The Nation Newspaper

Category: Aviation

  • Experts: master plan crucial to aviation’s growth

    Experts: master plan crucial to aviation’s growth

    To aviation experts a master plan is what the industry requires to grow. Such a master plan, they argue, will drive policies, attract investments and create robust carriers, KELVIN OSA OKUNBOR, reports.

    IN the last few years, aviation has come under criticism – scandals and controversies over uncompleted airport projects. This is an indication that managers of the sector have been acting without a clear master plan.

    Former Minister of Aviation Chief Osita Chidoka last week observed that the growth of the aviation sector is stunted due absence of a robust master plan.

    Chidoka said putting in place such plan would form the architecture on which aviation policies would be driven for industry development.

    The former minister stated this while giving a scorecard of his tenure.

    He challenged industry players and operators to push for a road map that would give an indication of what to expect in the sector in terms of planning and investments in the short, medium and long terms.

    Chidoka’s observation has attracted comments from some industry players. Experts say a master plan is long overdue for aviation.

    The necessity of such plan it was learnt encouraged the former minister a few months ago to organize a forum tagged Aviation Business Forum in Lagos.

    Stakeholders utilized the forum to examine ways and means of moving the industry forward by recommending policies that would attract investments into the sector.

    The absence of such a master plan, some experts including, Mr Olu Ohunayo, head of strategy Zenith Travels and Sheri Kyari executive director Centre for Aviation Research and Safety argue, is responsible for the inconsistency in policy direction on some projects that have been designed for implementation since 1999 till date.

    The experts aligned their thoughts with Chidoka who said government should work hard to ensure such a working document is put in place.

    Other experts, including Captain Edward Boyo, managing director Landover Aviation Company and former Nigeria Airways spokesman, Mr. Chris Aligbe say the absence of a solid aviation master plan has impacted negatively on the growth of the aviation sector especially the airline sub sector.

    They said if a solid master plan is in place, issues affecting criteria for robust domestic carriers that could compete with foreign carriers and retain huge capital flight at home could easily be sorted out.

    With the high turnover of Aviation Ministers, in the last 16 years, they are worried that if there existed a sector master plan properly articulated, it would have driven the development of the industry.

    According to the national president of National Association of Aircraft Pilots and Engineers (NAAPE), Isaac Balami until a solid master plan is put in place the anticipated development and growth of the aviation sector may not be achieved.

    Balami said such a master plan will bring about policies that will drive the growth and sustenance of domestic carriers.

    Also speaking an airline operator said the aviation industry would have recorded more achievement if there is a master plan that would draw up on how to attract investment in the sector in a manner that would drive job creation.

    He cited absence of a master plan that guides how the airport authority for instance encourage domestic carriers secure land leases around airports nationwide to set up aircraft maintenance hangars.

    Such high turnover he said has occasioned inconsistency in policy and its implementation.

    Since 1999 till date, no fewer than 10 persons have been appointed as Aviation Ministers.

    This high turnover in the strategic sector, experts say, is the reason for its stunted growth.

    Speaking last week in Lagos while giving his scorecard, former Minister of Aviation Chief Osita Chidoka agreed with the experts affirming that  the slow development of aviation is due largely to  lack of a vibrant master plan and absence of institutional memory.

    He said the sector is beset with a myriad of challenges, including absence of a master plan which ought to provide a template upon which all issues bordering on airport development should revolve.

    Chidoka said the absence of a working document has brought about frequent changes and transfer of personnel, thus rendering the relevant units of the ministry ineffective.

    As an intervention, Chidoka said a procurement process for the development of a master plan for Nigerian airports has commenced.

    He said: “The ministry has moved from its policy and supervisory role to an implementing agency under the guise of airport remodelling,” adding that the staff pooling system of the Federal Civil Service, limits the ministry ‘s ability to build and maintain a group of  technical experts to manage the affairs of the civil aviation industry.

    Chidoka said the pooling system should be modified to accommodate technical expertise in critical areas, pointing out that the ministry’s staff strength Is skewed towards service areas as against technical aviation related areas.

    He said staffing needs to be readjusted to enable the ministry beef up the staff numbers in the technical aviation areas, stating that it is the organisation’s core focus.

    Chidoka said government should conclude on-going procurement of consultants for the master plan to address weak policy leadership.

    “‘Government should divest the ministry of all airport projects and return same to the implementing agencies.”

     

    Aviation Business  Forum

     

    Only a few months ago, the ministry organized a forum where top executives of aviation and allied services organizations met in Lagos to design industry led initiatives to stimulate sustainable growth for the sector.

    Experts at the forum observed that beyond world class airline operations and infrastructure, Nigeria needs to play a leading role in the West African economic integration that aims to remove the barriers to the movement of traffic, such as visa requirements and the rigorous Customs clearance.

    The forum according to Chidoka also resolved that: “Government should not run a national flag carrier airline and that private owned airlines should not run as a national flag carrier airline. The objective is to ensure that ownership structure that engenders corporate governance; accountability and transparency are adhered to.

    That a diversified ownership that reflects a combination of institutional investors, public investors and private ownership that has an interest in going public is a major requirement in becoming a national flag carrier.

    That there can be as many national flag carriers that meet the set criteria.

    That the national flag carrier will espouse certain inherent national values that align with the Nigerian brand. That national flag carrier must operate an effective model.

    That an economic stimulus for aviation will involve a package of financial incentives and support across the value chain.

    It will involve having a robust national aviation industry strategy framework that will impact on key areas.”

    The former minister said if the sector must move forward, there is need to implement the strategic master plan that will address issues bordering on aerodrome infrastructure and operation, airline operations and safety, airspace management as well as manpower development.

     

    Policy interventions

     

    Chidoka lamented the failure by previous ministers to address the recommendations of the 2006 Air Marshal Paul Dike’s Report, which highlighted the challenges of the aviation industry.

    The minister said if the Buhari administration implements the recommendations of the Dike Report, the aviation sector will be on the path to recovery.

    He listed other interventions: “There is need for broader policy intervention that should bring about the setting up of aviation corporate governance and enterprise risk framework to reduce the likelihood of aviation corporate failures arising from moral hazard.

    Additionally, Chidoka called for the creation of a more robust and conventional national/ flag carrier policy framework to develop a national aviation fleet that can rival the huge consolidated global players, as well a review of current intervention models and facilitate a more robust aviation financing framework.

    He urged the creation of a robust regional hub/ aviation city model that drives commercialization, stimulate volume of funding required to leapfrog the aviation industry into the future.

    Revenue Automation                  Project

    As a way of enhancing the revenue streams of aviation agencies and blocking leakages, a committee was set up by the ministry to monitor, data capturing, invoicing, payment settlement and reporting of all agencies.

    The aviation revenue automation project has been implemented in many airports including Lagos, Abuja, Port Harcourt, Kano , Enugu and Calabar.

    Benin, Owerri, Kaduna, Maiduguri, Jos, Sokoto, Ilorin, Minna , Akure , Katsina, Ibadan airports are scheduled for the next phase of the project roll out.

    He said issues around project scope, fees and compliance were variously reviewed and mutually agreed among relevant stakeholders .”

    ICAO Audit / Security

    Though Nigeria has come under intense global scrutiny on account of the recurring incidents of stowaways at major airports efforts the former minister said are ongoing to improve on airport safety and security.

    He said preparations for the ICAO a Nigerian Aviation Security audit have witnessed remarkable improvements.

    He said:” We have identified gaps from the United States Transportation Safety Administration (TSA) and ICAO Needs Assessment Reviews were constituted into a gap analysis checklist and sent to the NCAA in April 2015.

    The tracking team has completed its first gap closure assessment visit to NCAA and FAAN over a month ago.

    After the assessment, 68 per cent of the identified gaps were closed.

    However, in the gaps closure review last month remarkable improvement was indicated, which might drive the gaps closure assessment percentage to over 90 per cent.”

     

    Customer Service

    Enhancement

     

    In the last few months several initiatives were executed to enhance passengers’ experience in the sector. Towards this end, aviation. Passengers’ service portal was deployed this year to provide prospective users with up to date information on flights operated within the Nigerian airspace.

    Only last week, Glo telecommunications installed wifi services at the Abuja and Lagos airports.

    Other airports are billed for installation with wifi in the next few months.

    FAAN

    The minister also spared a thought for failings by the Federal Airports Authority of Nigeria ( FAAN), which currently manages 21 out of the 25 airports in the country with a lopsided personnel of over 21 per cent technical staff as opposed to 78 per cent non technical personnel .

    Such lopsidedness he said is skewed against the mandate of the authority in providing adequate facilities and personnel for effective security at all airports.

    Chidoka said some interventions were put in place to whip the airport authority in line through the introduction of performance management, posting of airport managers, tracking of staff on customer service as well as refocusing of the Aerotropolis project by injecting greater transparency.

    Chidoka said: “Some steps have been taken to redress the situation through review of airport remodelling projects by independent quantity surveyors, provision of navigation and air field lighting facilities as well as setting up a committee on airport charges to align charges with competition.”

    On the key issues confronting FAAN, Chidoka said the authority has over N30 billion pension liability which is unfunded

    This he said arose on account of switch over to the new contributory pension scheme.

    He said the indebtedness of airlines to FAAN has impacted negatively on its finances thereby limiting its capacity to be self sustaining.

    Chidoka said: “There are staffing inefficiencies in Nigerian airports when compared with other airports of similar size around the world. There are ageing staff with very little competitive drive. There is no evidence of systematic personnel evaluation and absence of ling term staff planning at FAAN due to absence of a long term business plan.”

    He said FAAN should be corporatized into airport management companies in clusters of airports with a view to privatizing the companies.

    ‘If the sector must move forward, there is need to implement the strategic master plan that will address issues bordering on aerodrome infrastructure and operation, airline operations and safety, airspace management as well as manpower development’

     

     

  • Bi-Courtney unveils MMA2KIARace

    Bi-Courtney Aviation Services Limited (BASL), operator of the Murtala Muhammed Airport Terminal Two (MMA2), has unveiled its  online competition, titled: MMA2KIARace.

    The promo,  according to the spokesman of the  firm , Mr Remi Ladigbolu,  is Instagram-driven and can be accessed by fans on the new MMA2 corporate website: www.mma2.com.ng, its Twitter handle i: @MMA2-Bicourtney and Facebook page: MMA2Bicourtney.

    Ladigbolu said the online competition being the first-of-its-kind competition is designed by Gr8n, a marketing communications firm, aimed at further encouraging the public to embrace available online resources to conduct their businesses and social interactions.

    According to him: “Participants are expected to follow the MMA2KIARACE handle on instagram @mma2kiarace, repost and simply follow the given instructions.

    The competition, like past innovations by BASL, is inspired by the conviction that Nigeria can no longer afford to swim against the tide and must fully embrace the digital media for all its transactions and interactions, as is the case in developed parts of the world.

    “This will, undoubtedly, save a lot of time and resources currently being expended doing businesses that can easily be conducted within the confines of our homes and offices.

    It is in the pursuit of these objectives that BASL has redesigned the MMA2 website, with a vision to developing it into a one-stop platform for anything and everything aviation and much more.

    “For the competition, BASL is partnering brands such as Dana Air, Le Meridien, Microsoft Lumia, Levi’s, Swatch, TM Lewin, KFC and Pepsi, all in its bid to make the competition highly rewarding for not only the winner but also participants. The star prize is a new KIA Rio.”

     

  • Travel Investment Company, others merge

    •Firm ‘made N36b  in 2014’

    Travel Investment Company (TICO) has unveiled the first consolidation of the four   largest travel agencies in Nigeria .

    A fallout of the consolidation showed that the company  generated over N36 billion revenue, amounting to about 20 per cent of the travel industry revenue last year.

    The merging agencies include: Touchdown Travels, Quantum Travels, Finchglow Travels and Dees Travels.

    The group Chairman, Mr Michael Otubu, said the agencies, merger would strengthen their position  in the travel industry as well as raise service delivery.

    He said the company was incorporated in 2013 as a pioneer consolidation of travel agencies with a mandate to bring changes in travel business.

    TICO, he said, would ensure dynamism in the industry, and focus on offering large volume  of transactions and quality services to travellers at the best rates

    Otubu said: “Travel Investment Company, through its principal agencies, is poised to offer meaningful  travel experience and customer service to travellers. This translates to the raising of professional standards of the Nigerian travel industry to international practice benchmark and wide service offerings to clients. This positioning is strengthened by the 50 years of combined industry experience of the principal agencies.

    “In 2014, TICO generated a combined revenue of over N36 billion that amounts to approximately 20 per cent of the industry revenue. This performance quotient speaks as much of the market potentials in the travel industry as in the power of this consortium’s standing in the industry.

    “In the past 16 months, TICO has become the most engaging and pervasive partner for all major airlines in Nigeria. A lot of our airline partners, having sensed the opportunity, have moved quickly to embrace our services and expanded the scope of our partnership accord-ingly.”

    TICO’s  chief executive officer Mrs Irene Uti- Egbeogu said that the consolidation was conceived when the travel industry was facing challenges.

    She said: “These shake ups quickly started fading with the footsteps of technology experts who began to bring their strong technological and industry experience to bear  on competent travel consultancy.”

     

  • NAHCO bows to agents’ demand

    •Firm reduces cargo tarrif by 20 %

    THE last may not have been heard about Nigerian Aviation Handling Company’s (NAHC’s) decision to raise cargo tariff by 20 per cent. HAHCo initially raised the tariff by 30 per cent but was forced to reduce it to 20 per cent following protests by the Association of Nigerian Customs Licensed Agent (ANCLA).

    NAHCO and the Skyways Aviation Handling Company Limited  (SAHCOL) are the major cargo and passenger handling firms at the nation’s airports nationwide.

    Importers and exporters paid N40 per kilogramme for cargo before the hike, but following the increment, they were expected to pay N52 per kilogramme, being 30 per cent increase

    Following resistance by ANCL and National Assocition of Government Approved Freight Forwarders (NAGAF), NACHO reduced the tariff to 20 per cent, meaning that they would now pay N48 per kilogramme.

    In an interview, NAHCo  spokesman, Tayo Ajakaye, said the tariff reviewing process started in March, this year.

    Ajakaye said the firm agreed to adjust the increment in cargo tariff from 30 per cent to 20 per cent based on the complaints.

    He said NAHCO and ANCLA settled for 20  percent increase last Thursday, adding  “The new agreement means that NAHCO would have to revise downward the initial 30 percent increase it had started implementing while ANCLA would move up from zero to 20 percent.

    Under the new arrangement importers and exporters would now pay N48 per kilogramme for cargo.

    He went on: “In a meeting at the head office of NAHCO in Lagos, the negotiating team of ANCLA led by the Vice – Chairman, Bola Ashiru-Balogun, with the Treasurer, Afolabi Azeez and the Financial Secretary, Obanla Alex, reached the agreement with NAHCO in the interest of the overall development of the industry and in realisation of the fact that both sides are in the current tough economic situation.”

    Ashiru-Balogun described the adjustment as a bold step by the cargo firm, saying: “This is the first time in a long while that NAHCO would get its act right.”

    Ashiru-Balogun said although NAHCO described the agreement as a win-win situation,the feeling among agents is mixed, adding: “Though the tariff was expected, the implementation is being received with a mixed feeling among our members. To our teeming members, it is a lose –win situation.

    NAHCO won this time and should be congratulated. However, ANCLA would win the next time.

    “This is why we are calling for stronger relationship between the two partners. There is need to always consult ANCLA whenever issues that concern us are decided,” he added.

  • AIB boss urges professionals to raise standards

    The Commissioner /Chief Executive, Accident Investigations Bureau (AIB), Dr Felix Abali, has called on aviation professionals to raise the standard of  professionalism and efficiency in Aeronautical Information Services ( AIS).

    Speaking in Uyo  at an event marking the  World AIS Day, Dr Abali said all over the world, the aviation sector is undergoing rapid transformation and becoming more technically intensive  as well as technology  driven.

    He said: “There is a growing need for the proper integration of man and machine, including training for effective operation in a seamless environment of zero tolerance or delays in safety critical AeronauticalInformation dissemination.”

    Abali noted that the implementation of AIS automation in Nigeria was long overdue, adding that measures were being taken to actualise it and that safety delivery was a huge responsibility on AIS professionals. He said they needed to rededicate themselves towards the provision of a quality assured Aeronautical data.

    According to him, the role of effective and efficiency of Air navigation is important hence the need to comply effectively.

    The AIB Boss implored the management of Nigerian Civil Aviation Authority ( NCAA) Nigerian College of Aviation Technology ( NCAT) and NAMA to train and motivate all AIS staff for effective delivery of the risk ahead of them .

    He added that capacity development was a vital solution to the growing cases of human factors which accounted for most of the accidents and serious incidents in the aviation industry.

    He said  safety remained the primary concern of the aviation community worldwide including military, civil, scheduled and non scheduled flight operations, chartered flights or commercial aviation using any form of aircraft.

    Meanwhile, the Managing Director of Nigerian Airspace Management Agency  (NAMA)   Ibrahim Abdulsalam, has acknowledged that pivotal role being played  by members of AIS, saying it is essential to NAMA.

    Represented by the Director of Human Resource of NAMA, Dr Uwem Akason, he said data managing and processing were vital to Airspace users hence the activities of AIS were taken very seriously.

    Abdusalam  assured them of the management’s support in training,  saying that the agency was fashioning out ways of increasing its internally generated revenue to meet it’s internal request from staff.

    While assuring of the minister’s resolve on the completion of AIS automation, the NAMA boss  stressed the need for team work among staff to lift up the agency.

     

  • Flying with ease

    Flying with ease

    Airports  are deploying cutting edge technology to ease passenger travel. There are common users self check in kiosks, electronic boarding gates and baggage reconciliation system. Terminal operators and airlines are considering ways of reducing processing  costs  and time for passengers. When will Nigerian airports follow suit? KELVIN OSA- OKUNBOR asks.

    WHETHER  for local or international trips, check -in of passengers is not always pleasant.

    Over 15 million passengers who use the airports yearly have stories to tell. Some of the challenges they face are unduly long queues and duplication of efforts by agencies checking passengers’ documents and baggage, among others.

    But travel experience can be enhanced if cutting edge technology is deployed to save time, reduce stress and eliminate bottlenecks .

    The International Air Transport Association ( IATA), the Airports Council International (ACI ) and the International Civil Aviation Organisation ( ICAO ) have,  over the years mandated airport and terminal operators in Africa to install state-of-the-art equipment to ease passengers’ travel.

    According to  studies carried out by  IATA, the aviation industry could save as much as $ 1 billion annually and enjoy over 40 per cent market penetration if airport terminal managers and airlines  install self-service check-in facilities .

    Despite the accruing benefits of installing such facilities at airports,  Nigeria and other  African  countries, have failed to comply with the mandate of the global bodies.

    Unfortunately, the multi-billion naira airport remodelling projects still ongoing at 22 airports nationwide did not factor in the installation of common user check – in kiosks , electronic boarding gates as well as baggage reconciliation  system.

    According to experts, about 30 minutes spent on processing individual passengers at Nigerian airports could be reduced if the Federal Airports Authority of Nigeria ( FAAN) deploys common user self check-in kiosks, electronic boarding gates and baggage reconciliation  systems at terminals to facilitate domestic, regional and international travels.

    The slow march towards the use of technology at airports has raised questions about the competence of government agencies to run airport terminals, which have been effectively managed by the private sector in other parts of the world .

    This has fuelled agitations for the privatisation of airports by some experts, who argue that if  airports are left in private sector hands, they would function effectively with the deployment of modern facilities as obtainable in other parts of the world .

    Worried over this trend, Aviation Minister, Osita Chidoka, last week said government has approved contract for the installation of modern check-in facilities at the nation’s major international airports.

    Chidoka said it is disturbing that Nigerian airports are not measuring up with global airport terminals in terms of the use of technology to make air travel easy.

    He said  airports in the country ought to have world class facilities, which private sector managed terminals should emulate.

    He spoke in Lagos at the commissioning of the Common User Passenger Processing System (CUPPS) at the Bi-Courtney Aviation Services Limited, BASL, operators of the Murtala Mohammed Airport 2 (MMA2),  Lagos.

    Common use self-service (CUSS) is a shared kiosk, offering airport check-in to passengers without any need for ground staff.

    The CUPPS is the first of its kind in Nigeria and it is the latest automated technology in fast-tracking passenger facilitation at the airport.

    He praised the owners and operators of the airport, saying: “MMA2 has offered a template on how government should go about handling of Nigerian airports.

    “We have decided to change the system and MMA2 has beaten us to it. We need to improve passengers’ experience. I want other terminal operators to emulate the continuous improvements we are seeing in MMA2.  What MMA2 has done is good for the system,” he said.

    The minister took a swipe at the  infrastructural and equipment decay in the country’s aviation industry, adding that urgent steps are needed to correct the anomalies.

    According to aviation experts, the  CUSS can be used by several participating airlines in a single terminal.

    The first major installation of CUSS for multiple airlines was launched in 2003. By the end of  2008, CUSS had been implemented at more than 100 airports globally. But operators of Bi- Courtney Aviation Services Limited last week blazed the trail in the country when it commissioned the facility  at the Murtala Muhammed Airport Terminal Two ( MMA 2 ), Ikeja, Lagos .

    Speaking at the event, its chief operating officer , Mr Christophe Pennick,  said the firm installed the facility to upgrade the terminal to a global standard.

    He said it took 18 months of planning to ensure that passengers, airlines and ground handling companies enjoy the standard of services obtainable in other countries.

    Pennick said: “We can proudly say that MMA2 will be the only airport terminal in Nigeria to have solely installed the latest version of a computer system that enables the passengers and terminal users as a whole, experience a fast, secured, safe and customer friendly way to board a flight.

    “We have introduced  self-checking, automatic e-gates and a full Baggage Reconciliation System.

    “The system we have put in place is the same as installed in major international airports like Charles De Gaulle, Bangkok International, the brand new airport terminal in Mauritius and over 200 airports worldwide.

    “We changed all the check-in counters and scales and increased their number from 31 to 45. The design and manufacturing was done by the same company providing Amsterdam Schiphol and various other major international airports. We chose them for their quality of workmanship and product.”

    He said the computers at the check-in desks were all changed and each computer is connected to a brand new boarding pass printer and a new baggage tag printer, adding that each airline has a ticket barcode scanner to call up the ticket immediately and without any keyboard input to accelerate the check-in process.

    For passengers travelling without bags, he said the firm has purchased and installed four self-check-in kiosks.

    “We have increased the security features at MMA2 by installing e-gates before the security screening point. As explained, this makes it virtually impossible for an unauthorised person to enter the sterile boarding zone.

    “Each gate is now equipped with a boarding pass scanner and a brand new manifest printers. The installation of PAXTRACK makes it possible to restrict access to certain zone based on the boarding pass; analyse the peaks and makes it easier for us to plan resources; locate a passenger within the terminal and enables the boarding agent to have a better on-time performance.

    “The installation of a full baggage recovery system makes us the only terminal in Nigeria to offer an automated baggage reconciliation system as prescribed by ICAO.

    “We’re the only airport terminal in Nigeria that is providing baggage tags and boarding passes and the equipment was installed by our team and the system is owned by the airport.

    “Our focus is the customer. Our drive is customer satisfaction and eventually the result is being the preferred airport terminal in Nigeria,”he said.

    He explained that in its drive to being and remaining the best, it has chosen to ensure that the industry benefits from it, adding that the technology will process passengers faster, more secure and certainly make passengers enjoy their journey more.

    He said: “We, therefore, would appeal to the authorities that such investments in improvements in passengers’ facilitation, increased safety and security and industry efficiency should be motivated through various ways.”

    By Nigerian standards, domestic airport terminals have either airlines and ground handlers operate with manual boarding passes or expect the airlines to install their own equipment.

    “The philosophy we wanted to adopt at MMA2 was totally different. We want our customers and our customers’ customers to experience the same level of service and similar technology as airports abroad.

    “Passengers can enjoy easier and faster passage through the airport, due to less queues. Furthermore, CUSS kiosks can be located throughout the airport, ranging from car parks to transit areas, thus cutting down airport crowds.

    “Economically, CUSS reduces the labour cost of ground staff required by manual check-in. With the introduction of CUSS, the check-in area at the airport can be reduced to enable more retail outlets, or entertainment facilities.”

    A passenger,  who identified himself as Mr Foster Umen said in  the last few years, airlines operating in busy airports around the world have been educating clients on the benefits and the use of self-service kiosks and online check-in services.

    He said: “And while the queue remains, either for luggage check-in or for the use of kiosks themselves, the pure cost savings have encouraged the number of kiosks in use to grow.

    “Airport self check-in technology has brought about massive cost savings. For the airlines, such technology has brought about massive cost savings.”

    Unlike in Nigeria, the use of kiosks have started to grow, and become an everyday part of airline travel.

    New  CUSS kiosks are being used by some airports to help ease security risks when processing customers travelling between different terminals for connecting flights or passengers travelling on numerous airlines.

     

  • ‘Why domestic air cargo growth is slow’

    The Executive Vice President, Greater Washington Limited (GWL), Mr Owolabi Awosan, has identified the absence of dedicated aircraft for domestic air cargo as a major problem in Nigeria.

    Describing the domestic air cargo market as huge, Awosan said many Nigerians were yet to tap into opportunities in the business because they see air cargo as expensive.

    In an interview in Lagos, he urged operators in the logistic and supply chain to acquire big aircraft with huge compartments in its under belly to ferry cargoes as it is done in developed countries.

    He called on the government to review the multiple entry point granted foreign airlines which fly cargo into Nigeria, insisting that if a single entry point policy is in place, Nigerian cargo operators will distribute the cargo flown in by the foreign carriers.

    He said over 50 per cent of cargoes coming into Nigeria are carried by international airlines.

    He explained that unlike on the international routes where dedicated aircraft  is used for air cargo, the scenario is different on the domestic route where same aircraft is used to fly passengers and cargo.

    He said the absence of big cargo planes on domestic routes is limiting the growth of air cargo as the operators cannot air lift large size cargo across the country, which would save time of freight and enhance business operations for clients.

    He bemoaned the low level of awareness in domestic air cargo as another challenge operators were grappling with.

    He pointed out that with this ongoing awareness, Nigeria will soon discover that air cargo logistics is relatively cheaper, faster and safer, compared to transporting cargo by any other means of transportation.

    The executive vice president argued that with air cargo logistics, the pilfering of cargo often experienced in road transport is eliminated, adding that integrity remains the  bedrock of the business.

    On the possibility of customers tracking their air cargo, Awosan said it could be done using the company’s online real time platform.

    According to him, “Through our ‘online real time’ solution which caters to tracking of consignments, incident reporting and delivery mandates; we can keep track of goods sent through our channels from their point of origin to destination which helps to minimise associated supply chain risks.”

  • Airlines ‘huge debts’ worry NAMA chief

    Airlines ‘huge debts’ worry NAMA chief

    Nigerian Airspace Management Agency (NAMA) Managing Director  Ibrahim Abdulsalam is worried over what he calls “the huge domestic airlines’debts”.

    Though he did not give the figures, he said NAMA has adopted measures to recover the cash. These include reconciliation of the amount owed by each debtor-airline and the appointment of a consultant to assist in recovering the money.

    In an interview last weekend, he said appointing a consultant had become necessary because NAMA needs the money to execute some projects, such as maintenance of its air navigation equipment, at airports nationwide.

    THe ruled out grounding the debtor-airlines, adding that it was better to allow them remain operational to enable them pay.

    Abdulsalam said: “When  they are not in business, where will they have the money to offset their debts?”

    NAMA, he said, also considered the inconvenience of such action on travellers, who would have pre-paid for their flights and made other arrangements at their destinations.

    The problem is better resolved through dialogue, rather than applying the big stick, he said, adding: “A consultant is being considered to handle the reconciliation of the debts owed NAMA by Arik Air. However, there is a hitch in this because the said consultant is the same person that handles Arik’s business.The question arising therefrom is, ‘If finally given the nod by the Ministry of Aviation to carry out the reconciliation of Arik debts with NAMA, will the consultant not compromise his job in favour of Arik?’

    Abdulsalam went on: “This is why some industry watchers prefer the engagement of an independent accounting/financial consultant to do the job instead of the one that is working for Arik Air.

    “The second approach being considered by NAMA Management is to hold a reconciliation meeting between the agency and the umbrella body of all the  local airlines – Airline Operators of Nigeria (AON) – to look at the debt profiles of member-airlines to fast-track the recovery of their historical and overlapping debts. Arik Air is not a member of AON.”

    He also spoke of NAMA’s plans by the airspace agency to fix 19 air navigation equipment at airports nationwide which were recently flight-checked by the Dakar-based French company, ASECNA.

    Abdulsalam said ASCENA was invited to carry out some tests on the equipment to end speculations that some of them were not functioning effectively.

    The NAMA boss said: “We are trying to reposition our services to enhance the quality of services to airlines. All our navigational equipment are working well and airlines have confirmed the workability of the systems. That is one of the reasons we invited ASECNA to calibrate the equipment. The body is competent enough to check the effectiveness of the equipment.”

    The NAMA chief said the agency had concluded plans to deploy a new system of air traffic management called multilateration in the Gulf of Guinea region as discussions were ongoing to get approval with relevant bodies for safe-flight operations in the area.

    The NAMA boss said the controller pilot communication link has improved in the Nigerian airspace to cover the oceanic and Niger Delta regions where many helicopters operate.

    He also said new air routes have been established to save flight time and reduce consumption of aviation fuel for airlines.

    The new air routes, he said, were part implementation of the new concept christened performance-based navigation, for which the agency has trained over 40 air traffic controllers.

    He said: “We have started the implementation of performance based navigation with the training of over 40 air traffic controllers. Another 40 will resume training soon to keep in touch with the new technology which is saving flight time and fuel consumption.

    “The new air routes are Lagos to Conakry, Abuja to Nairobi, Abuja to Algeria, Cameroon to Lagos as well as Accra to Central African Republic.”

    He said the agency would not relent in the training of its technical personnel, as more air traffic controllers and engineers were being trained both at home and abroad to enhance their capacity.

    Abdulsalam added: “The Kano Safe Tower Project  has been completed. Under this project, air traffic controllers will move into a new control tower in Kano.

    “We have advanced further with the provision of air traffic services at new airports including Dutse, Kebbi and Bauchi airports.

    “We are installing new air navigation equipment at six airports, the equipment are currently undergoing factory acceptance.”

    He listed the challenges confronting the airspace agency to include inadequate funds and resolution of labour-related matters.

     

     

     

  • Firm plans 1.5m kg of cargo overhaul

    A FIRM Primeport Logistics is set to deepen its market share in the cargo clearing business at Port Harcourt International Airport by hauling at least 1.5 million kilos of cargo this year.

    The firm, which hauled 500,000 kilos of cargo last year, is optimistic of achieving  its target because of its structures and growing customer base.

    Its Managing Director, Femi Adewunmi, told reporters in Port Harcourt, the Rivers State capital that the firm is set to capitalise on its established structures to explore opportunities within the local environment, having created formidable partnerships with some foreign freight forwarders already.

    “As part of our strategies to leverage on the huge potential in this market, we will be introducing freight forward software to process our import documents and by extension boost efficiency of our services, “ Adewunmi said.

    He said his firm would also boost its capacity to enable it meet up with the set target.

    Cargo clearing at Port Harcourt International Airport has been tipped by industry watchers as a goldmine worth N5 billion with only very few informal operators handling the 17.5 million kilos of cargo yearly imported into the airport.

    However, despite these immense opportunities, stakeholders in the cargo clearing section of the airport have been plagued with series of challenges such as lack of communication tools, ineffective communication.

    Last week, the firm distributed 25 new walkie talkies to stakeholders in the cargo section of the airport.

    It said it is optimistic that the communication gadgets will not only speed up cargo clearing at the airport by easing some bureaucracy but should also boost efficient service delivery through the cargo clearing value chain in the airport.

    On his firm’s reason for the gesture, Adewunmi narrated that after a careful study of the challenges bedeviling the smooth flow of cargo clearing at the airport, it was discovered that the enormous time consumed in tallying cargo at the airport needed to be dwarfed.

    “The first process in the clearing process is tallying. Unfortunately this consumes so much time; sometimes as much as 24 hours due to ineffective communication and lack of communication tools amongst the Stakeholders,” the Managing Director disclosed, adding that this setback prompted his firm to take up the challenge of providing the 25 new walking-talking to various stakeholders in the airport.

  • ‘Aviation has huge potential’

    The Managing Director/Chief Country Officer, Citibank, Nigeria Mr. Omar Hafeez, has described the potential in the aviation industry as  enormous.

    He said the opportunities are huge enough that they could  generate huge revenue for the country if well harnessed.

    Hafeez, who made this known in Lagos during an interactive session the bank, had with stakeholders in the industry, said the world is looking at Nigeria as a ground for veritable business, especially the stability in the political space.

    According to him, the fact that the people of the country realise that their vote’s counts such giant feet is a veritable ground for business sustainability which the aviation industry can tap to its maximum.

    He said: “We have seen infrastructural development that attracts such business.

    “This is a new dawn when the people believe that their voices can be heard and their right protected and if given the condusive environment their business will strife.”

    He explained that the bank is partnering with the aviation industry globally and serving 442 aviation clients globally across 72 countries.

    “A lot of airlines that fly to Nigeria  look for banks to finance their operation; we are available.

    “When they are looking for premium and collections from these countries, we serve them better. We are bankers to majority of the airline that operates in Nigeria because we have the product and the expertise to serve them better,’’ he said.