Report Attributes Failure of Nigerian Carriers to Poor Government Policies, Airline Leadership
A recent study carried out by aviation experts and scholars has indicated that two major factors have been responsible for the failure of domestic carriers in Nigeria.
The report identified policies enunciated and implemented by government that are unfavourable to successful airline operation in the country, as well as the poor management of the carriers.
Nigeria has the awful record of having airlines with the shortest life span, put at an average age of 10 years. Some, which emerge with high hopes over time succumb to pressures of hostile operating environment, inimical policies and bad decisions by their management.
The study was jointly carried out by K.O Uhuegbo; S. Darandara; M. Jibril and E. Okafor of the Nigerian College of Education, Ahmadu Bello University, Zaria, in conjunction with Air Force Institute of Technology. They came to the conclusion that there is a significant relationship between leadership and airline failure in Nigeria.
The findings of the study indicate that the five top ranked factors that contribute to failure of airlines in Nigeria are ownership and management structure, economic condition, lack of supportive economic policy, financial performance and operational efficiency in the airlines.
“The correlation results showed that ownership and management structure, policy summersault and economic conditions were also identified as contributors to airline failure when related to airline leadership. Also, other factors such as economic policies, existing government policies, financial and operations factors, satisfaction and loyalty, satisfaction and security, modern infrastructure, political condition and culture of travellers were correlated but negative. The regression results indicated that ownership and management structure, policy summersault and economic conditions were positively related to airline failure,” the report stated.
Although these factors have been reiterated variously in the past and airlines have decried the high charges leveled on them from the first day they start operation, the multiple taxation and failure by the federal government to grant tax waiver on the first one or two years of startup of operations, tend to hamper the airlines and significantly deplete their operation funds.
On the other hand, airlines have been accused of poor due diligence, inability to critically study the airline business before going into it and the failure to adopt strong management team with boards and seasoned experts so that such airlines would not be run by unilateral decisions.
The report titled: ‘Causes of Failure in Domestic Airlines in Nigeria Aviation Market’, explained that the researchers carried out a standard multiple regression with airline leadership as the dependent variable and economic policies. The report also showed existing government policies, ownership and management, financial operations, customer satisfaction and loyalty, safety and security, modern infrastructure, political condition, culture and travellers.