Exactly two months after the official launch of the logo and name of the proposed national carrier, Nigeria Air, the Federal Government has suspended the project.

The Minister of State for Aviation, Hadi Sirika, disclosed this via his official twitter handle (@hadisirika) on Wednesday after the end of the weekly Federal Executive Council (FEC) meeting in Abuja.

Sirika said the decision to suspend the project, which he described as tough, was strategic and had nothing to do with politics or pressure from stakeholders.

“I regret to announce that the Federal Executive Council has taken the tough decision to suspend the National Carrier Project in the interim.

“All commitments due will be honoured. We thank the public for the support as always,” Sirika said.

On July 18, the Nigerian government had officially unveiled the name and logo of the country’s new carrier at the Farnborough International Public Airshow in London, United Kingdom.

The new national airline, which was expected to takeoff on December 24, would be private sector-led and driven through Public Private Partnership (PPP) arrangement, with the government owning not more than five percent equity and zero interference, according to Sirika.

Early this month, the Nigerian Civil Aviation Authority (NCAA) said the proposed December take off of Nigeria Air was still feasible as it could still issue necessary operational certificates before the end of the year.

 

The Ripples

The Nigerian Civil Aviation Authority (NCAA) said the proposed December take off of the national carrier, Nigeria Air, was still feasible as it could still issue necessary operational certificates before the end of the year.

The Director-General of NCAA, Capt. Muktar Usman, disclosed this at a press briefing in Lagos on Tuesday.

According to Usman, NCAA would deliver the Air Transport Licence (ATL) and the Aircraft Operators Certificate (AOC) to the carrier in the next 90 days to enable it commence operation.

The Airline Transport Licence (ATL) also referred to as Airline Transport Pilot Licence (ATPL) is the highest license one can earn as a civil airplane pilot.

The Air Operator’s Certificate (AOC), on the other hand, is the approval granted by a nation’s aviation authority to an aircraft operator to allow it to use aircraft for commercial purposes.

The NCAA boss assured that the government was leaving no stone unturned to ensuring the airline successfully take off at the stipulated time, adding that the government would not relent on its efforts to meet the deadline.

“We still have more than 90 days to the end of the year, so, it is still feasible, all things being equal. I am just talking from the regulatory point of view.

“The government intention about the takeoff of Nigeria Air is to get the best for the flying public because Nigerians have been yearning for a strong and viable carrier.

“We want a carrier that will meet the demands and potential of the domestic market, the regional market and the international market,” he said.

Nigeria is planning to set up a new national carrier about fifteen years after the old Nigeria Airways ceased operations in the country.

On July 18, the Nigerian government through the Minister of State for Aviation, Hadi Sirika, had officially unveiled the name and logo of the country’s new carrier at the Farnborough International Public Airshow in London, United Kingdom.

According to the minister, the new national airline would be private sector-led and driven through Public Private Partnership (PPP) arrangement, with the government owning not more than five percent equity and zero interference.

 

The Guardian.

To get the new national carrier off its feet, the Federal Government will be injecting about N3.168billion ($8.8million) as the startup capital for Nigeria Air.
 
The provision, among others, is contained in the Outline Business Case (OBC) recently approved by the Infrastructure Concession Regulatory Commission (ICRC) and currently before the Federal Executive Council for approval.
 
Meanwhile, airlines operators have expressed concerns over governments’ funding of the airlines and the high likelihood of interference in its operations that ordinarily should run as a private business and compete fairly with other existing airlines.
 
The Guardian gathered that the initial injection of N3.2billion is a part-payment for the government’s five per cent equity in the investment, whose take-off fund in the next three years of operation has been put at N108billion ($300million).
 
Sources at the Ministry of Transportation, contrary to claims, said the $300million is the minimum fund expected from both the public and private investors, of which only five per cent ($15million) is government’s contribution.
 
The director explained that the government is not funding the entire project, but will be offering the startup capital in the form of Viability Gap Funding (VGF).
 
“Once the strategic investor is in place, they will be expecting to build on the initial investment made. The OBC suggested that there is a need to start the business in order to attract credible investors,” the source said.
 
The $300million is the funding requirement for the next three years, beginning 2018 ($55million), 2019 ($100million), and 2020 ($145million).
 
Speaking on the development, the Chief Executive Officer, Med-View Airlines, Muneer Bankole, urged the Federal Government to fully disclose its plans for the general public to know what is in the offing, and warned against injecting public funds into the airline to allow it function and compete as another private carrier.
 
He said: “There is definitely no threat to operators that know their onions, and once they (new airline) operate normally like an airline, everyone will be fine. The only thing is that they should not take off with the government and people’s funds; it should be privately driven.
 
“I want to give them the opportunity to come out and be able to tell everybody the template that is still being talked about in Farnborough. When it comes to this country, we have to sit down and ask questions.”
 
The Chairman, Air Peace Airlines, Allen Onyema, congratulated the Federal Government on the feat, describing it as an avenue to create jobs for Nigerians, and improve capacity for air travel in the country.
 
Onyema, however, said the new carrier has to operate transparently, with regulators giving a level playing field to all operators in a fair competition.
 
He said: “If the airline will be used to frustrate the hard earned successes of existing airlines, then we all will be against it. As at now, Air Peace has acquired four B777, Med-View just got one, and maybe Azman soon. Does it mean that we would be restricted from those 91 routes that Nigeria Air will be flying? I hope not.
 
“We trust Buhari to be a nationalist, and he will not allow us to be forced out of business. That is why the new airline has to be transparent. Government has said it is going to be a private business. It has to operate side-by-side with other airlines. So, if the new airline goes to London, no local airlines should be stopped from the route, once it has the capacity,” Onyema said.
 
The Secretary General, Aviation Safety Round-table Initiative, Group Capt. John Ojikutu (rtd), added that the meticulous nature of the programme is quite pleasing and designed in a way that it takes the responsibility of infrastructure maintenance off the government.
 
Ojikutu said: “It is clear that this government does not want to go the way of other people; hence, the plan to concession the airports. National carrier is also to safeguard the market from other foreign carriers, and some of us are in agreement with them.
 
“Like I have said, let government not put its hand in it. Let them get technical partners from outside to invest a minimum of 40 per cent. That is why they are talking to Boeing, and will soon talk to Airbus to come and invest, while Nigerians will take the remaining 60 per cent.
 
“If the aircraft manufacturers bring aircraft today and government goes to the Stock Exchange, Nigerians will come out to invest in the 50 per cent. The remaining 10 per cent can then be between the Federal Government and the states. That is when we will have a national carrier.” he said.
 
 
Source: The Guardian

In Nigeria, commercial aircraft fly fewer times than the recommended hours due to the infrastructure deficit. This results in huge revenue losses for airlines.

When airline operators describe Nigeria's air operating environment as harsh, they are actually referring to the lack of and obsolete essential facilities, double taxation, scarcity and high cost of aviation fuel as well as the dearth of indigenous personnel, especially in the technical department of the industry.

Airfield Lighting

One of the major limitations to the optimum utilisation of commercial aircraft in Nigeria is the lack of airfield lighting or runway lighting. These are lights that guide the aircraft to landing and take-off on the runway. Unfortunately only five airports out of 22 airports being managed by the Federal Airports Authority of Nigeria (FAAN) and six airports built by the state government have airfield lights that are being utilised currently. These airports include the Lagos, Port Harcourt, Kano, Kaduna and Abuja airports. Some other airports have the equipment but they are either redundant, in a state of disrepair or are waiting to be connected.

Lack of functional airfield lighting is a major setback for Nigerian airlines because they cut off about four operational hours from the daily flights of an airline designated for schedule operation. Industry experts who spoke to THISDAY said they are shocked that despite the importance of this equipment for safe airline operation, government has not been able to install it at all the airports and most of those installed in the past are in disrepair.

Revenues Losses

Industry experts are of the view that installation of airfield lighting at all the nation's airports will boost the revenue of domestic airlines to the tune of about N40 billion annually. This is the estimated amount of revenue that the airlines lose because they do not operate after 6:00 pm in more than 18 airports in the country owing to the lack of critical landing facility.

If the equipment is available, airlines would be able to operate extra four hours every day, from 6: PM to 10: PM to many of the nation's airports. Also, it will help the airlines to fully utilise their aircraft, which has stipulated minimum time it must be flown by their manufacturers.

Former Managing Director of one of the major domestic carriers told THISDAY in an interview that Nigerian airlines lose huge resources because they do not operate to many airports in the night.

"But you have to look at it in terms of potential additional revenue for operating for longer periods, perhaps into the night. Again you can also look at it in terms of underutilisation of the aircraft because they are not used for longer periods during the day. So at the end of the day you may estimate that what airlines lose should be in the region of 40 billion naira in a year. But this depends on how many of such airports that you think you can access," the source said.

The advantage of having such critical equipment is that it would help not only the airlines but passengers. Presently when technical or other problems occur in the daily operation of airlines that lead to delays, some flights that are delay beyond 6:00 PM may be cancelled if the destined airports do not have airfield lighting.

So the installation of the equipment will enable airlines to fly to Ibadan, Akure, Enugu, Owerri, Calabar, Yola and other airports where currently there is no airfield lighting after 6:00 pm.

It will also help safety of airline operations because during emergency in the night a troubled aircraft can land at the nearest airport, instead of looking for the one that has airfield lighting, which may be several kilometers away.

Aircraft Utilisation

Ideally a Boeing, B737, which is the popular operating aircraft in Nigeria flies for at least 18 hours a day and some fly for about 22 hours a day, but in Nigeria such aircraft fly for between 10 t0 12 hours. By 6:00 pm most airlines begin to shut down because their aircraft can no more fly to many of the airports. If majority of the airports have airfield lighting, many of these airlines could operate to 10: 00 pm and such airports that are located in the cities like the ones in Benin, Asaba, Enugu, Owerri, Uyo, Calabar, Ibadan and Akure could have been operating deep into the night.

But by 5:00 pm airlines cancel flights which they could not operate before 6:00 pm and when they cancel flights they lose revenue and a bit of their goodwill.

Disrepair

A senior official of FAAN from operations department told THISDAY on Monday that some of the runway lights are under repair; some are not connected while some airports are yet to have the installation of such lights on their runway. He said that in some airports where the runway light is functioning it is underutlised, which some active airports do not have the functional equipment.

"In some of the airports where we have airfield lighting they are under utilised because flights do not land there in the night. We have it in Maiduguri, we have it Sokoto, we have it in Katsina, we have it in Yola but they are not used because flights don't come there in the night. Kaduna airport has night landing facilities. Ilorin airport also has night landing facilities although they are not effectively used but if there is diversion or emergency they will be put on because Ilorin is alternative airport to Lagos.

"Recently Airline Operators of Nigeria (AON) met with the Minister of State, Aviation, Senator Hadi Sirika and he said that work has started at the Enugu airport runway, as the contractor has been called back to site; that when work on the runway is completed the light will be installed. In Owerri, the lighting facilities were vandalised and FAAN is reinstalling the equipment," the FAAN official said.

Flight Cancellations

Passengers have suffered tremendously due to flight cancellations occasioned by absence of runway light in some airports. Few years ago Arik Air had to make air return after arriving at Uyo airspace because the air traffic control which approved the flight's take off from Abuja said it would no more guarantee the flight safety on landing because it was getting dark and there was no airfield lighting; even when the aircraft, which was a New Generation equipment was installed to land under a twilight.

The flight took the passengers back to the airport in Abuja. Disappointed and enraged the passengers protested. They couldn't get to their destination, they had been inconvenienced tremendously and the airline has lost revenues, fight time and fuel. Also earlier this year, Air Peace boarded passengers from Abuja to Enugu and communicated with the air traffic control and airport management at the Akanu Ibiam International Airport, Enugu and got the initial approval for the flight to proceed to Enugu but before takeoff, message came from Enugu that the airport would be closed by 6:00 pm; unless the airline would pay a whooping amount of money, which it considered outrageous. The airline had to abort that flight but the passengers who had already boarded, led by a former Senate President refused to de-board the flight. The aircraft which was already scheduled for another flight on return from Enugu could not operate the next flight.

Role of NCAA

Some industry experts say that as the regulator of the aviation industry, the Nigerian Civil Aviation Authority as part of safety measures could insist that without airfield lighting in an airport such airport should be closed. They noted that the idea of not having airfield lighting in major and secondary airports in the country started when the Ministry of Aviation started awarding runway rehabilitation contracts differently from the installation of runway lights and noted that ideally the two contracts were usually awarded together.

"NCAA can insist that it will not approve any airport without runway light to take in flights. This should be for safety measure so that in the time of emergency an aircraft can land anywhere. For example, the Asaba airport should not have been opened without airfield lighting. The state government decided to build an airport; he should have been given a minimum standard which would include well equipped runway and Category 3 Instrument Landing System (ILS).

"So NCAA can insist that all the airports built by the state governments must not be allowed to operate without runway light; this will ensure that as you are building the airports you are installing runway lights on the runway. We need to be strict with these safety critical facilities. Today airlines are losing so much money because this critical equipment is not in these airports," one industry observer told THISDAY.

Landing Instrument

The Chairman of Airline Operators of Nigeria (AON) Captain Nogie Meggison said similar challenges to airline operation include poor navigational and landing aids (Instrument Landing System and others) that limits operations to daylight operation for most airports (Nigerian airlines fly an average of only five hours as against the average of 10 hours worldwide per airplane); high cost and epileptic supply of Jet A1; Obsolete infrastructure that hampers the ease of doing business; and lack of consultations with airlines before introduction of new charges and policies among others, "which throws off the feasibility studies of airlines out the window."

Public, Private Partnership

Industry observers are suggesting that the federal government should take its public, private partnership (PPP) seriously so that it would divest financial commitment on landside infrastructure by ceding airport terminal and associated facilities development and management to the private sector, while it concentrates in providing critical equipment on the airside, which are very crucial for the landing and take-off of flights. For this to happen, they suggested that government must have a defined policy on PPP, accompanied by legal and administrative framework that will guide investors in investing in airport infrastructure.

The Director-General of NCAA, Captain Muhtar Usman, told THISDAY that in concession, government would not give out the airside for safety and security reasons; so it would be the sole responsibility of government to provide such critical facilities as landing aids, radar and communication equipment in addition to providing perimeter and security fence at the airports.

Many travellers judge the beauty of airports by visible facilities like the terminal, the car park and the landscape; what keeps aircraft safe on landing and take-off include such critical infrastructure as airfield lighting, but over the years, government has reneged in proving this important equipment for all the airport runways in the country.

 

- This Day

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