Stakeholders: Suspension of FG’s Plan to Fund National Carrier Project Will Grow Successful, Competitive Airlines

Chinedu Eze

The recent suspension of federal government’s plan to fund the establishment of a national carrier will help grow Nigerian airlines, make them globally competitive, and reduce the current capital flight from the country by foreign carriers, aviation industry stakeholders have said.

Last week, the Minister of Aviation and Aerospace Development, Festus Keyamo, said the federal government will not be reinvesting in the national carrier project, ‘Nigeria Air’, “but is always open to proposals from private or public entities, both in and out of the country, that will truly benefit Nigeria and Nigerians in establishing a National Carrier.”

The minister also said government would reinforce its support for the growth of domestic airlines, which in the last two years have received so much support from government to improve their operations.

Reacting to the new policy thrust, many industry experts commended the federal government and said it was a good decision taken by the President Bola Ahmed Tinubu’s government because other efforts made by the previous governments to establish a national carrier ended in fiasco because of lack of transparency and sincerity of purpose.

They noted that many countries that have national carrier do not have many domestic carriers like Nigeria, which has the highest indigenous international travelers in Africa, noting that many national carriers in Africa were not really established for profit making but to drive tourism.

They remarked that except Ethiopian Airlines, which records profits, many national carriers in Africa are used as vehicles to support tourism, giving examples with South Africa Airways, Egypt Air, Rwand Air, Air Maroc and others.

Industry expert and former Commandant of the Murtala Muhammed International Airport (MMIA), Lagos, Group Captain John Ojikutu (rtd), described the suspension of the funding of national carrier programme by the federal government as a wise decision.

“It is the wisest decision taken by any of the government administrations since 1993 when the call began on the defunct Nigeria Airways. We have no reason to continue calling for a National Carrier after the Privatisation, Commercialisation and Concession Act of 2000. What we need now and which the minister has announced last week Friday are Flag Carriers but let the flag carriers be designated by the government with a National Policy and not by themselves if they must operate on the BASA (Bilateral Air Service Agreements) routes which is a commonwealth of Nigerians and not private nor for any individual. Flag Carriers are ‘National Ambassadors’ that represent the country, not themselves, in foreign countries. That is what the flag carriers are. Any attempt to continue with the idea of a National Carrier is a way to forming a government carrier for government officials and not necessarily for the Nigerian citizens. The Nigeria Airways was exactly that, a government officials’ carrier,” he said.

The Managing Director and CEO of Aero Contractors Limited, Captain Ado Sanusi, said it was good for the federal government to support domestic airlines but if a national carrier was eventually established it could exist side by side with other airlines if properly managed and if the state has capacity to establish one.

He also said that it is a good thing to jettison the plan to establish a national carrier because of the way previous government went about it, remarking that now the government has decided not to fund a national carrier, it can now concentrate in modernising airport infrastructure, providing state-of-the-art aeronautical facilities, manpower development and others.

He also urged government to review taxes levied on airlines because that would be another way of helping airlines to grow and also stop overregulating the airlines and make the operating atmosphere conducive for flying.

He noted that there was nothing wrong to establish a national carrier but insisted that Nigeria went about it in a wrong way. He however said now that government has decided to stop funding the project, government should be commended for a transparent decision.

Sanusi said one major way to help Nigerian airlines to successfully operate international destinations, especially the West Coast, is to establish a transit terminal that would be insulated from Immigration and Customs screening, so that when passengers arrive Nigeria in their onward flight to their final destinations, they will wait in the transit terminal until they board their next flight without their going through Customs and Immigration and their luggage being screened again.

Sanusi said not having transit facility is a disadvantage to Nigerian carriers, adding that it is the reason why Asky and other airlines that operate West Coast have edge over Nigerian airlines.

“Having a transit facility at Lagos airport will help Nigerian airlines. Originally, transit facility was built into the Murtala Muhammed International Airport terminal but they made it very difficult for us to transit our passengers when I was at Arik Air. Even to transfer the baggage, Customs would not allow it. They would insist on scanning them. I hope the minister will look into this. Even the unification of security at the airports is being made very difficult. In other countries, one person can do the work of Immigration, Customs and intelligence, but here you bring three people, which causes delay and they could work at cross purposes, as they do not seem to have the sane software. Lagos needs transit facility. That will make Nigerian airlines competitive,” he said.

However, the Managing Director of Flights and Logistics Solutions Limited, Amos Akpan, commended the minister for the support he has been giving Nigerian carriers and made recommendation on what government should do now it has decided not to push funds into the establishment of a national carrier.

“The minister has said the administration is focused on providing support and the enabling environment for Nigerian airlines to survive and grow. The honourable minister has made the appropriate statement. He has been taking steps to ensure survival and growth for Nigerian airlines. If Nigerian airlines continue to sustain their operational capacity within Nigeria and the West African sub region, they would have built strong base to attract cooperation and alliances with airlines from other regions and continents,” he said.

According to him, henceforth government should focus on the establishment of Maintenance Repair and Overhaul (MRO) facility, noting that this has to be in place first before establishing a national airline, adding that Nigeria needs a facility that can provide workshops that can build aeroplane tyres, brakes, engine tests, metal sheet works, or seat covers before a national carrier could be established.

He said robust and profitable Nigerian carriers would be able to settle bills at international clearing house for airlines and with established MRO, Nigeria will synchronise its training organisations’ curriculum with the manpower needs of the operating airlines; then Nigeria can have one hub airport that pulls most travellers from all cities in West Africa.

Akpan urged government to set up financial framework that enables Nigerian airlines to access loans at single digit interest rate and tenure that allows repayment while remaining in business.

“My point is that national carrier is not our priority in the aviation industry, if the government suspends it, the better. The resources should be redirected at building infrastructures and facilities to enable growth. Nigerian airlines will then use those platforms to grow and join the leagues of mega intercontinental carriers through alliances and cooperation. Let’s be reminded that most Nigerian airlines are currently IOSA (IATA Operational Safety Audit) certified and they have shown capacity in their point to point operations so far. Let Nigerian airlines grow and expand. The bilateral air services agreements beckons and the government will designate suitable Nigerian airlines with proven capacity to perform,” Akpan said.

He also said that investors should be encouraged through level playing field, world class infrastructures and facilities to develop interest in investing in national carrier project in Nigeria.

‘The legal framework has gotten better suited for investors. The regulation continues to be dynamic but firm on safety guidelines. We keep building solid foundations instead of jumping to establish a national carrier,” Akpan further said.