The Nigerian Aviation Industry In 2011

The Nigerian Aviation Industry witnessed a flurry of events in the year 2011, such as the re-organisation at the top echelons of the parastatals, the upgrade of facilities at the airports, and the bickerings over the implementation of agreements. All in all it was an eventful years for stakeholders.

Transformation Agenda

On assumption of office in July, 2011 the Minister of Aviation, Mrs Stella Oduah Ogiemoronyi hit the ground running, in spite of the protests from the professionals and the stakeholders in the aviation sector who hitherto demanded for the appointment of a professional. She quickly set up a six-man committee to look into the issue of high operating cost for the indigenous airlines occasioned by the rising cost of aviation fuel and come up with a report that would guide her office in addressing the problem.

She made it clear from the outset that unwholesome practices would be tolerated and expressed the determination to reposition the aviation industry in Nigeria in line with the transformation agenda of the Jonathan administration.

Re-organisation

The Minister of Aviation on October 2011 injected fresh blood into the administrative machinery of the sector by replacing three chief executives officers of the agencies under her watch with new.

The former managing Director of Federal Airports Authority of Nigeria (FAAN), Mr Richard Aisuebeogun was succeeded by Mr George Uriesi, the former Managing Director of Nigeria Airspace Management Agency (NAMA) Alhaji Ibrahim Auyo was replaced with Mr Nnamdi Udoh while the former Rector of College of Aviation Technology, Zaria, Capt. Adebaya Araba got a replacement in Capt. Chinyere Kalu.

Also, the former Commissioner for Accident Investigation Bureau (AIB), Dr Sam Oduselu was in December, 2011 succeeded by Shuaib. The sacking of the former chief executive  officers of the agencies was condemned by some stakeholders in the industry who accused the minister of embarking on ethnic cleansing. But the Special Assistant to the Minister of Aviation, Joe Obi dismissed the accusation by explaining that the tenures of the former chief executive officers had expired while those who took over from them were appointed at professionals in the industry.

National Carrier

Some stakeholders in the year under review had repeatedly called for the establishment of a national carrier following the liquidation of Nigeria Airways and the collapse of the Virgin Nigeria that was to serve as the national carrier for the country.

Members of House of Representatives Committee on Aviation equally saw the need for this and urged the Minister of Aviation to commence the process of floating a national carrier.

Recently, the Minister of Aviation reportedly said that the Federal Government was working on a legal framework for the establishment of a new national carrier before the end of this year. The minister may have been emboldened by the fact that a well respected and privatized national airline could help project the image of this country worldwide.

However, many are of the opinion that the national carrier project can work in Nigeria only if government is ready to provide the regulatory framework to make it work.

BASA Crisis

The issue of imbalance in the Bilateral Air Services Agreement (BASA) between the Federal Government and the British Authorities came to the fore when Arik Air was denied a slot from Abuja-Nnamdi Azikiwe Airport into London-Heathrow.

It was on the basis of this that the chairman of Arik Air Sir Arumeni Johnson Ikhide called on the presidency and the National Assembly to intervene in the matter.

In a swift response therefore, the Federal government took a decisive and retaliatory step by reducing the flight frequencies of the British Airways to Lagos-Murtala Mohammed International Airport from seven to three slots weekly.

To worsen the matter the British Airways and Virgin Atlantic were also indicted in a report received from the Nigerian Civil Aviation Authority that they engaged in fare-fixing against the Nigerian passengers between 2004 and 2006.

In the course of the negotiations over the discriminatory air fare pricing policy of the British Airways, Virgin Atlantic and other European carriers, BA conceded a 20 per cent reduction in air fares on the business class.

The matter has since been resolved with the resumption of Arik’s Abuja to London.

Airport Concessions

The minister of Aviation had reportedly said that most of the airport concessions were not packaged in line with global best practices. Therefore, she had threatened to revoke such concessions in the interest of the flying public.

Again, the Federal Airports Authority of Nigeria (FAAN) had consistently raised concerns over shoddy implementation of the agreements reached with the concessionaires in relation to revenue generation.

In order to prevent the minister from making good her threat, Bi-Courtney Aviation Services Limited has filed a suit of N34 billion against the federal government on its investment in Murtala Mohammed Airport, alleging that its investment was under threat from the Ministry of Aviation.

New Airlines

A number of airlines extended flight operations to Nigeria in the year under review. On the local scene, first Nation Airways was the toast of many passengers with relatively low air fares. The airline boasts of some of the best in flight services services on board.

On the international scene, Asky Airlines, Rwand Air and Continental Airlines from the United States also commended flight operations to Nigeria, thus making it easier for the flying public to travel to other parts of the world.

Route Expansion

Many airlines within the period under review also expanded operations to other routes in the country. Arik Air and Overland Airways led the pack among operators on the Lagos-Asaba, and Abuja-Asaba routes while DANA Air also expanded flights into Calabar airport.

Facilities Upgrade

The deplorable state of facilities at the nation’s airports is alarming. The terminal buildings are old and dirty, the runways are overgrown with weed, security is porous while touting and all shades of illegal operations are thriving unhindered.

Also, the arrived halls are bereft of functional facilities as the cooling systems are mere decorations.

In view of the obvious embarrassment the airports have become to the nation, the minister of aviation announced the remodeling of 12 airports in the country to meet international standard.

So far, the government has commenced work on the remodeling of Abuja and Lagos airports. Apart from these two international airports not much is seen of the exercise, just as the sum of N19 billion budgeted for the projects is said to be too paltry to tackle the rot that has engulfed the nation’s airports.

The minister has therefore called on the private sector to take advantage of the huge opportunities in the aviation sector by partnering with government to deliver on its promises.

Air Safety

The aviation sector recorded impressive performance in this area. The rate of accidents and incidents reduced drastically within the period under review. The helicopter crash in Osun State that claimed the lives of three occupants was the only sore point.

The Nigerian Civil Aviation Authority (NCAA) did a good job by engendering the culture of safety in the aviation sector. It is hoped that the authority will sustain the tempo in subsequent years.

Reward Akwu