjusted.
    Worried over the trend, an operator in the oil and gas sector: CITA Petroleum  Limited will today hold a stakeholders meeting on jet fuel supply in Nigeria.
    The meeting will in Lagos as a platform to proffer a solution that will remove all identified challenges.
    According to a statement by the Chief Executive Officer of CITA, Mr Thomas Ogungbangbe, the meeting will provide stakeholders the opportunity to solve the current supply difficulties in Nigeria and propose solutions against re- occurrence which will have spiral effects on Nigeria’s status as a major hub of the aviation fuel industry in West Africa.
    He  said the International Air Transport Association (IATA),  Manager,  in charge of Commercial Fuel Campaigns, Mr Gerardo Mesias  will attend the meeting to consider implementation of a short term measure to effectively manage supply disruptions as they may occur.
    The meeting will also explore the necessity to plan long term solutions on how to enhance the jet fuel supply chain from-marine terminals to Nigerian airports.

  • FORMER SA TO AVIATION MINISTER, IROABUEKE WINS MANDELA FELLOWSHIP

    A former Special Assistant on Financial Strategy to former Minister ofAviation, Stella Oduah, Mr. Obiefule Iroabueke, has been selected forthe prestigious Mandela Washington Fellowship programme for 2016.

    Mr. Iroabueke, who is also the Assistant General Manager, BusinessDevelopment and Investment, Nigerian Airspace Management Agency (NAMA),was selected from the 10,000 Nigerians that applied for the fellowship.The Mandela Washington Fellowship is the flagship program of thePresident’s Young African Leaders Initiative (YALI) and a keycomponent of President Barrack Obama’s commitment to invest in the future of Africa.

    The White House developed the initiative in recognition of the critical and increasing role that young Africans are playing in strengthening democratic institutions, spurring economic growth, and enhancing peace and security in Africa.

    Mr. Iroabueke, in a statement in Abuja on Sunday, said that the fellowship would afford him the opportunity to contribute to Nigeria’s economy.

    He said: “The Mandela Washington Fellowship is an opportunity for youths to harness their ideas towards improving socio-economic development in Africa, strengthening of democratic institutions as well as enhancing of peace and security in Africa.

    “My goal is to learn as much as possible, improve my skills and develop the competencies I need to produce outstanding results in my endeavours; which include improving youth participation in governance as well as improving women and youth employment and economic empowerment.

    “I also hope to gain useful network that can be translated effectively to development in Nigeria and Africa as a whole.”

    Mr. Iroabueke, one of Nigeria’s foremost youth in public service was an early advocate of the Perishable Cargo programme developed under the
    auspices of the Ministry of Aviation.

    A keen campaigner for the emancipation of youths, Mr. Iroabueke, launched the WeHaveASay media platform to encourage youth participation
    in polity and policy (leadership).

    Speaking at a special gathering in Abuja, U.S Ambassador to Nigeria, James Entwistle, congratulated the new fellows on their competitive selection amongst 10,000 Nigerian applicants and tens of thousands of others throughout Africa.

  • Security expert seeks coordinated intelligence gathering, sharing at airports

    Security expert seeks coordinated intelligence gathering, sharing at airports

    A security expert has spoken on how  security can be improved at the nation’s airports.

    It is by coordinated intelligence gathering and sharing of security information among stakeholders according to Group Captain John Ojikutu (rtd), Centurion Securities Ltd Chief Executive and Aviation Round Table (ART) member.

    He said information sharing would help Nigeria to avoid the kind of terror attacks that happened at Brussels Airport few weeks ago.

    Ojikutu said a review of the airports’ security architecture of airports nationwide, has become  necessary, adding that it should be adopted as part of  measures  aimed at responding to aviation threat.

    Enhanced training and deployment of new technologies, he said, would assist aviation security personnel adapt to the new trend securing airports.

    The former Airport Commandant said the lessons from the Brussels Airport incident went beyond airport security, noting that Nigeria must evolve a national aviation security policy that emphasises intelligence in information gathering.

    ‘’The lesson from the Brussels terrorists attack is beyond airport security alone. It is more about national aviation security and the role of intelligence in the aviation security defence layers.

    “It is about intelligence or security agencies sharing names on the watch list with airlines and airports operators; it is about the immigration services sharing passengers names, records with other countries on principle of reciprocity as it is being done between the US and European countries; it is about airlines having a system for advance passengers information services at the departure airport and sharing the information with destination airports. These are intelligence networks,” Ojikutu said, adding: “Secondly, because the airport passenger terminal hall is a public area and therefore a soft target, we now need screening machines at all access gates into the terminal halls with capability for detecting im    provised explosive vapour. “

    He said stakeholders must be  concerned about insider threats and  regularly conduct background checks on  staff members at the airport security  controlled areas. This intelligence work is not necessarily the job for sniffer dogs, he added, stressing that the Close Circuit Television (CCTV) is a good complement to airport security only if it can pre-empt the act of terror attack and not after the attack as it is now playing out in Brussels and had played out in other terror attacks before it in the United States, London, Milan and Paris.

    On requirement for N25 billion to construct perimeter and operational fences at the nation’s 22  airports, Ojikutu said it may be reasonable if the cash is spent well.

    The security expert said”N25billion may just be reasonable for providing perimeter and security fences for the nation’s 22 airports if and only if we seriously identify the difference between the two: International Civil Aviation Organisation (ICAO), and  International Air Travel Association (IATA) lay emphasis on security fence (Annex 17) than perimeter fence (Annex 14).”