The Nation Newspaper

Tag: national carrier

  • The national carrier dream

    The national carrier dream

    The Buhari Administration is dreaming of giving the country a national carrier, many years after the demise of Nigeria Airways.Can it realise the dream within the two years left for it to complete its first term? KELVIN OSA OKUNBOR reports

    Approval ratings in the sector in the last two years have been high because of the government’s efforts  to revolutionise infrastructure at airports.

    With the rehabilitation of the runway of the Nnamdi Azikiwe International Airport in Abuja in just six weeks, the government received kudos.

    Industry watchers say aviation has been upbeat in the last two years in terms of events, activities and strides recorded by the government in repositioning the sector as a catalyst for socio-economic development.

    In the period under review, operators assessed the industry from how the policies affected indigenous and foreign carriers as well as other issues that shaped developments in the industry.

    To them, from an operational point of view, domestic carriers had unsavoury experience in the last two years. Domestic carriers, they said, experienced increasing cost of operations occasioned by the oscillating price of aviation fuel and access to foreign exchange using the official window of the Central Bank of Nigeria (CBN).

    The inability to access foreign exchange  did not only affect domestic carriers, many foreign airlines had difficulty in repatriating over $750 million ticket sales to their home base.

    Last year,  matters came to a head when the International Air Transport Association ( IATA) wrote to the government to intervene to enable foreign carriers remit funds to their headquarters.

     

    Abuja Airport Runway

    The greatest achievement is the timely closure and rebuilding of the Abuja Airport runway.

    The runway, according to the Minister of State, Aviation, Hadi Sirika, was long overdue for overhaul, having outlived its life span of 20. The runway built 34 years ago had become a source of concern for many domestic and foreign carriers before it was rebuilt.

    Prior to the rebuilding of the runway, the government had engaged foreign carriers, which declined to operate from Kaduna Airport, the alternate aerodrome.

    Foreign carriers, including British Airways, Air France/KLM, South African Airways, and Lufthansa  German Airlines, declined to fly into Kaduna Airport because of inadequate logistics and security.

    But Ethiopian Airlines braced the odds and operated flights from and into Kaduna Airport for six weeks before the Abuja Airport was re- opened.

    The government also completed the new international terminal at Kaduna Airport.

    During the construction of the terminal, Acting President Yemi Osinbajo toured the facility to ensure its timely completion.

    Sirika, however, said the government was determined to ensure completion of all ongoing  airport projects.

     

    National carrier /airports concession

    The government to set up a national carrier and appointed transaction advisers to midwife the formation of a national airline as well as the proposed concession of airports.

    Sirika said transaction advisers were expected to make the process attractive to the private sector and transparent.

    Though these projects are yet to be delivered, there is discontent among former workers of liquidated national carrier – Nigeria Airways Limited.

    The former workers are yet to be fully paid their entitlements of about N78 billion. Although controversies still surround the payment of the outstanding entitlements, experts said their payment could be the greatest achievement of the Buhari administration.

    But, trouble may be brewing on concession of airports as unions are opposed to the modalities for the appointment of transaction advisers.

    The unions have alleged underhand moves by the government to concession airports, which they described as selling off of national patrimony.

    The unions have mobilised against plans by the government to concession airports.

    The opposition by the unions is predicated on the assumption that concession of airports may lead to job loss for their members.

     

    Re-election of Nigerian  as ICAO Council President

    A Nigerian and former Director of Air Transport Regulations (DATR), NCAA, Dr Bernard Olumuyiwa Aliu was re-elected as President of International Civil Aviation Organisation (ICAO). He is the first African and Nigerian to get such exalted position in the global aviation body.

    He has since assumption duties, rolled out several initiatives to assist ICAO member-states, including Nigeria, with the “No country is left out safety Programme.”

    ICAO has designed many programmes for training of Nigerian aerodrome-certified auditors and inspectors. Several exchange programmes have been organised for the personnel in many areas outside aerodrome operations, airworthiness and aviation security.

     

     FAAN boss appointed 

    Airport Council International African President

    The Managing  Director of Federal Airports Authority of Nigeria (FAAN), Saleh Dunoma, was appointed African President  of Airports Council International (ACI), the global airports regulator.

    His election was in recognition of the role Nigeria plays in aviation on the continent.

    The ACI position has, no doubt, assisted Nigeria to turn around its airports in dire need of rehabilitation.

    Nigeria was elected into safety rating. Nigeria was catapulted into the league of civil aviation nations. It joined the elite group of aviation nations in its civil aviation oversight responsibilities.

    Nigeria stepped up its global civil aviation safety rating by attaining  level three in State Safety Programme (SSP) implementation process.

    With this achievement, the NCAA will  continue to ensure that air transportation in Nigeria is seamless, safe and secure.

    The NCAA  said only two-member states – Australia and Sri Lanka – have achieved full implementation of the SSP according to ICAO records.

     

    Indigenous operators

    designated on international routes

    At a time, experts in the industry were complaining about lopsided bilateral air services agreements. To correct the imbalance, the government has designated more domestic carriers on some international routes, including Lagos-London, Dubai, Jeddah, New York, Japan  and other destinations. The benefitting carriers include Medview Airlines and  Air Peace.

    In an interview, Air Peace Chairman, Allen Onyema, described the designation of indigenous operators on international routes as one of the major achievements of the Buhari administration.

    Onyema said: “What the government should do is to create an enabling environment for private sector airlines to thrive.

    “The government must create an enabling environment for the private sector to thrive.”

     

    New foreign carriers

     in Nigeria

    In the period under review, two foreign carriers have joined the league of operators in Nigeria. They inlcude Air Meridien, an Italian carrier and Gambia  carrier, Fly Mid Africa. The African carrier, which started operations recently connects passengers from Banjul, to other connections in Dakar, Freetown, Accra and other destinations.

     

    Operators, govt

    collaborate

    Despite complaints by domestic operators about the unhealthy business environment, the umbrella body of indigenous carriers, Airline Operators of Nigeria (AON), said the government had done well in fixing some sore points in the sector.

    Its Executive Chairman, Captain Nogie Meggison, said: “We pray that the government needs to reappraise the way it sees air transportation and accord it the support it truly deserves as done in other climes.

    “Airlines provide critical socio-economic services and should not be treated as a cash cow and strangled out of existence by multiple taxes, levies and charges that are sometimes forced on the airlines without due consultations.

    “In the light of the above, we therefore appeal to the Federal Government to assist the airlines by taking a critical look into this issue of multiple charges and come to the aid of airlines by having a single window.”

     

    Arik/Aero take over by AMCON

    One of the defining moments in the sector is the take over of Aero Airlines and Arik by the Asset Management Corporation of Nigeria (AMCON).

    Scores of workers in Aero Airlines were sacked under AMCON management as part of strategies to keep the airline afloat.

    Unions for over a week protested the sack, alleging mismanagement of the carrier, its old owners and the receiver manager.

    From its profile as the oldest indigenous carrier, Aero Airlines operational performance has dwindled in the last few years.

    The take-over of Arik Air by AMCON  is one of the developments in the sector that cannot be ignored.

    The sector is yet to recover from the challenges facing the industry’s  biggest carriers.

    What will become of Arik Air under the management of AMCON remains to be seen by industry watchers .

    The sector has had its twists and turns under the Buhari administration. From operational and safety point of view, many domestic carriers attained international safety ratings from the International Air Transport Association ( IATA) .

    The airlines that passed the safety audit include Air Peace, Medview, DANA Air, Overland Airways, First Nation Airways and others.

  • Govt sets condition for partnership on national carrier

    The Federal Government has set out conditions under which it would go into a partnership with any interested party for the re-establishment of a national carrier.

    The Minister of State for Aviation, Sen. Hadi Sirika said interested parties must have plans for direct transfer of technology through training of Nigerians and also put in place plans for local manufacturing of basic maintenance equipment and spare parts.

    The minister spoke in Abuja during a visit by representatives of Airbus.

    He explained that the conditions were indicative of the seriousness attached to the project by the Federal Government, adding that it is the only way to ensure that the proposed national airline comes on stream on a sound footing.

    The minister stated that the whole process of the establishment and the choice of partners, would be transparent.

    A statemnt endorsed  by the Deputy Director,Press and Public Affairs of the ministry, James Odaudu, quoted the minsiter as saying the vision of the government was to establish a national carrier that would not only be internationally competitive and profitable, but also efficiently and professionally managed while also being affordable an customer-centred.

    Welcoming Airbus’ interest in partnering with Nigeria on the project, he challenged the aircraft manufacturer to be prepared for competition with other interested organisations.

  • ‘Govt needs $2.1b to acquire planes for national carrier ‘

    ‘Govt needs $2.1b to acquire planes for national carrier ‘

    If the Federal Government is determined to float  a national carrier, it should provide $2.1 billion to acquire some aircraft for take-off, an  expert has advised.

    The Chief Executive Officer of Luz International Limited, Mr John Oguadinma, said this in an interview.

    He said about $1.42 million of the sum should be sent to aircraft manufacturer Boeing for eight aircraft for the proposed airline.

    He said some Boeing 747-800 series , two Boeing 777 long range and five Boeing 737- 800 series should be acquired for local and regional operations.

    Oguadinma assured that his firm, aviation consultants, would fast-track the process of setting up the airline.

    He said another $158 million should be paid to another aircraft manufacturerBombardier  for 13 aircraft to serve local and regional routes.

    He said the airline would hit the ground running with a fleet of 33 aircraft and change the aviation landscape.

    The expert said: “I am  bold to say that if $2.1 billion is provided today and paid to the manufacturers for the acquisition of the aircraft, the carrier would take off .

    That amount would enable us facilitate the purchase of some aircraft for start up.

    ‘’After the first cash injection, we would require another $800 million to facilitate administration and other processes to float a successful carrier.

    ‘’Of that amount about $700 million will be used for administration and  $100 million will be used to kick-start the operation of the airline.”

    He said if the right processes are put in place, the proposed airline could generate over N7 billion annually.

    The ex-cabin professional said it is not mandatory to set up an aircraft maintenance facility to fix the planes. The aircraft manufacturers Boeing and Bombardier would provide the expertise to handle such tasks.

    Oguadinma said: “The main maintenance goes to Boeing and Bombardier but the little maintenance will be done by our engineers. We have a lot of engineers who are capable to do the job.”

  • ‘Why national carrier should not be priority’

    The Chief Executive Officer of FMC Aviation Services Limited, Mr. Herbert Odika, has cautioned Federal Government on its proposal of floating a national carrier as the current cost benefit analysis would not bring about a profitable venture.

    The carrier, he said, would be workable if government is ready to grant concessions including subsidy in aviation fuel, tax exemptions as well as exclusion from paying landing and parking fees.

    Odika said any national carrier that is floated now with the current multiple air navigation and airport charges by aviation agencies will not be profitable.

    He said unless government is ready to offer incentives, current huge cost burden could have adverse effect on the proposed airline.

    Odika proposed a change in equipment type to reduce the cost of airline operations.

    He said: “We must appreciate the fact that the Buhari government is listening to industry players on how to move the industry forward. But, government should have a rethink on its plans to float a national carrier.

    “I think for now, the national carrier is not a priority. If government must go ahead to float it, the government must be ready to subsidise its charges. With an economy that we see that is broke at the moment, the government may not be ready to subsidise.

    “If the airline must work, government must be ready to give concessions carriers in the area of aviation fuel, because this constitutes a huge cost to airline operating.

    “Government must be ready to give concessions, because the national carrier ought to be cheaper in terms of fare. A national carrier should be able to give concessions.

    “If we cannot achieve all these conditions, then setting up a national carrier should not be a priority.

    “If we must float such an airline, it is important we get our processes right, the required training for our professionals; versatility in terms  of aircraft type; and get the right trend before we could think of an airline that would be profitable. Is government ready to reduce taxes and ask the agencies to put less pressure on airlines in terms of revenue target?”

    The agencies have to look for areas to get revenue without putting pressure on domestic carriers who are already being frustrated by multiple taxes.

     

     

  • National carrier not priority, says expert 

    …Airlines should change aircraft type to remain profitable 

    The Chief Executive Officer of FMC Aviation Services  Limited, Mr Herbert Odika has cautioned the Federal Government to reconsider the proposal of floating a national carrier as the current cost benefit analysis cannot guarantee profitable venture.

    The carrier he said would be workable only if government is ready to grant concessions including subsidy in aviation fuel, tax exemptions as well as exclusion from paying landing and parking fees.

    Speaking in an interview, he said unless government is ready to offer incentives, the current huge cost burden could have adverse effect on the proposed airline.

    Odika said there is need for the government to think deeply about the project before venturing into a carrier that would not make any difference.

    He proposed a change in equipment type to reduce the cost of airline operations.

    Odika said, ” We must appreciate the fact that the Buhari government is listening to industry players on how to move the industry forward. But, government should have a rethink on its plans to float a national carrier .

  • Committee on new national carrier begins sitting

    Committee on new national carrier begins sitting

    The 12-man National Carrier Ministerial Committee inaugurated on Monday by the Permanent Secretary, Ministry of Aviation, Mrs. Binta Bello Thursday commenced sitting in Lagos.

    The meeting, which commenced in the early hours held at the annex office of the Nigerian Civil Aviation Authority, NCAA, at the Murtala Muhammed International Airport, MMIA, Lagos.

    The committee has the mandate to fashion out modalities for the project.

    A committee member who spoke with our correspondent on the condition of anonymity said the committee is at the moment taking presentations from stakeholders and Price Water House, consultants for the project.

    The source confided in our correspondent that major sitting of the committee would commence from next week as the team would take both written and oral applications from professionals and stakeholders in the sector.

    He explained that the essence of meeting with proven experts in the sector was to ensure that everyone was carried along in the project.

    He however said that the committee could not determine when the nation would be presented with a new national carrier, stressing that it would take a long process.

    He said, “You know, it is not what we can get overnight. There will still be issue of Air Operator’s Certificate, AOC, for the airline and other regulations that the new airline will have to comply with.

    “You know, we have short and long term plans in setting up an airline. The technical partnership too should be put into consideration. Those are the things we need to work on first before giving a specific date for the project. But, one thing I can tell you is that it is very achievable. At the end of the exercise, we will give government a template on how to go about it in a manner that is transparent and actionable.”

    Recall that Bello on Monday inaugurated a committee led by the former Managing Director of Discovery Air, Capt. Mohammed Abdulsalam with the mandate of reviewing previous consultants’ submissions and recommendations on a national carrier, review the report on the failure of the defunct Nigeria Airways and other failed private airlines.

    The committee, which was given four weeks to complete its assignment and submit its report also had the mandate to consult widely with stakeholders on the establishment of a national airline, including interested international partners on setting on the basis of Public Private Partnership, PPP, model.

    She also charged the committee to invite the Assets Management Corporation of Nigeria, AMCON, to determine the debt profile of domestic airlines to serve as a guide in its recommendations, and to develop the optimum model for a national carrier for Nigeria.

  • Union urges Buhari over national carrier

    The National Association of Aircraft Pilots and Engineers (NAAPE), has cautioned the Federal Government over the restructuring in the aviation  industry and against engaging a foreign airline as technical partner to the proposed new national carrier.

    President of NAAPE Balami Isaac David, in Lagos, said the development would stunt the growth of the national carrier due to the vested interests of such foreign airlines.

    David said any idea of engaging a foreign airline as technical partner should not be allowed, adding that no sane business person will encourage a viable competitor, nor will such partners agree to terms that will grant advantage to the new carrier over their already vested interests in their home airlines.

    His words: “Everyone who has been in or around aviation for a while would easily agree that the ill advised liquidation of the defunct national carrier, Nigeria Airways, is the evil wind that has bedevilled the industry till date.

    “It was not a mere death of an airline. It was the demise of the only known airline superstructure in Nigeria – the best ensemble of airline professionals. It was the demise of Nigeria’s global standard aircraft maintenance system that had already attained B737 check D (highest maintenance procedure) in Nigeria by Nigerians. It was, therefore, the death of Nigeria’s dream to establish and operate an MRO soonest.

    “The defunct National Carrier was responsible for the production of well trained aviation professionals – in piloting, engineering, marketing, cabin crew, dispatch, and every facet of aircraft operation. Its death also killed this noble endeavour.

    “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”.

    He commended President Muhammadu Buhari for mustering the will power on the establishment of a new national carrier which he said, can now spearhead Nigeria’s deserved quest for global reckoning in aviation.

  • Buhari orders quick action on new national carrier

    Buhari orders quick action on new national carrier

    • Orders take over of Nigeria’s airspace from Ghana

    President Muhammadu Buhari yesterday ordered the Ministry of Aviation to expedite action on the establishment of a new national airline for the country.

    The president gave the directive while receiving briefing from officials of the Aviation Ministry, led by the Permanent Secretary, Binta Bello, at the Presidential Villa, Abuja.

    Speaking with State House correspondents after the briefing, Bello said  the president was worried about Nigeria not having a national air carrier and has given instruction for a new one to be established.

    She also said the president was briefed on the challenges domestic airlines were facing in spite of Federal Government’s N300 billion intervention fund towards boosting their operations.

    The airlines, she said, were hugely indebted to regulatory agencies under the Aviation Ministry, including other factors that have left some of the airlines still struggling to maintain optimum operational capabilities.

    According to her, the four state-of-the-art terminals being constructed with Chinese Bank loan will be ready by the first quarter of next year.

    She said the facilities under construction and expansion would be big and modern enough to accommodate large aircraft like the Airbus 380 aeroplanes as obtained in the largest international airports.

    “The president has directed the Ministry to look into the possibility of having a national carrier as soon as possible,” she said

    According to her, President Buhari has also ordered the take over of the nation’s airspace, over the Gulf of Guinea, from Ghana.

    She said: “We have a directive by the president to start the process of securing management of Nigerian airspace over the Gulf of Guinea which Ghana has been maintaining since 1945 and there is a move on the ground by Togo and Republic of Benin to take over the management of their own airspace from Ghana.”

    She reassured Nigerians and the international community that the nation’s airspace is safe and has just recorded a score of over 90 per cent by the International Civil Aviation Organisation (ICAO).

  • ‘Quota system shouldn’t apply to national carrier’

    Former Rector and Chief Executive Officer of Nigerian College of Aviation Technology (NCAT)Capt. Adebayo Araba has warned promoters of a national carrier against using quota system  for recruitment.

    At an event in Lagos last week, he insisted that Nigeria required a national carrier to compete with others.

    The carrier he said would  provide jobs for qualified Nigerians and enable the sector contribute significantly to the Gross Domestic Products ( GDP) .

    He said quota system could be applied in some sectors of the economy, but not in aviation given its technical nature.

    Araba warned that introduction of quota system in the airline project may spell doom for it like the defunct Nigeria Airways.

    He  said because of quota system, Nigeria Airways lost about six or seven aircraft and hundreds of lives to accidents.

    Besides, he insisted that quota system deprived over 20 students from a particular state in the country from gaining admission into NCAT for their preferred courses when he was the rector of the institution. The school had to look for other courses for the students.

    He said:” You see, Federal Government is very clear concerning some certain issues. For instance, we are talking about quota, which government is very clear about, but when it comes to some specific disciplines, we have to be very careful how we manage the quota system.

    “At the Nigeria Airways wher I worked for so many years, we tried the quota system, we lost. Because of the quota system, we lost about six to seven planes and so many lives. The airline is gone now, and we can’t rectify the past, but we should be able to learn from what happened to take care of the future.

    “At NCAT, we put the quota system on ground anytime we had any new intake, we go strictly with the quota system, but once you are in, and the flag is down, for you to continue in that college, would be whatever you have in your head. Anything short of that, forget about quota system,”he said.

    On the challenges facing domestic airline operators in the country, Araba, queried their background and the technical-know-how of their sponsors in airline business.

    He said the fact that a sponsor had the financial wherewithal to run an airline didn’t mean such would manage the business successfully and urged the Nigerian Civil Aviation Authority, NCAA, to play its oversight function well for the development of the country.

  • ‘Why Nigeria needs national carrier’

    ‘Why Nigeria needs national carrier’

    Nigeria needs a national carrier to develop its air transport sector as well as serve as a platform to strategically position herself as a continental leader, the Chief Executive Officer of Ethiopian Airlines, Mr Tewolde Gabremariam, has said.

    He said the establishment of a carrier would help to liberalise air transport, create jobs and act as an incentive for foreign direct investment (FDI).

    According to him, the best way to achieve such a national carrier is to utilise the right model driven by cooperation and partnership with carriers within the African continent

    He said without having a carrier, foreign carriers would continue to dominate market share in the continent, which is currently patterned on a 80 per cent basis in favour of foreign carriers as against the market share of 20 per cent for African carriers.

    Gabremariam said Ethiopian Airlines would be willing to assist the government to set up a national carrier if requested for.

    He said Ethiopian Airlines would be favourably disposed to having discussions with officials of the Federal Government on how to set up a national carrier.

    A national carrier for Nigeria, he said, would be strategic to accelerate socio – economic development of the continent, because air transport has the capacity to move thousands of passengers across national borders at a cost relatively cheaper than rail or road transportation.

    He said: “‘Nigeria needs a national carrier for strategic reasons. The national carrier would be useful in good times and at bad times.

    “The question that experts and industry watchers are asking is what kind of national carrier. There are different models to be adopted in setting up a national carrier. The Nigerian government would require cooperation and partnership with other African carriers. Ethiopian Airlines is interested in assisting Nigeria to set up a national carrier.

    “This is important because the national carrier would create jobs, attract foreign direct investment and enhance development. Africa needs home-grown carriers to develop air transport on the continent.

    “This is because air transport is cheaper to develop compared with other modes of transportation including road and rail.”