-By Adeniyi Onifade
The aviation sector, which still remains the worst-hit sector by the COVID-19 pandemic, is still trying to find its feet to recover, especially in the areas of passenger traffic and efficiency of service delivery.
Worse off, the World Health Organisation (WHO) has announced a third wave, and Delta variant of the virus, which is sending shock across board, especially at a time when the sector is just recovering.
To this end, stakeholders, regulators and lawmakers have been outspoken on ways which efficiency in operations can be improved.
Aviation committees in the lower and upper chambers of the National Assembly, and other stakeholders believe that there must be concerted efforts and new strategies that can get the sector out of the woods.
Precisely, they have called for a review of the aviation financing mechanism to align with services on offer, commensurate bailout funds for airlines, efficiency in operational and management system, competitive pay for technical staffers, and reduction in the cost of operations.
Speaking at a virtual aviation roundtable recently, Chairman of the Senate Committee on Aviation, Smart Adeyemi, noted that aviation remains central to the economic development of the nation, and should be on the front burner.
Adeyemi said there are six pending aviation Acts at the National Assembly, and awaiting passage as part of measures to revamp the industry.
The Acts include: the Nigerian Civil Aviation Authority Act (NCAA) 2006, Federal Airport Authority of Nigeria Act 2010, Nigeria Airspace Management Agency Act 1999, Nigerian College of Aviation Technology Act, 1964, Nigerian Meteorological Act 2003, and Nigerian Safety Investigation Bureau Act 2019.
He said the bills have already scaled second reading.
“When passed into law, there will be new approaches to management and oversight functions. We really need to scale up the industry to be one that has an enabling environment, emanating from good legislations and resources,” Adeyemi said.
His colleague in the lower chamber, Hon. Nnolim Nnaji, added that adequate financing mechanisms cannot be ruled out in the aviation industry.
Nnaji, however, added that the Federal Government has been most complacent in that area.
“The (Federal) Government didn’t do much, in terms of a bailout for the airlines. The cost of a Boeing (aircraft) engine is close to $10 million, and what the government provided for all the airlines (as COVID-19 palliative) (was) about N4 billion. So, when you compare what our airlines got, with those of other countries, you will find out that they (government) didn’t do much for the industry.
“The aviation industry is a very expensive business, and most people (operators) do not break even. What they succeed in doing is to just keep the business going, because everything about the industry is offshore, and that is a challenge,” Nnaji stated.
The lawmaker added that the National Assembly has succeeded in getting zero duties for the commercial airlines’ spare parts, though not the same for scarce foreign exchange.
“For now, I don’t know how the ban on forex to BDCs will affect airlines, but I heard that the black market rate has gone up. I still wonder, if banks can manage, but from next week, we will get to know how airlines will be affected,” he added.
Similarly, the Managing Director of the Federal Airports Authority of Nigeria (FAAN), Capt. Rabiu Yadudu, said the times are dire for the entire industry, urging the policy formulators to engage in policy engineering, and to make great financial decisions to get out of the woods.
“Without financial relief, I do not see a quick recovery. We need an aggressive policy, and we need to do much more on implementation that is very aggressive. As you are aware, COVID-19 has put the global economy to the test, with air transport being, undoubtedly, the hardest hit by the pandemic,” he noted.
Data from the International Airline Transport Association (IATA) recently measured the COVID-19’s economic impact on Nigeria, estimating a revenue loss in excess of $994 million in 2020.
No fewer than 125,370 jobs were put at risk, with loss of contribution to the Gross Domestic Product (GDP) in excess of $885 million.
To this end, Yadudu hinted that the failed automated passenger and baggage check-in systems at the Lagos and Abuja airports were being resolved, with the new handler now deploying equipment.
The FAAN boss explained that the 10-year CITA contract for Lagos and Abuja airports expired last year, and FAAN decided to improve the process.
“The new contract and the project have already been approved by Mr. President. We have improved the process from two airports to now cover all the five international airports – Lagos, Abuja, Port Harcourt, Kano and Enugu. At the end of the day, it is going to be better for all of us.
“We have already started taking delivery of equipment from RESA of France. FAAN went with the right procurement process, and we got a better deal. I believe, by the middle of next month, we shall be ready to move forward,” Yadudu said.
Also lending his voice, the Managing Director of Finchglow Group, Bankole Bernard, said the industry has not lacked good policies, but the strategic implementation to rob off positively on the entire sector.
Bernard said there is a need for proper assessment of impacts of policy implementation over the years.
“The Act that governs NCAT was enacted in 1964, whereas those of other agencies had been reviewed. How come the one that affects the industry’s personnel has been abandoned for decades? It shows that we pay very little attention to our workforce, 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, and properly remunerated. As of today, we only have 20 accredited training organisations in Nigeria, to serve a population of over 200 million people! It is not that people are not interested in aviation, but there are no enabling laws to attract investors into this critical aspect of the industry. I think we need to pay more attention to issues that affect human factors, too,” he added.