Stakeholders listed that the federal government unpredictable policies, excessive taxation, rising aviation fuel price, paucity of forex, limited support for domestic airlines, among others have continued to hinder airlines prosperity.
Statistics show that both scheduled and non scheduled airlines have short life span in Nigeria.
Scheduled flights are those which get their schedule approved by the aviation regulator in advance for a period running into months. Non-scheduled flights are charter flights that are operated as per requirement.
For instance, no fewer than 131 airlines registered under scheduled and non-scheduled operations have gone into extinction and are no longer operating in Nigeria’s airspace.
A finding by Aviation World showed that before the establishment of the Nigerian Civil Aviation Authority, NCAA, in 2000, over 52 airlines operating in the country had already gone into extinction.
The Authority effectively commenced operations on 1st January, 2000, and between then and 2022, a total of 80 airlines have ceased their operation in the nation’s air space. The summation of both periods showed that a total of 131 airlines have gone under extinction in Nigeria.
Recently, the federal government adoption of a foreign carrier, Ethiopian Airline, as major stakeholder in the controversial national carrier, Nigeria Air, to dominate the domestic route is part of the crisis affecting the local carriers.
Also, the Asset Management Corporation of Nigeria, AMCON, involvement in the Arik Air receivership over the airline’s unpaid debt is another hurdle.
Aviation World had reported that the airline has become almost moribund under the new receivership.
Before the asset management company took over the airline’s receivership in 2017, over 3, 258 workers were running daily operations, but currently the airline can boost of only 500 staff. Also, the airline had a total of 27 aircraft running domestic operations in Nigeria, but currently the airline can barely operate five aircraft.
FG’s defiance responsible for airlines failure- Stakeholders
Meanwhile, in reaction to the development, a professor of Strategy Development and Director, Commonwealth Institute for International Advanced and Professional Studies, CIAPS, Prof. Anthony Kila, blames the federal government of its inability to enhance enabling environment.
He said: “The socio-economic environment of volatile exchange rates in a system where expenditures are in Dollars and revenues in Naira and the roles of overbearing regulators do not help matters.
“Lack of access to affordable funds is another key issue that makes business collapse.”
Also, the Former President, Aviation Safety Round Table Initiative, ASRTI, Dr. Gabriel Olowo, stated that, the federal government has always been the problem limiting airlines life span.
“Nigerian airlines should learn from the mistakes of the past. Go and take a case study of bellview airlines, ADC Airlines, Okada, among others and look at how and why they failed.
“If the government was responsible for the problem, we must think, how do we handle the government?
“The government has always been the problem. They tell you, you cannot fly the flag. Air Peace has been flying the flag to Ghana, Liberia, and China now. And I am sure if you look at those routes, for them not to be in red is questionable.
“Allen Onyema kept saying it and nobody is attending to him, until he rides into crisis, then AMCON will come, like they did to Arik and to Aero. That is not the way forward. In Nigeria, Nigeria does not love Nigeria except when we are playing soccer. Now the girls won and we are shouting. Thank God that the girls displayed their individual effort to give us result.
“As a country, we must be result-oriented, when you are in political office, make sure the value you are adding is not to line your pocket. Make sure the value you are adding is for posterity.”
Foster partnership with foreign operators – NCAA
As a move toward strengthening airlines operations in the country, the Nigerian Civil Aviation Authority, NCAA, has asked airline operators in the country to foster partnership with willing foreign counterparts through code sharing.
Speaking at the just concluded 27th League of Aviation and Airports Correspondent (LAAC), titled, ‘Aviation Industry: Changing Times, Changing Strategies,’ the Managing Director, NCAA, Capt. Musa Nuhu, said until Nigerian airlines embrace collaboration, they will continue to be more fragmented and less competitive with mere individual identities.
He said: “In spite of the numerous challenges, Nigeria’s air transport is making tremendous progress.
“Synergy, collaboration, cooperation or merger is the rule of the game. I want to encourage Nigerian airlines to avoid I-want-to-do-it-alone as reflected in their lone-wolf operational tactic. While I want to appreciate our operators for a job well done in terms of the spirit and the impact, we urge airlines to partner with their willing foreign counterparts through code sharing in developing Nigeria’s aviation industry.”
“I remember that at a phase, Air France interlined with Aero Contractors. By nature and approach we should manifestly embrace collaboration and exhibit sustained commitment lest average Nigerian carriers become ever more fragmented and less competitive with mere individual identities.
“For a fact, global airline industry is one of the most competitive industries. Therefore, to effective tap into its huge market opportunity, cooperative behaviour and alliances among airlines became inevitable as it is prevalent in other climes. In actual fact, the first large alliance began in 1989 with large-scale code sharing between Northwest Airlines and KLM. As of now, there are three global airline alliances operating in the air travel industry, namely: Star Alliance, SkyTeam, and Oneworld.
“The airline industry in Nigeria, which currently contributed over $1.7 billion as well as supports over 240,000 jobs directly and indirectly, transformed to a more competitive market following its deregulation for a couple of decades ago.
“Taking a cue from legendary global alliances, sometime in 2022, there was also a revolutionary initiative in the industry when about six of our operators signed a pact tagged the ‘Spring Alliance’ to mutually support one another’s operations and improve service delivery for the mutual benefit of the passengers and the airlines alike.
“As aviation is global we have no choice than to keep aviation working by adopting workable initiatives and rightful changing strategies to contend with ever-changing times.Though I know the path is somewhat bumpy with financial dire straits calling for concerted efforts.
“Let me repeat again that the current fate of the aviation industry could not be treated in isolation of the economic environment that it is operated. What is happening to aviation is happening to all sectors.
“All these challenges notwithstanding, as the regulator, safety remains a priority, non-negotiable and it supersedes all other considerations for us. We are neither a police agency of the industry nor in existence to close airline businesses. NCAA is willing to support the airline to get out of the woods.”
Source:vanguardngr.com