The Managing Director of Afri-Air International Limited, Captain Shehu Iyal, was at various times Senior Special Adviser on Aviation Matters to past Nigerian Presidents. In this interview, he told aviation journalists measures the federal government can put in place to ameliorate the harsh operating environment. SULEIMAN IDRIS was there.
What is your impression about the scheduled commercial airline industry in Nigeria?
There is a great leap and great fulfillment in airline business in Nigeria; notwithstanding the circumstances and situation they found themselves. And you can see the number of airlines we have today and you can see the facilities at the airports from what we had 10 years ago. You can also see the new planes that are coming in. The aircraft are quite modern, cost effective and very safe to use.
Airline operators have always complained of high cost of operation in Nigeria; can you say the current fares charged by the airlines are commensurable with the cost of operations?
You have to be fair to the airlines. What about the cost of aviation fuel, which you know is a major factor? What about the cost of acquisition of these aircraft, which you know is very high and you pay heavily for aircraft leasing and insurance. If you are in Nigeria, you know what we go through. But overall, I think the fares should be looked into and stabilised for better conditions both for the passengers and the airlines.
But for now, I think the demand side is higher than the supply side, and sometimes, it determines the price. Most airlines in the world don’t acquire aircraft directly; they lease.
Nigerian airlines pay more for insurance and aircraft leasing. What would you advise the government in this regard?
There is a need for the government to come in either with funding or to create some kind of guarantee for the airline industry. There is no way we can continue with the current rate. All over the world, the
interest is single digit. I think the government should do what they are doing now. Government dedicated some funds to the Manufacturers Association of Nigeria (MAN), which should be disbursed to serious minded businesses and created at a single digit interest rate. Government should also do the same for the aviation industry. It should earmark funds to be accessed on a long term basis and on a single digit interest rate. That will go a long way to help airlines for the purchase and leasing of aircraft. If it is leasing the government should find a way or an organisation that can stand as a guarantor for these airlines. I think it should help a lot.
Issues of flight delays are becoming disturbing, what is your advice to all stakeholders?
There has to be a very strong synergy between the regulatory body and the airlines. The infrastructures in some of the airports are not adequate. The check-in counters may not be adequate. So, sometimes those issues create delays. And again; other things that cause delays are the non-availability of aviation fuel and bad weather. But, for a passenger, all he knows is that the airline is responsible for the delays. So, normally, there are three variables that control flight operation; weather, technical issues and the availability of aviation fuel. Indeed, the most important factor in any flight, in any operation is the availability of aviation fuel as at when due or when needed. These are the things that the ordinary passenger doesn’t know.
And so there has to be a way of passing this information across. But there is another solution. Some of the infrastructure deficiencies can be reduced greatly if there is collaboration between the owner of these airports; that is the Federal Airports Authority of Nigeria (FAAN), and private investors on infrastructure development. This will enhance state of the art airport facilities, which everyone can benefit from: the airlines, the passengers and government, which will earn higher revenue, as the airports attract more users.
VIP movement at airports has become a huge factor contributing to flight delays that seems to have defy solutions. Reports indicate about 30 minutes is wasted in some instances for aircraft waiting to fly?
I disagree with you totally. It is not possible.
There was never a time that the VIP movement was 30 minutes because I was in the presidency and I was involved in some of those movements. What happens is, in most instances it is not more than five or 10 minutes. But there is a backlog and a buildup and it affects the airplanes that are on ground. The control tower has to clear the aeroplanes that are up there before it starts clearing those on the ground. But, I think nobody in his right senses and nobody who is responsible for that will create a delay for 30 minutes because of VIP.
As part of efforts to curb flight delays, airlines are tinkering with the idea of codesharing, do you see this working?
Well, I think with time and maturity it can work. But it is not something anybody can impose on them. It is something that they, on their own, will decide to do. I think we are almost there, with the Airline Operators of Nigeria (AON) and other groups that are talking to them, they will realise the value. You know some of these airlines are created out of ignorance and most of the people that established them don’t know what is in there until when they get into the market. But, I think the plan is very good and it will help a lot.
How do you think the government can assist the airlines in terms of funding and credit facilities?
Certainly, I have said it and I will repeat myself. The government can come in by creating special funds that can be disbursed through the Bank of Industry (BoI) at single digits strictly for airlines and strictly under the supervision of BoI, and if we have that, I think it will go a long way in improving the situation that we have here.
Your specific recommendations?
They should look into the taxations. There are too many charges, they should be streamlined or possibly reduced. If possible some startup companies can be given tax holidays because aviation business is capital intensive. So if there is something like that it will go a long way in helping to sustain businesses in the aviation industry.
