Cumbersome AOC processes pose bankruptcy danger to start-up airlines, says expert

….Certificate cost rises to N25 million from N5 million

An aircraft pilot, Capt Dan Omale has called on the Nigerian Civil Aviation Authority (NCAA) to make the attainment of an Air Operator Certificate (AOC) less tedious, stressing that one of the guidelines for start-up companies to fly an empty plane for 20 to 50 non-revenue hours in the guise of operational and regulatory compliance test flights, is not only costly but enough to bankrupt the proposed airline before it begins.

Omale in an article made available to the media on Sunday said the aviation regulatory body can keep the AOC process simple and effective without undermining safety; all in compliance with the International Civil Aviation Organisation (ICAO) guidelines.

The fiery aircraft pilot who was once a consultant to the National Assembly on Aviation Matters said doing this will attract more investors to the industry if those responsible for its oversight functions can be less avaricious, lamenting that unfortunately, ‘Nigeria is a place where corruption reigns supreme.”

He disclosed that an ATL or AOP holder must go through unsavoury routine processes before obtaining an AOC, reiterating, “The statutory cost of obtaining an air operator’s certificate is N5 million. Today, passing the various phases can gulp over N25m. The NCAA inspectors use graduation processes to extort money from more than 60 current applicants.”

The NCAA had come under intense pressure from stakeholders for the rigorous and waste of enormous resources from would-be operators to meet the guidelines for obtaining the all-important AOC.

An AOC is the approval granted by a Civil Aviation Authority (CAA) to an aircraft operator to allow it to use aircraft for commercial air transport purposes. This requires the operator to have personnel, assets and systems in place to ensure the safety of its employees and the flying public.

He noted that the competition in the aviation industry is always brute and intense, stressing that the survival of the fittest has always been the game.

He further lamented that since January 1st, 1980, more than 30 airlines with AOC have gone bankrupt, stating that the vicious competition will never wane.

His words, “The core issue in this country is unrestrained individualism through creative destruction.  The NCAA can keep the AOC process simple and effective without undermining safety; all in compliance with the International Civil Aviation Organization (ICAO) guidelines. This will attract more investors to the industry if those responsible for its oversight functions can be less avaricious. Unfortunately, this is Nigeria, where corruption reigns supreme.”

Speaking on the recent action by the NCAA to ground ten companies operating their aircraft on Permit for Non- Non-Commercial Flight (PNCF); a strictly private aircraft operating license.

He recalled that the action of the NCAA was probably the 10th time the agency had reinforced this regulation while blaming the agency for the action of the private aircraft operators, describing the fault as diluted, pervasive air operating licenses in the various, confusing civil aviation Acts.

“As of today, there is no aircraft operator or the NCAA inspector that can confirm which Act is in vogue. Dr. Harold Demuren, the man largely credited with the expansion and success of air transportation in Nigeria, remains the most revered Director General of the NCAA. During his tenure, the laws or regulations guiding aircraft operations in the country were simple and concise. The Civil Aviation Act of 2006 was every aircraft operator’s Bible. Every page was memorable and clearly understood.  His departure from the system left a void yet to be filled.”

He alleged that the complicated aircraft operation’s regulatory issues in Nigeria now are created by successive directors general of NCAA and the various supervisory ministers, saying it has become uncontrolled hiccups with overlapping twists.

“There are four aircraft operating licenses with limited or undefined scopes;  the Air Operating Permit (AOP), Air Transport License ( ATL), Permit for Non- non-commercial flight ( PNCF), and the Air Operator’s Certificate ( AOC).”

“None of the four licenses above is qualified to stand on its own, except the PNCF. An AOC is devoid of any legality without a valid accompanying AOP or ATL. While an AOC is valid for three years, the precursor, ATL, is valid for five years.  Neither the AOP nor ATL can be used for aircraft operation. These overlapping problems must be corrected or reviewed to give operators some clarity.”

Wole Shadare