The Nation Newspaper

Tag: carrier

  • National carrier to take off in December – FG

    The Federal Government has reassured that the December 2018 deadline for the take of the national carrier will be met.

    The Minister of State for Aviation, Senator Hadi Sirika also debunked the notion that the take off of the national carrier would end the operations of other domestic airlines in the country.

    He spoke while receiving the Outline Business Case Certificate of Compliance from the Director General of the Infrastructure Concession Regulatory Commission (ICRC), Engr Chidi Izuwah.

    The presentation of the Certificate of Compliance is an official approval of the process which the project has gone through so far.

    According to a statement in Abuja by the Deputy Director, Media and  Public Affairs of ministry, Sirika said the importance of the national carrier was the reason the government decided to take the option of a Public Private Partnership (PPP), adding that it was the only way to deliver a national carrier that would stand the test of time.

    On the claims that the national carrier would sound the death knell for other airlines operating in the country, he said: “Nigeria, with a population of over 180million people with so many unserviced routes offers more than enough space for all serious airlines to operate profitably”.

    He commended the efforts of the ICRC Director General and his team in ensuring that the National Carrier project remained on track through the observation of all legal aid regulatory frameworks.

    The Minister also expressed satisfaction with the way the Transaction Advisers have carried out their assignments with utmost diligence and timeliness, assuring that the National Carrier that would be delivered would be world class in operation and management.

    Speaking earlier, the DG of ICRC, Engr Chidi Izuwah said the presentation of the Certificate of Compliance was an official green light to proceed with the procurement process.

    He said that his Commission, in granting the Certificate reviewed the Project Structuring Report, also known as the Outline Business Case, in line with the ICRC Act of 2005.

    According Izuwah,  the Certificate was granted on the condition that the Federal government has committed to leveraging on private sector capital and expertise towards the establishment of the national carrier through the provision of a Viability Gap Funding for the project.

    He stated other conditions for granting the Certificate of Compliance to an official commitment to zero contribution to airline management decisions and zero government, control, warning that any attempt to impose government control would invalidate the Certificate and the entire process.

    He also said PPP was the only viable option for Nigeria in view of dwindling national resources.

     

  • On fixation with national carrier idea

    SIR: From all indications, the federal government is determined to float a new national airline and have it operational by the end of the year. This milestone appears to have been inspired during the election campaign that ushered in the administration of President Muhammadu Buhari. This zeal to fulfil a major campaign promise and commit scarce funds to a rather capital intensive project is in itself admirable, but the energy should undoubtedly be channelled differently.

    Floating a national airline should rank least on the economic priorities of a nation that just sneaked out of a recession that spanned five quarters. Nigeria boasts of housing Africa’s largest economy, taking that crown from South Africa after rebasing its GDP four years ago. That status is currently undisputed, but it is from that same South Africa that Nigeria needs to pick lessons on how not to lose the crown.

    Nigeria Airways was founded two years before independence. It became the national carrier in 1961 after the government increased its shares in the company from 51 percent to 100. By 1987 the airline, as a result of corruption and mismanagement had accumulated debts of over $250 million and was suspended by the International Air Transport Association for poor safety compliance.

    At this time, it had 500 employees per aircraft in the fleet, twice the international average of which 1700 people were laid off in 1985 and another 1000 the following year. In a desperate attempt to keep the airline afloat, 3000 more employees were laid off in December 1988, domestic and international fares were raised and flights to a number of destinations discontinued. None of these measures proved effective in turning the fortunes of the airline around.

    It took the international embarrassment of having a Nigeria Airways aircraft impounded at Heathrow Airport and an eventual ban by the UK Civil Aviation Authority to convince the government to privatise the debt-ridden venture. By the time it folded up in 2003, it had received a cash injection of $200 million from the government and was $528 million in debt.

    The government in 2004 staged a revival of the national airline in the form of Virgin Nigeria Airways, as a joint venture with the Virgin Group. This quickly morphed into Air Nigeria after the Virgin Group pulled out of the arrangement. By 2012 Air Nigeria had met its demise.

    Fast forward to 2017; the Nigerian government appointed Lufthansa and five other firms as transaction advisers to kick-start the process of establishing yet another national carrier.

    So why is the Buhari administration fixated on an idea that has twice been tested, twice failed, accumulating humongous debts while costing taxpayers millions of dollars? According to statements issued at different times over the last one year, the government is convinced this new venture, touted as a public-private partnership, has the potential to be Nigeria’s answer to the largest African airline – state-owned Ethiopia Airlines which clocked $175 million in profits in 2015. If records, are anything to go by, it could very well be the Siamese twin to the loss-making South African Airways.

    Despite running one of Africa’s biggest fleets, state-owned South Africa Airways is yet to post profits for seven consecutive years, managing to stay afloat on bailout funds by the South African government. State-owned regional airline, South African Express, and low-cost carrier, Mango, are not faring any better. These three airlines have recorded a combined R35 billion in operational losses over the last 10 years. Indeed, the fate of South Africa Airways currently hangs on a R10 billion bailout, to enable it honour its debt obligations by the end of this month.

    Nigeria appears set to tread the same path even while the debts left in the wake of the previous attempts are still hanging on the government’s neck. The unpaid pensions and entitlements of the workers laid-off when the Air Nigeria closed shop in 2012 stand at N78 billion today.

    Rather this fixation on floating a national carrier just because there used to be one and other countries have theirs, a more productive venture would be to institute key reforms in Nigeria’s aviation industry to improve the operational efficiency of the existing players and attract new investments into the sector.

     

    • Bukola Ogunyemi,

    Lagos.

  • Fed Govt mulls national carrier

    Fed Govt mulls national carrier

    Nigeria has appointed advisers to help it set up a national airline and develop its aviation infrastructure currently seen as a barrier to economic growth to create a hub for West Africa, junior aviation minister Hadi Sirika said yesterday.

    Sirika said a group of six firms including German carrier Lufthansa would advise the government on setting up an airline, an aviation leasing company and a maintenance hangar and on creating concessions to run the country’s airports.

    A cabinet meeting presided over by Vice President YemiOsinbajo had approved N1.52 billion ($4.99 million) of funding for the project, he added.

    President Muhammadu Buhari, who promised a national airline when campaigning for election, did not attend the weekly meeting, fueling concerns about the state of his health.

    Decades of neglect and lack of investment have left Nigeria with low-quality infrastructure that is seen as a hurdle to prosperity and the government has already said that upgrading it will require private investment.

    The government set up a committee on establishing a national airline in 2015, in fulfillment of the campaign promises which brought Buhari’s All Progressive Congress (APC) to power.

    An APC transition paper seen by Reuters in 2015 had proposed merging a dozen debt-laden airlines on the books of state-owned “bad bank” AMCON into a single carrier that would partner with a global airline to serve the West and Central African region.

    The single carrier would include Nigeria’s biggest airline, Arik Air, which AMCON took over in February.

    AMCON has said it has no plans to convert Arik into a national carrier and that the government has no interest in doing so other than to ensure that the airline continues to fly.

  • Time for national carrier

    •This is the lesson from the exit of foreign airlines 

    The after-shocks of the current slump in global oil prices show no signs of abating. Last month, the American carrier, United Airlines announced plans to stop flying to the country by June 30. That move will end the carrier’s only route to Africa.  Although it acknowledged that its Lagos-Houston route has been underperforming financially for several years, it blamed the latest decision on the downturn in the energy sector. Just as the customers on the route – known to be key centres for the oil and energy markets – have been spending less on travel, the last straw appears to be the Central Bank of Nigeria (CBN)’s restrictive foreign exchange policy that has left an equivalent of $600 million of the entire industry’s ticket sales trapped.

    United Airline’s spokesman Jonathan Guerin puts the matter as it affects its company rather explicitly: “Since last fall, we have not been able to repatriate revenue sold locally in Nigerian currency and therefore we had to essentially suspend these sales, which make the route unsustainable as about half of the revenue generated by the route comes from Nigeria point-of-sale”.

    Spanish carrier, Iberia, had similarly announced plans to suspend flights to Nigeria from May 12, and Ghana from May 17, citing reasons of “drop of demand and lack of profitability”. Etihad, Qatar and Air France have reportedly served notice of their intention to restrict flights to Nigeria if the current foreign exchange policy is not reviewed.

    Both from the points of view of bilateral trade and cultural exchanges that would be adversely impacted, the planned exit of the American carrier as indeed the prospects of others following the trail is certainly regrettable. As entities established to return profit to their numerous shareholders, we understand that the decision is absolutely theirs to make – although we daresay that their reasons, in the current instance, appear perfectly understandable and legitimate. However, the obverse side is whether the CBN, faced with the challenge of managing the economy, particularly the increasingly scarce foreign exchange brought on by the continuing slump in oil prices, could have acted differently. This to us is debatable.

    We understand that the airlines global body, International Air Transport Association (IATA) is already making representations to the Federal Government in this regard. That is ordinarily how things should be. Unfortunately, this in itself has tended to be a minor part of the broader clamour for the jettisoning of the existing forex controls by the apex bank, something we consider not only unrealistic but fraught with grave dangers for an economy with barely $26 billion left in its foreign reserves. That the campaign has come with a tinge of blackmail is something we find rather unacceptable.

    We can only urge the CBN to keep the course – guided at all times by the nation’s best interests.  Whereas the $600 million might not seem much to IATA, it is certainly a lot to pay to some half a dozen foreign airlines in remittances at a time of excruciating forex scarcity. In the circumstance, the current situation ought to be appreciated in the context of the nation’s prerogative to set out what its priorities are in the light of competing demands for forex through the official window.

    The development yet again underscores the need for a national carrier. As it appears, the real challenge is to find a model of a truly national carrier that works – one that is fully capitalised and technically equipped to compete among the world’s best. Apart from offering Nigerians the benefit of choice, it would help curb the current drain on the nation’s foreign reserves. There is hardly a better time to begin the quest than now.

     

  • A new National Carrier…staging a comeback 12 years after

    A new National Carrier…staging a comeback 12 years after

    The aviation sector is alive with a debate over the Federal Government’s plans to revitalise the national carrier. Experts and key operators are sharply divided in their perspectives on the modalities to be adopted in putting the Green-White-Green national colours back in the air, reports KELVIN OSA- OKUNBOR

    The debate is on,  triggered by  a recent directive by President Muhammadu Buhari to  Aviation Ministry officials. They are to work out the modalities of setting up a new national carrier.

    The rationale for such a carrier has engendered unease among experts, airline operators and watchers of the troubled aviation sector.

    Expectedly, the directive has pitted against one another players in the sector on both sides of the divide. Those who are favourably disposed to the idea have described the directive as a welcome development. Others, who feel the government has no business going into such money-guzzling enterprise, have not hidden their opposition.

    The divergent views raised on the proposed carrier by experts are predicated on seven failed attempts by previous administrations to reestablish a national carrier since the liquidation of the Nigeria Airways Limited (NAL) in May, 2003 by former President Olusegun Obasanjo.

    Such attempts include: Virgin Nigeria; Air Nigeria; Nigerian Global Airline and Nigerian Eagle Air among others.

    Since 2003, Nigeria has lost several billions of dollars to capital flights repatriated by over 27 foreign carriers that operate international flights into and outside of the Nigerians shore.

    More than a decade after it went moribund, relics of the weather-beaten and decripit airplanes, that were once Nigeria’s flag carriers, have been sold  as spare parts when Arik Air got the fanchise to operate the defunct NAL’s workshop at the Muritala Muhammed International Airport (MMIA), Ikeja in Lagos.

    With no strong Nigerian carriers to reciprocate the over 73 Bilateral Air Services Agreement (BASA) it signed with countries, Nigerian routes have remained not only lucrative but for foreign carriers, which enjoy multiple entry points into the country under lopsided air treaties and Open Skies Agreements (OSAs).

    Worried by the trend, the President, penultimate Wednesday, directed Aviation Ministry to expedite action on the establishment of a new national airline.

    President Buhari gave the directive after he was briefed by officials of the ministry, led by their Permanent Secretary, Mrs. Binta Bello.

    Mrs. Bello, who apparently bought into the vision of the country having a carrier it can call its own, embraced the President’s directive to reestablish one.

    “Mr. President is quite concerned with the absence of a national carrier for now and he has directed the ministry to look into the possibility of having a national carrier as soon as possible,’’ she told State House reporters.

    The defunct national carrier – Nigeria Airways – was established in 1958 and was once the pride of the nation until it eventually went into liquidation in 2003. No thanks to mismanagement.

    So disturbed was the erstwhile President, Chief Obasanjo, that he complained that boosted of more than 10 aircraft when he left the office in 1979 as military Head of State, had only three that were on wet lease during his second coming as a democratically elected President, 30 years after.

    That informed NAL’ liquidation despite the privatisation options that could have savaged the ailing airline.

    But some experts and operators in the aviation sector have hailed the presidential directive that the ministry should facilitate the setting up of a national carrier.

    According to them, the resuscitation of the national carrier has become imperative as it will enable the country to utilise its many BASAs.

    Such experts include: the Chief Executive Officer (CEO) of Bulejane Konzults, Mr. Chris Aligbe; President of Skyjet Aviation, Dr. Kassim Shettima; National President, Pilots & Engineers Association, Isaac Balami; aviation Analyst, Kingsley Chima; Chief Accountable Manager, DANA Air, Tony Mbanuzuo and another analyst Deba Uwadiae.

    Aligbe, who is former spokesman of the liquidated NAL, berated those opposed to the proposed national carrier, describing their opposition against the project as misplaced and unpatriotic.

    He accused those saying Nigeria does not need a national carrier of doing a great disservice to the country because such project will help to curb the billions of naira being taken out of the country by foreign carriers from ticket sales proceeds, the huge cost of offshore maintenance for aircraft and salaries and flight crew allowances paid to expatriate pilots, engineers and cabin crew members.

    In a chat with The Nation, Aligbe said those speaking negatively about plans to set up a national carrier are fixating themselves in the past.

    According to him, such people suffer from incurable fixation, which could further compound the woes of the aviation sector.

    He said such fixation could discourage the government from setting up a national carrier, warning that such intervention could reorder the trend in the aviation sector through job creation, massive investment and human resource management.

    He said the aviation sector faces a bleak future without a national carrier to fly the nation’s flag across the world and reverse capital flight.

    Aligbe said: “Those opposed to the proposal are afraid of the nightmares of the past and therefore incurably fixated on how to stimulate the aviation sector. What they are saying about the past could be correct but what is the way forward.”

    He said government could set up the new carrier without investing too much money, but create an enabling environment to allow it thrive through what he described as “sweat equity”.

    Aligbe went on: “We do not have the discipline to run a government-owned airline hundred per cent. The government should not own more that 25 per cent stake. It does not need to throw money into the airline. All it needs to do is have sweat equity.

    “The government should allocate land for the floatation of the new national carrier, set up the team – I mean a technical team – people who know about airline business, allocate land to the airline in Abuja, Kano, Lagos and Port Harcourt for offices, designate the airline on major routes and ask all agencies to cooperate with the floatation.

    “The government should go ahead and facilitate long term loans for the airline from the Central Bank of Nigeria (CBN). It must be routed through the airlines bankers. The bankers must take that loan and pay back. It is not free money but a credit facility for a period of between 15 and 20 years at a repayment rate of single digit interest rate. All these can be facilitated by the government as its own equity stake in the business, without putting one kobo. It will have sovereign cover.”

    Also speaking, Dr. Shettima, who welcomed the idea, urged the government to convoke a stakeholders’ forum to examine the intricacies involved in setting up a national carrier.

    Shettima said: “In my own opinion, I think the President needs to be properly briefed with what the current situation is. He (President) needs to hear the truth and nothing but the truth.

    “There should be a stakeholders meeting with the President where the he will meet face to face with players in the industry including unions and airline operators in Nigeria and so on.

    “Does the President know the cost of running an airline now? Does it know that a national carrier will have to be given subsidy from time to time? Why do we have to re-invent what happened to Nigeria Airways?

    “The President needs to have the forensic audit on why airlines in the country are often debt-ridden after venturing into the business. I hope it is not going to be business as usual because aviation is nothing but a serious business.

    “This might be a nightmare. In as much as this is a good dream, sentiment must not replace reality like what we have presently in the aviation industry.”

    NAAPE’s national president, Balami, said the establishment of a new carrier was long overdue because of the way the former national carrier was liquidated. Balami said: “Everyone who has been in, or around the aviation industry for a while would easily agree that the ill-advised liquidation of the defunct national carrier  – Nigeria Airways, was the evil wind that has bedeviled the industry till date.

    “And since the forced liquidation of the Nigeria Airways, no Nigerian Carrier has been able to go near its big shoes. None has even started to move in that direction

    “It is, therefore, with enthusiastic welcome, that one receives the news of the directive by President Buhari to the ministry of aviation to expedite action on the establishment of a new national carrier which can now spearhead Nigeria’s deserved quest for global reckoning in aviation.

    “It is expected that the new carrier will strive for a mega carrier status which can compete at the global stage. It is also expected that a full scale Maintenance Repair Organisation (MRO) will be part of the deal for the new carrier.

    “It is, however, important to sound this note of caution. Any idea of engaging a foreign airline, or foreign MRO as technical partner should be perished. This is because no sane business person who will encourage a viable competitor.

    “Such partners will also not agree to terms that will give the new carrier an advantage over their vested interests in the airline business.

    “It is sincerely hoped that the ministry of aviation will be open and transparent in the process of setting up the new national carrier and will allow participation by genuine industry stakeholders.

    “I, and my organisation – NAAPE – welcome this development enthusiastically. And we urge all industry operators to support it with every sense of responsibility.”

    Another expert, Kingsley Chima, said: “Before this decision/directive, have we done a thorough autopsy on the reasons that led to the death of Nigeria Airways. National carrier is going out of fashion in this industry as it has been demonstrated in many quarters.

    “National carriers succeed in countries where corruption is tightly managed as shown in the case of Ethiopian Airlines.

    “When government starts appointing directors and they start awarding elephant/juicy contracts, the airline will gasp for breath and die.

    “The operation cost is high and any cost that should be avoided must be avoided. But, with a national carrier in an environment like ours, I do not see this happening. We can only have a competitive national carrier when we make our airports efficient and effective.

    “The government’s involvement must not be beyond 25 per cent share. The technical partners can own about 15 per cent stake and institutional investors taking the remaining. I am not optimistic but you never know.”

    In his reaction, DANA Air’s Accountable Manager Mbanuzuo, said the government, rather than creating a new airline, should create an enabling environment for the expansion of existing airlines’ operation.

    His words: “With no concrete information from the government, we are unable to make any comment  although we feel that the government should create an enabling environment rather than actually running an airline.”

    Uwadiae, who is an aviation analyst, urged government to be more circumspect before setting up such an airline.

    He said: “Very simple. Until there is a fundamental attitudinal change towards what belongs to government whatever is set up as a Nigerian Airline will go the same way of the old airline.

    “As long as I’m yet to see any concrete effort towards that change, I will advise President Muhammadu Buhari not to rush into it. Though, we need a national airline but at what cost will this be at this point in time, when the naira is counting at over N220 to $1?

    “There are more fundamental needs of Nigerians than for the government to take up a humongous project of setting up a national airline again at this time or the next four years of President Buhari.”

     

    From a fleet of 32 aircraft in 1999 to liquidation in 2003

    The carrier had accumulated significant debts that outstripped its revenues virtually from the mid-1980s. While 1,000 jobs had been cut by late 1986, Nigeria ordered the airline to reduce the number of employees — 8,500 at the time, with a staff-aircraft ratio of 500:1— even more, and also to reduce or discontinue unprofitable routes.

    In 1988, cost-cutting measures led to the discontinuance of flights to a number of African destinations, including Cotonou, Dakar, Douala, Kinshasa, Monrovia and Nairobi; some of these routes were resumed a year later.

    In April 2000, employment was 4,516. At that time, an Airbus A310-200, three Boeing 737-200 Advanced, one Boeing 747-200B Combi and one McDonnell Douglas DC-10-30, served a route network that included Abuja, Calabar, Douala, Dubai, Jeddah, Jos, Kaduna, Kano, Kinshasa, Lagos, Libreville, London, Maiduguri, Malabo, Port Harcourt, Sokoto and Yola.

    That year, the International Finance Corporation (IFC) was commissioned by the Federal Government to assist in the process of restructuring and privatisation of the airline.

    Among three options, one of them was to partner with a large European airline; Air France, Lufthansa and Swissair were all considered. Other option was to liquidate the carrier. A fleet comprising 32 aircraft in 1984 gradually depleted to a three-strong at that time.

    The IFC withdrew from its advisory position in 2001 citing the unwillingness of both the company and the government to carry out the necessary measures that would make the airline attractive to potential investors. Likewise, there were various allegations claiming the airline’s failure was accelerated by former leaders, who looted and mismanaged the company.

    In 1997, the United Kingdom (UK) Civil Aviation Authority had banned the airline from operating into its territory citing safety concerns; the Federal Government replied, banning British Airways operations.

    The UK cited safety concerns again in 2001 when it refused to allow Nigeria Airways to operate the Lagos–London route, this time regarding the Boeing 747 that was leased from Air Djibouti to fly the route.

    The carrier ceased operations in 2003. The Nigerian government later came to an agreement with Virgin Atlantic Airways to found Virgin Nigeria Airways, intended as a replacement, yet the ground facilities of the folded Nigeria Airways were eventually taken over by an indigenous airline that has dominated the business till date.

  • NSC seeking official carrier for athletes to All Africa Games

    NSC seeking official carrier for athletes to All Africa Games

    The National Sports Commission has solicited support from well meaning Nigerians and cooperate organisations as the country athletes prepare to take part in the 11th African Games; scheduled for Congo Brazzaville.

    The sport commission led by its Director General, Mallam Alhassan Yakmut yesterday held a meeting with the Chairman/Chief Executive Officer, Max Air, Dahiru Bara’u Mangal in Abuja and asked the airline to be the official carrier for the Nigeria contingent to the Games.

    According to Yakmut partnership with the commission will be a mutual benefit. He explained;“I have been observing with keen interest the support Max Air have been giving to develop sports such as football and polo in Katsina State, and I am sure you be interested to partner and sponsor the Federal  Government outing in forthcoming All Africa Games in the Congo by using your airline to airlift our athletes to the games”.

    Mallam Yakmut added that given present economic reality, there is absolute need to seek for partner and support from well-meaning Nigerians to contribute their quota in sponsoring contingents to this year’s All Africa Games.

    According to the Director General,  “the thrust of this meeting is to request you to partner with the National Sports Commission in the area of being the official carrier”.

    He added that the airlines stands to benefit tremendously from this proposal as it would be a win-win situation for both parties, saying the use of logo of the airline and advertorial of the companies activities will receive adequate attention from the commission.

    The Secretary of the company; Sani Ibrahim,  who responded on behalf of the Chief Executive Officer,  Dahiru Mangal assured that the organisation will partner with the Commission to perform the task.

    His words “We are happy to be part of the arrangements and appreciate the privilege of being chosen as the official airline, we will do our best to ensure the airlift of Nigerian athletes to Congo is successful”.

  • National Carrier: Hurdles to cross

    National Carrier: Hurdles to cross

    Barring any last minute hitch, Nigeria One, which is being touted as the new national carrier, will come on stream with the government and other interested parties working round the clock to make the plan materialise. But there are fears by concerned stakeholders that things may go awry judging by past futile efforts, reports Ibrahim Apekhade Yusuf

     

    TO parody the words of Victor Hugo, the famous French poet, you can’t stop an idea whose time has come. This is what the Minister of Aviation, Princess Stella Oduah, seems to be saying when she recently announced plans by the Federal Government to float a new national carrier.

    Oduah, who dropped this hint in Abuja, at the interactive meeting with owners/operators of foreign and Nigeria registered business aircraft, stated that the proposed national carrier will soon take off as the template was at the final approval stage with the Presidency.

    She said: “The national carrier is currently at the final approval stage. There are many stages but we have eventually come to the final one. As soon as we get this final approval, we are on our way to owning a new national carrier. So, very soon, the new national carrier will be on stream.”

    Oduah said the proposed national carrier and the new airport terminals being built across the country would help shore up Nigeria’s Gross Domestic Product (GDP)by generating more employment through both the pubic and private sectors of the economy.

    Framework for new national carrier

    Speaking with The Nation over the weekend, top aviation sources said the idea of the new national carrier is already a fait accompli.

    Confirming this development, Mr. Joyce Daniel Nkemakolam, Acting Director-General, Nigeria Civil Aviation Authority (NCAA), who spoke exclusively with The Nation on his way to Monrovia, said plans were in top gear to get the national carrier ready for the pleasure of the Nigerian air travelling public.

    Echoing similar sentiments, the General Manager, Federal Airports Authority of Nigeria (FAAN), Yakubu Dati, in a telephone interview with our correspondent, gave more insight.

    Justifying the need for the national carrier, Dati said the country was not only ripe for it but stands to gain a lot once it comes on stream.

    According to him, it is the way to go. “Unlike what obtained in the past, all that government will do is to create a company where individuals can get involved. It will be driven by the private sector; it will not be a government-owned facility.

    “It creates room for manpower improvement and training, improve their capacity. The BASA agreement will create that opportunity. Nigerians will also be able to dictate the pace as it is with foreign airlines, whose schedules most times are dictated by the citizens of those countries. The foreign airlines make flight convenient for their citizens. The national carrier will address the issue of convenience of our citizens.”

    Speaking further, Dati said as part of the big picture for the sector, a lot was being done to set things right in the nation’s aviation sub-sector.

    From remodelling, to safety measures, among other things, these are some of the measures being put in place to make the aviation in the best footing.

    “Some 13 airports have been designated as cargo airports because of their proximity to food baskets, including Abuja, Akure, Calabar, Ilorin, Jalingo, Jos, Kano, Lagos, Makurdi, Minna, Owerri, Port Harcourt and Uyo have been prioritised as perishable terminals.”

    This, he stressed, would enable them key into the over N250 billion annual airfreight export market out of Africa.

    “Countries like Kenya, South Africa, Benin, Cote d’Ivoire, Ghana, Senegal, Ethiopia, Tanzania and Egypt, he noted, are participating in the trading in commodities such as fruits, fresh fish, vegetables and flowers while Nigeria, which produces these commodities in abundance, records zero participation,” he stressed.

    Dati noted that in recent times, the more dynamic destinations for African products are China, with 27.5 per cent yearly average growth registered over a decade-long period and India, growing by 19.5 per cent during the same period.

    The development of Economic Free Trade and Export Processing Zones will be targeted alongside cargo airports and afro-allied industrial clusters, based on local opportunities and the state’s competitive and comparative advantage in agriculture production.”The Nigerian aviation sector is establishing closer co-operation with the Federal Ministry of Agriculture and state governments for concerted and strategic focus to this efforts,” he added.

    Asked specifically on when the new national carrier will become fully operational, Datii said it has to go through a lot of processes. “Approvals by relevant organs are still being sorted out. So, hopefully before the end of the second quarter we should see something concrete.”

    Proposed investment

    According to analysts, a quantum of investment in the neighbourhood of $100million is being touted as the projected capital outlay required to bring the new national carrier on board.

    But as at press time, this could not be confirmed as Dati was not specific.

    “It is open to all comers. Economy has no barrier. In a capital intensive business as aviation, you can’t do it alone, so we welcome as many interested investors as possible to make it work.”

    Asked to state the proposed number of aircraft fleet to run the new national carrier, Dati was noncommittal.

    However, Director of Airport Operations of FAAN, Henry Omeogu, at the Port Harcourt International Airport, Omagwa in Rivers State, in an interactive session with newsmen recently, said the proposed national carrier was going to be driven by the private sector, adding that some 30 brand new aircraft would be acquired to run the national carrier.

    Omeogu was accompanied by the Regional General Manager, Southsouth/Southeast of FAAN, Mrs. Ebele Okoye, and the authority’s Director of Maintenance and Engineering, Mr. Femi Ogunode.

    The FAAN’s director of airport operations also stated that only brand new aircraft would be allowed in the national carrier, and would offer world-class services.

    Support for national carrier

    One of those upbeat about the new national carrier is Deputy President of the Senate, Senator Ike Ekweremadu. He spoke at the commissioning of the General Aviation Terminal in Abuja.

    Nigeria, he said, deserved a national carrier. The lawmaker who spoke in Abuja recently said Nigerian travellers should be given airport facilities that were at par with those obtainable in overseas countries.

    He said, “The new GAT terminal in Abuja and other remodelling exercises are positive developments in the aviation industry that had long been identified with decaying infrastructure. The terminal will help airlines operators, passengers and private investors.

    “I want to appeal to all users of this facility and others that are being remodelled to make proper use of them. It is important that managers of the new terminals should ensure that the facilities are properly and adequately maintained at all times. That is the only way to justify the huge amount spent by government in providing them, apart from encouraging the government to do more for the aviation industry.”

    Echoing similar sentiments, Macaulay Timothy, a frequent air traveller, said, “It is disheartening to note that a massive 95% of international traffic to and from Nigeria is controlled by foreign carriers. So, if we have a national carrier, we can maximise the gains.”

    Mrs. Ifie Ezenwa-Ugwoke, Managing Director/Chief Executive, Treavens Travels Limited and Tours, Lagos, is also on the same page with Timothy.

    “It is something that we have been yearning for years. When Air Nigeria came I know the gains we benefitted as local tour operators. All the favours you get like group bookings, a situation where you can unbend the rules, is only possible with the local airlines. It is something that will do Nigerians a lot of good,” she stressed.

    She, however, added a caveat: “National carrier or not, the question is whether Nigeria will be willing to support it because there are many elites who don’t want to hear anything about local content and they forget that those foreign airlines they are rooting for didn’t get there in one day. The only way the national carrier can last the test of time is if Nigerians support it 100 per cent. Nigerians must be willing to give it the needful patronage.

    “As a stakeholder, I know the kind of humiliation we face anytime we travel outside the shores of this country. Those outside don’t have respect for local tour operators and this more or less has created a crisis of identity for us because to the people out there all what we know how to do is outbound tours, not in-bond tours. For a country that has many beautiful and alluring tourist sites, it is only good that we organise tours within our country but because we don’t have a national carrier, this is sometimes difficult to do. So, the new national carrier is indeed a good idea.”

    Chris Aligbe, former manager, corporate affairs of the defunct Nigeria Airways Limited (NAL), who is upbeat about the national carrier, also gave a word of caution: “The failure of the first national carrier was not due to corruption but due to government interference with the management and the running of the airline.”

    Aligbe, who is also the chief executive officer of Belujane Konzult, however, noted, that as much as he would support the formation of another national carrier, it is advisable that government owns between 5 and 10 percent in the airline, while the remaining percentage should go to the private sector.

    According to him, “in NAL, the managers only took instruction from the government. For instance, the Tony Momoh board was sacked for increasing fares, the airline was remotely managed by people in government and that way, there was no way it would last.

    “We must avoid what led to the failure of the defunct national carrier and the plan to form several other ones since then if we must have a new national carrier this time around. I am optimistic that a new national carrier will go a long way in saving the industry a lot of money and assist travellers. I think the minister is passionate about it too.

    “But government only needs to own a little share to give it a sovereign coverage. That is the difference between British Airways and Virgin Atlantic Airways. Kenya is also proud of Kenya Airways. Today, Ethiopia is proud of Ethiopian airlines because they are successful,” he said.

    “Unless Nigeria has a national carrier, it will never turn Nigeria into a hub. For instance, KLM turned Schipol airport into a hub, Emirates turned Dubai to a hub and so on. We even need more than one national carrier, but as soon as government owns more that 10 percent in the new carrier, there may be a problem,” he added.

    Arguments against national carrier

    Captain Dele Ore, renowned aviation expert, has come down hard on the proposed plan for a new national carrier. As far as he is concerned, government is trying to push the horse before the cart.

    The idea will flop, he stressed.

    “The question to ask is what led to the liquidation of the former national carrier? A lot of factors, including political interference, were responsible for the demise of the Nigeria Airways,” he stressed.

    Pressed further, he said, Nigeria Airways was notorious for pulling aircraft off scheduled routes with passengers left in the lurch to embark on a Federal Government sanctioned charter.

    “High ranking government officials had the power to delay flights or even in extreme cases force diversion, just as government agencies employees were known to fly on the carrier without paying; the idea was that the money owed by their individual agency to Nigeria Airways for their travel was all to be settled at the end of the day as the carrier also belonged to the government.”

    He is, however, peeved and said, “There is a lot that needs to be done before you start talking about another carrier. Massive debts were racked up in the name of the Nigerian people on behalf of Nigeria Airways. Today, many retrenched staff are still being owed their entitlements. There is no way people like us who are aggrieved cannot give our goodwill to that kind of venture. So, it won’t work.”

    Going down memory lane, he recalled that this is second venture into the airline industry following the collapse of Nigeria Airways in 2003 under debts of more than $60million.

    According to him, last year, both Lufthansa (LH, Frankfurt Int’l) and Air France (AF, Paris CDG) were approached over a planned possible partnership in the new airline, a proposal both subsequently turned down.

    To analysts, if experience is anything to go by, there is no reason for another foray in to airline ownership by the Federal Government. But pray, is someone listening?

     

  • Dana awarded best local carrier

    Despite the sad incident of June 3, the Federal Government has awarded Dana Airlines, the best domestic carrier for 2011.

    The airline emerged winner based customer service, passenger load and prompt payment of dues.

    Lufthansa was selected 2011 best international carrier.

    Dana Flight 9J 992 was Lagos-bound from Abuja before it crashed, killing 153 passengers onboard.

    The Federal Airport Authority of Nigeria (FAAN), Regional General Manager, Chris Bature, announced this at the Annual Workers’ Award in Abuja.

    He said the operator was selected because of its outstanding performance.

    Bature said: “Mode of selection includes passenger capacity. That is, passenger load, frequency of landing and take-off, their response to payment of bill and last year, it excelled.

    “So among the domestic carriers, Dana was the best. It had the best volume. It was punctual in its operations.

    “In all fairness, Dana did its best and we need to recognise that and encourage it to get back to its feet,” he added.

    Dana Station Manager Abuja Airport, Kayode Adeniran stated that the airline’s commitment to best customer service and timely departure earn it the award.

    According to him, it was an award well deserved.

    His words: “The June 3 incident is unfortunate. It was not deliberate.

    “In the aviation sector, you cannot rule out accidents but when there is an accident, it is the authority that has the power to investigate.

    “We thank God that the black box is being worked on at the Boeing Company in America.”

    Adeniran said the Nigeria Civil Aviation Authority (NCAA) is investigating to ascertain when the airline will fully commence operations.

    He said Dana has commenced demonstration flight as stipulated by the International Civil Aviation Organisation (ICAO).

    The operation is expected to run until NCAA certifies the carrier to commence full operations.