In this interview, the President of Aviation Round Table, Mr. Gbenga Olowo, says among other things, that aviation is a grossly under-performing sector in Nigeria and tasks the federal government to go beyond the celebration of attainment of the Federal Aviation Administration’s Category 1 certification and grow the sector. IME AKPAN reports
ART has been organising series of breakfast meetings with recommendations made at the end but there is little or nothing achieved in terms of getting the government to implement the recommendations. Does this not dampen ART’s morale?
That’s not totally correct. Our quarterly breakfast meetings (designed essentially for achieving the objective of knowledge sharing) have had a couple of the recommendations being implemented.
Our red alert warning on possible fuel contamination through tanker haulage invited the Nigerian Civil Aviation Authority’s (NCAA) and fuel suppliers’ spontaneous reaction. The need to strengthen NCAA through undue political interference by reducing aviation ministry to a junior ministry, the very many advocacy in favor of Nigerian Airlines, etc have yielded very positive results .We believe in allowing superior opinion to prevail hence we are not deterred when and where some of the recommendations are not heeded. Posterity will bear us out.
Nigeria has FAA Category 1 certification, just as it has emerged with distinction from various audit exercises. But the challenges still remain in terms of the operating environment, the high mortality rate of the airlines with some of them failing to last up to 10 years in the market and so on.
Where have we really got it wrong in the sector?
Nigeria and managers of our agencies are very clever. We do know how to pass examinations. How I wish that translates into efficient and optimal service delivery. Motion does not necessarily translate to activity neither does programme translate to progress so says my pastor. Go to all the airports in the country and see how you score the toilets, passenger processing, one hour or more long traffic from airport toll gate to the terminal building without serious security process, very hot, rowdy and not too sanitized environment.
So many check points…chaotic and oven arrival halls, etc
One can go on and on with a long list of dissatisfaction and disaffection at our airports. Of what use therefore is passing FAA CAT 1? Thanks for passing in any case but please let’s see the effect of the passing save for the Nigerian registered aircraft to operate to the US.
Our numerous brilliant graduates are just not employable given the same scenario. It’s simply frustrating. This, of course, could be directly or indirectly related to the high mortality rate of our airlines. That is passing exams with no value added.
Do you foresee the present government changing the status quo. What should the government do to drive the sector to begin to significantly contribute to the country’s gross domestic product?
The transport minister and his aviation colleague should be tasked with delivering 1 per cent of the GDP by 2020 at an annual growth rate of 25 -30 per cent. It is presently 0.4 per cent when a small country such as Spain delivers up to 5 per cent. A grossly under-performing sector. Measurable task with timeline is the answer and stakeholders including ART do have ways and means to achieving such deliverables.
Recently, there were concerns about the frequency of flight delays and cancellations following the report released by the NCAA which indicated that about 50 per cent of flights operated in the first quarter of 2016 were delayed. What does this portend for the sector?
Delays could be as a result of so many factors. Lately, poor aviation fuel supply I am aware is responsible for most delays. Airlines’ insolvency is also contributory as purchase is now on cash and carry basis to the exclusion of former credit lines. Technical, VIP movement, late arrival of operating aircraft, weather etc are some other reasons but with varying remedies for passenger comfort.
In recent times, there have been reports of dwindling passenger traffic.
What do you think is responsible for this development resulting in, for instance, an airline going to Abuja with less than 50 per cent of passengers occupying the available seats?
Economic activity generally has declined 2015/2016 year on year due to low government expenditure which is the highest element of our national income. Private sector participation in all sectors will stimulate economic growth while government ensures good standards through regulation. The reverse is the case presently and so without government spending and annual budget for almost half of the year, economic activity automatically declines.
Are you in support of airlines merging their passengers?
Absolutely yes. It is called pooling. It is a process of cooperation that will remove unnecessary competition, reduce waste, and enhance yield. It should go beyond pooling of passengers to pooling of all the resources and/or merger. Regrettably however it is un-Nigerian to co-operate rather it’s me alone die alone.
Over 80 per cent of international passengers are airlifted by foreign carriers through the signing of Bilateral Air Service Agreements (BASAs) and a lot of people have called for review of the agreements for not being mutually beneficial.
What is your view on this?
What option is there if foreign airlines do not operate the BASAs so long as there are no strong Nigerian Airlines to reciprocate in the face of growing demand? Necessary condition is three to four strong airlines parading minimum of 50 modern and operational aircraft each. We can then begin to see the need to review the BASAs.
Nigeria government must make deliberate effort to salvage our airlines if we are serious about reducing the pressure on the naira exchange rate as of necessity.
Besides, it is said that foreign airlines have stopped payment of royalties to government. What is the implication of this?
Foreign airlines are logical in not paying royalty to government any longer. It is not justifiable in the sense that they did not prevent Nigerian airlines from reciprocating the BASAs but for lack of Nigeria’s capacity. Historically, royalty was the compensation derived through commercial agreement between two designated airlines on a particular route and not government. Nigeria should therefore designate its airlines to all countries and all routes.
Do you think government should have allowed multiple entry points to these foreign airlines? You see some of them flying to four different airports and locations in the country. Is this proper, especially at a time when local airlines complain of dwindling passenger traffic?
The policy on multiple entry points into Nigeria as it is today is absolutely wrong and condemnable. It is robbery and by implication a breach of cabotage right. When will Nigeria begin to cherish its own for God’s sake? It is absolute erosion of domestic aviation. A foreign operator should have one point of entry into Nigeria. It could either be Lagos, Abuja, Kano, Port Harcourt etc and not both or all.
The debate on national carrier has been on for a while with the present government saying they want to bring back the carrier. No one really knows the plan of government in this area but from your own perspective do we need a new carrier and what model?
A new start up mid-wifed by government is very positive.
It is plus one and the more the merrier. But remember a sickle cell father and sickle cell mother will undoubtedly produce sickle cell offspring.
If government fails to address the circumstances resulting to the high mortality in the sector these four decades, any new entrant operating under same condition will surely not succeed. We must warn though that preferential treatment as it were for Virgin Nigeria in its earlier days will be seriously resisted by the industry. The memory remains quite fresh.