In the first half of this year, the new civil aviation policy which some believe is target against private jet owners;the face-off between theFederal Airports Authority of Nigeria (FAAN) and some concessionaires characterised aviation sector. KELVIN OSA OKUNBOR, reports
A LOT happened in the aviation sector in the past six months. The Federal Government went after private jet owners, remodelled airports and tinkered with the idea of a national carrier. The sector witnessed some upheavals. The Federal Airports Authority of Nigeria (FAAN) and some concessionaires clashed. FAAN also had a face-off with the Harry Akande-led AIC Group over land ownership. Airlines and their workers too were at each other’s throat.
Airport remodelling
After over 30 years of abandonment by previous administrations, the Federal Government continued to address the huge gap in infrastructure deficit. It remodelled some airports, leading to the inauguration of terminals in Lagos, Abuja, Kano, Benin, Owerri and Enugu.
Construction is still ongoing in airport terminals in Jos, Kaduna, Port Harcourt, Sokoto, Makurdi, Ilorin, Ibadan,Akure and Maiduguri in the second leg of the first phase of airports to be remodelled. But these laudable projects have been criticised by some operators in the industry. Among such critics is the outgoing Secretary-General of the Airline Operators of Nigeria ( AON), Captain Mohammed Joji, who described the projects as cosmetic.
Joji said the airport terminals may be wearing a new look, but the project lacks transparency, as the contract allegedly did not pass through due process.He opined that the minister of aviation, Princess Stella Oduah, should do more than just mere renovation of airports.
But, two former ministers of aviation, Felix Hassan Hyat and Mr Samuel Mafuyai, have expressed satisfaction with the airport remodelling project, which they described as long overdue.
They reasoned that there could have been no better time to fix the rot and decay in airport facilities other than now.
Airport concessions
The aviation sector has also been awash with controversies over concession agreements the government signed with some operators. The FAAN has come under the spotlight in its unending face off with one of its concessionaires: Bi-Courtney Aviation Services Limited; the operators of the Murtala Muhammed Airport Terminal Two, otherwise known as MMA2.
FAAN has consistently argued that the concession agreement it signed with the firm is skewed against public interest.
It has also insisted that it is on the right track, according to the airport authority, of violating court orders.
FAAN revoked the concession agreement with the firm on the gigantic hotel and conference centre it is building at the local wing of the Lagos Airport.
FAAN said it had taken over the projects on account of failure of the firm to complete the project at the agreed time.
Spokesman of aviation agencies and FAAN, Mr Yakubu Dati said: “The two projects were to be completed in 2008, but FAAN graciously extended the construction period to July, 2009 however, Bi-Courtney still failed to complete the two projects at the expiration of the extended period.
“Thus by that termination order, the premises in respect of the two projects have reverted to FAAN automatically, in line with the terms of the agreements.”
But Bi-Courtney said this is just a figment of FAAN’s imagination as the property validly belongs to Bi-Courtney.
Hardly had the dust over the termination of the four star hotel and conference centre settled, when the sector was thrown into more confusion as both FAAN and the firm engaged in a game of accusation and counter accusation over the hiring of thugs to pull down billboards at the disputed hotel site.
FAAN insisted that the firm was acting against the rule because it had lost ownership over the hotel.
Bi-Courtney said FAAN violated a court order on the issue.
Airport land at MMIA
Also still ragging is the tussle over ownership of a large parcel of land at the international wing amid claims by FAAN that it had secured ownership via a court ruling last month.
But, the concessionaire – AIC Hotel Limited, which was supposed to construct a five star hotel at the site has gone to the Court of Appeal to contest the ruling by the Federal High Court, which ceded ownership of the land to FAAN.
However, Mr Dati said: ”The Federal Airports Authority of Nigeria (FAAN) has reclaimed the airport land, in protracted dispute between the Authority and AIC Limited owned by Chief Harry Akande, for the construction of a hotel complex at the Murtala Muhammed Airport Ikeja, following a judgement delivered by the Federal High Court in Lagos on June 19, 2013, in favour of FAAN.”
He said by this judgment, the parcel of land in question has become free for massive infrastructural development at the Murtala Muhammed Airport, under the aerotropolis project, including an ultramodern hotel complex, a multi-storey car park and other related projects, designed to expand facilities at the airport.
Chinese investment
The Federal Government aannounced plans by Chinese investors to build some airport terminals in Lagos, Abuja, Port Harcourt and Kano. The investment is by a consortium under private-public partnership.
To achieve the objective, a template for investment is being packaged by the government to ensure that the deal’s transparent.
However, some players in the sector continue to query the rationale for the choice of Chinese investors, who are not known to be key players in the global aviation sector especially in the area of managing airports.
National carrier
The goverment’s quest a national carrier was also on the front burner. Officials of the aviation minister unveiled the conditions under which the national carrier could be control.
According to the minister of Aviation, Princess Stella Oduah, efforts at remodelling the airports nationwide would not yield results to make them work.
As lofty as the plans of government may appear, some stakeholders have cautioned on how to bring about such an airline. Mr Chris Aligbe, chief executive officer of Belujane Konzult, said the time to have a national carrier is long overdue.
He hinged his clamour on the premise that a national carrier would uphold the image of the country abroad1.
But the Conference for Aviation Unions and Professional Associations (CAUPA) has said the coming of such an airline should be preceded by the settlement of labour and pensions issues arising from the liquidation of the Nigeria Airways.
The union according to its convener, Mr Sheri Kyari and the secretary, Mr Austyn Njoku said it was worried by the unsettled labour and related matters as they affect the workers of the defunct airline who are wallowing in poverty and want.
The group said it is not opposed to the establishment of a national carrier , but argued that it would create jobs for Nigerians and curtail capital flight that characterized the country’s aviation industry.
But, the Airline Operators of Nigeria (AON) called on the government to create a level playing field for all carriers, alleging that plans to facilitate over N5billion loan for the promoters of the proposed national carrier is discriminatory.
Joji said such underhand support for the proposed national carrier was not fair to existing domestic operators, who have been lacking access to such facility.
He also that the deal by promoters of the proposed national carrier to secure aircraft leasing deal with a European carrier lacks transparency, as the carrier does not have the capacity to deliver, having been indicted previously in an aircraft deal with liquidated national carrier – Nigeria Airways.
Ncaa’s economic regulation of
domestic airlines
The Nigeria Civil Aviation Authority (NCAA) came under the searchlight amid observations of its weak oversight on domestic carriers.
Though, the former director-general of NCAA, Dr Harold Demuren, was fired by the government during the period under review amid outrage by some industry players, not much could be said to have been achieved after his ouster. But operators believe the new helmsman will do better. Domestic airlines are also grappling with challenges bordering on inability to pay salaries to their workers, which constitute a major threat to safety and security in the sector.
Though the NCAA is stepping into the crisis, many airlines still owe their workers arrears of salaries.
Only last months, some 53 workers protested the non-payment of over 36 months’ salaries by Chanchangi Airlines. The workers narrated how they are coping with the ordeal, even as the NCAA had waded into the crisis, but it is yet to yield positive results.
Another domestic carrier, IRS Airlines is also alleged to owe some category of workers arrears of salaries running into a few months.
But an official of the airline, who crave not to be named, assured that the matter would be resolved with the intervention of the NCAA.
Aero crisis
One of the oldest domestic scheduled operators – Aero Airlines – had its fair share of crisis when its workers went on strike for weeks, leading ultimately to the grounding of its operations by the NCAA.
The management of the airline had directed the sack of over 600 workers, but following pressure by aviation unions, and the Ministry of Labour and Productivity, the workers were recalled and the airline has since resumed operations.
Its temporary shutdown of carrier exposed the challenge of under capacity by domestic carriers in the industry as passengers were forced to pay outrageous fares on routes flown by a competitor.
Flouting of aviation regulations
There was also ‘willful flouting’ of aviation regulations by some private and corporate aircraft operators. Aviation agencies alleged that the Bombardier Global Express belonging to the Rivers State Government flouted aviation rules by not filing a flight plan and declaring passengers manifest at the Akure Airport.
The aircraft was said to have operated in the airport with expired documents and was subsequently grounded at Port Harcourt Airport.
The controversy over the ownership status of the aircraft pitched the Rivers State Government against the Ministry of aviation and its agencies, which accused the operators of the aircraft of not adhering to aviation regulations.
The matter is yet to be resolved, as the aircraft is still grounded at the Port Harcourt Airport.
Hardly had the dust generated over the Rivers State Aircraft settled when a chopper belonging to AOS Helicopter, scheduled to fly the Edo State Governor, Comrade Adams Oshiomhole to Awka from Benin was delayed at the airport for what aviation agencies described as failure by the pilot to declare passengers manifest and file a flight plan.
The imbroglio however, forced the governor to abort the trip, even as aviation agencies faulted the pilot for infractions against aviation regulations.
New Civil Aviation policy
The Federal Government unveiled a new civil aviation policy, which replaced the provisions of the 2006 civil aviation policy that granted autonomy to the NCAA.
Though some industry players including the AON alleged non-inclusion and input in the making of the new policy, they said nothing was wrong with the 2006 civil aviation regulation endorsed by the International Civil Aviation Organisation ( ICAO).
They, however, faulted some provisions in the new policy, which seeks to establish the creation of an autonomous economic regulation arm for the industry, other than the NCAA, as well as the creation of a general aviation directorate in the mmnistry of aviation.
