Many domestic airlines are going through hard times, owing salaries for months, among other problems. If not addressed, this ugly trend, experts warn, could have ripple effects on safety. KELVIN OSA-OKUNBOR reports.
THAT these are difficult times for domestic carriers, is an understatement. Many of them are on the throes of death. Even paying salaries regularly, is a challenge.
Apart from this, they are indebted aviation services’providers and terminal operators, as well as fuel and catering suppliers.
Unpaid and delayed salaries have become major feature among airlines, raising concerns on the implication of this on air safety.
The real issue is that most of the airlines are unable to recover operating costs.
This has been attributed to high cost of aircraft maintenance, insurance, fuel, landing and parking fees, among others.
Some experts have projected that soon, some domestic operators may close shop over the huge indebtednes.
The Nigerian Civil Aviation Authority (NCAA), it was learnt, was having a parley with the affected operatorss.
The operators have declined comments on the matter.
Experts, including former chairman of Airline Operators of Nigeria (AON), Dr Steve Manhonwu; a former director of engineering Nigeria Airways Limited, Godwin Jibodu, and an aircraft engineer, Alex Anene, have described the situation as frightening.
They adduced poor planning, failure to carry out feasibility studies, wrong use of aircraft as part of the reasons airlines’revenue are dwindling.
They said failure by some operators to carry out detailed studies before embarking on the business accounted for their inability to pay salaries.
Domestic operators include: Arik Air, First Nation Airways, Dana Air, AZMAN Air, Medview Airlines, Overland Airways, Discovery Air, Air Peace, Topbrass Aviation and Aero Airlines.
Operators that have suspended operations include: Chanchangi Airlines, IRS Airlines and Afrijet Airlines.
Staff of some of these carriers last years protested to the Nigeria Civil Aviation Authority ( NCAA) the failure of their management to clear the arrears of salaries.
Worried over this trend, NCAA has warned operators to fulfil their obligation to their staff.
The authority said it would continue to carry out financial audit of airlines to ascertain their operational health, safety, security and above all economic viability.
The authority said it would be forced to shut the operations of the affected carriers.
Its acting director general, Engineer Benedict Adeyileka said the authority is constrained to take this step to save the industry a lot of damage.
The Nigerian Civil Aviation Authority (NCAA) last week warned domestic operators defaulting in the payment of salaries.
This was a fallout of a meeting with operators alleged to be culpable.
At the meeting, Adeyileka expressed serious concern over the non – payment of salaries.
He said the development was detrimental to the growth the industry.
According to the him, the action became necessary when consistently the financial health reports from the airlines were indicating gaps in financial stability.
He said: “As far as the NCAA is concerned, the issue of non-payment of salaries is critical to safety.
“The moment an airline cannot meet its financial obligations, it is believed that the staff morale will be down and this can impact negatively on safety and security of its operations.
“The NCAA will not condone a situation where their staff will disrupt operations which will affect the travel plans of passengers who have purchased their tickets.”
Consequently, NCAA has written a warning letter to the affected airlines, informing them that non-payment of salaries was unacceptable.
NCAA warned airlines that if the act persisted, it would sanction them, one of which may result in suspension of Air Operators Certificate (AOC).
Last year, three airlines suspended operations due to their inability to pay salaries. In fact, NCAA is insisting that until all the arrears of salaries are paid these airlines will not be cleared for further operations.
It said: “The Nigerian Civil Aviation Authority (NCAA) therefore wishes to reiterate that it will continue carrying out financial health audit of airlines to ensure that our airline operations are healthy, safe and secure.”
Also Jibodu said: “I have said this many times that the problem of owing workers salary may linger for some time because many operators embark on airline business without carrying out detailed studies on the viability and otherwise of the business.
“Such operators did not examine the market deeply. They did not carry out feasibility studies and operating costs.
‘’Such operators never factored into their plan the cost of aircraft spares, aviation fuel, catering, aeronautical charges to be paid to service providers, aircraft insurance and workers salaries.
“They just plunge into the business, convinced that the revenue from ticket sales is good profit without considering other operating costs.
‘’Some of them also make the make the mistake of buying the wrong aircraft type that is not suitable for their their operations.
He continued: “An aircraft that is relatively old would require huge amount of money for spares and maintenance; all these eat up into the cost of operations, thereby narrowing profit margins.
‘’With this kind of scenario, it would be difficult to run profitable and pay salaries.
“Some operators also make the mistake of employing too many staff, opening up many offices and flying on unviable routes with an aircraft type that would consume all the expected revenue owing to cost of aviation fuel and maintenance .
‘’It this poor planning that makes airline business unprofitable, resulting in inability to pay salaries.
“Most of them fail to carry out adequate feasibility on the business.
‘’Many of them buy any kind of aircraft, and would not match it with the suitability of the operations.
‘’The maintainability of the aircraft should be given serious consideration by any operator before buying the aircraft.
‘’Often times , the cost of aircraft is very critical.
‘’Most of them embark on unviable operations.
“The second challenge Is the challenge of offshore maintenance of aircraft?
‘’The whole money earned in a year is put into major aircraft maintenance checks.
‘’That is why many airlines that took their aircraft for major checks are seized abroad ,because the operators could not pay for the checks.”
Also, Manhonwu said: ”The problem of salaries should be addressed airline by airline. It is a serious problem that should be addressed, even the so called big airlines are owing salaries.
‘’This is not good for the safety of airline operations.
‘’The NCAA should step up its oversight and ensure that airlines are solvent to keep their operations safe.
‘’Even, if an airline is having problems, its managers should look for a way around the issue of owing salaries.”
Anene added: ”I lost my job as the chief engineer of a domestic airline because I offered advice on the quality of aircraft the airline should buy to run a profitable operation.
‘’Most airlines do not do their home work. That is why many of them cannot pay staff salaries. You cannot do aviation without money.”
