2018 as foundation year for aviation

Year 2018 was a better year for the aviation sector. Though there are challenges in meeting set milestones and under-estimation of development requirement particularly with government’s ambitions in floating a national airline, which was put on hold by government in a bid to clear grey areas. WOLE SHADARE writes

Year of hope
Year 2018 brought hope and great expectations with steady climb of statistical records on the use of air transport service in the country. Increased passenger traffic was recorded in the major Nigeria airports. The industry continued with its drive for improving operational safety, building greater confidence in flying with unrelenting efforts for safety certification of the major airports.
A new order has been introduced with the continuous review of incident and accident records and a campaign for nothing to be swept under the carpet for lesson learning also where no part of the aviation industry should be left behind in safety oversighting this has continued to showcase Nigeria seriousness in the international aviation best practise with recognition from International Civil Aviation Authority (ICAO), Airport Council International (ACI), IATA, World Metrological Organisation and National Transportation Safety Board (NTSB).
While the airports subsector may have done well economically, the airlines cannot be said to have. Nigeria indigenous and domestic airlines are still weak with short operational lifespan with over 70 per cent of the total revenue generated in Nigeria’s aviation sector coming from international airlines operating in Nigeria.

BASA setback
Nigeria Domestic airlines are still unable to fully utilise about 70 per cent of its Bilateral Air Services Agreement entitlements. Compared to 2017, the Nigerian aviation industry contribution to Gross Domestic Product (GDP) is barely above $0.7b (N137.9 billion). Though there is significant improvement in Nigeria, production capacity of consumable agro products such as rice, tomato etc. but still not enough for perishable export while freighting within Nigeria is still dominated by road trucking. This leaves Nigeria air cargo business still at the infancy, which economic watchers predict as opportunity for both local and international investment.
While improvement in the economy will undoubtedly improve available income bracket for the middle class subsequently affect the air travel income, the waiver on Value Added Tax (VAT) given to domestic airlines by President Muhammadu Buhari is believed by analysts as great step ensuring airlines stability.
The Ease of Doing Business, which was introduced at the airports last year, has culminated in better passenger facilitation, while the cashless policy introduced this year has also enhanced transparency in business transactions at the airport and potential boost of revenues for the aviation agencies.
To get a clear understanding of how the sector performed in 2018. We take a look at sector-by-sector performance of the industry

New Face of FAAN Airports
The Federal Airports Authority of Nigeria (FAAN) is raising the bar in airport administration in the country. Although, the country is still not where it should be in terms of airports infrastructure, it is however, retooling to meet the changing dynamics of aviation needs around the aerodromes.
With new era of doing business, air travellers heaved a sigh of relief as a new era emerged in which there is a general transformation both in infrastructure, services and above all, user-experience.
Many have since observed improvement in passenger and luggage checking with the new centralised screening supported by automated digital screening machines, which replaced the need for manual passengers and luggage processing.
With massive infrastructural development in Abuja, the Nnamdi Azikiwe International Airport may well be regarded as Nigeria’s modern and best aerodromes with the most modern light rail system and other facilities, courtesy of enormous investment by the Federal government. Airport architects are busy rethinking the Abuja terminal experience, and that is a good thing.

Accident Investigation Bureau stands out
The AIB is one of the stand-out agencies in the sector with many of the reforms put together by Commissioner AIB, Akin Olateru, an aircraft engineer in less than two years he assumed leadership of the organisation. The speedy release of accident reports that had gathered dust on the shelf and other measures led to the commendation by the highly revered United States National Transportation Safety Board (NTSB) for its rich accident investigation programmes, which are expected to enhance air safety in the country.
The Managing Director of NTSB, Mr. Denis Jones,
explained that back in the 2000 and 1990s, accident rates were high, but noted that since then a lot of safety efforts by a number of folks here in Nigeria and elsewhere have led to a lot of success unlike years ago. To him, “Africa has improved its accident safety record like other regions in the world.” The Bureau also achieved a great feat last week releasing timely and accurate air accident report in Sao Tome and Principe.
Olateru led his team to submit the final report of the accident involving Cavok Airlines CVK 7087 AN-74TK-100 Aircraft Registered Ur-CKC, which occurred at Sao Tome International Airport, Sao Tome on 29th July, 2017.

NCAA steps up air safety
Safety in air transportation is largely dependent on effective regulation, surveillance, training and manpower development. As a regulatory authority, the Nigerian Civil Aviation Authority (NCAA) besides ensuring safety and security of air transport in Nigeria, liaises with other countries and international aviation organisations on behalf of Nigeria; so these organisations review its activities from time to time to determine the safety standard of the country’s aviation industry. NCAA passed the US Transport Security Administration (TSA) during the evaluation period.
Impressed with the aviation regulatory safety oversight, the International Air Transport Association (IATA) said it was excited with Nigeria’s and Africa’s impeccable air safety record, which it said has improved over the years.

NAMA raises the bar
To improve quality of air traffic services in the country, the Nigerian Airspace Management Agency (NAMA), has acquired new communication equipment and is set to deploy same to Lagos and Kano areas.
The four stand-alone JOTRON high-powered, Very High Frequency (VHF) long range communication radios, will be installed in Lagos West, Lagos East, Kano West and Kano East Area Control Centres (ACCs). Towards this end, the agency has conducted a successful inspection and Factory Acceptance Test (FAT) of the equipment in Norway.
Although, Nigeria is two years behind the International Civil Aviation Organisation (ICAO) requirements for states to ensure full implementation of PBN, the Nigerian Airspace Management Agency (NAMA) is said to be leaving no stone in reaching the implementation stage.
There are various types of navigation facilities such as Non Directional Beacon (NDB), which is a radio transmitter at a known location, which an aircraft can track to/from. VHF Omnidirectional Range (VOR) provides more accurate directional navigation information. Distance Measuring Equipment (DME) that provides distance information to/from the facility. Instrument Landing System (ILS) provides lateral and vertical guidance to aircraft approaching to land.

Nigerian airlines out of throes of death
Nigerian carriers are faced with so many challenges that have led to the extinction of many carriers. Those that are operating are doing so under excruciating business climate. Though airlines such as Air Peace and Dana have managed to increase fleet this year with upcoming airlines entries such as Ibom Max Air, Ibom air coming on board but the domestic market is still far from meeting the expectation of investor dreams into the airline business.
The present administration seems determined to build a new legacy in Nigeria air transportation development hoping to inject healthy airlines into the system and sustain the existing ones.
Several dialogue and stakeholder engagements seem to bring glimpse of hope, as Vice-President Yemi Osinbajo’s recent meeting with all the airlines with a view to proffering solution to their problems leading to reduction or harmonisation of over 35 charges levied against airlines, which they described as outrageous and a threat to their business.
One of the biggest threats to airline operation in Nigeria has been the high cost and non-availability of aviation fuel otherwise known as Jet A1. Aviation fuel costs more in Nigeria and other oil producing countries than their counterparts that do not produce oil.The government through President Buhari ordered the removal of Value Added Tax (VAT), reviewing five per cent Ticket Sales Charge (TSC) among others.

Last line
No doubt, 2018 can be said to be a relatively successful year for aviation in Nigeria – a year where bold steps and attempt were made in the reshaping the industry.