Amid eroding public confidence in domestic flights, the Nigeria Civil Aviation Authority (NCAA) plans to audit airlines. In this report, KELVIN OSA-OKUNBOR examines this seemingly arduous task the regulator is embarking on.
There is a growing discontent among observers of the aviation industry over seeming delay by the Nigeria Civil Aviation Authority (NCAA) to carry out a comprehensive audit of domestic airlines operating in the country.
The technical audit of domestic carriers is to check their level of maintenance, including manpower and capacity building, as part of efforts to ensure safety in the industry.
There are several airlines in Nigeria with valid Air Operator Certificate issued by the NCAA. They include Aero Contractors, Allied Air, Arik Air, Associated Aviation, Chanchangi Airlines, Dana Air, Dornier Aviation Nigeria, First Nation Airways, IRS Airlines, Kabo Air, Max Air, Med-View Airline, Overland Airways, Pan African Airlines, Jed Air WestLink Aviation, SkyJet Aviation, Hak Air, Azman Aviation , Topbrass Aviation , Kings Air and Discovery Air .
The disappointment of stakeholders is coming on the heels of the recent air crash by Associated Aviation, whose Embraer 120 aircraft with 20 people on board crashed within 31 seconds on take-off from the Lagos Airport.
The scary details of how the aircraft crashed, according to preliminary report released by the Accident Investigation Bureau ( AIB) have exposed the underbelly of poor regulation of airlines in Nigeria. The ill- fated Associated Aviation Embraer 120 aircraft had technical issues.
Series of serious incidents involving Kabo Air and IRS Airlines in Sokoto and Kaduna airports have further put the country’s aviation sector on the global spot, raising serious concerns over the quality of civil aviation regulation.
Only three weeks ago, the NCAA suspended the operations of DANA Air to enable it carry out technical audit of its operations.
As the industry grapples to recover from the ban of DANA Air operations, the regulator directed two other carriers IRS Airlines and Chanchangi Airlines to ground their operations until an audit of their operations are duly carried out.
Weeks after, the NCAA is yet to begin the audit of airlines. Last month, the director general of NCAA, Captain Fola Akinkuotu disclosed that the authority will carry out audit of all domestic airlines in the country.
The NCAA said it would carry out joint audit of domestic carriers to ascertain their technical and financial state of health.
Akinkuotu said there was no going back on the audit, which would be carried out in collaboration with foreign firms. He threatened to shut down airlines owing workers’ salaries.
He said the NCAA would take further steps to raise the bar in safety by ensuring that all domestic operators undergo the International Operations Safety Audit (IOSA), usually conducted by the International Air Transport Association (IATA).
He said steps were being taken to restore the confidence of the flying public in the aviation sector, adding that it has become critical in the last few weeks on account of the Associated Aviation Embraer 120 crash in Lagos and other incidents.
He said:”We will continue to engage domestic operators to do what is right. They have a responsibility to comply with the rules and avoid lapses that will expose the industry to emergencies.
“The NCAA demands that all operators must sit up. As the regulatory body, the NCAA has a role to ensure that there is continuous monitoring to enhance safety. The idea is not to deliberately reduce the number of airlines, but to ensure that only strong carriers are in operation.
“If we have only two airlines that are strong enough to operate, that is fine with us. We are not here to stifle growth in the industry, but we want to ensure that there is safety in the system; so, this is prompting us to reduce the airlines and weed out ones that lack the financial muscle to continue to operate safely. Talking about audit. Of course, we are going to audit all the airlines. We have a continuous process of auditing airlines. As a matter of fact, going forward, we are going to do a joint audit on all the airlines. We are working with foreign audit firms too to ensure that there is complete validation of all the airlines. This is done to ensure that there is a reassurance to the public but further to also continue what NCAA is supposed to be doing ,which is an oversight function, oversight monitoring never really stops. It is a continuous process. We intend to put in place regulations that will require airlines to have an International Air Transport Association (IATA) Operational Safety Audit (IOSA) audit. Many years ago, this was mooted and the airlines struck a compromise where it was said it will be compulsorily voluntary, but this time it will not be. We would remove the voluntary and we would make it compulsory. Airlines would be required to have IOSA audit as a way of going forward and ensuring that their systems are tidy.”
Only at the weekend, DANA Air accused the NCAA of unnecessarily delaying its audit, despite evidence on the ground that it is ready and open for audit.
In a letter to the authority, the airline, speaking through its Head of Corporate Communications, Mr Tony Usidamen, said:” It is now three weeks since the NCAA directive and, though the airline is open and ready for the planned audit. It is worrisome that the NCAA is yet to commence the audit and no clear direction or timeline has been given to the airline for completion of the same.
“The continuous grounding of Dana Air is causing untold hardship for the hitherto ‘gainfully-employed’ staff of the airline, and with NCAA’s inaction regarding the audit, there appears to be no relief in sight to the sufferings of the airline’s staff and their numerous dependants.
“NCAA’s action or inaction is not without consequences for the average Nigerian traveler with the few airlines left taking advantage of the dearth of operators to hike fares and offer poor services.
“Businesses and the nation’s economy are negatively impacted too. Need we mention the negative signals are also being sent to potential investors in the sector?
“It is for these reasons that we, the over 540 directly-employed Nigerian staff of Dana Air, are appealing to the NCAA to save us and the airline by carrying out its statutory role devoid of sentiments and political interference, and commencing the planned operational audit of the airline without any further delay.
“In compliance with the October 6, 2013 directive by the Nigerian Civil Aviation Authority (NCAA) for Dana Air to suspend its flight operations to allow for an audit of the airline’s operations, the management of the company shut down its operations without delay.
“ Subsequently, as a result of the suspension (and understandably so), the airline directed its Nigerian and expatriate staff to proceed on compulsory leave without pay, with a promise to recall staff as soon as the audit process is completed. “
The General Manager, Public Affairs NCAA, Fan Ndubuoke, said the audit of DANA Air would begin this week.
He said :” NCAA will commence the audit of Dana airline next week to pave way for the arrival of the external auditors invited by the Authority to team up with NCAA in the Audit of the airline. The external auditors who are invited from Europe and America are to make sure that the Authority follows the standard and Recommended Practices (SARPs). The delay in starting the Audit by NCAA is to ensure a thorough exercise with the assistance of the external Auditors.”
Part of the processes leading to the audit of airlines, according to the NCAA, is to ensure that airlines with valid air operators’ certificate with a single aircraft is allowed to operate scheduled operations. It was gathered that NCAA issued a memo ordering all scheduled airline operators whose fleet size had been reduced to only one operational aircraft to immediately stop flight operations.
The memo, which was addressed to all scheduled airline operators and dated October 14, reads: “You will recall that recently, the NCAA, through the director-general, expressly suspended the continued operation of airlines possessing otherwise valid Air Operators Certificate, but who were operating with a single aircraft. “The Nigerian Civil Aviation Authority regulations provide for more than a single aircraft for any operator to secure or operate under a valid AOC.
“This directive is, therefore, issued to formalise and clarify that prior order suspending such operations. As such, all AOC holders or operators whose operational fleet has been reduced to a single operational aircraft for whatever reason shall immediately and forthwith suspend their flight operations.
“Such operations may only resume upon clearance from the NCAA that there is more than one operational aircraft for continued flight operations and satisfaction that such AOC holder has the capacity to have safe flight operations prior to commencing any such operation.”
Following the directive, IRS and Chanchangi’s operations have been grounded.
Commenting on the audit of airlines, the Managing Director of Medview Airlines , Alhaji Muneer Bankole, said :” This is one of the best things to happen to the industry. It is high time the regulator carried out serious audit on the airlines to ascertain their health, rate those that are fit to remain in business. It is a good initiative; it will promote air safety and put domestic airlines in good stead to carry out their business.
“For us at Medview Airlines, safety is the greatest asset in the balance sheet of any airline. As your operations are adjudged safe, you continue to grow the business. The NCAA has approached us; we have filled the forms, the audit is ongoing and we are confident that it will improve the industry in many respects.
“The economic audit of domestic airlines is appropriate, too. It will help to establish the status and technical standing of the airlines. We have filled the forms; we are cooperating with the authority to achieve this. It is a healthy development for the industry, it will help to measure the performance of the airlines. For us, it is a test for airlines to know its position. There are no more hiding place to hide. It is good to know what is happening to the airlines; it is a forensic test for domestic airlines. At a point, it is good for you to know the strength of your operations technically and financially. This is very good, it falls within the ambit of the economic regulatory function of the NCAA. It is the best way to go. All airlines must know their rating. It is a good test.”
But, speaking in an interview, the Managing Director of Arik Air, Chris Ndulue, said the NCAA was not carrying out any audit on the airline.
Former chairman of the Airline Operators of Nigeria (AON), Dr Steve Mahonwu, said the technical audit of all the airlines would provide the needed data on the equipment and the capacity of the airlines to carry out effective maintenance of the aircraft and the manpower of these airlines.
Mahonwu said it was necessary to carry out economic audit of the airlines, noting that it was necessary because the failure of the airlines to provide better remuneration for their workers have contributed to the failings of the airlines in maintaining safe operation.
“The audit NCAA wants to do is a conventional aviation practice; so, it is good they do it. The problem of the Nigerian aviation industry is that most of the airlines operate aged aircraft but there is no adequate finance to service them. Airline workers, including those that operate the flights are not paid well and some airlines owe their staff and this is affecting them. When a pilot is flying, he will be thinking about how to take care of his family. That is the reason many of the air accidents are associated with human error because these people are not being taken care of adequately these days like in the time past,” Mahonwu said.
The Chief Executive Officer of Centurion Securities, Group Captain John Ojikutu (rtd), said the NCAA has failed to carry out regular audit of airlines. He added that planned audit may not be properly done for lack of facilities.
