The Nation Newspaper

Category: Aviation

  • Our VAT plan for domestic airlines, by FIRS

    Our VAT plan for domestic airlines, by FIRS

    The Federal Inland Revenue Service (FIRS) has opened a payment window to assist domestic carriers meet their Value Added Tax (VAT) remittance obligations, its Chairman, Babatunde Fowler, has said.

    He made this known during a meeting with a delegation of the Airline Operators of Nigeria (AON) and the International Air Transport Association (IATA) in Abuja.

    The window, according to him, is where airlines can structure payment of their VAT after two months of billing.

    Fowler described the window as a soft landing for domestic carriers, which will allow for payment reconciliation.

    Under the new arrangement, he said, payments collected by airlines will require two months for reconciliation and remittance to enable the carriers recoup sales.

    The new system, according to him, will allow operators remain in business in the face of economic challenges.

    To him, there is a need for FIRS to support domestic carriers because they are catalysts for economic development.

    This is the first time the tax agency will be partnering AON and IATA to stimulate the growth of aviation.

    Fowler said:“We agree that the airline industry is challenged. Government is not out to make profit, but to make life more comfortable for the people. Exemptions on tax issues  are beyond FIRS as we do not make the law. So, all we can do is to make it easier to give domestic airlines a soft landing by meeting them halfway in order to obey the tax laws.”

    He added that he understood the challenges and multiple charges airlines are faced with, urging the AON to engage the Presidency through the Department on The Ease of Doing Business, the Senate and the Minister of Finance to dialogue on how the laws could be amended to make airlines competitive. Doing this, he said, was one of the ways of achieving lasting solution.

    On his part, AON Chairman, Capt. Nogie Meggison, said the airlines’ body was excited over the partnership, but would want  the tax agency look into complaints lodged by its members.

    He called for more dialogue between the FIRS and AON in order to enhance  understanding of the automation process and allow smooth operations by both parties.

    He said:“Airlines have no issue with paying or collecting the statutory VAT for FIRS, but there was need to take a look at the issue of fairness against our competitors, clarity on the automation as well as a 30-day period to allow for invoicing, reconciliation and billing before payment.“

    Meggison praised  the FIRS boss for the concessions to airlines, noting that it was a step forward in alleviating challenges that have consumed over 25 airlines.

    The AON Chairman appealed  to the FIRS boss to take a closer look at VAT for domestic air transportation in Nigeria, adding that if VAT were to be removed, it would make air fares cheaper.

    His words: “Accra has become the hub for doing business in West Africa today due to the fact that Accra has adopted a deliberate economic policy to make the city a hub for West Africa and as a way of achieving this, it adopted zero VAT for air transportation.

    “ This has also  lowered taxes on aviation fuel by 25 per cent, which has attracted more airlines to fly into Ghana for technical stops and connections to cities around the world. This has had a multiplier effect on the economy and the country at large.

    “Nigeria, therefore, needs to take a bold economic step to jumpstart aviation,”he said.

    Meggison said going by a recent study, the greatest challenge for airlines in Africa is not low cost carriers, but road transport.

    He said this is despite the fact that operators in road, marine and rail transportation do not pay VAT. “It is even painful that  foreign airlines don’t pay VAT,” he added.

    The IATA Area Manager, Southwest Africa,  Samson Fatokun, said  the tax agency should assist airlines in Nigeria by evolving measures that will ensure their sustenance. Absence of such assistance, he said, has led to the collapse of many airlines.

    While identifying multiple charges as part of the problems airlines grapple with, Fatokun said Nigerian carriers have an average mortality rate of 10 years.

    He said there was an inherent problem in the operating environment that increases the high mortality rate.

  • AIB trains police on securing crash site

    The Accident Investigation Bureau (AIB) has trained the first batch of 20 police officers at its headquarters at the Murtala Muhammed Airport (MMA), Lagos, on the methodology of securing accident sites.

    AIB said the training created awareness for the police personnel on the importance of securing crash sites.

    The police officers were drawn from Airports Command and the Special Protection Unit, Ikeja Police Command in Lagos.

    According to AIB, the second batch of the training is scheduled for next week in Abuja.

    The bureau assured that with training of the officers, the era of tampering with accident investigative evidences was over.

    AIB’s General Manager, Security and Industries, Olumide Osineye, who co-ordinated the training, said the exercise would further enhance the performance of accident investigators in case of an accident.

    Osineye said the novel idea was the brainchild of the Commissioner of AIB, Akin Olateru, who insisted that police officers must be adequately trained to support its accident investigation.

    He explained that the training was put together to provide aviation security awareness to police officers and to explain the roles of the police at aircraft accident sites.

    He declared that the training cut across police officers posted to the airport command and those at the Special Protection Unit at Ikeja, deployed in AIB.

    According to him, the team would be a part of the AIB’s team in case of any accident as first responders to move to an accident site to give the investigative team the necessary support, especially in controlling evidences.

    He said: “When an accident occurs, the wreckage is a very important entity and there are items of the aircraft that need to be preserved. Experience has shown that most of our police officers are just pulled from anywhere without any background or awareness on accident investigation.

    “The danger is that when you are not aware, you will just do to the best of your limits, but when you are aware, you know the rudiments, you know the procedures and what should be avoided, protected and preserved.

    Olateru, therefore, said the main benefit was that this category of people will be able to control an accident site so that there will not be any tampering with the evidences or critical items like the Flight Data Recorder and Voice Data Recorder and other relevant items that can help in investigation of an accident.

    He assured that the exercise would be conducted quarterly, while efforts would be made to ensure that majority of police officers in the country were trained.

    In case of redeployment, Osineye insisted that it would still be an added advantage to the industry as accident could occur anywhere within the country without notice.

    His words: “Even when they are redeployed, it is still going to be a value added because accident can occur anywhere at any location and without telling you. So, the more we train, the more we add value and the more we increase the number of people, who already have awareness. If it is possible to let all the police personnel have the awareness, that will be fantastic.”

    Eight police officers were trained from the airports command, while another 12 were drawn from Special Unit Base 2 of the Ikeja Police Command.

  • Tackling aircraft’s high insurance premium

    Tackling aircraft’s high insurance premium

    Airlines, airport authorities, ground handling firms and other ancillary services providers are on war path over the high insurance premium for aircraft. However, experts say the paradigm can change, if there is  enhanced capacity, right pricing and pooling of risks, among indigenous insurance firms, to enable them handle serious aviation undertakings, KELVIN OSA OKUNBOR reports.

    THERE is growing discontent among aviation players  over the rising cost of insurance premiums charged by local underwriters.

    The  cover is for aircraft, ground handling equipment and installations at airports.

    In most countries, including Nigeria, all commercial aircraft are mandated to have the combined single limit category. The category combines public and passenger liabilities, with an overall limit per accident.

    Going by the various submissions of stakeholders, the prohibitive cost of insurance premiums on aircraft used locally, is predicated on the inability of indigenous firms to undertake risks without resorting to firms abroad.

    This is why foreign insurance and reinsurance firms, such as LLOYD’S and the American International Group (AIG), have found the Nigerian airline industry a veritable market for business.

    Others reaping from the lack of domestic insurance firm’s capacity include America International Group in United States (US), AXA Group in France, Allianz Worldwide in Germany, Meti Life in the US, General Group in Italy, Zurich Financial Services in Switzerland; Prudential Financial in US, AVLVA in the United Kingdom,  Munich Re in Germany, ManuLife Financial in Canada and AEGON in Netherlands.

    According to the requirements of the Nigerian Civil Aviation Authority (NCAA), airlines must have a valid cover for their aircraft before they operate scheduled or charter  flights.

    Investigations reveal that the high cost of aircraft insurance in Nigeria can be traced to  its classification as a high risk country, no thanks to the insecurity in some states,  the state of navigation and airport facilities and its history of air accidents.

    But experts, including Airline Operators of Nigeria (AON) Chairman Captain Nogie Meggison said the assessment should be discarded because Nigeria holds a Category One ICAO safety rating.

    To correct this, he said operators have engaged underwriters to do a rethink.

    Worried by this trend, the National Insurance Commission of Nigeria (NAICOM), a few years ago, called for merger among insurance firms to enable them pool  funds and expertise to undertake aviation risks. The regulatory body said such merger could correct the anomaly.

    Standard Alliance Insurance Plc Group Managing Director Bode Akinboye told The Nation that many factors were responsible for the high cost of premiums on aircraft.

    He said many insurance firms were scared of aviation risks because of the large funds required to pay claims.

    Akinboye said unless an insurance firm gets a large number of risks to undertake, the premium would remain high.

    He said: “It is not true because capacity is relative. Insurance is an international business.  It is a matter of capacity and the network of reinsurance companies behind you as a company.

    “To boost your capacity as an insurance company, you must have a solid back up of retro-concessionaires. These are companies that reinsure the re-insurance companies behind you.

    “So, it is a long chain. Every business you take from Nigeria can find its way to the US, UK, Russia or even find its way back into Nigeria.

    “If there is no capacity to handle airlines, the capacity can be put in place and there are laws that enable the insurance companies through our regulators to put the necessary capacity in place.

    “Insurance is a game of large number and unless you get the large number. It is impossible to get the large pool of fund to handle those heavy claims.”

    Besides large pool and capacity, Akinboye said other factors responsible for high insurance premium included the issue of right pricing of insurance products.

    He said: ”Another factor is pricing. The  public wants  quality services from the insurance companies, but they do not want to pay the right price. You cannot get what you don’t pay for. Nigeria is one of the few markets where you can get the cheapest form of insurance.”

    Akinboye said the model of aircraft ownership also contributed to the problem.

    He said: “Most aircraft in Nigeria are on lease, so the lessors have global insurance cover with their international insurance companies.

    “But to comply with the Nigerian laws, airlines still pass through a local insurance company. Any insurance company that takes up a business knows that we are in business of risks management.

    “You have to look at your balance sheet and know how much of those risks you can retain and bring other insurance companies to join hands with you. If they cannot carry it, you take it to the international market.

    “The truth is that there is no business that is too big for the insurance world to take up as long as you give it to insurance company that knows its onions. They will know how to place that business in the global market. This is  because global network  is where the strength of insurance is.

    “Every business you take, you have to find a formula where you take the portion you can absorb and give the rest out to others both locally and abroad. With that, there is no business that you cannot place with insurance companies.

    “The cost of insuring aircraft is so high in Nigeria because of claim experience.There have been a series of aircraft accidents in Nigeria in the past and the environment is perceived as  not safe. These are the factors that drive insurance premium.We look at different factors before we know how much we want to charge.

    “The rates are not determined by us, they are determined by foreign reinsurers who take the bulk of the risks. For most aircraft, we retain maybe 20 to 30 percent risks; the remainder is insured abroad.’’

    He continued: “That is how the market is because aviation is a specialised risk. It is not just for anybody. Inside the aircraft, we have complex equipment and these are not as straight forward as insuring a motor vehicle.

    “There are special risks that need to be handled by experts. As long as we are still developing the know-how in Nigeria, we still have a lot to learn from our counterparts abroad. We just have to take the one we can absorb and give the rest to the international market.

    “Every sector is looking for survival and aviation has its own challenges. So, in an attempt to save cost and manage liquidity, they want to buy insurance in the right size, so that they can use and pay, but the requirements for aviation is very strong that you must have insurance throughout the year, non-stop otherwise you cannot fly that aircraft.

    “So, even if they pay monthly, there must be a structure to make sure that their insurance is on-going. So, I believe the monthly payment is just about cash-flow and liquidity management not the cover. The cover has to be 24 hours  daily in a year.

    “What we can offer to airlines is  flexibility, access to the London market, which is the standard for placement of insurance risk and we will not play with their requirements in terms of where to place the risks and get the necessary approvals prior to placing such risks.

    “Apart from that, we are developing passenger insurance to complement the mandatory cover, whereby every passenger flying from one airport to another can also have extra insurance benefit to complement what they have in case there are any accidents.

    “So, it is more of speed, quality of engagement with them and placing their risks in the Lloyd’s of London market, which is the standard for placing such risks.”

    Akinboye said one of the reasons insurance industry was not making the needed impact compared to other countries’ could be traced to improper application of  the law. He called on the government to overhaul the sector.

    Akinboye said: “The lack of political will and structures to ensure compliance are some of the major problems preventing the industry from making the right impact in Nigeria. On the back of compulsory insurance is where we are supposed to have innovation, new products and services. I do not think Nigeria is getting five to 10 per cent  of the potential in compulsory insurance.

    “It is not my responsibility as an underwriting firm to implement; it is the duty of the government.”

    Also, Air Peace Chairman Allen Onyema said the high cost of insurance was affecting operators.

    But, he admitted that the setting up of a pan – African aircraft leasing company could bring about reduc Insurance premium .

    He said : “ Insurance premium is very high in Nigeria. It is very high to insure one aircraft. All the odds are stacked against us. All over the world, insurance premium is next to nothing. But, in Nigeria, the insurance firms have no capacity to insure an aircraft.

    “It makes my heart bleed that  aircraft  registered in Nigeria  have to pay twice or more than the amount foreign registered aircraft pay on insurance premium. The reason given for this by insurers is that Nigeria is considered a high risk nation. But, we are not a high risk country, considering the fact that we have Category One staus. If our aviation standards are not high, we could could not have been awarded Category One. We are doing well in terms of safety globally, yet insurers label us as a high risk country.”

    Also, Managing Director, Medview Airlines, Muneer Bankole said the  insurance market is unable to effectively underwrite risks in aviation because of the high exposure of an average $500 million required to cover hull, war and third party liability.

    He said: “The issue of insurance is dollar denominated. Insurance companies have no capacity to carry the burden of such risks.

    “The categories include: public liability, passenger liability, combined single limit, ground risk hull  and inflight insurance.’’

    In the public liability category, the policy covers owners for damage by their aircraft to third party property, such as houses, cars, crops, and airport facilities.

     

  • Aircraft leasing firm in the offing for Africa

    Aircraft leasing firm in the offing for Africa

    Aircraft leasing is a nightmare for operators in Africa. The absence of aircraft leasing firms has forced many operators to swallow the lessors’ stiff conditions. But, collaboration with an original equipment manufacturer to float an African Aircraft Leasing Company is expected to shift the paradigm, KELVIN OSA OKUNBOR reports.

    African carriers navigate through a myriad of challenges to lease aircraft for their operations.

    Leased aircraft constitute a sizeable fraction of aircraft operating in African airspace. It has become the norm because the cost of aircraft is too high for African carriers struggling to make profit.

    Investigations reveal that there is no aircraft leasing company in Africa. The absence of an indigenous aircraft leasing firms has forced African carriers to swallow the bitter pills rolled out by foreign lessors.

    There are about 10 major aircraft leasing companies across the world, among which are General Electric Commercial Aviation Services (GECAS) based in the United States (US), AVOLON – US, BOC Aviation – US, International Leasing Finance Company ( IFLC) – US and AerCap.

    Most of them are based in the United States, Europe, Middle East, China, Malaysia and other parts of the world.

    According to investigations, foreign lessors ask African leasees to pay prohibitive insurance premium because of the continent’s high risk label. Besides the high insurance premium, they face limited access to credit.

    Investigations also revealed that some leasees who defaulted in paying for lease rentals contributed to make aircraft leasing on the continent a difficult undertaking.

    But at a time aircraft manufacturers are pushing for the use of newer airplanes, aircraft lessors have become a necessity in Africa.

    The push for aircraft leasing firms on the continent could not have come at a better time than now given the latest global market forecast by Airbus that airlines will require over 35,000 aircraft valued at $ 5.3 trillion in the next 20 years.

    The forecast states that between 2017 and 2036, the world’s passenger aircraft fleet above 100 seats will double in two decades.

    Another manufacturer – Boeing Corporation – said global airlines will require 38,050 airplanes in the next 20 years.

    Despite the Cape Town Convention instrument, which makes it easy for African and Nigerian operators to acquire relatively-newer aircraft, investigations reveal that some operators are finding it difficult to access aircraft from  leasing companies in America, Eastern Europe, Middle East and other parts of the world.

    Often times, the operators are left with no choice but to opt for a wet lease arrangement.

    A wet lease according to the Chairman, Airline Operators of Nigeria (AON), Captain Nogie Meggison, is an aircraft leasing arrangement in which the lessor provides the aircraft, crew, maintenance, and insurance (ACMI) to an airline which pays for the hours operated.

    The lessee, he said, under such arrangement, provides fuel and covers airport fees, and any other duties and taxes.

    Dry lease, he said, is a leasing arrangement whereby an aircraft financing entity, the lessor, provides an aircraft without crew and ground staff.

    This arrangement, Meggison said, is typically used by leasing companies and banks, requiring the lessee to put the aircraft on its own air operators’ certificate in addition to providing registration.

    But, the paradigm will soon shift as an integrated aviation firm, Spring Fountain Infrastructure Limited, has set up an African Aircraft Leasing Company (AALC) in Lagos.

    The firm, according to its Executive Director, Mrs. Tokunbo Fagbemi, intends to invest over $20 billion to facilitate aircraft leasing for operators.

    The firm also plans to set up an aircraft maintenance repair and overhaul (MRO) centre, spares logistics and supply as well as aggregated services solutions centre.

    The investment, according to Mrs. Fagbemi, is in partnership with United States-based aircraft manufacturer Boeing Corporation.

    The aircraft leasing company, the first in Africa, will create a robust window for Nigerian operators to access 200 Boeing aircraft in the next 20 years.

    Apart from Nigerian operators, other carriers in West and Central Africa are expected to benefit from the leasing company.

    In an interview, Mrs. Fagbemi said the leasing firm would be of immense benefit to indigenous carriers that go to many parts of the world to get aircraft from lessors under very stringent conditions.

    She said under the new arrangement, Boeing and the leasing firm would offer longer-term flexible payment plans for local operators to enable them acquire newer airplanes and boost profit margins.

    Air Peace Chairman Allen Onyema said the leasing firm would make it easier to acquire aircraft from foreign lessors.

    Onyema said the initiative, would save the country over $500 million yearly.

    He said the huge capital flight  because of non-availability of critical infrastructure, such as MRO, leasing companies, had impacted negatively on the sector.

    According to him, the stringent conditions given to Nigeria airlines whenever they plan to lease aircraft remains a challenge to operators.

    “I can confess to you that it has been difficult leasing aircraft to airlines in this part of the world. The conditions given to Nigerian airlines are killing. They tell us we are unsafe, government is not supportive, their planes can be endangered, the condition are outrageous, so we make do with what we have but it is capital flight and there is nothing we can do.

    “But we will be happy if we can have our own GECAS in Nigeria. This country will be saving over $500 million every year, if we have our own MRO, because we spend millions on aircraft maintenance. I am truly in support of this.

    “This is what we have been yearning for. If this can happen, all the challenges will become things of the past. This is a great idea that will create jobs for Nigerians,” Onyema said.

    While urging the Boeing to relax some conditions, Onyema said if the initiative came to fruition, Nigeria could become the Arizona of Africa where aircraft were kept.

    “I appeal to Boeing to make things easy for us; for instance, I bought two B777  some months ago but they have not arrived Nigeria due to Type Certification issues. Boeing needs to take some things into consideration,” he added.

  • Accident-free year: What did carriers do right?

    Experts in the aviation industry in Africa will gather at the 13th Akwaaba African Travel Market in Lagos in September to x-ray the successes in the sector in the 2016 operational year.

    The forum, according to its organiser, Nkechi Uko, will create an opportunity for players to examine the safest year in commercial aviation in Africa with no accident otherwise known in aviation par lance as “ no jet hull loss.“

    This , Uko said, has become imperative against the backdrop of decades of problematic safety levels in Africa

    The theme for this year’s Aviation Day is “One year commercial free accident aviation: what did Africa do right?”

    He said the forum was expected to be attended byexperts from global aviation organisations, such as the International Air Transport Association, (IATA), African Civil Aviation Commission, (AFCAC), African Airlines Association (AFRAA) and Chief Executives of airlines on the continent.

    Uko said: “The 13th Africa Travel and Tourism Conference is aimed at transferring knowledge covering travel, hospitality and aviation sectors from globally rated experts.

    “Apart from the yearly exhibition, which offers participants the opportunity to expose their products to the travelling public and travel trends in a face to face format. The 13th AKWAABA African Travel Market will be imparting knowledge to its various participants through seminar, networking, exposure and provision of new skills.

    “The CEOs of successful African airlines have been invited to share their experience in running a successful airline in Africa.

    “Other speakers and panellists  include representatives from IATA and AFCAC. AviatorQs are expected from Zimbabwe, Kenya, Uganda, Ghana, Togo, Dubai, Tanzania, Liberia, Rwanda, South Africa, Seychelles, Namibia and Nigeria.

    Also, Olori super gal Media, Infobuddie, The Lagos Weekender, Olodonation and Social Prefect Tours, have been named as official social media partners for the maiden edition of Chef Challenge/Food Expo at Akwaaba Travel Market.

    The culinary event is aimed at promoting tourism by showcasing the best of Nigeria to an international audience.

    The event will be hosting chefs from Ghana, Gambia and Nigeria to compete for jollof rice challenge, 36 states compete for the best main meal and a group of Nigerian chefs compete for the best prepared rice in varieties.

     

  • How Air Operators’Certficates are issued, by NCAA

    How Air Operators’Certficates are issued, by NCAA

    Twenty-seven would-be carriers are accusing the Nigerian Civil Aviation Authority (NCAA) of double standards in processing their applications for Air Operators’ Certificate (AOC). Without the AOC, no airline can operate scheduled flights. To the 27 intending carriers, getting the AOC is like the proverbial camel passing through the needle’s eye. KELVIN OSA OKUNBOR reports.

    There is discontent in the aviation sector over the procedure and requirements for securing an Air Operators’ Certificate (AOC) by the Nigerian Civil Aviation Authority (NCAA).

    This document distinguishes a scheduled flight operator from others who acquire aircraft for private use.

    An AOC holder, according to regulatory categorisation, is an airline licensed for business in the public transport category.

    Over the years, the AOC’s issuance has always pitted operators against the NCAA, which insists that statutory requirements must be complied with. AOC’s issuance  to any airline, according to experts, involves series of stages, otherwise tagged as hurdles by airlines. In fact, many airlines have not been able to scale the hurdles despite claims that they have the required documents, manuals, personnel and equpiment matching their proposed scale of operations.

    Investigations revealed that 27 intending carriers have pulled out from the AOC’s process over alleged infractions by the regulator’s personnel, who, it has been alleged, have made the process difficult and unfriendly.

    According to experts, an application for AOC will undergo five stages before issuance or  certification by the NCCA. Investigations revealed that the alleged  tough conditions may have stalled the  process for the 27 airlines. The airlines are Jet Support Services; Air First; Air Taraba; Air Jupiter; Continental Aerospace; Jet Leasing Support; Quorum Aviation;  Mayatta Enginerring Services; Toucan Airlines; New Okada Air; Fye Air Shuttle;  Tropical Arctie; Xejet; Revillo and Glory Airlines.

    Others are Dominion Air Limited; Mounthill Aviation Resources Limited; Air Stream Aviation; Baltic Airlines; Millenium Travels and Tours; New Okada Air; Onedot Aviation and Oriental Airlines. There are others like Prime Air Services;  1060 Airways; Private Airline Services and Trebet Aviation Aerospace Nigeria Limited.

    The Nation findings revealed that while Jet Support Services and Air First, which started their AOC precesses in 2015, got to stage two, this year, their promoters had to stop the process when it became clear that they were not making any progress.

    Others such as Air Taraba, Air Jupiter, Continental Aerospace, Jet Leasing Support, Quorum Aviation, Trpical Arctie,  Xejet and Revillo that got to stage three also got stalled  in the process.

    It was gathered that Glory Airlines, Dominion, Mounthill did not go beyond phase one before they got stalled.

    An industry source said airlines that are in the exploratory phase of the AOC, are:  Air Stream Aviation; Baltic Airlines; Millenium Travels and Tours; New Okada Air; Onedot Aviation; Oriental Airlines; Prime Air Services; Private Airline Services and  Trebet Aviation Aerospace Nigeria Limited.

    Since 2005, the NCAA, it was learnt, introduced stiffer requirements for prospective operators.

    Although Nigeria is a signatory to many conventions and annexes of the International Civil Aviation Organisation( ICAO), AOC’s issuance procedures, requirements and processes differ from country to country. The reason for this is that the scale of operations of airlines, type of aircraft, conditions of lease of operating aircraft and the airline in question play a big role in application’s determination by the regulatory body.

    Aside preparing operations manuals, acquiring aircraft, recruiting staff and the attendant training they have to undergo, the NCAA has consistently stood its grounds on following the due process.

    The alleged NCAA’s hard stance, investigations revealed, is to avoid any under-hand dealings by operators, who are desperate to acquire the certificate, by allegedly cooking the technical books and manuals to escape the regulator’s  inspectors and engineers’ in ensuring the airworthiness of all aircraft type.

    But, the NCAA’s spokesman, Sam Adurogboye, said insunations of infractions by the authority’s personnel or double standards in the issuance of AOC was a matter for industry education.

    He said it was laughable when those who do not know allege that airlines borrow aircraft to deceive the NCAA into issuing them AOC licence. Such, according to him, is not possible.

    “For the purposes of clarification, Omniblu Aviation Limited got its AOC certification in 2015 ,as at today, Omniblu has five helicopters and three aeroplanes on its AOC – HS123-850XP (5N-SPL); Challenger 604 (N880ET); and Boeing 737 Freighter (5N-IZB) For Helicopters, Omni Blu Aviation has, Two Agusta Westland 139 (5N-BTR) and (5N-BQB),  Two Bell 4125 (D-HIPP), (D-HAFW) and One Bell 212 (D-HBZT),” he said, referencing the NCCA Document and Omniblu Operational Specification.

    He continued:“There are five processes for granting of AOC to any interested persons. The requirements are pre-application phase. This entails initial enquiry or request about NCAA’s certification; obtaining of CAR and advisory; provision of forms to prospective applicants’ NCAA receives and review PASI for acceptance and completeness.

    “The next stage is document compliance phase, which involves certification team reviewing applicant’s documents for compliance acceptance/approval. This also includes formal application, letter of compliance, training and acceptance.

    “The others are called Demonstration and Inspection Phase, which involves evaluation by certification team and applicant’s demonstration of compliance’ evaluation of management effectiveness, inspection of station(s) facilities, flight operations, maintenance and records.”

    Adurogboye added: “The next is called certification phase, which allows the intending operator for approval of AOC and OpSpec with co-ordination with Director for Safety Oversight and DG NCAA. Such a new operator is expected to close different phases set out by the industry policeman, the NCAA, which could take up to two years or more before being issued an AOC.”

    According to him, an intending operator is expected to have sufficient personnel with the required experience for the type of operations in view, airworthy aircraft suitable for the type of operations requested, acceptable systems for the training of crew and the operation of the aircraft (Operations Manual).

    Also, an intending operator is expected to have a quality system to ensure that all regulations are followed. An operator must also ensure appointment of key accountable staff, who are responsible for specific safety critical functions such as training, maintenance and operations.

    He said: “Besides, there should be carriers liability insurance (for airlines); operators are to have sufficient insurance to cover the injury or death of any passenger, proof that the operator has sufficient finances to fund the operation, and should have sufficient ground infrastructure, or arrangements for the supply of infrastructure to support its operations into the ports requested.

    “For Nigeria, the NCAA included a minimum of 50 hours demonstration flights for intending operator. An intending operator  is expected to fly empty with full crew members and the NCAA inspectors for a minimum of 50 hours.

    “The NCAA argued that the essence of the 50 hours demonstration flight is to ensure that the applicant could carry out scheduled operations with all the safety standards without compromise.”

    Medview Airlines Managing Director, Muneer Bankole said: “First and foremost, I want to commend the NCAA and the Director-General, who, probably in his own wisdom, decided to enforce the compliance. It is a good thing for this nation and the industry.

    “Demonstration flight, we will not condemn it, it is the best because you don’t carry commercial passengers when you are not sure that your aircraft is safe for flying. In the case of Med-View, the NCAA insisted that we must fly 50 hours and in the process of acquiring the certificate, we flew 50 hours, 35 minutes and it’s on record that we gave them 7 hrs 39 minutes extra. If anybody is talking about flying compliance, I should be able to say that I’m complaint. I’m very proud of this, there were no cutting of corners, we went for it and we earned it,” he said.

  • Stop airports’ concession, FAAN petitioners urge Senate

    The Nigeria Union of Pensioners (NUP), Federal Airports Authority of Nigeria (FAAN) chapter, has urged the Senate to stop the planned concession of the four major airports in the country.

    Its Secretary-General, Mr Emeka Njoku,    stated this at the monthly meeting of the union in Lagos.

    The Federal Government has appointed Transaction Advisers for the concession of the Lagos, Abuja, Kano and Port Harcourt airports.

    Njoku faulted the move, stressing that the unions in the sector would continue to resist any plan to concession the viable airports by the Minister of State, Aviation, Hadi Sirika.

    He said: ”The Senate recently stopped the concession of Port Harcourt Refinery because the process was not transparent.

    “We, hereby, solicit further intervention from the National Assembly on the planned concession of our four viable airports.

    “If this government is known for zero tolerance on any act of impunity, particularly President Muhammadu Buhari, we cannot understand the refusal of the minister on the recently passed National Assembly Public Hearing resolution, suspending the planned concession of the four viable airports.“

    According to him, past concession agreements were not beneficial to the government and its agencies, noting that revenue collection points of the FAAN, such as toll gate, car parks, bill boards, fuel surcharges, shops and the VIP lounges were concessioned and had become a sad story.

    He said the union would not allow FAAN to go the way of the defunct Nigeria Airways, which was liquidated by an executive fiat.

    “We want the minister to tell the public what he wants to concession. What happens to FAAN workers, pensioners, its assets and liabilities? Is there a government blueprint on the proposal and what are contained therein? These and many more are begging for answers and should not be swept under the carpets,“ Njoku said.

    Meanwhile, the Nigerian Airspace Management Agency (NAMA) has updated its website to unveil the requirements, conditions and procedures of obtaining services with the airspace agency.

    The agency also unveiled on its website the prescribed fees and timelines necessary for the processing of applications for its services.

    Its Managing Director, Capt. Fola Akinkuotu said the website update was part of compliance measures to drive the implementation of the Executive Order rolled out by government.

    He also disclosed that the agency shall be organising workshop sessions to adequately enlighten and sensitise both staff and industry stakeholders on the essence and imperative of the executive orders, adding that the agency shall also be collaborating with other aviation agencies to harmonise processes in order to achieve the single user interface at the airports as directed by  the federal government.

    Capt. Akinkuotu hinted that in compliance with the order, the agency was working out modalities to increase local content in its procurement as this would boost locally manufactured goods in the country.

  • ‘Why Boeing is addressing education , infrastructure gap’

    ‘Why Boeing is addressing education , infrastructure gap’

    Aircraft manufacturer Boeing Corporation has said it is interested in closing Nigeria’s knowledge and aerospace infrastructure gap to save the sector from imminent dearth of personnel.

    The Corporation is worried that driving the growth of aviation in Nigeria, the sector needs qualified and certified personnel, who will man both infrastructure and  equipment, including aircraft.

    Nigeria is experiencing ageing work force in critical areas of airworthiness personnel, flight dispatchers, pilots, flight engineers and other key personnel.

    A source hinted that Boeing planned   with Aviation and Aerospace Development Foundation  (AADF)  and Springfountain Limited to train aircraft technicians.

    The training, the source hinted, will form part of the capacity building assistance for Nigeria.

    Confirming the development,  Director of AADF, Kayode Ariwodola, said the training was part of the global intervention to assist Nigerian aviation sector.

    He said the corporation was committed to the project as one of the ways of addressing the quality of aviation education in Nigeria .

    He said: ”There  is need to review the status of the aviation education infrastructure in Nigeria and the adequacy of the existing training infrastructure, the equipment to produce Nigerians that can compete in the global aviation industry.”

    Speaking in an interview, director, Springfountain  Limited, Tokunbo Fagbemi, said Boeing was interested in training Nigerian professionals to address gap in personnel.

    She said Boeing in its 2016 Pilot and Technical Outlook  identified inadequate personnel for the sector.

    The Boeing  industry forecast for personnel demand projected that 617,000 new commercial airline pilots, 679,000 new maintenance technicians and 814,000 new cabin crew would be needed to fly and maintain the world fleet over the next 20 years.

    Meeting this demand, Fagbemi said, requires innovative solutions focussed on educational outreach and career pipeline programmes.

    She said: ”To inspire the next generation of pilots, technicians, and cabin crew, new technologies, devices and training methods will be needed to meet a wide range of learning styles.

    “The growing diversity of aviation personnel will also require instructors to have cross-cultural and cross-generational skills to engage tomorrow’s workforce.”

    Fagbemi said although, Asia Pacific remains the region with the highest overall demand, there has been a significant increase in the expected number of skilled resources required in other parts of the world.

    “New market opportunities, such as the opening of Cuba for the North American market and increased intra-Europe travel for the European market, have strengthened demand,” she said.

    According to information from the Nigerian Civil Aviation Authority ( NCAA) website, Nigeria has 25 airports , 30 airlines with 590 pilots.

    The website reads: ”The country has more than 25 airports, 30 airlines, 590 pilots, 19 flight engineers, 258 air traffic controllers (ATC), 677 aircraft maintenance engineers, 1,103 cabin crew and four aircraft dispatchers.”

    Experts say Nigeria should work out an ageing work force programme for pilots, flight engineers , dispatchers and other professionals.

  • UAE firm partners OAS Helicopters on logistics  

    United Arab Emirates helicopter company Abu Dhabi Aviation (ADA) has signed an agreement with Nigerian aircraft charter operator OAS Helicopters to provide logistics services for oil and gas operations

    Part of the terms of the agreement include the acquisition and arrival of ADA’s 15-seater full offshore equipped helicopter AW-139 with registration number A6-AWH at OAS’ newTerminal  NAFBASE Airport, Port Harcourt, last week.

    The aircraft arrival completed the take off of ADA and OAS’ relationship, which had been undergoing technical and legal structuring since 2015.

    In the relationship, Abu Dhabi Aviation is coming with long years of successful oil and gas helicopter support experiences, which started since 1976 and has developed to over 60 aircraft in active operation.

    The aircraft has over 1,000,000 flight hours supporting oil and gas exploration throughout the countries of the Middle East, Brazil, Spain, Indonesia, Australia and New Zealand.

    According to Abu Dhabi Aviation’s AFB Contracts manager, Kevin Den Hertog, ”ADA had always wanted to invest in Nigeria but  had searched and waited to find a reliable and resilient partner, which eventually clicked with OAS’ history and ability to remain firm in operation for over 10years despite daunting challenges.

    He said with the level of implementation on the proposed business plan so far, his company was confident that the OAS and ADA partnership will enrich the Nigeria oil and gas aviation.

    “Important to our success over the years has been an ever increasing engagement with strategic partners worldwide in the formation of healthy joint ventures that support oil and gas exploration in the deepest possible offshore with impeccable safety records,” Hertog said.

    The company’s Nigeria operations Lead Pilot, Capt. Westwood James, added that the ADA and OAS technical partnership was structurally designed to guarantee and deliver credible, safe and stable services in Nigeria’s oil and gas aviation, and that they are here in Nigeria to drive the design to excellence.

    On his part , OAS Managing Director and CEO, Capt Evarest Nnaji, described the  kick off of the partnership as  a landmark .

    He said the arrival and the physical presence of ADA crew and equipment was one investment step Nigeria aviation will enjoy moving forward, especially in the area of oil and gas aircraft support services.

    He said:  ”We looked at ADA’s capacity to play at the highest echelons in the oil and gas aviation support, and their ability and willingness to build and transfer know-how in all the other international environments where they operate, and concluded that not only is ADA valuable to huge business profitability, but that they are equally reputable for reliable and consistent long term business relationship.

    Nnaji said ADA’s safety record, volume of investment and ability to deliver excellent services even in the most difficult environment speaks for itself.

    He added that OAS’ huge desire to provide services that meet the best possible international standard for Nigeria’s oil and gas aviation was the driving force in the relationship with ADA.

  • FAAN ‘implements’ Executive Order

    Federal Airports Authority of Nigeria (FAAN) claims it has begun the implementation of the Executive Order on Ease of during Business at airports nationwide.

    Its Managing Director, Saleh Dunoma said FAAN had taken steps to implement the order.

    He made this known during a stakeholders’ forum  at  the Murtala Muhammed International Airport, Ikeja.

    The importance of the Executive Order, he said, cannot be overemphasized, especially because it will strengthen the nation’s fight against terrorism, eliminate unnecessary bureaucracy which impedes business activities at the airports.

    He also said it will improve safety, security and passenger facilitation within and around the airports.

    The Acting President, earlier  this month, issued an Executive Order  to “Ease Doing Business in Nigeria”.

    Part of the components of the Order prescribed that there shall be no touting whatsoever by official or unofficial persons at any port in Nigeria.

    The order read: “On duty staff shall be properly identified by uniform and official cards. Off duty staff shall stay away from the ports except with the express approval of the agency head. The FAAN Aviation Security (AVSEC) and Nigeria Ports Authority (NPA) Security shall enforce this order.

    “All non-official staff shall be removed from the secured areas of airports. No official of FAAN, Immigration, security agency or Ministry of Foreign Affairs (MoFA) or any other agency is to meet any non-designated dignitary at any secure areas of the airport.

    The official approved list of dignitaries that have been pre-approved to be received by protocol officers shall be made available to AVSEC and other relevant agencies ahead of their arrival at the airport.