Amid turbulence, 2025 holds promise for aviation

The year 2024 wasn’t awful for the aviation industry in Nigeria. If anything, it was a year when the country made tremendous progress amid daunting challenges. The year 2025 looks promising for the industry. It is a year that all the planting will be harvested, writes, WOLE SHADARE

 

Roller coaster

The aviation industry experienced a roller coaster in 2024 with domestic aircraft mishaps, raising safety concerns,  the Federal Government’s game-changing deal with Boeing and aircraft manufacturers in the United States, and the signing of the Cape Town Convention practice direction among others. The sector has indeed been in the spotlight.

It is a mixed feeling for the aviation industry with the hope that the gains of 2024 will be harvested in 2025 as the Federal Government has put in a strategy to reap the benefits of all its efforts in the New Year.

The year started on a wobbling note for the sector searching for a direction for the airline sector and the entire aviation value chain.

It started slowly because the newly appointed Minister of Aviation, Mr Festus Keyamo (SAN), was trying to understand the industry and draw up a road map to help him solve the challenges he was confronted with.

First was the issue of airlines’ trapped funds in the region of over $600 million. It eventually rose to $800 million, leading the International Air Transport Association (IATA) to make Nigeria a butt of joke in the international arena. It was a period when many airlines threatened to exit the country after Emirates left. Airlines cut capacity, leading to expensive fares.

Nigeria eventually released airline funds, leading to foreign airlines returning to full capacity on the high-yield Nigerian routes. It equally raised the country’s profile. This was achieved with collaboration between the Central Bank of Nigeria (CBN) and the Ministry of Aviation and Aerospace Development.

That singular action and the intervention of President Bola Ahmed Tinubu saw to Emirates resumption of flights to Lagos two years after exiting the route over irreconcilable differences between the United Arab Emirates (UAE) and Nigeria. Relations between both nations have been restored.

The floating of Naira by the Federal Government and the scarcity of foreign exchange worsened the situation for the entire aviation ecosystem. Decrepit aviation infrastructure was dotted everywhere, regulatory oversight was in shambles. It was a challenging period for anyone to be appointed Minister of Aviation.

Initial missteps

Keyamo wobbled literarily as his penchant for interference in aviation regulatory matters raised concerns domestically and internationally. He has not removed his legs from the pedal of regulatory interference. Still, somehow, his overbearing influence on the Nigeria Civil Aviation Authority (NCAA) seems to have reduced. He grappled with so many challenges and was very much in a hurry to right the wrongs of many years. He is a man on a mission.

He practically sent Dana Air out of operations. He alleged that people at the helm of affairs encouraged the airline to cut corners and put the lives of hundreds of passengers at risk.

A few people believed that the Minister probably had a score to settle with Dana Air, saying he would have allowed the NCAA to do its job. Others maintained that the Minister took the right decision and averted a catastrophe in the aviation industry by axing the carrier which had been involved in so many incidents after a crash in 2012 killed over a hundred people.

He battled critics he furiously labelled “Puff-puff experts” for meddling in areas they know little or nothing about.

He galvanized the entire sector to move at a frenetic pace. He hit the ground running. One of the first major steps he took was to ask the relevant questions on why Nigerian carriers have short lifespans.

He quickly contacted Airbus.  During the visit to Airbus in Toulouse, France, he held high-level meetings with leading aircraft leasing companies, negotiating terms to make Airbus aircraft available to Nigerian airlines at affordable rates. He paid a similar visit to Boeing a few months later.

Air Peace spreads wings to London

After years of planning, Nigeria’s flag carrier airline, Air Peace launched services to London Gatwick Airport, making it the sixth carrier from Nigeria to venture into the lucrative route in March 2024. The carrier’s operation has not come without its troubles. It wanted Heathrow Airport but was unable to get that opportunity because of slot issues in a busy airport like Heathrow.

The Minister’s intervention has equally not yielded any positive result as the British authority emphatically told Keyamo that Air Peace should do what other airlines seeking slots in Heathrow do. The Minister is equally yet to make good his threat to banish British Airways and Virgin Atlantic to Ilorin if they refuse to grant Air Peace flight rights to Heathrow. That sounded like a distraction for the airline and the Minister who is unrelenting in assisting Nigerian carriers to get fair treatment.

The sector witnessed plenty of aircraft incidents. These incidents witnessed a loss of confidence in the sector as people who were not familiar with the sector had their hearts in their mouths whenever they flew. It seriously affected passengers’ confidence.

Flight delay, cancellation monster

One area that has taken the joy out of air travel is flight delays, cancellations and the general apathy towards passengers’ rights by the airlines. In truth, the Director of Public Affairs and Consumer Protection for NCAA, Mr Michael Achimugu deserves some commendation for his manner and passion for passengers’ rights. He and the Acting Director-General, Capt Chris Najomo have done well in this area.

The seeming lack of action by the NCAA to call airlines to order in the area of persistent flight delays, cancellations and failure by airlines to make refunds to passengers drew the ire of the Federal Competition and Consumer Protection Commission (FCCPC).

Air Peace, according to the commission, was under investigation for allegations of exploitative ticket pricing, including significant price hikes for bookings on specific domestic routes and persistent violation of passengers’ rights.

The intervention of the FCCPC in consumer protection matters has been the saving grace for consumers who are reeling under exploitative fare pricing in the aviation system.

But there are more jobs to be done as very few airlines have regard for travellers’ dignity. They seem not bothered as many of them hide under bad weather, VIP movement to carry out one of the most humiliating treatment of their customers with less regard for them.

Airports certification

The tireless effort of the Managing Director of the Federal Airports Authority of Nigeria (FAAN), Olubunmi Kuku is worthy of mention. Kuku has remained focused on airport infrastructure. This successfully led to the recertification of Lagos and Abuja airports.

The accomplishment is a clear indication of the agency’s commitment to providing a safe and efficient air travel experience for all. The re-certification is anchored in the principles established by the International Civil Aviation Organization (ICAO).

 

The renewal of the aerodrome certificates for Lagos and Abuja airports – marks an important milestone in the country’s journey towards achieving excellence in aviation safety and security.

FAAN got the recertification for the Lagos and Abuja airports after closing 136 items or gaps for MMIA and 29 items for NAIA.

The game-changer

The signing of the Cape Town Convention practice direction is an unprecedented history made and it is a venture that is expected to boost Nigerian airlines and the entire aviation industry as a whole.

In the past, some operators rushed to seek an injunction in a law court, making it extremely difficult for aircraft lessors to repossess their aircraft. This earned the country opprobrium, leading to a blacklist by aircraft lessors, particularly the Aviation Working Group, co-chaired by Airbus and Boeing.

Less than two weeks after the signing of the Cape Town Convention Practice Direction by the Federal Government, the country’s rating rose from 49 per cent to 70.5 per cent in the global aviation sector.

Impressed by the country’s commitment to it, the Aviation Working Group (Co-chaired by Boeing and Airbus) swiftly adjusted the global score/rating of Nigeria on its compliance status from 49 to 70.5.

There was also hope for further increase as the Minister has directed the NCAA  to immediately adjust its administrative rules called IDERA’ (Irrevocable De-Registration and Export Request Authorisation) to fully align with the Convention to boost the confidence of financiers and lessors further worldwide.

Expert’s view

Chief Executive Officer of Belujane Consult, Mr. Chris Azu Aligbe said with the signing of the CTC Practice Direction, the Cape Town Convention becomes actively and fully operational in Nigeria, thereby reducing the cost of insurance for airlines, restoring investors’ confidence in the nation’s aviation sector and enabling domestic airline operators to dry lease aircraft, among others.

Aligbe

Outlook for 2025

The Nigerian aviation industry is on the right trajectory. 2025 promises to see airlines and new routes as Overland Airways recently started operations to Freetown and Banjul as the carrier expects more aircraft in the New Year to further expand its operation.

Many expect Ibom Air and ValueJet to make further expansion into regional operations in line with the Single African Air Transport Market (SAATM). The New Year also opens a new vista of opportunities for Nigeria’s oldest airline, Aero Contractors to equally expand as it seeks investors to increase its scope of operations and to acquire more aircraft to compete.

Nigeria expects to see a lot of investment in aircraft leases as more people are expected to take to air travel, just as there are indications that the sector will see quite a lot of investment in navigational and airport infrastructure and a lot of partnerships with corporate bodies like the one seen recently with United Bank for Africa (UBA) and FAAN in the area of airport infrastructure.

Last line

The aviation sector is growing fast and will continue to grow. More people are expected to take to air travel as the economy improves. Demand for pilots, engineers, air traffic controllers and other aviation-related jobs is expected to rise dramatically.  What is also certain is that innovations in technology and approaches will be needed to sustain this growth.

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