Airlines face existential threat, says ASRT President, Onitiju

• Domestic travel volume shrinks over dwindling airplanes, others

President of Aviation Round Table (ART) Air Commodore Ademola Onitiju (Rtd) said the volume of the domestic travelling public for whom the stakeholders and airline operators seek to make aircraft available is dwindling due to the high cost of air tickets and reduced purchasing power of Nigerian citizens.

They equally emphasised the need for purposeful coordination between the aviation sector and other government agencies especially the  Central Bank of Nigeria (CBN) and the Nigeria Civil Aviation Authority (NCAA) to arrest airlines’ existential threat occasioned by the high cost of jet fuel which takes about 45% of operation cost of the airlines’ expenses,  end discriminatory exchange rate for maintenance and related activities including the acquisition of aircraft spares and ground handling equipment to enhance safety and ease of operations among others.

The group leader explained that they at ASRT had suggested that there be a single-digit lending rate for the aviation sector to enhance its growth and contribution to Nigeria’s Gross Domestic Product (GDP), just as they believe that the establishment of an Aviation Finance Bank could help in actualising these.

The group recommended that the NCAA and other aviation agencies be further strengthened and funded to embrace new aviation technologies including the imminent emergence of drones and electric vertical take-off and landing aircraft deployable for the movement of people and logistics.

They also anticipated a domestic Public Service Obligation policy that would make some parts of Nigeria transportable by air.

He stated that the ART as a body had variously recommended that the government had to be deliberate in its policy for rescuing the aviation sector from collapse.

Onitiju who spoke at the Business Breakfast Meeting put together by the Aviation Safety Round Table Initiative (ASRTI) in Lagos with the topic, “Cape Town Convention Practice Direction”, said, “We had highlighted the need for the government to emplace policies that create a conducive environment for aviation to thrive, remove the shackles and make air travel affordable.

“To this end, we advocated discriminatory exchange rates for maintenance and related activities including the acquisition of aircraft spares and ground handling equipment to enhance safety and ease of operations. We believe that these and other benefits will reduce operational costs, and enhance proficiency and competitiveness.”

ART he reiterated has suggested that facilities in all airports nationwide be equipped and upgraded to dispatch and receive aircraft at midnight and beyond to maximise the benefits of air travel and revenue generation, hinting that aircraft are best utilised in the air.

By way of palliatives for the aviation sector, it also recommended the suspension of operational charges including aeronautical and navigational for 24 months as part of measures to reduce local airfares and encourage the growth and development of local airlines to make them competitive and profitable.

“We must protect our airlines from the adverse consequences of ‘Open Skies’ and AfCTA operations. When the local airlines thrive, revenue will accrue to the government and regulatory authorities.”

Onitiju demanded that the Federal Government inaugurate without further delay the boards of all the aviation agencies to check arbitrariness, unprofessional conduct and unnecessary interference in their activities.

Good institutional governance practice according to him will embolden aviation agencies to ethically demand and enforce good corporate governance practices by airlines and allied stakeholders in the aviation sector, stressing that Nigeria will be better for it.

Wole Shadare