How can aviation grow? It is by reworking existing policies to create the right environment for airlines, ground handling companies and other players, say stakeholders and experts at a roundtable in Lagos. KELVIN OSA OKUNBOR reports.
Experts and stakeholders in the aviation have advised the Federal Government to rework existing policies which they allege are obstacles to the sector’s growth.
Unless these policies are rejigged, the sector will not contribute significantly to the gross domestic product (GDP), they said.
Some of the policies include: lopsided bilateral services agreement, multiple entry points to foreign carriers, expatriate quota policy for aviation personnel, absence of national aircraft maintenance facility, exchange rate policy, review of customs procedure as well as multiple airport charges .
The experts include: Captain Mukthar Usman, Director General, Nigerian Civil Aviation Authority (NCAA).Alhaji Muneer Bankole , Managing Director, Medview Airlines; Dr Olu Owolabi, Chief Executive Officer, Skyways Aviation Handling Company Limited (SAHCOL); Mr Gbenga Olowo, President , Sabre Travel Network; Mr Chris Ndulue, Managing Director, Arik Air; Mr Solomon Ohiomah; and former President, Air Transport Services Senior Staff Association of Nigeria (ATSSSAN).
Speaking on Achieving a win-win aviation sector in Nigeria, at a forum in Lagos, the Permanent Secretary, Ministry of Aviation, Hajia Binta Bello, said achieving accelerated growth in the industry would require the collective input of players including airline owners and managers as government is ready to give the necessary assistance .
She spoke of plans by the government to deliver a national carrier, which she said was long overdue to correct the imbalance in air pact between Nigeria and many countries.
There were, however, divergent views on the proposal by the government to set up a national carrier.
The national carrier debate
President, Aviation Roundtable, Mr Gbenga Olowo, sought to know if there were gaps indigenous carriers on international routes could not fill that warrant the setting up of a national carrier.
To him, the government should enhance the capacity of indigenous carriers on international routes rather than setting up a carrier.
He said if adequate home work is not done, the national carrier could fail like others in the past.
Ndulue agreed with Olowo that setting up a national carrier 13 years after the Nigeria Airways was liquidated would amount to a policy somersault.
He said instead of setting up a new national carrier, the government should resolve issues on why domestic carriers are unable to compete with foreign counterparts.
He said there is need for government to consider protection measures for existing airlines to enable them remain strong and profitable.
But Ohiomah said setting up a national carrier would not only put foreign carriers in check, it would create jobs for aviation professionals.
Operational challenges
Bankole said the aviation sector is huge, adding that the operators are confronted with several “witches and wizards“ which prevent them from growth.
He listed the challenges facing domestic carriers to include high charges by government agencies which include: passenger service charge , ticket sales charge, aircraft landing and parking fees, value added tax (VAT) and other taxes charged by the Federal Inland Revenue Service (FIRS).
He said the industry could not achieve accelerated growth if the price of aviation fuel remains prohibitive with supply chain challenges.
”Unfavourable government policies are affecting local airlines as long as government continues to grant foreign airlines multiple entry points . Ethiopian Airlines for instance lands in Lagos, Abuja , Kano and Enugu. This does not leave any passenger for local,carriers to air lift.
“Spare parts are purchased in foreign currencies while tickets are sold in local currency. This makes the cost of aircraft maintenance in Nigeria very high , and had be one major challenge for local airlines. High cost of bank charges poses a great deal of problem to airlines. Training of airline indigenous personnel like pilots are not available in Nigeria,” he said.
He however proposed reduction in charges by government agencies from between 55 to 65 per cent to local carriers.
He also urged the government to consider a reduction in the price of aviation fuel as well as all year round availability of the product as ways to reduce operating costs .
Bankole said: ”The policy of multiple entry point should be reviewed. Any foreign airline seeking multiple port must partner with a local airlines before permission is granted.
“There should be 100 per cent waiver on importation of aircraft parts for all airlines . Access to one digit loan for airlines should be encouraged by the Central Bank of Nigeria (CBN) with favourable repayment plan.
“Moreover, the government can provide equipment to local airlines as support rather than giving out funds. All domestic airports should be improved and secured against stow -away , animal invasion and proper navigation aids and air field lighting system.”
Bankole said overnment should equip the Nigerian College of Aviation Technology (NCAT) to handle pilots’ simulator training, encourage technocrats to equip hangars to carry out C- check on aircraft in Nigeria.
Air cargo business
Owolabi said despite the potentials in air cargo value chain, the business is not encouraging in Nigeria due to myriad of challenges.
He said aviation cannot achieve a win-win target until government agencies including officials of Nigeria Customs Service (NCS) tidied up issues affecting the delay of cargo at the airport due to examination and release of cargo.
He said cargo experience delay at the airports due mainly to the activities of ground handlers in respect of tallying and delivery as well as non – availability of space for cargo aircraft.
He urged government to quickly fix the challenges associated with sub-standard airport infrastructure including cold room facilities.
He said: ”There is need to examine multiple cargo charges, lack of proper packaging technology for export cargo, high tariffs including parking duty , low rate of enlightenment as if affects import and clearance procedures as well as low volume of business which is the a rigid cation of the economy.”
To impact the growth of air cargo Owolabi urged government to address CBN’s policies on foreign exchange policies, review the list of goods under prohibition as well as rework excise duty regime to encourage export and cross border treaties.
He said : ” If the aviation industry will achieve growth government must invest in handling infrastructure, develop proper packaging technology , undertake less policy somersaults, stream line multiple charges .
To experience a revolution in air cargo , it will require proper policies to be in place and the right strategies in implementation.
All key players must be considered in any reform for there to be effective results .”
Regulatory environment
Usman said the NCAA has put in place regulatory measures to grow the industry.
He said the authority has unveiled a safety policy for all operators to comply with to ensure safety is not compromised.
He said: ”At the NCAA we have engaged in a wholesale and robust oversight regulation of the industry.
“Recently, as you are all aware there was a notice of rule making preceding the review of the Nigerian Civil Aviation Regulations.
“This is to grow the regulatory capacity in tandem with emerging trends, global best practices and developments that were not captured in the subsisting regulation.
“I must commend our airline operators who have internalised our regulations and have imbibed the regulators’ consistent directive for self regulation as a primary and vital safety mechanism.
“This self-regulation which accordingly confers on the airline operators as the primary safety agent has gone a long way in putting on stream an efficient symbiotic relationship between the NCAA and the operators.”
