Stories by Ime Akpan
Lagos
The minister of aviation, Mr. Osita Chidoka has proposed the setting up of multiple carriers as against a single national carrier.
Speaking at a stakeholders’ forum in Lagos where he gave the scorecard of his eight months tenure as minister, Chidoka however said specific measures should be identified for Nigerian airlines to achieve the flag carrier status.
Such measures, he said, should be based on corporate governance, fleet size, information systems, safety record, and operational coverage.
For an airline to be granted the flag carrier status, Chidoka also suggested other criteria include to evidence of International Air Transport Association (IATA) Operational Safety Audit (IOSA) accreditation, establishment of a clear and transparent transport governance structure, agreeing to restructure the ownership through the sale of shares on a 60/40 per cent basis, and restructuring of the management to accommodate professionals.
Others include evidence of technical partnership to deepen safety and technical capacity, meeting minimum fleet size and equipment type, route asset and development plan, employment size, and financial health disclosure.
“The flag carrier option could help to eliminate the possibility of rivalry between the government, which would have a significant role in setting up the national carrier, and other domestic operators,” he said.
He said the federal government failed to re-establish a national carrier because Aero, which was penciled down, could not source for partners as well as resolve issues bordering on funding mechanism and equity share holding.
“Aero was selected as the vehicle for establishing the national carrier based on several factors including current debts owed to the federal government, fleet size, operational coverage, safety record and availability of electronic ticketing. Aero was asked to source for a partner to work with it on international routes,” he said.
On the survival of airlines, the minister said he would not subscribe to a situation in which airlines are allowed to die before trying to rescue them and urged the regulator to be proactive to intervene in any airline the moment it notices any sign of problem.
“There is the need to set up aviation corporate governance and enterprise risk framework to reduce the probability of aviation corporation failure due to moral hazard,” he said.
On the multiple departments in the ministry of aviation, Chidoka said most of the departments were not relevant to the ministry and the system.
He said the problem with the ministry “is not the removal of the minister but the frequent posting and transfer of the permanent secretary.”
That he said created room for politicians and contractors to take over the ministry.
On in-flight catering organisations seeking licence to operate in Nigeria, he said that he would not give approval to any foreign company seeking approval to operate in the country, adding that when a Nigerian in-flight catering company; Airline Services Limited(ASL) tried to operate in Britain, it was frustrated .
He explained that the British authority asked ASL to seek the cooperation of customers first before coming to them, while the customers, on the other hand, asked the company to get approval from the British Airport authority, first.