Steady but slow growth, four years after

The aviation sector in the last four years has recorded some successes but has also been bedevilled with challenges, making it difficult for the sector to compete favourably in comparison with developed countries.

Four years after President Buhari’s first tenure, the aviation industry may not be at a perfect condition stakeholders desire, however, it has sustained some level of growth from what it used to be.

Some remarkable achievements include the re-introduction of zero import duties on aircraft engine, introduction of same for spare parts, the removal of Value Added Tax ( VAT) from all shared transportation including commercial flights, the timely intervention of Asset Management Corporation of Nigeria (AMCON) to rescue Arik and Aero Airlines, two of Nigeria’s major airlines from total collapse.

Other notable achievements include the commissioning of Abuja and Port Harcourt new terminals, the part payment of severance and retirement benefits of former staff of the defunct Nigeria Airways, opening of new routes, increased passenger volume and the certification of Murtala Muhammed International Airport, ( MMIA) Ikeja, Lagos and Nnamdi Azikiwe International Airport, Abuja.

The present Accident Investigation Bureau (AIB) has also given a better image to the industry than any of the sector’s agencies. Accident reports are released within the standard time and there are reports of follow up on

implementation of safety recommendations.

Despite these successes, Nigerians have raised concerns over why the national carrier was suspended after the government had reeled out plans and resources for the project to kick-off.

In addition to this, the frequent fire incidents across airports; the laxity of airport security, giving room for activities of drug cartel in airports; the poor condition of scanning machines; absence of Maintenance and Repair Overhaul (MRO) for aircraft, and the absence of refineries for local production of aviation fuel continue to pose great challenges to the sector.

Ado Sanusi, managing director of Aero Contractor believes there has been general improvement in the aviation sector, but thinks there are so many things that still need to be done to ensure Nigeria competes globally.

“In form of infrastructure, we are not where we are supposed to be but I think there has been movement towards the right direction. In regulation, I think so many things have been achieved and I think we are still not there and a lot of things still need to be done.

“In the area of air navigation service provision, there is a huge room for improvement. We are moving towards the right direction and I think the industry is now being looked at as one of the catalyst of growth and if we continue with this trajectory, we will address most of the problems of the sector in the next four years.

However, some pertinent issues have been raised by stakeholders that demand urgent attention for the sector to grow at the pace it ought to.

Low funding from financial institutions

Despite the capital intensive nature of airline business, operators have continued to find it difficult to get financial institutions that can effectively finance the business.

According to Sanusi, financial institutions have not supported the industry the way industry expert expect, adding that the country needs to re- engineer the financing of aviation sector because the aviation sector is high risk but low profit, therefore, long-term loans with low interest rates are needed to break even.

“There is a lot that needs to be done in financing projects such as hangers, aircraft, MRO and even the support services in aviation. I think most important is the fear of how airlines have gone under in the past. This may be part of the things making financial institutions to be wary in financing the sector. Aviation is very expensive, one aircraft can cost up to 200million dollars. The financial firms have to partner with international companies to finance this sector,” he explained.

Multiple landings

Some operators have argued that domestic airlines do not necessarily need the international routes to survive if government can reduce the multiple landings given to the foreign airlines to reduce their incursion into the domestic routes and invariably domestic market.

John Ojikutu, an aviation security consultant and secretary general of the Aviation Safety Round Table Initiative (ASRTI), told Businessday that foreign airlines can be given multiple frequencies not multiple destinations and landing.

According to Ojikutu, “Ethiopian airline’s multiple landing should be reduced to only two; Lagos or Abuja and any other. British Airways and Virgin Atlantic should decide which out of Abuja or Lagos to fly into but none of the two should fly to Lagos and Abuja as British airways is presently doing. The idea is to create markets for domestic airlines.”

Airport concessions

Some international airports have seen some improvements through remodelling but experts say they must be put into concession if they must sustain and retain the improvements already recorded.

“I am expecting the concession of the airports to begin this year. We do not have any option than this but it must be for only nonaeronautical services.

“The concession should include other domestic airports. The concession of Lagos or Abuja airport must each include five other airports. At least 10 airports have been installed with Instrument Landing Systems ( ILS), which will improve night flying activities to these airports,” Ojikutu said.

Airport perimeter fences/ runway construction

Perimeter fences at most of Nigerian airports are very inadequate as security fences. Some airports do not even have perimeter fences, exposing them to unlawful acts against civil aviation. There are many airports that need fences and others that need their perimeter fences enhanced for security. Where this is not possible, secondary fencing may be required as security fence.

Some airports still lack resilient runways to accommodate heavy-bodied aircrafts. While it is good news that the Enugu runway would be reconstructed and strengthened to carry more weight than it was originally built for, experts say this would require the airport to be closed for a while and could take longer than the Abuja airport, which took six months.

National carrier

The suspension of the proposed national carrier does not seem to have gone down well with stakeholders who were optimistic Nigeria would again own a carrier that will represent it across the world. However, as Sirika promises that the project will soon kick-off, stakeholders stress that the management and ownership must be private sector driven for it be to sustainable.

According to Ojikutu, “I am expecting the national carrier to take off this year, with foreign technical investor partners; 45percent domestic investor, 25 per cent federal government, 10 per cent state government and 20 per cent to the public.

Training

There are concerns that training may have been lacking for the Nigeria Civil Aviation Authority, (NCAA) to successfully carry out its required oversight in the industry. The agency needs trained and skilled inspectors in a sufficient number.

According to Ojikutu, “It is possible most times that the operators have field officer with more experience than NCAA inspectors and that explains why there are safety lapses in operation of some operators and some safety recommendations from accidents are not regularly implemented.