Category: Aviation

THE MMA2 Training Academy has been accredited by the Nigeria Civil Aviation Authority (NCAA).

The academy is an arm of the Murtala Muhammed Airport Terminal Two (MMA2).

 The institution, which took off in 2019, is managed by Bi-Courtney Aviation Services Limited (BASL), operators of the MMA2 Terminal.

The accreditation, according to a statement by the company,  followed  a rigorous approval process.

 BASL’s Head of Corporate Communications, Mr. Oluwatosin Onalaja said: “The MMA2 Training Academy has outstanding instructors and experienced specialists with a proven track record of protective aviation security across Nigeria. Our highly interactive training courses provide the best mix of experience, theory and practice in a professional learning environment, using real-life case studies, practical applications and up-to-date technologies.”

Among other things, the academy comprise three well-furnished training classrooms each with a seat for 20 students.

 The classrooms, Onolaja said,  has  adjustable floor plans and are equipped with virtual classrooms, business solutions, secretarial, printing and copying, training with power supply.

Other benefits include easy parking,  free WiFi. 

According to Onolaja, some of the courses to be handled by the academy under the NCAA accreditation include Aviation Security Awareness, ASTP 123 Basic,  X-Ray Interpretation and Screening and General Security Culture.

He said: “Several ASTP 123 and security awareness training have been  completed over the last two years. Other courses available at the academy are aviation safety, emergency first aid; fire safety and emergency management.”

 Behavioural courses,  excellent customer service, leadership  and project management.”

The MMA2 Academy’s Training Consultant, Mr. Abdulfatai Lawal, also said: “The facility offers complete learning solutions for aviation security, aviation safety and behavioural courses delivered in a  conducive environment and at the client’s preferred location and time.

Lawal added: “MMA2 Training Academy courses are the most cost-effective and efficient way to train your team. Our courses are ICAO Standard training programmes  and conventional.  The conventional Training courses are customised and developed with industry-relevant organisational objectives as their core guidelines.”

Rising costs are making it difficult for operators to keep their aircraft airborne. As the attrition rate for carriers escalates, airlines are evolving measures not limited to fair pricing, route planning, on-time departure and schedule fidelity to sustain their operations. To survive bends triggered by the prevailing economic realities, some scheduled airlines are breaking the ice in new grounds. KELVIN OSA-OKUNBOR reports.

Rising costs are forcing carriers to return to the drawing table to remain in business.

Besides the multiple charges – landing and parking fees, ground rent, fuel surcharge, en route navigation charges, terminal levy and other payments operators have to make, rising costs of aviation fuel is compounding the woes for indigenous carriers.

To navigate the bend, airlines are  reworking their strategies to break the ice to get more passengers on board.

While major airports, including Lagos, Abuja, Port Harcourt and Kano, are gaining traction for older carriers, Aero Contractors, Arik Air, Air Peace, Dana Air, and AZMAN Air, Max Air, new comers such as  United Nigeria Airlines,ValueJets Airlines  and  Green Africa Airways are looking in the direction of frontier routes.

In an interview, Managing Director, ValueJets Airlines, Captain  Dapo Majekodunmi, said carriers that would remain afloat must identify a niche in the air travel space and consolidate on it.

Majekodunmi said though airlines are increasing in numbers, operators poised to keep flying must latch on fair pricing and other strategies to have the competitive edge.

Besides right pricing, he said the carrier has adopted other measures, including route and fleet expansion as well as diversification to make profit.

He said ValueJet plans to begin flights to Jos, as the carrier is keeping an eye on other routess.

 The carrier, he said, is consolidating  expansion plans that would see it spread its wings to other key destinations.

Experts say expansion plans by indigenous carriers would assist to bring down the cost of tickets without compromising safety.

To achieve the objective, some indigenous carriers have designed  various cabin configuration and baggage programme to attract significant load factor.

While some carriers have various fare regimes for passengers travelling with seven kilogrammes of hand-held luggage with 23 kilograms checked – in bag, the fare offering is different from the premium service that accommodates a seven- kilogramme-hand luggage and 30- kilogramme-two-piece checked-in bag.

Investigations show that local carriers are stepping up competition as they set their eyes on frontier routes, including Akure, Yola, Kano, and Gombe.

Experts say frontier routes in the domestic travel space hold opportunities for local carriers.But, Majekodunmi said carriers could go beyond concentrating on such routes by latching on to on-time performance.

He said ValueJets Airlines has for over three months of its existence improved its services on the Lagos, Abuja, Benin, Asaba, Port Harcourt and Jos routes.

  “At our 100 days of flight, we have been able to stabilise our operation, understand the market, and make inputs on passengers’ preferred time of travel demands into our schedule.

“We are keeping our eyes on Akure, Yola, Kano, and Gombe.Those are destinations with great potential. The vision of the airline still remains the focal point. That is making flying available for everyone.”

He spoke of plans by the carrier to deepen its aircraft acquisition programme as it looks forward to getting   additional CRJ  200 aircraft are expected by the third quarter of 2023.

The idea behind the CRJ aircraft acquisition, Majekodunmi said, is to expand its frontiers into cargo operations.

He said the airline would be altering the stakes by pushing for cargo configuration of the CRJ 200 airplane for launch into freight operations in West Africa.

Also, Chairman, ValueJet, Mr. Kunle Soname, remarked that the airline was no stranger to the industry and would base its services on the need for the right pricing.

“The past 100 days have been interesting and you expect that we are a start-up would have issues that we need to improve on. We did not get comfortable with the first 100 days as we tried to do something better. Every day that went was better than the previous day and we have been able to study and see areas to be addressed on demand and passenger service satisfaction.”

Team Lead, Marketing for ValueJet, Ayisat Titilope Adams said the carrier has carried out a study on the needs of passengers and it’s  evolving strategies to meet them.

She said: ”Making  air travel affordable to everyone is what we are pushing to  connect people with places.”

Investigations by The Nation indicate that Nigerian carriers in the last few months have devised wet leasing of aircraft to drive their survival.

The carriers are not just getting airplanes, but securing narrow body equipment, to reduce their aviation fuel consumption.

Using fuel efficient aircraft, including Bombardier CRJ, utilised by carriers, including ValueJet Airlines, Ibom Air and other fuel-saving aircraft firms, has lowered costs for indigenous carriers.

An analyst/economist, Mr Tai Jurin,  said the carriers that will survive the harsh economic climate are those pushing for effective fleet utlisation, appropriate equipment deployment and strategic  flight scheduling.

He said: “Though the operating environment is tough, smart value- based carriers conscious of  passengers’ needs, appropriate deployment of booking and payment technology, on-time departure will survive the times.

“Significantly, carriers willing to enter frontier routes, provide services into not very busy airports by offering fares that will help to grow passenger traffic are the airlines to look out for.

“Any carrier that wants to make impact, should be ready to reinvent air travel with unique value proposition of safety, comfort, convenience, experience, and high value for money.

“Such operator must scale up its act and ensure re-evaluates operational insights from previous partnerships have been applied in building airline business plan and propositions. It must identify a niche in the sector and implement fair pricing, which must be deeply considered amidst  the rising cost of commercial aviation.

” Such operator must put in place,  a long-term vision and growth mindset and  set its  sights o expand beyond the airspace given the prevailing  economic headwinds. It must build a cost-conscious business with an understanding of the sector.”

Restination management and travel tech company,  Wakanow Limited has signed a distribution partnership agreement with Nigeria’s newest domestic airline, ValuJet Airlines, to host its inventory on the website  available to travellers.

The deal, the travel company, said   aligns with its aim of delivering access to flight inventory in real-time and an all-year-round flight schedule.

The company said the deal also  also showcases its commitment to the development of the domestic travel industry.

ValueJet is the latest airline to partner with Wakanow, joining its network and enabling it connect customers to find and use bespoke solutions to support their specific travel needs and requirements. 

 The Chief Executive Officer  Wakanow Nigeria, Mrs. Adenike Macaulay said: “As the foremost travel tech company in Nigeria and West Africa, this partnership is a reinforcement of our commitment to give our customers the best and to remain the number one distribution partner to our airlines. We are constantly innovating around our customers’ travel needs and partner with relevant stakeholders to ensure that our customers enjoy a robust and seamless service offering.

“Partnering with ValueJet, who share in our vision of delivering a unique travel experience at a great value to our joint customers, is certain.”

Also, the  Chief Executive Officerr/ Group Chief Technology Officer, Wakanow Group, Mr. Oyedeji Ojo, said: “Wakanow, as a leader in the  travel industry, has continued to bring value to air travellers through collaborations. We’re delighted to welcome ValueJet as a partner and together, we will serve our customers with great flight inventories and concentrate on creating enhanced traveler experiences across all customer touchpoints.”

On his part, the Chief Commercial Officer, Value Jet, Trevor Henry said: “We are happy to announce our strategic partnership with Wakanow, making history as the first travel company to provide ValueJet’s Live Inventory bookable in real-time; thus enabling the delivery of a seamless booking experience for Wakanow and ValueJet’s customers. ”

Rising costs are making it difficult for operators to keep their aircraft airborne. As the attrition rate for carriers escalates, airlines are evolving measures not limited to fair pricing, route planning, on-time departure and schedule fidelity to sustain their operations. To survive bends triggered by the prevailing economic realities, some  scheduled airlines are breaking the ice in new grounds. KELVIN OSA-OKUNBOR reports.

Rising costs are forcing carriers to return to the drawing table to remain in business.

Besides the multiple charges – landing and parking fees, ground rent, fuel surcharge, en route navigation charges, terminal levy and other payments operators have to make, rising costs of aviation fuel is compounding the woes for indigenous carriers.

To navigate the bend, airlines are  reworking their strategies to break the ice to get more passengers on board.

While major airports, including Lagos, Abuja, Port Harcourt and Kano, are gaining traction for older carriers, Aero Contractors, Arik Air, Air Peace, Dana Air, and AZMAN Air, Max Air, new comers such as  United Nigeria Airlines,ValueJets Airlines  and  Green Africa Airways are looking in the direction of frontier routes.

In an interview, Managing Director, ValueJets Airlines, Captain  Dapo Majekodunmi, said carriers that would remain afloat must identify a niche in the air travel space and consolidate on it.

Majekodunmi said though airlines are increasing in numbers, operators poised to keep flying must latch on fair pricing and other strategies to have the competitive edge.

Besides right pricing, he said the carrier has adopted other measures, including route and fleet expansion as well as diversification to make profit.

He said ValueJet plans to begin flights to Jos, as the carrier is keeping an eye on other routess.

 The carrier, he said, is consolidating  expansion plans that would see it spread its wings to other key destinations.

Experts say expansion plans by indigenous carriers would assist to bring down the cost of tickets without compromising safety.

To achieve the objective, some indigenous carriers have designed  various cabin configuration and baggage programme to attract significant load factor.

While some carriers have various fare regimes for passengers travelling with seven kilogrammes of hand-held luggage with 23 kilograms checked – in bag, the fare offering is different from the premium service that accommodates a seven- kilogramme-hand luggage and 30- kilogramme-two-piece checked-in bag.

Investigations show that local carriers are stepping up competition as they set their eyes on frontier routes, including Akure, Yola, Kano, and Gombe.

Experts say frontier routes in the domestic travel space hold opportunities for local carriers.But, Majekodunmi said carriers could go beyond concentrating on such routes by latching on to on-time performance.

He said ValueJets Airlines has for over three months of its existence improved its services on the Lagos, Abuja, Benin, Asaba, Port Harcourt and Jos routes.

  “At our 100 days of flight, we have been able to stabilise our operation, understand the market, and make inputs on passengers’ preferred time of travel demands into our schedule.

“We are keeping our eyes on Akure, Yola, Kano, and Gombe.Those are destinations with great potential. The vision of the airline still remains the focal point. That is making flying available for everyone.”

He spoke of plans by the carrier to deepen its aircraft acquisition programme as it looks forward to getting   additional CRJ  200 aircraft are expected by the third quarter of 2023.

The idea behind the CRJ aircraft acquisition, Majekodunmi said, is to expand its frontiers into cargo operations.

He said the airline would be altering the stakes by pushing for cargo configuration of the CRJ 200 airplane for launch into freight operations in West Africa.

Also, Chairman, ValueJet, Mr. Kunle Soname, remarked that the airline was no stranger to the industry and would base its services on the need for the right pricing.

“The past 100 days have been interesting and you expect that we are a start-up would have issues that we need to improve on. We did not get comfortable with the first 100 days as we tried to do something better. Every day that went was better than the previous day and we have been able to study and see areas to be addressed on demand and passenger service satisfaction.”

Team Lead, Marketing for ValueJet, Ayisat Titilope Adams said the carrier has carried out a study on the needs of passengers and it’s  evolving strategies to meet them.

She said: ”Making  air travel affordable to everyone is what we are pushing to  connect people with places.”

Investigations by The Nation indicate that Nigerian carriers in the last few months have devised wet leasing of aircraft to drive their survival.

The carriers are not just getting airplanes, but securing narrow body equipment, to reduce their aviation fuel consumption.

Using fuel efficient aircraft, including Bombardier CRJ, utilised by carriers, including ValueJet Airlines, Ibom Air and other fuel-saving aircraft firms, has lowered costs for indigenous carriers.

An analyst/economist, Mr Tai Jurin,  said the carriers that will survive the harsh economic climate are those pushing for effective fleet utlisation, appropriate equipment deployment and strategic  flight scheduling.

He said: “Though the operating environment is tough, smart value- based carriers conscious of  passengers’ needs, appropriate deployment of booking and payment technology, on-time departure will survive the times.

“Significantly, carriers willing to enter frontier routes, provide services into not very busy airports by offering fares that will help to grow passenger traffic are the airlines to look out for.

“Any carrier that wants to make impact, should be ready to reinvent air travel with unique value proposition of safety, comfort, convenience, experience, and high value for money.

“Such operator must scale up its act and ensure re-evaluates operational insights from previous partnerships have been applied in building airline business plan and propositions. It must identify a niche in the sector and implement fair pricing, which must be deeply considered amidst  the rising cost of commercial aviation.

” Such operator must put in place,  a long-term vision and growth mindset and  set its  sights o expand beyond the airspace given the prevailing  economic headwinds. It must build a cost-conscious business with an understanding of the sector.”

Agitation is on the rise by organisations in the global air travel space over the refusal of 27 countries and territories to repatriate over $2 billion of trapped/blocked funds from ticket/cargo sales by global airlines. African countries, including Nigeria, Zimbabwe, and Algeria, are leading the pack with huge funds belonging to foreign carriers trapped in their jurisdictions. Experts say urgent steps need to be taken to prevent escalation of the crisis as it is impeding the operations of affected carriers by limiting the number of markets they could serve. KELVIN OSA-OKUNBOR reports

GLOBAL air transportation is facing fresh challenges as it struggles to exit shocks triggered by the COVID-19 pandemic.

As more countries remove barriers to air travel via COVID-19 health and aeronautical protocols, air travel is gradually rebounding forcing airlines to evolve flight expansion strategies.

The Airports Council International (ACI), world’s published assessment of the impact of the COVID-19 pandemic on airports, indicates that global domestic passenger traffic, will reach its 2019 level in late 2023.

According to ACI’s research, potential for a recession approaching 2023 may also represent an additional obstacle for the sector.

But, global airlines are navigating new curves to keep their operations afloat.They are grappling with release of blocked funds accruing from ticket sales in some 27 countries.

Airline funds are being blocked from repatriation in more than 27 countries and territories. As at last December, top five markets with blocked funds include Nigeria: $551 million, Pakistan $225 million, Bangladesh $208 million, Lebanon $144 million, and Algeria $140 million.

The world’s trade body for airlines, the International Air Transport Association (IATA), said about $2 billion of its members’ assets are trapped in more than 27 countries and territories around the world.

IATA warned that the amount of airline funds for repatriation being blocked by governments had risen by more than 25 per cent, about $394 million in the last few months.

The global body has called on governments to remove barriers to airlines repatriating their revenue from ticket sales and other activities, in line with international agreements and treaty obligations.

IATA is also renewing its calls on Venezuela to settle the $3.8 billion of airline funds that have been blocked from repatriation since 2016 when the last authorisation for limited repatriation of funds was allowed by the Venezuelan government.

“Preventing airlines from repatriating funds may appear to be an easy way to shore up depleted treasuries, but ultimately, the local economy will pay a high price. No business can sustain providing service if they cannot get paid and this is no different for airlines. Air links are a vital economic catalyst. Enabling the efficient repatriation of revenues is a critical for any economy to remain globally connected to markets and supply chains,” said Willie Walsh, IATA’s director-general.

The issue previously hit the headlines in early November, when Dubai-based Emirates – one of the world’s largest international airlines – suspended flights to and from Nigeria due to the amount of trapped funds there. The carrier had only resumed its services to the country in September, after some funds had been released.

Walsh has warned that more airlines could pull out of some countries if the situation did not start to improve.

“Preventing airlines from repatriating funds may appear to be an easy way to shore up depleted treasuries, but ultimately, the local economy will pay a high price. No business can sustain providing service if they cannot get paid and this is no different for airlines,” Walsh said.

The worst offender is Venezuela, where some $3.8 billion of airline funds are blocked, a figure which has been building up for many years.

The government in Caracas implemented currency controls in 2003, which required airlines to seek official approval to move funds out of the country. By 2013, the value of requests started to outpace approvals.

There was just one approval in 2015 and the last time any repatriation of funds was authorised was in early 2016, according to IATA.

Close to $2 billion is trapped in other parts of the world, with the most problematic countries spread across Africa, Asia and the Middle East.

About $551 million in revenue are blocked in Nigeria, while a further $225 million of funds are trapped in Pakistan and $208 million in Bangladesh.There are also significant problems for airlines in Lebanon and Algeria, where $144 million and $140 million are blocked.

Sixty-seven per cent of these trapped funds are tied up in12 African countries.

The African countries that retain funds of international carriers include Ethiopia $75 million, Eritrea $79 million, Algeria $96 million and Zimbabwe $100 million.

IATA said the Nigerian authorities have been talking to airlines to find ways to resolve the situation there – which began in March 2020 when demand for foreign currency in the country started to outstrip supply and the country’s banks were not able to service currency repatriations.

Getting worse not better

The situation got worse over the past years. In August 2021, IATA said, excluding Venezuela, around $1 billion of airline revenue were blocked in around 20 countries.

It was followed by Lebanon $175.5 million in trapped funds, Nigeria $143.8 million and Zimbabwe $142.7 million.

Most of the problems are in the Middle East and Africa – these regions accounted for 16 of the 23 countries listed by IATA in September 2022 for blocking funds.

Elsewhere, airlines have also experienced difficulties in repatriating funds from Russia and Ukraine last year – a consequence of the international sanctions imposed on Moscow following its invasion of its neighbor last February.

IATA, as of July 2022, put blocked funds in Nigeria by foreign carriers at over $464 million showing a $14 million increase from what it was in May 2022 about three months earlier.

It, therefore, urged the Federal Government to prioritise the release of the funds to prevent escalation, because when airlines are unable to repatriate their funds, it impedes their operations and limits the number of markets they can serve.

As foreign carriers continue to lament over the development, experts say it’s the convention for airline operators to price and sell air tickets in the local currency of  the country.

However, such funds need to be converted into the currency of their main operating country, before they can be repatriated in line with the Bilateral Air Services Agreement (BASA).

BASA provides that each designated airline shall have the right to convert and remit to its country on demand, local revenues in excess of sums locally disbursed. Conversion and remittance shall be permitted without delay in accordance with the prevailing foreign exchange regulations.

The situation in Nigeria is that foreign airlines are not able to source foreign exchange needed to convert the revenues generated in Naira to the Dollar.

Rather than deploy this harsh approach, of charging higher fares or withdrawing flight services to countries withholding their funds, foreign airlines can align with the Agenda Item 39 of the International Civil Aviation Organisation (ICAO), which provides that where airlines have significant local currency amounts that they are unable to convert and repatriate, they should seek innovative ways to use those funds.

They can, for instance, find local organisations that might wish to buy some of the airlines’ local funds. They can also pay local expenses such as airport fees, ATC charges, fuel charges, ground handling, catering, and others using these local currencies.

The House of Representatives Committee Chairman on Aviation, Nnolim Nnaji, last year appealed to the International Air Transport Association (IATA) to prevail on its member airlines to show understanding as the various organs of government were making efforts to ensure that their tickets proceeds are duly remitted.

According to him, $550 million out of $1.1 billion blocked in Africa and the Middle East is held in Nigeria.

Nnaji made the appeal while playing host to the IATA Regional Vice President for Africa and Middle East, Mr Kamil Ala Wadhi, who paid him a courtesy call.

The committee Chairman reminded his guest that the prevailing situation was in consonance with the global economic meltdown assuring him that the Federal Government through the Central Bank of Nigeria (CBN) had put in place a mechanism for the liquidation of the blocked funds.

He also told the IATA Vice President that the Federal Government has made tremendous investments in the sector to improve security and safety of air transportation in the country.

Nnaji also praised the association for its contributions to the safety of air travel through its operational safety programmes (IOSA) which a number of Nigerian Airlines have benefited from.

Earlier, Mr Ala Wadhi, had acknowledged the interest shown by the Speaker of the House of the House of Representatives and its Committee on Aviation, Nnolim Nnaji, towards finding solutions to the member airlines’ blocked funds in Nigeria.

He said within his regions, “a total of $1.1billion airlines’ funds are blocked and half of these funds ($550,000,000) are held in Nigeria. I do appreciate your interventions and l urge you to continue to do more so that it can be quickly resolved”.

It would be recalled that the House of Representatives Leadership had at the heat of the crisis intervened by bringing, the Minister of Aviation, Senator Hadi Sirika, the CBN Governor, Godwin Emefiele and IATA representatives including some of the affected foreign airlines to discuss the way forward.

The intervention led to the phased remittances deployed by the CBN to gradually liquidate the backlog of the trapped funds.

The Central Bank of Nigeria (CBN) last year provided $260m to clear part of the backlog which accumulated from sales of tickets by over 25 foreign airlines operating into the country.

Chairman, African Tourism Corporate Travels (ATCT) Group, Chief John Adebanjo, had appealed to the Federal Government to pay foreign airlines their blocked funds, saying that would ease the pressure in the industry and crash prices.

Adebanjo insisted that the demand for travel is still very huge despite the high cost of tickets, adding that clearing the airlines’ trapped funds would go a long way in crashing international airfares.

Adebanjo: “All we need to do is ensure we speak to the government to give these airlines the money they owe them.”

The Federal Government last year dismissed threats by foreign airlines to suspend operations in Nigeria over their inability to repatriate their blocked forex from the country.

Minister of Aviation, Hadi Sirika, said Nigeria would fare better if foreign airlines boycott the country, as the government has developed the capacity to face the challenges.

Sirika said: “Nigeria under President Buhari has shown the capacity and audacity to stand up in difficult moments to do the right thing to help the country.”

A former Director-General, Nigerian Civil Aviation Authority (NCAA) Dr. Harold Demuren, has proposed a way at solving the imbroglio between Nigeria and foreign airlines over the carriers’ trapped funds.

Demuren said as a way out of the conundrum, the Federal Government should allow foreign carriers to allow passengers in First Class and Business Class cabins to pay for tickets in United States’ dollars while passengers in economy class can pay in Naira.

The former NCAA chief said doing this would help the carriers to repatriate their funds with ease and put a stop to the issue of trapped funds or at best, help to significantly eliminate the problem, particularly at a time the country is not earning enough dollars to meet with the myriads of pressure on foreign exchange.

The Minister of Aviation, DG, NCAA, and Minister of Finance are working on it.

“You know Varig Airlines; that is why they left the country, ” he added.

Aviation Round Table Safety Initiative (ASRTI) expressed its dismay over the appalling handling of accumulated foreign airline funds trapped in the Central Bank of Nigeria (CBN), describing as unacceptable the non-allocation of foreign exchange to the affected carriers.

The trapped funds, according to IATA, hit $551 million a few months ago.

The ASRTI berated the government for violating extant articles  in all bilateral air services agreements it signed with other countries, which expressly requires Nigeria to facilitate transfer of earnings to foreign carriers.

Spokesman of the ASRTI, Mr Olumide Ohunayo, said the Federal Government is under obligation to allow designated carriers the right to convert and remit to its country on demand, local revenue in excess of the sum locally disbursed.

According to Ohunayo, the refusal of the government to allow foreign carriers repatriate their trapped funds is already serving as a disincentive to investors in the aviation sector.

He said:  “In all Bilateral Air Services Agreement an Article in the agreement — transfer of earnings, clearly states that each designated airline shall have the right to convert and remit to its country on demand, local revenues in excess of sums locally disbursed. Conversion and remittance shall be permitted without delay in accordance with the prevailing foreign exchange regulations.

“International trade is bound by agreements which are sacrosanct and respected. Nigeria cannot do otherwise if we crave the attention of investors in our industry.

It’s important to state that foreign airlines sold these tickets at the official IATA rate and cannot be expected to go to the parallel market to source, convert and remit as opined in some quarters, the Central Bank should do the needful as enshrined in the BASA agreements.

“These funds should have been remitted at the official rate on date of Sale immediately the Airlines get clearance after paying all the local obligations, including taxes.

“The damage that our action has done to the Nigerian image as an investment friendly nation is far reaching, while the citizenry is faced with high fares, reduced capacity and limited travelling options, which will worsen if we continue on this trajectory.”

The aviation sector may not be free of turbulence due to unresolved contentions over vexed industry issues.There are apprehensions that navigating these turbulent decisions in a transition year could alter the stakes for many uncompleted projects, policies and other developments. Kelvin Osa-Okunbor reports.

Issues and development that will determine the outlook of the aviation sector in 2023 are increasingly becoming a puzzle for many operators, regulators and stakeholders alike.

Reason? The projection of expected outcomes for the challenged industry may veer off the predictive curve as industry players strategise for a shift in paradigm.

Significantly, ongoing litigation over many unresolved issues, including local carriers’ challenge of the emergence of the proposed National Carrier – Nigeria Air – at the Federal High Court, will set the tone for how the year will run in the strategic sector.

Acting under the aegis of the Airline Operators of Nigeria (AON), local carriers are challenging the Federal Government for selecting Ethiopian Airlines as the core investor and technical partner of Nigeria Air.

As a spillover from last year, accelerated hearing for the suit will come up January 16, 2023.

The Federal High Court in Lagos had on December 9, 2022 reaffirmed its  interim injunction order stopping the promoters of the national carrier from going ahead with the project.

The Order of Interim Injunction  issued on December 9, 2022 aligned with an earlier order issued on November 24, 2022, which stated that the injunction could not be vacated pending the determination of the Motion on Notice filed by the Airline Operators of Nigeria (AON) to stop the  project.

 Justice A. Lewis-Allagoa after hearing the submission of Nureni Jimoh, SAN, with Abubakar Nuhu Ahmad Esq.counsel for the Plaintiff/Applicant and Mr. Seun Oriowo esq with Oyin Koleosho Esq. counsel for the 1, 3 and 4 Defendants, Bassey Attoe Esq.counsel for the 2 Defendant;  adjourned the matter to January 16, 2023.

The matter had earlier been slated for February 13, 2023  in  Suit FHC/L/CS/2159/2022 at the same court.

The optics of this case, experts say, would be one of the defining moments for the aviation sector in 2023.

The suit was filed by The Registered Trustees of the Airline Operators, Azman Air Services Limited, Air Peace Limited, Max Air Limited, United Nigeria Airlines Company Limited and Top Brass Aviation Limited.

In an interview, President , Top Brass Aviation, Captain Roland Iyayi, said local carriers are determined to fight the imposition of a foreign carrier on Nigeria as core investor/technical partner for the proposed national carrier – Nigeria Air – in the year in preview.

Iyayi said the template created by the Federal Government and its agencies for the proposed carrier is jaundiced because it confers undue advantage on the airline to the detriment of indigenous carriers , which have been exposed to an unfavourable operating environment.

He wondered why the Federal Government should offer a 15-year moratorium/tax waiver to the proposed carrier, saying that it amounted to exposing carriers to the volatility of the business.

In an interview, industry analyst and Head Strategy, Zenith Travels, Mr Olumide Ohunayo, identified carry over controversies over the proposed national carrier and the determination to implement the sector’s roadmap as part of the uncertainties that will shape developments in the travel space in 2023.

He said 2023 appears to have optimism in the horizon, if the Federal Government could review and readjust some of the issues in the sector  before the curtain draws on the administration.

Besides delivery of the proposed national carrier, which has divided stakeholders in the sector, industry watchers look forward to cracks within the unions as some members are already rooting for the delivery of the project.

Last moths, a collective of trade unions in the industry under the aegis of Joint Consultative and Negotiating Council (JCNC), an amalgam of four existing trade unions in the Ministry of Aviation  unanimously backed the floating of a national carrier, branding the actions of some domestic ca

President, Air Transport Senior Staff Services Association (ATSSSAN), Illitrus Ahmadu, and President of National Union of Air Transport Employees (NUATE), Ben Nnabue, among other union chieftains, reasoned that it is good for the government to allow the project to fly.

They described the action of the carriers as selfish and unpatriotic, adding that the airlines clamouring for monopoly do not even have the capacity to offer quality services.

Ahmedu asked:  “Does the government have the right to float an airline? The same private airlines apply to the government for licenses and they are granted. Telling a sovereign government not to form an airline or do what it feels is good for the people.

“The model introduced for Nigeria Air is a legacy model of 41, 51 per cent equity and that is the model that is applied in many parts of the world for an airline that is a start-up. Certain things against the national airline belong to old thinking and archaic. I know the reason the shareholding is so. We must rise now to ensure we have a national carrier.”

He expressed  apprehension over the decision of some domestic  carriers  to rush to the court to stop Nigeria Air.

Part of the developments that will also shape the sector in 2023 is the unfinished deal over the concession of four international airport terminals in Lagos, Abuja, Kano and Port Harcourt.

The clouds appear ominous for the project as litigation is currently dogging the selection of preferred and selected bidders for the Lagos Airport.

Reserved bidder for the Lagos Airport is challenging the criteria used by the Ministry of Aviation in arriving at the decision to pick its competitor for the terminals.

Experts want to know how the Minister of Aviation, Hadi Sirika will wrap up the implementation of the sector’s roadmap before the administration winds down on May 29, 2023.

Aviation workers are also in a fix in terms of what to expect on plans by the Federal Government to demolish annexes of some agencies including the Federal Airports Authority of Nigeria (FAAN), and Nigerian Airspace Management Agency (NAMA) in Lagos to develop an aerotropolis.

Though Sirika has vowed to go ahead with the project to change the aviation landscape into something global and contemporaneous, aviation unions and workers have threatened to resist such moves.

How these will pan out lies in the belly of days to unfold in 2023.

But, experts say the year will taxi on a long runway as much as anticipated on how far Ogun State will go with its Agro Cargo Airport in Ilisan Remo. It will be the fastest developed aerotropolis by any supranational authority.

 When this airport will become operational and how it would help to decongest the Lagos Airport remains major developments to watch out in the year 2023.

On the infrastructure front, industry watchers are also upbeat on when Lagos State Government will commence the construction of its Passenger/Cargo Airport in the Epe/Lekki corridor.

This unique project, which holds huge investment opportunities in the Centre of Excellence is expected to drive economic activities around the Dangote Refinery and Lekki Free Trade Zone.

On the operational side, the optics look optimistic for local carriers in 2023 as expansion beckons for many carriers.

Investigations has shown that the stakes would fundamentally alter for Arik Air, as discussions are ramping up for the possible return of the airline to its original founder.

Findings indicate that efforts by the Asset Management Corporation of Nigeria (AMCON), to turn around the fortunes of the airline, has not in particular yielded the desired results.

In what may have drifted into a near dilemma, moves are ongoing to reach out to the founder continue with the business and restore its brand visibility.

Besides Arik Air, state-owned and run carrier – Ibom Air – is on the radar in 2023 as its meteoric rise and rise will upset many competitors.

Analysts predict will expand phenomenally in 2023 with ambitious fleet modernisation and growth programmes. The carrier, experts say would force other operators to return to their strategy rooms to keep their flight operations afloat.

In 2023, other carriers, including Aero Contractors, ValueJets, Green Africa, Dana Air, will pull stunts that would change the air travel dynamics.

While route expansion programme looms in the horizon, reduction on airfares could be a major feature to drive operations as the completion of the Dangote Refinery in Lekki would make it easier and cheaper to access aviation fuel.

With such cost reduction, the optics look bright for local carriers who would deploy the right equipment and rework their flight scheduling to take advantage of opportunities that beckons in 2023.

New carriers, including RANO Air, Xejet Airlines and some airlines that stopped operations a few years ago, would make efforts to return to flight operations in 2023, but their stay would be determined by their business models and other indices.

In an interview, Chief Operating Officer, Air Peace, Mrs Oluwatoyin Olajide, said 2023 looks optimistic for the eight year- old carrier.

She said the carrier looks forward to extending its footprints into seven countries  and adding flight frequencies on existing routes.

Olajide said: “This year , we are  expecting eight  brand new Embraer 195-E2s from our firm order in 2019 and additional 15 brand new Boeing 737 Max 8 and 10 Order. As we ramp up plans to strengthen our operations to serve our esteemed customers better. We are also expecting some of our aircraft undergoing maintenance overseas and by second quarter this year, they will start returning.”

But, watchers are worried of what lurks in the horizon for Max Air, whose founder passed last year. Sources close to the airline expressed optimism that the carrier will continue its operations unhindered.

From the regulatory perspective, experts are upbeat that plans by the Nigerian Civil Aviation Authority (NCAA), to review the National Aviation Policy would deliver the expected outcomes.

Chairman West Link Airlines , Captain Ibrahim Mshelia and Ohunayo, have expressed their excitement over such lofty dream.

But, the NCAA would be in the public eye in 2023 as industry watchers and stakeholders are increasingly becoming engaging on the template for its oversight of the industry.

On its part, the Nigerian Airspace Management Agency (NAMA) will attract stakeholders attention on the modalities for the implementation of its Wide Area Multilateration Surveillance System introduced for detecting low level helicopters flying in the Niger Delta and Gulf of Guinea Region.

Though its Acting Managing Director, Mr. Mathew Lawrence Pwajok, has worked assiduously for the agency, its unclear if he would remain substantive as helmsman for the agency as the year taxi on the runway.

On the infrastructure front, 2023 will present various scenarios for the Federal Airports Authority of Nigeria (FAAN), which is increasingly under focus for dilapidating operational equipment at airports across the country.

From obsolete and decrepit facilities at some terminals, FAAN’s management, experts say need to think out of the box on how to wriggle itself out of the control of the Ministry of Aviation in discharging its mandate.

How FAAN will fix the litany of challenges confronting airports littering the country remains to be seen as the year course through its many tracks.

Speaking on inadequate facilities at airports, an airline operator expressed his worry.

The operator said: “FAAN should increase the number of check-in counters to reduce flight delays experienced by passengers at the airports. Even in international operations, domestic airlines are left with three counters to operate.

“However, an expanse of space is given to foreign airlines which is a disservice to Nigerians who are trying to get it right under harsh environment.”

“What we are asking for is expansion. The old international terminal (Abuja) is lying fallow, if some of us (airlines) should go there, we will have enough counters for check in.

“Not when they give you two counters and you are checking in thousands of people, delays will surely come and I tell the flying public to stop blaming the airlines for delays.”

How FAAN will resolve this puzzle lies in the belly of time.

As the year 2023 opens, watchers look forward to optimal use of the new international terminal of the Lagos Airport, where only five carriers processing flights.

Significantly, the agency to watch in 2023 is the newly transformed Accident Investigation Bureau (AIB), which is now addressed as  Nigerian Safety Investigation Bureau (NSIB),

The Director-General of the newly created NSIB,  Akin Olateru said the agency is currently working on a three to five years plan.

He said the plan was awaiting approval from the Ministry of Aviation.

The three to five-year plan after approval would put the agency on a great pedestal of the multi-modal task it is currently engaged in with signing into law the NSIB Act by President Muhammadu Buhari.

The NSIB is empowered to now investigate serious incidents and accidents in the aviation industry, maritime, rail, and road following the repeal of the AIB Act.

Olateru while fielding questions from reporters recently during the release of seven accident/incident reports said the three to five-year plan would focus on human development, which includes infrastructural needs.

His words: “We are doing a gap analysis to see the deficiency required. In terms of human capital, we need to recruit maritime experts; we need to recruit rail experts. I think 80 per cent of our investigators right now have been trained on multimodal air accidents, rail accidents, and maritime accidents at Cranfield University.’’

“This, we have been preparing for the last few years and we made sure we put our investigators in that training at Cranfield University. It was a six weeks course. We definitely need some level of expertise. If you remember a few weeks ago, we signed a Memorandum of Understanding (MoU) with the Nigerian Navy; that’s part of the background work we are doing because we need the Nigerian Navy in terms of support, in terms of logistics, and in terms of training as well as some of our investigators. We are building on that and very soon, we will bring all that to the open”.

The NSIB boss explained that fusing air, rail, road, and maritime accident investigation was a game changer and a decision that was reached after looking at the enormous saving it would bring to the country.

Going down memory lane, Olateru said, “One thing I love about the job I do is that I don’t need to reinvent any wheel. If you look at some countries, they are already doing what we just started. When you look at the journey so far, our presentation was made to the Federal Executive Council (FEC). It was debated and it was approved by FEC to put all accident investigations under one body. Firstly, you are saving costs. This is about preventing needless debts. Secondly, expertise stays together and makes workings much more efficient.”

“That was the approval of the FEC at that time. This was then passed on to the National Assembly, this was debated at a public hearing. We went through a rigorous process of a second hearing, and a third hearing before it was sent to the President for approval. Of course, there was a bit of tweaking that was done at the National Assembly. At the end of the day, we got what we wanted and I really want to appreciate them for that. In the wisdom of the President, this was approved and signed into law. This is about ensuring that our modes are safe. Look at the result we have been able to achieve in the air transportation sector.”

“The reason we have been able to achieve that is that we have been able to separate the investigator from the regulator and the service provider. This is the way it is in most countries of the world today. They are on three legs. You separate the regulator from the service provider and the investigator. In the air mode, what we have had since 2007 was AIB being the investigator, NCAA being the regulator and the Federal Airports Authority of Nigeria (FAAN) the airlines, the Nigerian Meteorological Agency (NiMet), the Nigerian Airspace Management Agency (NAMA) and the Nigerian College of Aviation Technology (NCAT) being the service providers.”

He explained that the essence of forming a single body to probe all modes of transportation accidents was to make reports of accidents in any area of transport objective and authentic without influence from the chief executive officers of the agencies.

On financing of the new agency, Olateru said that had been taken care of with the six percent deduction from Ticket Sales Charge (TSC), another five percent from the Federal Airports Authority of Nigeria (FAAN) or any terminal operator that charges Passenger Services Charges (PSC).

“There is the percentage of railways tickets sold in Nigeria that will come to NSIB, there is some percentage of money paid by the ships that come into Nigeria to NIMASA that will be coming to NSIB. We found a way to balance it so that no mode is left behind. On the finances, as long as we can drive all these proposals approved in the Act, I think finances should be ok. As you know that we are one agency of government under the UN Charter we are not allowed to charge for our services. You don’t charge for investigation”, he added.

Experts say the dynamics of a transition year , where new chief executive officers are drafted into government agencies may alter the stakes for the aviation sector.

The Nigerian Safety Investigation Bureau (NSIB) has signed a Memorandum of Understanding with the Nigerian Navy to enhance the prevention and mitigation of accidents and serious incidents in the transportation sector.

The MoU was signed by both parties at the Nigerian Navy Headquarters.

 In a statement, Tunji Oketunbi, General Manager, Public Affairs of NSIB, quoted the Director-General of the NSIB, formerly known as Accident Investigation Bureau (AIB),   Akin Olateru, as saying that the MoU would benefit the Bureau in the area of safety, research, capacity building, diving, search and rescue, retrieval of Flight Data Recorders (FDR) in maritime environment, data analysis and for assistance in the conduct of investigations on Naval platforms.

The DG of the Bureau further stated: “This MoU is coming at the right time we need the Navy most. We would need to come up with a Standard Operating Procedure (SOP) on how we can strengthen this relationship. It is not about signing the document, there is a lot of work to be done.”

While appreciating the Navy for making the agreement happen, the DG said the mandate of the NSIB is to investigate accidents and serious incidents that occur in all modes of transportation.

He said the signing of the agreement was in line with the global practice of inter-agency partnership between the civil air accident investigation agencies and the military to promote air safety, adding that it is also a response by the Bureau to the Federal Government’s call for synergies among agencies of government for good service delivery.

“All over the world the military partners with the civil to achieve a set objective, as this is not peculiar to Nigeria. The benefits of any strategic collaboration of government institutions is for the common good of the country’, Olateru said.

(Establishment) Act 2022 by the Federal Government, which empowers the Bureau to investigate, not only air accidents but civil, maritime, rail and other modes of transportation networks for improved safety in accordance with the global practice.

“ The accident Investigators are separated from Regulators. This is the practice today all over the world,” said the NSIB boss.

He expressed the Bureau’s readiness to partner with the Nigerian Navy to ensure that both agencies reap the full benefits of the collaboration even as he urged the Nigerian Navy to take advantage of the Bureau’s well equipped Safety Laboratory to achieve the mandate and the statutory function of both institutions, as need arises in keeping with the MoU objectives.

The NSIB, under its previous umbrella, Accident Investigation Bureau Nigeria (AIB-N), has signed local agreements with the Nigerian Air force, the University of Lagos, the University of Ilorin amongst others and is currently seeking agreements with the Nigerian Police, Federal Road Safety Corp (FRSC) and the Nigerian Emergency Management Agency (NEMA).

The Bureau has also signed international agreements with France BEA, Sao-Tome and Principe, Sierra-Leone, Benin Republic and recently with the Kingdom of Saudi Arabia Accident Investigation Bureau (KSA-AIB).