Last week aviation industry stakeholders met in Lagos and brainstormed on how to move the sector forward following Covid-19 economic devastation, which adversely affected air transport. Chinedu Eze who covered the event reports that operators and administrators admit a change is needed in the industry.
At the League of Airports and Aviation Correspondents (LAAC) seminar on how to rebuild the aviation industry with the theme, “Management, Policy and Regulation,” held in Lagos last week, speakers x-rayed the importance of policies in the growth of the industry and the need to have policies and regulations that are dynamic and in tandem with global standard practices.
The Chairman, West Link Airlines, Capt. Ibrahim Mshelia who was also the chairman of the seminar lamented that the Nigerian aviation industry is battling too many oppressive forces, including processes that lead to the acquisition of Air Operator Certificate (AOC). Mshelia observed that a situation where an operating airline was compelled to renew its AOC every two years was anti-progress and a setback to commercial airline business in Nigeria. He noted that in Nigeria, irrespective of the mode of operations and specifications, airlines are made to undergo the same rigorous processes, stressing that nowhere else in the world are operators given such stringent conditions before they could commence flight services.
According to him, “With the lopsidedness in the procurement procedures and the operational limits of AOC holders in Nigeria, there is an urgent need to amend our Act and policy in this area, to empower the civil aviation to also break down the certification process of our commercial operations. The word AOC has been so over-valued like a village masquerade that appears once in five years. This is not supposed to be so. Operation specifications in this regard are the masquerade and not the certificate.
“Today, we have an unhealthy situation where there is a blanket issuance procedure of AOC for big, small, or large operations. Under this system, the roles of other segments of operators that are also entitled, by law, to operate commercial operations, unfettered as guaranteed by the International Civil Aviation Organisation (ICAO), is not spelt out. By ICAO standard, small, large and medium operations, including; Air Taxi, Air Charter, Cargo Only, nonscheduled and scheduled operations and others are recognised.”
Mshelia said that instead of subjecting airlines to the rigour of renewal of AOC every two years, the regulatory authority should have robust and efficient inspection and oversight team that scrutinises the activities of airlines.
“One recommendation which has managed to dodge government action is a thorough overhaul of the inspectorate division of our civil aviation agency. This has to be done quickly, to galvanise the Nigerian aviation industry achievements. The staff of the agencies has done well so far but the new and desired NCAA will require a change of attitude as well. The AOC processing takes forever against the advertised. Proposals have been offered that need attention. The duration of AOC should be valid unless suspended or revoked. The Ops Specs (operation specification) is the operational document, which should, and must be over sighted from time to time via audits. That should have the expiry date while the AOC certificate should remain valid unless suspended or revoked. If more and only qualified technical staff are hired for the agencies and paid salaries commensurate with their counterparts abroad. I am of the opinion that the sector will embrace issues with different approach,” he said.
Interpreting Policies
On his part, the Managing Director of the Federal Airports Authority of Nigeria (FAAN), Captain Rabiu Yadudu called for a review of policies but more importantly stressed that those who implement the policies should be sincere and noted that there is the need for aviation agencies to work together instead of at cross purposes.
Fielding questions from newsmen after his presentation, Yadudu said that old policies and new ones dovetail to guide the operations of FAAN, insisting that some of the policies are industry standards, which means they are what obtain in other parts of the world.
He said that there are no policy guiding FAAN’s activities that are in conflict with airlines, noting that there could disagreements, which call for understanding.
“I believe there is hardly any policy that is in conflict with operators. It is a question of understanding. The policies and implementation are all the same; it is interpretation that may be different. Usually, it is that interpretation, but you will find that you will all arrive at the same decision (if the interpretation is right). The same intention is being serviced. But if you have the wrong interpretation, then we have to agree when the regulator tells you that your interpretation is wrong. It will always go the way of the regulator. The interpretation and absolute understanding lies with the regulator. So, if there is a conflict, it is for the regulator to clear the misunderstanding. But there is no fundamental misunderstanding or conflict between policies and what the stakeholders want,” he said.
But the former President of National Association of Nigeria Travel Agencies (NANTA) and Managing Director of Finchglow Group, Bankole Bernard said that part of the problem with policies in the aviation industry is their poor implementation. He said that over the years the sector has been dogged by poor implementation of the policies and called for the review and appraisal of these policies.
“The truth is that policy implementation can never be overemphasized. It is something that has to be on a continuous basis. Over the years, many policies have been formed but how well have they been implemented? How has it reflected on the industry and lives of the people involved? I think we have to shift focus to the impact over the years. As I sat there (at the seminar), I realized that the Act that governs NCAT (the Nigerian College of Aviation Technology, Zaria) was enacted in 1964, whereas all others had been reviewed lately.
How come the one that affects industry personnel has been abandoned for decades? It shows that we pay very little attention to the workforce in the industry and that explains why we more often export that aspect of the aviation business. We need to go back to the drawing board and make sure that the personnel are well trained. As at today, we only have 20 accredited training organisations in Nigeria, to serve a population of over 200 million people. It is not that the people are not interested, but there are no enabling laws to attract investors into this critical aspect of the aviation industry. I think we need to pay more attention to issues that affect human factors in the industry,” Bernard said.
Collaboration
Speaking on how the agencies, airlines and others can work effectively together, Bernard said that such collaboration is crucial so that there could be seamless cooperation but noted that certain conditions must be met for that to be achieved.
“For there to be a meaningful collaboration, we need to have a central data system. With that I can rely on information coming from one agency to another. But when you look at it, we have a disintegrated system as it were. Until we integrate the system to a point that we all know that the information that I am getting is factual, then we will not move forward. We are talking about code-sharing and interlining among the airlines, how do you think that will be possible when they cannot even rely on information that is available? The information available is coming from different sources. The earlier we have a central data system the better for us; so that agencies, captains for the industry and even the reporters can rely on the data that they have gotten,” he said.
The House Committee Chairman on Aviation, Hon Nnolim Nnaji stressed the need for good management of the industry. He said that for set objective of moving the industry forward to be achieved, there is need to have good management of the agencies and airlines in the sector.
“The success of any industry is management. If you have the right people in management, it is going to go a long way in achieving good results. Also, once you have committed people especially like we who are in the legislative arm, we are committed to what is happening in the executive. It’s not that we are trying to police the executive, we are not the type that would want to boss the agencies around because we feel that we have the power to do so, and it’s just that we are committed to the safety of the industry. Our duty in the House of Representatives is to support the industry, “he said.
On the bailout to save the sector after the devastating impact of COVID-19, Hon Nnaji said that government did not do much in terms of providing support for the agencies and airlines in the sector, compared to what other countries did to support the air transport sector, noting that the industry is critical and a catalyst to the economy of every nations and therefore serious attention should be paid to it. He added that the industry needed financial support so that thousands of workers in the industry would not lose jobs.
“The government didn’t do much in terms of bailout for the airlines. The cost of the engine of a Boeing is close to $10 million and what the government provided for all the airlines is about N4 billion, so, when you compare what our airlines got to what other countries did for their own, you will find out that they didn’t do much for the industry. The aviation industry is a very expensive business and most people do not break even. What they just succeed in doing is to just keep the business going because everything about the industry is offshore and that is a challenge.
“We have succeeded in getting zero duties for the airlines for the purchase of spare parts. Another issue that they are battling with is the issue of forex. Since they buy most of their stuff abroad, it is important that they have access to forex. The planes need to be in the sky all the time because the more you move, the more money you make so that you can pay your bills. We would want the Central Bank of Nigeria to create a window for Forex because it will help reduce the airfare,” he said.
Policy Implementation
Speaking on policy implementation, the Chairman, Senate Committee on Aviation, Senator Smart Adeyemi, said that the aviation industry is very dynamic so there is the need to review the policies guiding it and also ensure that there is effective implementation of the policies and regulations in the industry.
“I think generally, when we talk about policy implementation, we would be looking at it from different perspectives. The National Assembly on one hand and the policy of the government on the other. As I speak, we still have about six bills pending in the National Assembly. These are bills seeking the amendment of some of the regulations governing the industry.
Aviation is not a sector that you leave for a year without looking at the enabling laws. Over the years, aviation laws have not been revisited, so we have a situation where you have conflict between the standard of parties, when you talk about the standard of parties, you talk about the kind and sophistication of planes that we have now. They are all interwoven, so, if you don’t have enabling laws that would meet the standard of the modern day industry passed into law, there would be a new approach to management and oversight,” he said.
