The Nation Newspaper

Tag: Nigerian Civil Aviation Authority

  • Government clears air on controversies over national carrier

    ……..Says, airline incorporated as wholly government company

    …..To make certificate public when full equity structure pre-financial close is finalized

    ….National Assembly to enact Fly Nigeria Act

    Nigerian Civil Aviation Authority (NCAA), on Monday offered clarification on the controversies trailing the national carrier- Nigeria Air saying the airline is currently incorporated as a wholly government company with the Corporate Affairs Commission using nominal directors who are directors of the Ministry of Aviation.

    A souce close to the NCAA, who pleaded not to be named said the certificate of incorporation of the airline will be made public very soon on conclusion of the public private partnership procurement process; which will spelt out when full equity structure pre financial close is finalized.

    The official said Nigeria Air Limited as a legal entity already has a domain name: www.flynigeriaair.ng, which has been reserved and will be made active very soon as part of the project evaluation and marketing process.

    The NCAA official confided that the ownership of the national carrier in terms of international convention must be beneficial to majority of Nigerians  with the accruing privileges to national carriers.

    As part of efforts to make airlines viable in Nigeria, the ministry, he said is making moves to have the National Assembly pass a fly Nigeria act. This act will require that anybody travelling on a ticket bought with public funds must travel on a Nigerian carrier unless the route is not served by a Nigerian carrier. However, with your private funds you can do as you like. Many countries including America has such as Act.

    He said the current logo of the national carrier is a prerequisite for the issuance of Air Transport License and Air Operators Certficate by the NCAA.

    He said: “The logo is requirements for an ATL and AOC required for NCAA to license an airline. In any case the name and logo can be amended it the strategic equity partners feel it’s not right for the business. We must recall that the airline name and logo was the result of an open national competition. However, this airline line is going to represents our Nation, the Name, logo and color should be in line with what was done with the public.”

    He also spared a thought for the structure of the airline saying: “At start up government will own majority equity in Nigeria Air Limited Joint Venture Company. A Joint Venture Company that would be very similar to Nigeria LNG Limited. Nigeria LNG Limited is a huge JV success that is private sector managed so will Nigeria Air Limited. After one year of operations, government will through an IPO divest her equity for purchase by Nigerians subject to approval of the Securities and Exchange Commission. Government will then retain only five per cent equity. The rest of 95 per cent equity of Nigeria Air Limited will then be owned by the strategic equity investor and the general public.

    “Majority ownership must however remain with Nigerians so that the national carrier can benefit from BASA and other bilateral agreements which require local beneficial ownership as a condition precedent. Management of the national carrier will be concessional to the strategic equity investor with no step in rights and management control by government. Signed up acceptance and approval of the management concession agreement will be a condition precedent for the IPO.”

    He said the project is not shrouded in any secrecy affirming “There is no secrecy. The entire process is guided by the infrastructure concession regulatory commission guidelines/regulations.

    Because it’s a PPP, it has three stages – the project development stage, procurement stage and implementation stage. The project development stage was just concluded with the approval of the Outline Business Case, which the ICRC issued a certificate of compliance. Once the process gets to the PPP procurement stage, there will be an RFQ, Information Memorandum and RFP bidding process which will be made public, competitive and transparent. It is only after the PPP procurement process that the strategic equity investor will be known. At that stage the JV partners will be government and the strategic equity partner. Government’s equity share held in trust for Nigerians will be devolved to Nigerians via an IPO. The government will retain only 5% equity, the list of shareholders then will be available to SEC and the Nigerian Stock Exchange. At that point Nigeria Air Ltd becomes a public company subject to SEC, NSE and relevant CAMA rules for public companies. All PPP procurement and ownership moves will be made public. Signed up acceptance and approval of the management concession agreement will be a condition precedent for the IPO.”

    He clarified that government is not entirely funding the airline.

    His words  “The Government is not funding the entire project. It’s just providing startup capital in the form of an Upfront Grant/Viability Gap Funding. Once the strategic equity investor is in place, they will be expected to build on the initial investment made.

    Read Also: Nigeria Air: A National Carrier of controversy

    The OBC made it clear that the strategic equity investors will not start the national carrier; government has to start it in order to attract credible investors.

    $8m represents startup capital for offices required for takeoff. But $300m is the entire airline cash flow funding requirements (aircraft, operations and working capital) for three years (2018, 2019 and 2020).

    “This funding can be in the form of equity or debt. The financial model estimates cash flow requirements as follows 2018 ($55m – $8 million is included here), 2019 ($100m) and 2020 ($145m). In order to ensure take of the airline in 2018 government will provide US $55 Million upfront grant/viability gap funding to finance startup capital and pay commitment fees for aircraft to be leased for initial operations and deposit for new aircrafts whose delivery will begin in 2021.

    “The remaining financial injection by government will be determined by the quantum of equity that the strategic equity partner will bring as a result of the PPP competitive bidding process. This explanation clearly debunks the claim in the social media that government is paying $300 million for a five per cent equity share. Furthermore, with ongoing discussions the cash flow requirement may be lower than $300 million; furthermore, the cash flow estimates contains a 20 per cent buffer that is put in on the assumption that the airline may suffer an operating loss in year 1 due to competition and needto build a brand. As mentioned earlier governments contribution to equity will be in the form of an upfront grant/VGF. Government’s upfront grant/VGF contribution to equity will be funded through either a supplementary budgetary allocation or development financial institutions like AFREXIM bank, AFBD, ISDB etc, who have indicated keen interest in funding the national carrier project because of its bankability and profitability profile.”

    On how government intends to procure the aircraft, the NCAA official said: ” As you may be aware it’s almost impossible for you to pay for and get a new aircraft immediately because it is not an off the shelf item like indomie noodles. However, as part of discussions with major Aircraft Manufacturers, the Government will pay deposits for brand new aircrafts and the manufacturers will support Nigeria Air in getting very good dry lease aircrafts coming directly from c checks and certified by the original manufacturers. These aircraft lease period will be for an initial period of fiver years with an early termination option after 4 years. By the time the new aircraft are ready, they will be replacing the leased aircrafts. Till all the aircraft are owned by the airline. This is how Emirates Airlines started with two leased aircraft from Pakistan Airlines until it was able to buy her own aircrafts. According to the manufacturers, the new aircrafts will start coming through from 2021.

  • Aviation Sector: Buhari has performed well’ – Stakeholders

    Stakeholders in the Aviation Industry on Tuesday said the President Muhammadu Buhari-led administration had performed well in the last three years it assumed office.

    The stakeholders in the aviation sector made the assertion while speaking with the news men in Lagos.

    Those who spoke with the news men were the President, Aviation RoundTable Iniative (ARTI), Mr Gbenga Olowo, the immediate past president of the group, Capt. Dele Ore (rtd) and another aviation expert, Capt. John Ojikutu (rtd).

    Olowo said that the process of bringing in reforms was always cumbersome, adding that the government had been making positive impacts in that regard.

    “From the angle of aviation, on the average I think they have done well because we had an emergency with the Abuja International Airport, they gave their words and they delivered. Kudos to them,” he said.

    Olowo told the news men, other plans of the administration, particularly the establishment of a new national carrier, the aircraft leasing company and Maintenance, Repair and Overhaul (MRO) facility, would transform the industry.

    Olowo added that ‘Transaction Advisers’ had been appointed to midwife the processes, stressing that the government had also given a target that the national carrier should be in operation by December.

    Also, Ojikutu noted that safety of the Nigerian airspace had improved under the administration.

    He maintained that safety was a critical aspect of aviation, which was often not given the desired priority by past governments.

    He said: “In terms of safety, I think the government is doing a good job. It is not visible to people but it is visible to some of us.

    “You can look at the amount of safety recommendations that have come out from Accident Investigation Bureau (AIB) and compared it with three years ago.

    “You can look at what they have done at the Abuja airport. We have been managing that airport runway since 2010 and many foreign aircraft have lost their tyres and their undercarriage.

    Read Also: Skyways Aviation MD seeks airlines, firms merger

    “I am looking at that and we have been talking about it since 2010. They made an attempt in 2010 and another attempt in 2014 but it didn’t work but this administration resolved the issue within six weeks in 2017.”

    According to him, the government also went ahead to rehabilitate the runways of the Enugu and Port Harcourt airports.

    Ojikutu said when Dana Air had two successive incidents a few months back, the president immediately directed the Nigerian Civil Aviation Authority (NCAA) to audit the airline, which clearly showed his commitment to safety.

    He added that the government had also procured more navigational aids for airports while the Nigerian Airspace Management Agency (NAMA) had intensified their calibration.

    On his part, Ore said the government had given the NCAA more freedom to perform its functions unlike what was obtained in the past administrations.

    He said the Civil Aviation Act 2006 provides that the NCAA should be allowed an unfettered opportunity to oversight the industry without undue interference from any quarters.

    According to him, previous administrations did not to allow the Director-General of NCAA to perform.

    “I think I can more or less praise the government for allowing the people who know how to do the job to go ahead and do it but in the past the National Assembly will want to interfere.

    “They should allow the agencies to do their jobs and if they should allow this to continue, they are creating an atmosphere where there will be no accident and that is the objective of civil aviation.”

    He also commended the government for the successful rehabilitation of the Abuja Airport runway which according to him had been a huge threat to safety due to neglect by past administrations.

    Ore urged the government to consolidate on its promise by establishing more Maintenance, Repair and Overhaul (MRO) facilities in at least five or six states, across the country to create jobs for Nigerians.

    NAN

  • ‘Airports attract a lot of socioeconomic activities’

    Sam Adurogboye, General Manager, Public Affairs, the Nigerian Civil Aviation Authority (NCAA), in this interview with Ibrahim Apekhade Yusuf speaks on the socioeconomic benefits of airports. Excerpts:

    Why do you think the airports designated as cargo airports yet to take off fully given the hype by government to diversify the economy away from oil?

    What I can say to that question is that the project is capital intensive, it requires a heavy capital outlay no doubt about that. But when you look at the essence of governance it is the welfare of people naturally. So if for economic reason just like you said every state wants to go into the venture that would lead to economic emancipation of the people they want to set up a project like that whereby it will create employment and other economic and social activities that are involved when you have an airport. Apart from the movement, there are so many things that could be done at the airport. You talk about the car hire and other business activities that could be established at the airport which will create jobs naturally for the teeming youths that are coming out of the universities. Another reason is that where the citizens may demand that they want an international airport within their state whether for pilgrimage or business without recourse to Lagos or Abuja. Of course, as an aspirant you probably promised the people you were going to do it and when you eventually win the election you want to keep your promise. So, you have political as well as economic considerations to the issue of building airports by most of the state governments. But because of the heavy financial requirements that is involved and considering the fact that so many other things are competing for resources as such the project tend to drag on in some states. But for us, we have no objection for any state that wants to set up airports. Ours is that they should meet the requirements for safety operations and we are here to guide them in the process.

    So far has any of the states made any significant progress in terms of project implementation?

    So many states are expressing interest and we have no objection. Ours like I said is to ensure that whatever airport you’re building must meet requirements and we are there to advise and guide them accordingly. Now to answer your question specifically, we have several states-run and run airports now operating. There is an airport in Gombe, even the one in Warri, in Delta state was built by the state government.  In Owerri, Jigawa, Kebbi, they all have airports completed and already being put into use and we approved.  Of course, a state like Ogun expressed interest in building a cargo airport and Lagos also talked about building an airport in Epe. Ekiti, Osun all have airport projects still in the works.

    Are you convinced that the reasons being canvassed by the state governments building airports are genuine enough?

    Of course they are genuine reasons, especially if they have the financial muscle to translate it to reality. Look at Singapore for example, they have only two airports. And it’ll shock you to know that the aviation sector provides employment for about 70 per cent of the country’s population alone. If you miss your flight, you can be there at the airport for one week or more and you won’t miss not going to town because everything is there. There’s a thriving hotel business, restaurant, recreational facilities, free WIFI, gym, everything is within the precinct of the airport. The airport generates a lot of activities that is not necessarily government-run. So airports can be put to use in such a way that it can run the economy of states. There is no doubt about that. It’s just to have the political will and sincerity of purpose.

     

  • Stakeholders urge FG to beef up security at Lagos airport

    Stakeholders urge FG to beef up security at Lagos airport

    Stakeholders in the aviation sector have called on the Federal Government to beef up security at the Murtala Muhammed Airport, Lagos, following recent alleged poaching of aircraft and stealing of baggage.

    They said on Monday in Lagos that security was the bottom line of aviation, hence the need to urgently address the issue.

    Mr Olayinka Abioye, General Secretary, National Union of Air Transport Employees ( NUATE ), noted that such incidents were not good for the image of the country.

    “This is not a good story for the country.

    “We know that no outsider can come into the airport except maybe people that have been disengaged or maybe workers that are presently working at the airport but are being owed salaries and benefits.

    “Imagine a worker working in a security company, earning N40, 000 as salary, is approached by a passenger with 1,000 dollars to smuggle an illegal substance into an aircraft.

    Read also: Truck hits Air Peace aircraft at Lagos Airport 

    “Some of them will do the dirty job willingly but when such workers are given commensurate remuneration and benefits, they will not be easily enticed,” he said.

    Abioye urged the Nigerian Civil Aviation Authority ( NCAA ) to immediately invite all the security service providers to a round table where their operations could be properly reviewed.

    Also, the President of the Aviation Round Table (ART), Mr Gbenga Olowo, said there was need to centralised security at the airport and also deployed technology in strategic areas.

    “Today, we have Aviation Security of the Federal Airports Authority of Nigeria ( FAAN ), Immigration, Air Force, National Drug Law Enforcement Agency ( NDLEA ), Directorate of State Security ( DSS ) and Police

    “We should centralised security at the airports. ART has been talking about this for some time because we must take the best model of aviation security by removing it from many hands.

    “We should stop these various agencies from setting up their individual desks. So, we should centralise security and deploy technology.

    “When you deploy technology, you don’t need a separate counter for narcotics or DSS because once you get to immigration, all your details will be there,” he said.

    NAN

  • Appeal panel upholds NCAA’s N33.5m sanctions on FirstNation, Pilot

    Appeal panel upholds NCAA’s N33.5m sanctions on FirstNation, Pilot

    A five-man appeal panel has upheld and reaffirmed the N33.5 million sanctions imposed on FirstNation Airways and one of its pilots by the Nigerian Civil Aviation Authority (NCAA).

    The General Manager, Public Relations, NCAA, Mr Sam Adurogboye, confirmed the development in a statement issued on Sunday in Lagos.

    Adurogboye said the panel had concluded its sitting and submitted its report to the regulatory authority.

    He said FirstNation Airways had earlier filed an appeal following a Letter of Sanction written to the airline on Jan. 23.

    “It will be recalled that violations were detected during a ramp inspection on the airline’s aircraft, Airbus A319 with registration mark 5N-FNE, on Nov. 8, 2016, at the Nnamdi Azikiwe International Airport (NAIA), Abuja.

    “After the exercise, it was discovered that the Pilot-in-Command (PIC) was not in possession of a current medical certificate.

    “In addition, the airline similarly rostered the pilot to carry out operational flights when obviously his medical certificate had expired.

    “Therefore, the airline and the pilot violated Parts 8.4.1.5 (a), 8.14.1.2 (1), 8.14.9.4 (a) (1) and 8.2.1.8(a) (24) of the Nigeria Civil Aviation Regulations (Nig.CARs) 2015.

    “Consequently, in accordance with IS 1.3.3. (1)(14) of the Nig.CARs, 2015, the airline and pilot were fined N32 million and N1.5 million being moderate civil penalty for the violation,’’ Adurogboye said.

    According to him, the airline, however, swiftly filed an appeal to the NCAA in disagreement with the reported violations and sanctions.

    He said the regulatory authority in its responsiveness and quest to be just and fair to all, constituted an appeal committee to hear the airline’s appeal.

    Adurogboye said the five-man appeal panel had three airline operators, a private legal luminary and NCAA officials as observers.

    He added that FirstNation Airways was represented by four lawyers, the pilot and three management staff.

    Adurogboye said: “After four days of sitting, submissions and deliberations, the panel upheld and reiterated the applicable sanctions meted out to the airline and its pilot.

    “It arrived at the following conclusions in agreement with the NCAA findings prelude to the application of sanctions.

    “The ATRL 1874 License of the Pilot in Command of FirstNation Airways had expired on the Nov. 2, 2016. The PIC was not in possession of the license during the ramp inspection on Nov. 8, 2016.

    “The PIC did not have a valid license and was not properly certified from Nov. 2 to Nov.8, 2016.The PIC operated 15 flights and the airline rostered the PIC 16 times.

    “The PIC operated with expired license from Nov. 2 to Nov. 8, 2016 and there was indications that the airline knew the PIC did not have a valid license.’’

    He said this was a very serious safety issue, therefore, the moderate sanctions applied by the NCAA were reasonable under the circumstances.

    Adurogboye said the PIC’s argument that he had a valid license when he operated the flights was incorrect, as he had no valid Medical Certificate.

    He said the PIC had 14 days according to NCARs to apply before the expiration of the license but however did not apply until Nov. 3, 2016, after expiration.

    Adurogboye said: “the invoice was issued by NCAA on Nov. 3, 2016.

    “The pilot did not do the Cardiac Risk Assessment (CRA) test mandatory for his 62 years age even after he was informed by NCAA the Authorised Aviation Medical Examiner (AAME).

    “He did the medical assessment eventually. The CRA report was dated Nov. 7, 2016 and was sent to the NCAA on Nov. 8, 2016.

    “Therefore, the accusation of delay and inefficiency by the authority is wrong and unfounded. The PIC and the airline did not follow laid down procedure.

    “NCAA received the medical report same day, reviewed it and issued the Medical Certificate same day on Nov. 8, 2016.’’

    He said the panel consequently dismissed all grounds of the appeal and upheld the NCAAs Letters of Sanctions.

    Adurogboye said the NCAA would continue to provide level playing field to all airline operators.

    “However, failure to adhere to safety regulations shall attract applicable sanctions,” he said.

  • Aviation union to FG: Halt airports concession plan

    Aviation union to FG: Halt airports concession plan

    The National Union of Air Transport Employees (NUATE), has urged the Federal Government to immediately halt its plan to concession the four major airports in the country.

    The union made this known in an eight-point communique issued at its National Executive Council (NEC) meeting held in Ilorin, Kwara.

    A copy of the communique which was signed by NUATE’s General Secretary, Mr Olayinka Abioye, was made available to newsmen in Lagos on Thursday.

    The Minister of State for Aviation, Capt. Hadi Sirika, had on Sept. 6, told newsmen that there was no going back on the concession of the Lagos, Abuja, Kano and Port Harcourt Airports.

    Sirika had argued that the move would ensure that the airports were properly managed, while the government would still retain their ownership.

    Abioye’s communique faulted the plan to concession the four airports which it described as the cash-cow out of the 22 airports owned by the Federal Government.

    “The NEC in-session therefore calls for immediate stoppage of the concession of Nigerian airports to avoid industrial crisis that may arise as the government has failed to carry along stakeholders on this germane matter,” he said.

    He urged the aviation agencies, including the Federal Airports Authority of Nigeria, Nigerian Civil Aviation Authority and the Nigerian Airspace Management Agency (NAMA), to improve the welfare of their workers.

    Abioye’ also advised government to appoint a substantive managing director for NAMA and restructure its directorates in consonance with the provisions of the International Civil Aviation Organisation.

    On the state of the economy, the communique advised the President Muhammadu Buhari-led administration to take more concrete steps toward alleviating poverty across the nation.

    “The NEC in-session sympathises with the government over the continued slide to recession of the nation’s economy but encourages it to remain focused in its quest for nation building.

    “This can be achieved by engaging more in social dialogue with critical stakeholders in the country and setting the machinery in motion to deploy experts into freeing our economy from the jaws of economic recession,” he added.