The aviation industry in Nigeria is very challenging. The airline sub-sector is going through turbulent weather, which has unfortunately clipped the wings and cut short the business plans of many carriers.
While many airlines have come and gone, a few have remained stoutly in the business primarily to create jobs for capable Nigerians and enhance connectivity within and outside Nigeria.
Air Peace has been one of the fastest-growing airlines in Africa in the past half a decade or so.
It has succeeded where many other carriers have struggled, largely due to a strong business plans set out by its promoters.
In the last five years, the airline has expanded its fleet of aircraft to about 25 from just seven airplanes at commencement of operations in 2013, while its route expansion within Nigeria and outside the country and the continent is a force to reckon with among the African’s carriers.
In less than one year of commencement of operations, the airline increased its aircraft capacity to 11 with additional Boeing aircraft.
Within the same period, the Federal Government granted it the approval to move beyond Nigeria and today, Air Peace, which is the leader in the West Coast, operates to South Africa, Dubai and has plans to expand its wings to the United Kingdom, India, China and other major countries around the world.
Besides, in 2019, the airline placed an order for 30 brand new Embraer 195-E2 aircraft straight from the factory, in a deal worth $2.12 billion, thereby becoming the first airline on the continent to operate the aircraft brand. The aircraft have 124-seater capacity in dual class and 146-seater jet in single class configurations.
As at September this year, the airline had received four of the aircraft it placed firm order for from the aircraft manufacturing company. The first of the new aircraft was received in January, 2021 by the airline.
Barr. Allen Onyema, the Chairman, Air Peace, while speaking on the choice of brand new aircraft, said in 2018, the airline decided that as part of its business plans it would start operating new aircraft. But, noted that old aircraft are also good and safe, stressing that new aircraft are more efficient.
He said: “Today, we are receiving another aircraft straight from Brazil. We are supposed to have received more of these aircraft before now, but the scarcity of dollars has delayed this. A lot of people do not give the Nigerian airlines the respect they deserve. Nigerian airlines are very safe.
No doubt, the outbreak of COVID-19 pandemic disrupted lots of bourgeoning and stable businesses around the world, but within this period, Air Peace increased its workers’ salary by 10 to 100 per cent, depending on their status.
This unexpected increment in salary brought smiles to the faces of the staff of the airline who lauded the management for its gesture.
Besides, the airline leads in Corporate Social Responsibility (CSR) to its immediate community, which has won it numerous awards and recognition, including the Aviation Company of the Year Award at the Nigerian Business Leadership Awards (NBLA) 2020.
For instance, at the heights of the xenophobic attacks in South Africa in 2019, Air Peace evacuated about 400 Nigerians stranded in the Southern African country who were willing to return to the country in two batches with its Boeing 777-300 aircraft free of charge.
This gesture by the airline received accolades from the international community, including the Federal Government of Nigeria.
Mr. Basil Agboarumi, the Managing Director, Skyway Aviation Handling Company (SAHCO) Plc, while commenting on the performance of the airline, said Air Peace has brought dynamism and innovation to the Nigerian aviation industry with the acquisition of brand new aircraft and enhanced connectivity especially in the domestic scene.
Agboarumi also said that Air Peace has been able to bridge the unemployment gap in the system with the engagement of support staff and technical personnel, most especially pilots and engineers.
“Aviation is about safety and speed and one thing we should thank God for is that for those seven years of Air Peace operations, we have not had any major incident that will make us regret coming onboard of the airline. The question we should also ask is if the airline has been able to close the gap in the system before it came into the industry? I think the answer is yes.
“Before now, the movement of passengers was Lagos-Abuja, Lagos-Kano and Lagos-Port Harcourt. Anywhere you had to go, you had to take off from Lagos.
“I still remember vividly when Air Peace started Owerri-Abuja flights and some other stations in the country. Now, you go to Asaba and Asaba is also connecting Abuja and Kano. Those are the expansions Air Peace has brought into the system and the travelling public is beginning to have options.”
He, however, advised its management to learn from the pitfalls of others before it in order to survive in the challenging aviation environment in Nigeria.
Also, Mr. Olumide Ohunayo, the Director, Research, Zenith Travel Consult said the airline has created a niche for itself since it came onboard.
Ohunayo commended Onyema for the several audacious steps taken to position the airline as a leading carrier in the country and on the continent, but cautioned it against taking some rash decisions on its expansion plans.
Besides, Ohunayo advised the management of Air Peace to look beyond the domestic market as the market becomes flooded, but warned that it cannot go it alone.
According to him, the airline needed to collaborate with other foreign carriers on international routes, which would airlift its passengers beyond its own destinations, stressing that it should go beyond point to point carrier on international routes and also advised it to join international alliances.
He said: “I really commend the Chairman of Air Peace, he’s been very bold, he’s taking his challenges on his way. I also want to give it to him that in a period of distress of Nigerians in South Africa, he evacuated willing Nigerians in that country for free. That is very commendable and anytime I see him, I give him kudos for that.
“Today, the airline is the only carrier on the international routes. What I will expect is that now that the domestic market is getting saturated, it needs to look outward and in looking outward, it cannot go it alone and that has to do with their processes and their books. All these things must be opened for other airlines and investors to see.
“It cannot continue to be a Nigerian carrier, it needs to talk to international bodies, attend international conferences where other airlines attend so that it can be able to talk, mingle and bring out its plans for others to see, get partners who want to do commercial business with you or form a new alliance that will be good for everybody. The management should adopt some key strategies and commercial partnerships.”
Also, Ohunayo charged the government to assist the nation’s carriers, especially those designated on international routes by playing the global aeropolitics, provide more enabling environment for operators to excel, install airfield lighting in most airports and ensure availability of forex for airlines in the sector.
With these, he pointed out that operators would be able to contribute more meaningfully to the Gross Domestic Product (GDP), create more jobs, while airfares would eventually crash for travellers.
Comrade Olayinka Abioye, former General Secretary, National Union of Air Transport Employees (NUATE), extolled the management of the airline for raising the bar in the sub-sector.
He also enjoined the Federal Government to address the deficiencies of importation of Jet A1 and scarcity of forex for operators, maintaining that these had adverse effect on players in the sector.
“As an oil producing nation, one would have thought that we should be able to produce Jet A1 to ease the endlessly escalating price of fuel for our airlines. This has to be addressed in collaboration with the oil majors and the Nigerian National Petroleum Corporation (NNPC) in particular, more so now that it has been unbundled.
“Secondly, we have heard lamentations from stakeholders on how they have been mistreated through obnoxious payments to the Excise and Customs Service of the Federation. While waivers were put in place by the government to support domestic airlines, this aspect needs to be deepened to lessen the humongous bills being paid by airlines,” he said.
Abioye, however, counseled the airline to improve its customer service relationship, stressing that this would enable it to earn its deserved respect from the public.
According to Engr. Femi Adeniji, the Chief Executive Officer (CEO), Tropical Arctic Logistics (TAL), congratulated the management of the airline for hitting the seven-year mark.
Adeniji further tasked the government to provide financial support to operators in the sector at a maximum of 4 per cent interest rate with at least a 30 months moratorium with stringent penalty if not paid back.
Besides, he said benefits such as custom waivers for export and import of commercial aircraft parts, aircraft, tax credits, tax exemptions on fuel, Value Added Tax (VAT) and serviceable airport equipment should be provided by the government for stability of airlines in the sector.
Source: independent.ng