The Nation Newspaper

Category: Aviation

  • High infrastructure cost stalls travel industry growth

    High  cost of airport infrastructure is affecting the growth of the travel industry, the Chief  Executive Officer of Bi- Courtney Aviation Services, Christophe Pennick, has said .

    He said Nigeria, as the largest economy in Africa, requires massive infrastructure to drive air transportation, which is the key to sustainable and accelerated development .

    He told The Nation that  government needs to drive the growth of the industry by putting in place a policy framework that will attract private sector players to invest in airport infrastructure.

    He said: ” If we are committed to the growth and development of the aviation industry, government should address the challenge of air transport infrastructure. It is infrastructure that drives the growth of air transport and other support industries . But in Nigeria,  unfortunately infrastructure is below standard.”

    He said infrastructure in Nigeria is low and expensive, pointing out that until these issues are addressed, it may be difficult to unlock the potentials that air transport offers, stressing that government should put in place the right policies to motivate private sector players to develop the required infrastructure for air travel.

    Pennick explained that the way to actualise this, is for government to drive development through private sector inclusion, saying this will not only drive development, but also generate thousands of jobs.

    He urged that government should put in place development models that would accelerate  growth as is the practice in other parts of the world.

    He said in the 1990’s Nigeria and the Republic of South Korea were at par In terms of infrastructure, stating that overtime, South Korea has shown enough capacity to develop aviation infrastructure that is now among  the best in the world.

    ” It is frustrating to see in Nigeria that the potentials of the aviation industry as a driver for national development is not properly utilised. We need the private sector to push for change ,” he said.

    Also, the former General Manager in charge of Consumer Protection Directorate,  Nigerian Civil Aviation Authority ( NCAA), Mrs Fatima Garbati, said government needs to work hard to upgrade air transport infrastructure to enable service providers improve customer airport experience .

    She said vision and creativity are required in developing the kind of air travel infrastructure that would turn around the air transport sector.

    In her words: ” Infrastructure in Nigeria is sad. We need vision and creativity to drive it to unlock the potentials of the aviation sector, adding that it is instructive to challenge stakeholders to turn around the airport experience for many customers.

  • Foreign carriers rake over N231b in ticket sales, says NCAA

    Foreign carriers rake over N231b in ticket sales, says NCAA

    International airline operators  earned about N231billion from ticket sales from the country in 2013, theNigerian Civil Aviation Authority (NCAA) has said.

    Also, the regulator said N73 billion was realised by Nigerian domestic airlines within the same period.

    The regulatory body also revealed that domestic airlines carried over five million passengers in the country in the year under review.

    The Director-General of NCAA, Capt Mukhtar Usman, who made this known while speaking at a seminar in Lagos, listed British Airways, Emirates, Virgin Atlantic, Air France/ KLM, Delta Air Lines, Qatar Airways, South African Airways, Egypt Air, Kenya Airways and Turkish Airlines, Alitalia, Iberia, Saudi Arabian Airlines and Royal Air Maroc, as some of the leading successful foreign carriers in the country.

    Usman, who was represented by the Director, Consumer Protection, Mallam Adamu Abdulahi, said about 277,000 passengers were moved within the West Coast routes, while on the intra-African routes, 437,000 passengers were airlifted by the country’s carriers.

    The statistics given by Adamu showed that 1.4 million passengers were flown in 2013 on the intercontinental routes, adding that all these were achieved with the domestic airlines operating a total of 63,000 frequencies across the country, while on the West Coast, there were 4000 frequencies.

    He said the Intra – Africa were 4000 and inter-continental, recorded 7300 frequencies, stating  that Nigeria has Bilateral Air Services Agreement, (BASA) with 78 countries, but oberved that not all of the BASAs are utilised.

    Usman said in order to strengthen and widen the existing  BASAs, Nigerian delegates would be leaving for the Air Services Negotiation Conference in Indonesia very soon.

    He said in recognition of the increase in the volume of passengers, the Directorate of Consumer Protection, (DCP), has intensified efforts to process complaints and ensure comfort of air travellers.

    He pointed out that Nigeria has  become an attractive destination for foreign airlines, saying  ceaseless application for additional frequencies are being made regularly, adding that at the present, Nigeria has BASA with 78 countries.

    However, some of these are not being utilised.

    “In order to strengthen and widen our BASA with existing and new countries, Nigerian delegates will be attending the International Civil Aviation organisation (ICAO) Air Services Negotiation Conference (ICAN 2014) from November 17 to 21, 2014 at Bali, Indonesia.”

    Meanwhile, the Chairman of Aviation Media, Chukwuemeka Iwelunmo, has canvassed  the continuous remodeling exercise of the airports through radical development of infrastructure in the sector.

    Iwelunmo  charged the government to encourage domestic airlines in the country to ensure their survival and equally challenged domestic airlines operators to come together through merger in order to sustain their operations.

    He maintained that owner manager syndrome had continued to crumble most of the domestic airlines in the country, saying that this must be stopped if they are to survive.

    He added, “Running an airline is a delicate one, which involves a long term investment. It is unlike the motor parks an must be guided by all laid down standards and procedures.

  • ‘Why local banks cannot fund airlines’

    ‘Why local banks cannot fund airlines’

    THE Managing Director of Discovery Air, Captain Mohammed Abdulsalami has identifed double digit interest rate, rigorous conditions attached to base lending rates approved by the Central Bank of Nigeria (CBN), as impediments on the way of funding local carriers.

    He said the base rate of about 20 per cent for on-lending to the aviation sector is unfavourable, adding that because no domestic airline can access loan from the banks to buy aircraft and  expect to make any appreciable profit in the end.

    The Discovery Air chief, said airlines in other parts of the world access funds from financial institutions paying as less as two to three per cent as interest, stating that such low interest window, is the reason such airlines could remain in business profitably.

    He canvassed a regime whereby soft loans could be made available  to domestic operations by the Federal Government as financial intervention  to enable them acquire new aircraft .

    He said: ” Many Nigerian carriers cannot buy new aircraft because the interest rate charged by Nigerian Commercial banks is too high. If airlines get soft loans from the government, they could buy new aircraft from it and not what they expect from the banks.”

    Abdulsalami said in the developed world, interest rate by banks to airlines is between one to two per cent, but in Nigeria where the interest rate is over 20 per cent, how do you expect domestic carriers to compete with foreign  airlines that enjoy such credit facility from their governments and financial institutions? he queried.

    He said if Nigerian carriers could get such credit facility at two or three per cent interest rate, that would be free money to buy new aircraft, pointing out that domestic operators will find it difficult to compete if they pay over 20 to 24 per cent interest rate on loans .”

    He said banks annualise all their charges, commissions and fees and add them to their base lending rates to arrive at their all-inclusive average lending rates which they summit to the CBN, stating that base lending rates include all charges, commission and others which are submitted to the CBN.

    He appealed to government to assist domestic carriers by reducing the huge burden of taxes, and the oscillating price of aviation fuel, which he said, could be resolved through local refining of aviation fuel.

    ” The major challenge Nigerian airline operators face is the cost of getting money . It is very, very difficult . If the government could intervene by giving soft loans it would be easier for operators .

    “It is very difficult for a Nigerian company to start an airline because nobody is willing to lease an aircraft to you. We are forced to look for money to buy. This increases the capital outlay to start an airline . But, if government could give soft loans , it would be easier,” he said.

    He pointed out that alhough government assisted some domestic carriers in the past, “but not all carriers accessed that window,” saying, “I do not think the intervention funds given to some benefitting airlines were judiciously used.

    “That is the problem, but I am convinced that there is still room for government to step in and assist, he stated.

    “Government should ensure due diligence in giving out financial assistance to any airline to ensure that the money is utilised for the purpose it is given ,” Abdulsalami said.

  • Benefits of full jet flight simulator at Lagos Airport

    Benefits of full jet flight simulator at Lagos Airport

    Domestic  airline pilots, over the years, have been running huge bills travelling abroad for full jet  flight simulator training due to the absence of such facilities in Nigeria. If plans by the government to establish  the facility at the Murtala Muhammed International Airport, Lagos for Boeing 737 series are fruitful, capital flight will be reduced, reports KELVIN OSA – OKUNBOR.

    Aircraft maintenance and crew training constitute  huge expenditure for domestic carriers .

    Operators, according to a rough estimate, spend about N2.5 billions  yearly on such training .

    Training of flight crew is smandatory  for both the International Civil Aviation Organisation (ICAO) and the Nigerian Civil Aviation Authority  (NCAA).

    Airline pilots are expected to have what experts describe as recurrency training,  part of which is flight simulator for pilots.

    This multi-million dollar training done offshore, has been a source of big headache for many domestic carriers.

    Operators have consistently decried the failure of government to establish such facility in Nigeria.

    “Nigerian airlines spend at least N2.5 billion  annually in payment to foreign firms engaged in routine training of the pilots. Part of the training is full-jet flight simulator,” said a source.

    Pilots’ simulator training, also called recertification training, is done once every six months by all pilots in Nigeria in accordance with the NCAA’s regulation.

    Experts say this is one avenue for huge capital flight out of the country .

    Its been ascertained that an airline with four aircraft spends at least $450,000 on simulator training. This means that the airline spends $112,500 on pilot training for each aircraft.

    Consequently, major airlines  spend $8.3m (N1. 25 billion ) every six months, and $16.7m (N2.5 billion ) every year.

    Flight simulation reduces significantly, the cost of flight crew training.

    The proposal by government to purchase full Jet- Flight Simulator (5000 Series B737) with complete accessories for the Nigerian College of Aviation Technology (NCAT), Zaria, Kaduna State, has been welcomed by experts.

    The simulator, with its complete accessories, would be located at the Murtala Mohammed International Airport, Lagos.

    But as lofty as the proposal appears, many domestic airlines’ pilots are reluctant to comment on the matter.

    Reason: they earn allowance in foreign currency when they are sent out for training by their employers. Having such facility in Nigeria would put an end to such funds .

    The simulator, which will enable students of the aviation college  and already qualified pilots carry out their training locally  will also serve a dual purpose of a training facility and a source of revenue generation for the country.

    The Minister of Aviation, Chief Osita Chidoka, said  the contract which has been awarded to Messrs CAE of Canada, will cost  $21.459 million, stating that the project is expected to be completed within 24 months.

    “The project will serve a dual purpose of a training facility for the College and a source of revenue generation for the country.

    “In addition, it will be used for the initial training of students, as it will enjoy the patronage of the commercial airliners in Nigeria and the West African coast in the recurrent training of their jet-airliner pilots in compliance with  ICAO and NCAA regulations that pilots must have refresher training every six months,” he said.

    The Senior Special  Assistant to the President on Aviation matters, Captain Usman Shehu Iyal,  said  it is one of the milestones in the industry in the last six years .

    Iyal said government thought out the project soundly by citing it in Lagos, because it is the hub of aviation activities .

    He said many domestic airlines in Lagos use Boeing 737 aircraft, the simulator type to be established, adding that President Goodluck Jonathan said the project would also generate revenue  for the Nigerian College of Aviation Technology .

    Iyal said many domestic operators who hitherto send their pilots abroad for simulation training would now save money and deploy such funds into other key areas of their operations .

    He described the facility as  evidence of government’s focus on aviation infrastructure that will position the industry as a catalyst for economic development .

    He said apart from the simulator in Lagos, the government is also intensifying efforts to enhance capacity with the training of helicopter pilots by the Nigeria Air Force training flying school in Enugu, which has extended its training to other members of the Armed Forces  and the private sector .

    ”Flight simulation has made a major contribution to improved aviation safety. It also offers considerable financial saving to airlines and reduces the environmental impact of civil aviation,” he said.

    “This facility will be useful for most of the commercial airline pilots in Lagos . It will save huge foreign exchange spent by operators who used to send their pilots for overseas simulation training. This is one of the many projects being embarked on by government to change the face of aviation .

    “Government under the youth development programme for the Niger Delta,  has trained 66 Pilots and 61  Aircraft Engineers. Some of the pilots have undergone Advanced Commercial Pilot Training on instrumental flying and already employed, while others are at various stages of advanced training,” Iyal said.

    According to him, most of the engineers are rated on engine and frames and have equally been gainfully employed. “The Nigerian Air Force, in collaboration with private investors, have also initiated and set up a Pilot Training School in Enugu for both civil and military helicopter pilots,” he said.

    He continued: “Also, the Accident Investigation Bureau (AIB) has a simulator in Abuja that is able to process, download and analyse flight data recorders; so that saves time and money. “

    A former aircraft engineer with the defunct Nigeria Airways, Sheri Kyari, has described the facility as good for the aviation sector .

    He said pilots in training will experience a seamless transition switching between fixed base and full motion flight simulators or switching from flight simulator to the flight deck of a real Boeing aircraft.

    Besides, he said, flight simulation would reduce significantly the cost of flight crew training, adding that it can be more effective than airborne training.

    The Chief Executive Officer  of Centurion Securities and the former Commandant, Murtala Muhammed International Airport, Lagos, Group Captain John Ojikutu, described the cost of the simulator as prohibitive.

    He said those that would benefit from the facility are going to be private operators who are unwilling to spend money for training and would invariably owe NCAT for the service rendered to any of the airlines’ crew members.

    “Some operators are perpetual debtors to government service providers in the industry and have been enjoying financial intervention from government. The question to ask is, why bring the simulator to Lagos and not NCAT? Why seek the convenience always? On the long run it will end up to be a waste when there would be no money to maintain or sustain its regular operations. For me, this is a venture for private investors, not government,” Ojikutu said.

    Country Manager, British Airways and Iberia (Nigeria), Mr. Kola Olayinka, hinted that having the equipment could also add as additional revenue for airlines.

    He lamented the huge loss of revenue lost to capital flight annually, occasioned by offshore recurrent training.

    He added airline operators would spend less in sending crews abroad for recurrent training.

    His words: “This is another way of making money in the industry, but unfortunately, most of our investors are not looking in this direction.

    “Every aviation investors should not think of owing airline business because there are several businesses one can go into in the sector”.

  • Minister urges pilots, engineers on safety

    •Akwa Ibom to complete facility

    Aviation Minister, Chief Osita Chidoka, has urged members of the National Association of Aircraft Pilots and Engineers (NAAPE) to continue maintaining safety standards already in place, just as he promised to sustain the tempo of airport remodelling.

    speaking at the seminar and national executive committee meeting of the National Association of Aircraft Pilots and Engineers (NAAPE) Chief Chidoka, who was represented by a deputy director safety and technical policy in the ministry,  Clement Awogbawi, said transformation in the aviation industry has been very remarkable with the improvement of airport across the country that has remained users friendly.

    Chidoka said the transformation will not be complete without the recognition of NAAPE in aircraft maintenance and the building of aircraft  maintenance hangers in the country.

    He said the availability of maintenance hangar  will not only reduce the high cost of aircraft maintenance carried out outside Nigeria, but  also generate employment opportunities and reduce capital flights.

    Chidoka noted that the quest for Nigeria to become a hub in the sub region cannot be attained without adequate aircraft maintenance hangar facilities in the country.

    He highlighted the issue of security and safety to be pursued vigorously during his  tenure in order to provide safety and security in the sector.

    According to the Minister, in order to realise the dream of the hangar projects, governments alone cannot do it and then called for private participation in the system to achieve the success of the project.

    He praised the Akwa Ibom State government for taking a lead in this direction by building a hangar that will accommodate wide bodied aircraft.

    Governor Godswill Akpabio in his speech said the second Ibom International Airport runway will soon be completed to attract international operations to the airport.

    Governor Akpabio, who was represented by the state commissioner for  transportation, Godwin Ntukude said the Ibom Airport was a world class airport designed to accommodate wide bodied aircraft.

  • Enhancing local content in helicopter operations

    Enhancing local content in helicopter operations

    The National Content Development Board ( NCDB) and the Nigerian Civil Aviation Authority ( NCAA), are worried that rotary wing operators are not doing enough to deepen indigenous capacity in engineering component of helicopter operations , where expatriates still hold sway.To escape the hammer of regulatory bodies, the operators, are restrategising to ensure compliance, reports KELVIN OSA-OKUNBOR.

    Helicopter operators are taking steps to close noticeable gaps in compliance with Nigeria’s local content laws.

    Hitherto, these operators have   spent huge sums of foreign exchange on hiring foreign pilots and aircraft engineers, at the expense of training indigenous professionals.

    Many operators still have expatriate pilots and aircraft engineers in their employ, though, which is constituting a deep hole in their pockets.

    The regulatory bodies, including the Nigerian Civil Aviation Authority ( NCAA) and the National Content Development Board ( NCDB), are not impressed with the level of technology transfer by airlines, thereby  forcing them to design a schedule on how indigenous professionals would be trained to deepen local content .

    This is meant to address allegations that expatriate pilots and engineers dominate the helicopter arm of airline operations.

    But, the affected helicopter firms : Bristow , Aero and PanAfrican Aviation have clarified that more Nigerians are being trained to take over from foreigners .

    Their clarification came on the heels of the implementation of expatriate quota policy, where a certain per cent of professionals are required to fill the manpower gaps .

    Caverton Helicopters insists that it is committed to the development of indigenous capacity in the rotary arm wing of the business, and that it  has over the years been training its technical personnel to indigenise its operations.

    Only last year, the NCAA carried out an audit on both fixed and rotary wing operators, mandating them to draw up a training schedule for indigenous professionals , in particular aircraft and helicopter engineers .

    The objective of the training according to the NCAA, is to bridge the gap in expatriate quota, where helicopter operators should have increasing number of locals in their employment in engineering areas of its operations .

    Major helicopter operators include : Caverton , Bristow , Aero and PanAfrican Aviation .

    On an annual basis, Bristow Helicopters on its part, has been sponsoring the training of  indigenous helicopter pilots and engineers both at the Nigerian College of Aviation Technology ( NCAT ), in Zaria, Kaduna State and its academy in the United States.

    The investment in training of Nigerian pilots and engineers, according to the Managing Director, Captain Akin Oni, is part of efforts to deepen local participation in the helicopter arm of its business .

    Such move, he said, is intended to meet with the local content mandate of the government, by gradually  easeing out of foreigners in the helicopter sector.

    Only last week, one of the major rotary wing operators, Caverton Helicopters Limited,  graduated 12 of its personnel as helicopter engineers specialising in the handling of  AW139 type rating .

    Caverton is the only helicopter operator that has Nigerian engineers already type-rated on the aircraft type .

    The helicopter firm also trained two NCAA inspectors from its directorate of airworthiness in the AW139 type rating .

    The General Manager in charge of aircraft registration and airworthiness at the NCAA, Chinyere Totti, has described the feat as a major milestone in the sector.

    He said the NCAA, over time, has complained about the reluctance of airlines, whether  in the fixed or rotary arm, to train their indigenous personnel in critical areas, such as engineering, where expatriates dominate.

    He said the authority will continue to insist that airlines encourage the training of their personnel to deepen local content, adding that the training is very important to any airline organisation, and must be taken seriously.

    He described Caverton Helicopters as a firm that takes training  of its personnel seriously, as it adheres to an agreement reached in the last audit to ensure that its key personnel are sent for training in critical areas to develop indigenous capacity .

    The NCAA official disclosed that very soon, the authority will establish its training academy for the development of indigenous capacity in the aviation sector, saying NCAA is monitoring operators to ensure that they adhere to the training programme for their staff .

    The Managing Director of Caverton Helicopters, Captain Josiah Choms, said the firm is committed to bridging the gap in manpower by training more of its personnel in type-rating courses .

    He said :”This is  another milestone in our effort and commitment to develop local capacity within the Aviation sector of the Nigeria economy. Today we commemorate the successful completion of the AW139 Type Rating course by  another batch of engineers.  The course was delivered by the renowned REH Helicopters Limited in the United Kingdom  at the Executive Flight Facilty at Ikeja Lagos.

    “As you may be aware, there is a shortfall in the pool of type-rated engineers in the country.  Caverton has a dedicated programme to train and give types to indigenous  engineers on an ongoing basis,” he said, adding that the investment in training, ties-in with the vision of the Nigerian  government on local content in so many ways. Indigenous staff are trained to world standards  and deployed within our operations.

    “We do not have to spend scarce foreign exchange recruiting  staff from all over the world. In this way, we build indigenous capacity and also stem capital flight.“

    The Chairman of Caverton Helicopters, Adeniyi Makanjuola,  expained that by collaborating with renowned training providers to deliver training in-country, and having the oversight of the Nigerian Civil Aviation Authority (NCAA), Caverton has demonstrated that it is an innovative company that can adequately adapt the business to meet  changes in the operating environment.

    Makanjuola said, as a company, Caverton strongly believes that Nigerians can compete favourably with the best in the world if given the opportunity.

    He said: “This is the abiding lesson from our own corporate history, a lesson that we have turned into an article of faith. It is our belief that a critical aspect of giving opportunity to Nigerians is providing them the scarce skill-sets and the experience to compete in highly technical areas.

    “We are proud to say that we are contributing to the pool of trained indigenous workforce for the benefit of the company and the greater good of the aviation sector and the country as a whole. “

    According to Mr. Sean Ward, Deputy Technical Manager Shell Contract at Caverton, the training would add value to the operations of the firm in terms of enhancing local capacity .

    He said :” The engineers will be positioned within the company to the operational bases that will add more of the practical elements required to the theoretical knowledge they have obtained to become unrestricted Licensed Type Rated AW139 Engineers.

    “During this time period, the Engineering Training Department, as well as, the Maintenance Managers on the respective operational bases will act as Mentors and provide a structured path in their development process.”

    He said it should be noted that as the largest operator of AW 139 aircraft in the region and the Authorised Agusta Westland Service Centre, the company’s vision  vision is to be a one-stop-shop for training and logistics services in Sub-Saharan Africa.

    “This offers boundless opportunities to those who have the skills that the graduands have obtained.  Caverton Helicopters has made significant investments towards human capacity development in Nigeria,” he said

    The company has trained local pilots, engineers and seafarers in support of its aviation and marine logistics service .

    “This in line with government’s intention to increase indigenous participation in the industry through the development of human capacity, as stipulated in the Nigerian Content Development Act of 2010.

    “We will not rest on our laurels. We will continue to contribute our quota to ensuring that highly skilled indigenous technical  manpower is added to the workforce for the benefit of the Nigerian economy,” Ward said.

    In his contribution, the General Manager, Monitoring and Programmes Evaluation, National Content Development Board, Chijoke Okere, said the board  is working to ensure that many  airlines are committed to the training of Nigerians as helicopter aircraft engineers .

    The driving force for such, he explained, is to reduce the transfer of Nigerian jobs and employment opportunities to foreigners through deepening of local content .

    He said in line with the 2010 National Content Development Board Act, airlines ought to provide training for their personnel to enhance local capacity in specific areas of helicopter operations .

    He said the Nigerian content Act is being pursued as an instrument to develop capacity for Nigerian firms in terms of human and material resources .

    He said :” Our mandate is to develop local content in areas of helicopter operations, which border on safety and security without any compromise to standards .

    “Caverton has shown that it is committed to local content , even as we expect more from it.

    “This training is enough evidence that Caverton  is committed to developing Nigerian manpower needs.”

    He however urged the engineers to report to the board any violation in the local content act by Caverton to enable the board monitor its operations .

    In her remarks on behalf of the graduands, Engineer Adesuwa Ekhator described the training as unique in the helicopter arm of the business, even as she called on other operators to facilitate capacity building programmes that would deepen local manpower , reduce risks , improve safety and enhance efficiencies.

  • NAHCO appoints acting managing director

    The Nigerian Aviation Handling Company PLC, has  appointed Norbert Bielderman, as the Acting Managing Director/CEO of the company.

    The company said his appointment which took effect from October  23, is in line with the Company’s succession plan and good corporate governance principles.

    The current Managing Director/CEO, Kayode Oluwasegun–Ojo whose contract is due to expire on 31st March 2015, has proceeded on his pre-retirement leave.

    The company had conveyed the information to the regulators in line with their rules and regulations and applied to publish it to the stakeholders.

    In a letter conveying its approval to the board dated  October 23, the Nigerian Stock Exchange (NSE) said: “We have received your letter dated today, October 23, 2014 in which you notified The Exchange of the appointment of Mr. Norbert Bielderman as acting Managing Director of Nigerian Aviation Handling Company Plc.”

    The letter notified the company that the new information has been transmitted to the market operators, adding that Nahco Aviance could proceed to publish the information to its stakeholders.

    Until his appointment, Bielderman was the Executive Director, Operations, for the company.

    Bielderman joined Nahco Aviance in May 2010 from The Netherlands (Holland). He is an alumnus of the University of the Netherlands, Antilles, where he studied Fiscal Law from 1979 to 1982.

    In 1998, he qualified for the IATA certificate on Dangerous Goods & Radioactive Materials in Yereven, Armenia.

    He is a tested aviation practitioner with more than 29 years hands-on experience in ground handling operations, project management, feasibility study, strategy implementation and logistics chain management.

    Prior to joining Nahco Aviance, he had worked in senior positions at Thor Shipping Group of Companies, South Africa, Transafrik International Ltd, Aerocharter/Swissport Services, Cancun & Mexico City, Swissport Basel AG, Switzerland, National Flight Services, Jeddah, Saudi Arabia, KLM Cargo Central America & Caribbean, among other companies.

  • How to improve efficiency at airports, by experts

    How to improve efficiency at airports, by experts

    Experts and players from about 53 countries in Africa, last week gathered in Durban, South Africa to examine the vexed issue of service delivery at airports on the continent at the 23rd Airports Council International Africa Regional Conference. KELVIN OSA-OKUNBOR, who attended, reports.

    If air transport in Africa must live up to expectations, as the vital catalyst to drive economic development,  governments and African leaders  must devote more funds to airport projects, experts have said.

    Inadequate funding, they said, remained a stumbling block to unlocking the huge potentials of airport development, and the strategic role air transport infrastructure could play in turning around the economies of countries in the continent.

    The experts spoke at the just concluded Airports Council International Africa Conference in Durban , South Africa.

    Other than more priority being given to funding, operators and managers of airports,  as the first point of contact into countries, must step up measures to improve the quality of service, a key strategy to enhance revenue generation.

    They expressed worry that the levels of investments in airports in Africa are inadequate, saying that governments must do enough in this respect if African countries hope to leverage on aviation as a  contributor to the continent’s economy .

    In his presentation, the Managing Director, Federal Airports Authority of Nigeria ( FAAN), Dunoma Saleh, said there  is improved security process across the 22 airports owned by the authority, through the installation of safety and security equipment.

    According to him, FAAN provided an effective platform that led to the successful fight against Ebola in Nigeria by coordinating screening processes.

    The team, led by FAAN Director of Airport Operations, Capt Henry Omeogu,  showcased the transformational strides in airport operations with the simultaneous remodelling of 22 airports across Nigeria.

    The two-day conference, with theme : service excellence,  attracted 59-member in Africa operating  in 251 airports.

    Angela Gittens, the Director-General, ACI worldwide, said airports should build brand loyalty and provide a service that differentiated from others to attract air travellers.

    She said passengers  can forget almost anything at an airport as long as they feel safe and it is clean. According to her, they would also like the ambiance, the feel they get when they walk into a terminal, a sense of order and security.

    Earlier, while welcoming delegates, Pascal Komla, President of ACI Africa said with the theme “Service Excellence” the event  provided a unique opportunity  for airport and aviation executives, experts and exhibitors  from across the globe to network, share information and forge a common vision for the future of the African airport business.

    Ali Tounsi, the Secretary General of ACI Africa, said there are large discrepancies across the continent with some very high and low levels of services and standards, partly attributed to different cultures, languages and geographical dimensions.

    “A big challenge is the issue of safety with the African continent having the worst safety ranking in the world” he said. He added that “With so much happening economically in Africa, in the next few years, airports would play a hugely important role and had to have priority attention”

    In his presentation , the ACI World Director in charge of Economics and Programme  Development, Dr Rafael Echevarne said the way forward for

    African airports is to embrace the culture of excellence .

    He urged managers of airports in Africa to create a sharp focus to enhance passenger experience , citing the model utilised by South Africa, which airlines about 10 years ago, have altered the strategy of competition to collaboration to develop their airports into string regional hubs.

    He said: ”We look forward to the development of a hub in West Africa . This could be possible if the respective countries and operators of their airports put in place quality management system that considers security, and its impact on service excellence.

    A performance appraisal system could be put in place that examines steps so far taken and how such steps have improved the system.

    The questions airport operators in Africa should consider are how well airport services are delivered. Are there quality control measures?

    Are there collaborations among internal stakeholders? In which areas, whether human or material resources ? In the a very competitive airport environment , the quality of service is key. There should not be over design of security network that could impede passengers facilitation.

    Passenger satisfaction is the key ingredient to sell an airport. Any passengers who experiences a good terminal satisfaction would spend more money and would want to use that airport many times .

    If we must develop airports for the future the questions that cone to mind are legion . Is there a wifi network? Are there flight trackers ? This is important because airlines have the tendency of not telling passengers the truth.”

    He canvassed partnership with local players , such that there are key performance indicators at the airports that would drive service delivery.

    He said one way of resolving the myriad of challenges confronting excellence in service delivery at airports is for government agencies and others to embrace collaboration.

    He said: ” One way of doing this is to get government agencies and others to buy into the system. Smaller airports we insist should have higher quality services.”

    In his presentation, former FAAN managing director, Mr George Uriesi, said if African airports should be used as drivers of economic development, operators and managers should realise that there is no alternative to the quality of services.

    Uriesi queried why many African airports have not enrolled for the airports service quality programme offered by ACI.

    He said: “Why are many African airports no ten rolling for the airports service quality programme. Are  we designing our airport infrastructure to meet up with quality services.

    We need to re- apply the success models.”

    Also speaking at the conference, Ms Joanne Paternoster, president of Butterfly Consulting, said the importance of airports service excellence is becoming more felt in a dynamic and competitive business environment.

    She said: ”The consequence of poor services at the airports is so costly that the operator would lose the opportunity to be called upon to manage other airport terminals..

    A continuum of experiences  are expected to be delivered safely, securely, efficiently, professionally, courteously, seamlessly in a quality manner.

    The strategic and holistic approach is to stay ahead of competition for airports which must take the passenger experience to the next level.

    Airports in Africa must build good brands , which are driven by reliable customer feedback system as well as a terminal by terminal plan . This could be achieved through standards and performance management “

    Another expert, Mr Frederic Thenevin, director of airport development, ADPI, an airports design and consulting firm, urged operators to partner other players including airlines to enhance greater market share.

    He said a look at the airport operations in Paris, indicates that it shares same experience with airports in Africa, which ought to pursue service delivery to ensure customer satisfaction.

    He said :” Airports in Africa need market share, in an environment where competition is intensifying. Customer satisfaction therefore remains a key lever in winning marker share.

    Operational performance with management through compliance and participation is key.

    An airport should be utilised as a meeting point for different partners.

    If common values must be shared, airport operators should set up service improvement committees to enhance growth, The whole concept must be seen as meeting passengers expectation.”

    Speaking  on service quality in smaller airports, Mr Michael Miller, head of content and industry relations in Routes, an airport consulting firm said the use of data is key in attracting airlines and other partners to the development of an airport service experience.

    He said satisfying and meeting the needs of passengers and other airport users remains the key to unlock the potentials of service excellence in African airports.

    He said: “Airport operators could use data and information to attract airlines and other partners to see the big picture . Satisfying and meeting the needs of people is very important. There should be no excuse for inefficiencies at the airports as a gateway. Getting the basics right, through the appropriate ambience and infrastructure remains key drivers. The airport is about people and their attitude towards travel. We must improve on safety management systems.

    One key way to achieve service delivery at the airport is to ensure that there is reduction in turn around time at the terminal for passengers.”

    Meanwhile,the President Airport Council International ( ACI), for Africa , Mr Pascal Komla has urged airport authorities in the continent to consider significant reduction in airport tariff describing excessive taxes paid by airlines and other airport users as a huge disincentive that could hamper the growth of air transport in the continent.

    Komla apart from reduction in taxes , African governments must relax restrictive visa policies , which he said is fast affecting intra – African connections and the air transport sector growth, expected to contribute significantly to the growth of aviation in Africa.

    He also called for improved funding for airport projects in Africa, which he said could turn around the fortunes of the continent , if managers and leaders in the sector embrace  global partnership to bring it to fruition.

    He said there is an avenue for sustainable  air transport network  in  Africa owing largely to improved flight connectivity , which  he  said is a byproduct of the liberalisation of air transport in the continent otherwise known as Yamoussoukro Decision.

    The decision was reached at continental confab on air transport among African leaders in 2000.

    He said there were series of challenges confronting the implementation of the Yamoussoukro Decision.

    Komla said the adoption of the decision by Kenya and Ethiopia assisted the countries to create employment in the aviation sector.

    He affirmed that studies conducted by experts reveal that the benefits of adopting a liberalised air transport sector in Africa fats outweighs any possible disadvantage.

    He said: ”We are working hard on our sector to earn protectionism , which impairs economic growth and restriction on travelling.

    We need to devote more resources on airport development , cut down high tariffs on airlines . This will increase air traffic in Africa and facilitates tourism. It will bring in investments and stimulate international trade.

    We are taking measures to solve the problem of high taxes , the problem of visa restriction, which demotivated passenger movement.

    Although, there have been so openness on visa policies , which is an improvement in some parts of Africa.

    But, there are still restrictions. Some countries in eastern and west Africa have improved their visa processes, because many airports have their uniques features ,  in terms of geography, security and services.”

    He further said: “Let us open our airports , because there are differences in geography, infrastructure and other operational elements.

    How does an airport answer to these problems , which have to do with lack of infrastructure , security and the element of service.

    Security is key to growth, and the way to achieve this is to have a well established safety system, which requires global efforts and administrative expertise.

    There is no one approach to solving the problems of air transport in Africa , other than governments pursuing the implementation of liberalisation policies, that would help airports improve capacity .

  • Ethiopian Airlines connects flight between Dublin, Los Angeles

    Ethiopian Airlines said it has concluded plans to start flights to Dublin and Los Angeles starting from June 2015.

    Ethiopian flights to Dublin and Los Angeles will be operated three times a week with the ultra- modern Boeing 787 Dreamliner, which offers unparalleled on-board comfort to passengers. The flights will be the only direct service connecting Africa with Ireland and the West Coast of the United States.

    Travelers from Los Angeles and Ireland will be able to enjoy seamless and convenient connectivity options thanks to Ethiopian extensive network in Africa covering 49 destinations.  Similarly, as the flights will be the only direct service between Dublin and Los Angeles, the Irish and U.S. travelling public between the two cities will greatly benefit from the opening of the routes.

    “Our new flights connecting Addis Ababa, Dublin and Los Angeles will play a critical role in the expansion of trade, tourism investment between the fast growing continent of Africa, and the United States and Ireland. As the these flights will be the first and only direct air route linking Africa with Ireland and the West Coat of the U.S., they will bring these two seemingly far away cities much closer to Africa and will facilitate mobility and connectivity for businesses and the large African Diaspora community living in the West Coast of the United States.

  • Furore over planned airports’privatisation

    Furore over planned airports’privatisation

    Opinions are sharply divided among experts and stakeholders over the Federal Government’s plan to privatise airports. Aside fears of job loss, they say, safety and security could be compromised, KELVIN OSA OKUNBOR reports.

    Should the Federal Government go ahead with the privatisation of all its airports in the country?

    The answer to this question is brewing division among stakeholders in the aviation sector.  While some say it is an ill wind that will not blow any good, others say it will enthrone efficiency, sanity and healthy competition in the indutsry.

    Some experts argue that issues bordering on safety and security could be compromised if the airports are left in private hands  while  others say if it is well conceived and implanted, it is the right way to go.

    They say airports in some countries across the globe including the United Kingdom is run by private firms that  have never failed to deliver on promise.

    The experts who spoke in separate interviews with The Nation include Group Captain John Ojikutu (rtd),  Chief Executive Officer, Centurion Securities Limited, Engineer Sheri Kyari, Executive Director , Centre for Aviation Safety and Research, Chief Executive Officer,  Belujane Konsult, Mr Chris Aligbe,  Managing Director, Medview Airlines, Alhaji Muneer Bankole , and Engineer Godwin Jibodu, an aircraft engineer  as well as an aviation unionists, Comrade Femi Ajagbe Adebayo.

    Ojikutu believes the privatisation of airports in the country is long overdue He said it does not make economic sense for government to invest huge money in the construction of airport terminals only to give them to private firms to manage.

    The aviation security expert said government, in line with the requirement of the International Civil Aviation Organisation ( ICAO),  should concentrate on the core safety and security areas of airports administration and allow private firms to manage the terminal and commercial areas.

    He said the option of airport concession if well implemented is the best option for the country .

    The former military commandant of the Lagos Airport said if the right template is put in place for concession, it could as well serve as a model for privatisation of airports.

    He said: ”Privatisation of airports has been in government policy since year 2000 and that was what gave birth to the concession model of the only private sector driven airport terminal in Lagos called the MMA 2 .

    “What derailed that policy is only known to politically appointed officers who have been in the saddle of leadership  in the ministry of aviation.

    “If government had maintained that policy in all the airports terminals, which are generally shopping malls, it  would have at least been privatised and government would only have time to focus attention on more critical issues such as safety and security infrastructure.

    “There could possibly be no legal issues on the private terminal , but an induced one between those who are spending government money to build terminals.”

    Ojikutu advised the minister of aviation to focus on critical safety and security issues rather than waste further funds on airport terminals.

    He said: ”My advice to you now (Minister of Aviation) is that you should focus less on constructing or remodelling airport terminals which is the business of private investors as envisaged in the Privatisation Act  of 2000.

    “You should allow private sector players invest in airport terminals, as one of the concessionaires has done.

    “It would amount to waste of public funds building more airport terminals. “Rather, you should focus on critical safety and security infrastructure such as airport perimeter and security fence, approach lighting and navigational aids aeronautical information services, fire and rescue equipment and training of personnel including air traffic controllers, and other personnel not leaving out inspectors for the Nigerian Civil Aviation Authority (NCAA).”

    But Aligbe said outright privatisation of airports may not be the way to go, arguing that putting in place of a transparent process that would make the airports run efficiently and effectively is a better option.

    He said the introduction of concession and slot allocation system is a better option.

    Aligbe said: ” So  concession is the way to go but it must be open. It should be advertised and carried out transparently. In other parts of the world, concession is published, everything is made open, but in our country, such things are put under wrap because some people think it has to be done outside the purview of those who know what should be done. The truth is that it normally fails.

    “It is possible to concession the airports the way they are. But hey must get serious concessionaires who know what is involved. We are not going to derive more from the onset of the concession, but if you structure your concession properly, looking ahead, you will derive more. If you don’t have money to concession, you concession it to the organisation that can develop it but those who are coming for concession should ask that the agreement should be justiciable both in Nigeria and outside the country.“

    Bankole agrees no less with him. According to him, if the path of concession is toed, it will make the airports to be efficient.

    He said: ” Each airport will develop its own. That is why it is the busy airports that will earn more. But that is what is happening today, busy airports earn more money than the less busy ones. That is why we need to restructure airport management in our country. We need to concession the airports and make FAAN (Federal Airports Authority of Nigeria) a kind of holding company that oversees and manage government’s interest in all the airports and also oversee airport development because if you want to concession the airport you must have in agreement on what will be handed over to the government at the end of the concession.

    “It is not what you took over that you will hand over. You must invest in developing and expanding the facility. Airports should be concessioned so that they will be allowed to make their own money.”

    Jibodu said the thinking of the Federal Government is good, adding that government cannot manage the airports because of bureaucracy, lack of accountability, effective management and the non-challant attitude towards government property.

    He however noted that government needs to decide between commercialisation and privatisation, hinting that government could run the airports on commercial basis by putting the right person in the right position, proper management and control finances. To make it work, he added that government should not be allowed to have more than 20 per cent equity so as not to have controlling shares.

    He said: “Workers should be given five per cent and safeguard the interest of the company while 75 per cent should go to private ownership.

    “The security personnel should be properly trained as recommended by the  ICAO.”

    Kyari however disagrees with them. He said privatisation of the airports will not be in the interest of the industry because of issues bothering on transparency and lack of a regulatory framework.

    He said privatising the airports could have serious security and safety implications.

    He said government should consolidate its efforts on completing all ongoing airport projects rather than pursuing privatisation that may not work.

    Kyari urged the government to explore ways of making the less viable airports viable through granting incentives to domestic airlines and partnership with respective state governments.

    He said: ”I do not think privatisation of airports is the way to go. There are many challenges government should consider in the sector not airport privatisation.

    “How many if these airports are viable? Why can’t government consider how to make them viable?

    “Will this privatisation option not affect safety and security?”

    Kyari has support from Adebayo who expressed fear of job loss if the airports were privatised.

    He said: ”Government should look critically into this proposal if it would not lead to loss of jobs.

    “What I think government should be thinking about is how to create jobs in the industry and not a policy that will erase jobs.”

    Director-General, Bureau of Public Enterprise, Benjamin Dikki, had said last week that  the privatisation of the airports will commence soon.

    Dikki spoke in Abuja when he made a presentation on “Reforms and Privatisation Opportunities in Nigeria” at the 9th Abuja International Trade Fair.

    He said although the Federal Government had made substantial investment in the aviation sector, a lot remained to be done, adding it is the reason the government is considering privatising the airports.

    “We are planning to commence the privatisation of airports; the airports will be more efficient if the private sector is running them.

    “Very soon, we will engage the Minister of Aviation and we will start a new process of privatising or concession of airports just like we have done with the seaports.

    “We are likely to grant concession of maybe 15 to 20 years, according to the business model agreed on, so that, investors can make a reasonable return on the investment during the concession period,” he said.

    Federal Government is said to have set up a committee to look into the exercise, which will be joined by a four-man team from  ICAO.