Enugu Air upsets the apple cart amid seat glut

The launch of Enugu Air last week is bringing back optimism that, despite the gloom of the past, a few persons and institutions are still willing to invest in the aviation industry, which is expected to bring back some lost jobs and stimulate the sector again, writes WOLE SHADARE

 

The launch of Enugu Air, a state-owned airline, has added to the number of airlines in Nigeria. Enugu Air is like a fable; a story imagined but later came to reality almost as soon as the Enugu State Government dreamed it.

The Enugu State Governor, Peter Mbah, at the unveiling of the airline at the Akabu Ibiam International Airport, Enugu, in the presence of the Minister of Aviation and Aviation Development, Mr. Festus Keyamo, exuded confidence about the start-up airline.

 

In what appears to be an ambitious plan for his administration, he emphasised that Enugu Air is not just a domestic airline but part of a broader vision to position Enugu as a central aviation gateway to the South-East and a bridge between Nigeria and the rest of the world.

“Our goal is to make Enugu a connecting hub for travellers across Africa and internationally. Enugu Air will not only facilitate domestic travel but also serve as a critical link that connects countries to our base here in Enugu, boosting tourism, trade, and economic growth,” Mbah said.

Keyamo praised the initiative as a trailblazing move that reflects the power of sub-national vision.

Accompanied by top officials from the Nigeria Civil Aviation Authority, the Federal Airport Authority of Nigeria, and the Nigeria Airspace Management Authority, the Minister commended the Enugu State Government for investing in critical infrastructure that promotes economic integration and positions Nigeria as an emerging aviation hub.

He said, “This launch is more than symbolic. It shows how a state government can lead with vision and build the kind of infrastructure that connects Nigeria internally and externally.”

The emergence of new airlines is good for the nation’s economy. This was made possible by the government, which created a conducive environment by introducing zero tariffs for imported aircraft and spares, removal of VAT, which is a huge burden on domestic carriers

‘Affordable’ fares

The launch of the carrier amid fanfare signifies the importance that is attached to air transportation in the country, which is further given a fillip to the desire to make air transport affordable to many people.

The airline seems to be very ambitious with the project as it currently operates under and by XEJET Airlines, as it is almost at the completion stages of securing its Air Operator Certificate (AOC).

There are indications that aside from Enugu Air, more airlines are on the line to join other established carriers.

The unveiling of Enugu Air and others portends good tidings for the airline industry as passengers are presented with choices; a situation that could force down fares, especially on the lucrative Lagos-Enugu, Enugu-Abuja, Kano-Enugu routes, Lagos-Abuja, Lagos-Port-Harcourt and Lagos-Owerri routes.

Currently, four airlines, Ibom Air, United Nigeria Airlines and Air Peace operate to Enugu; a situation that offers so many seats on the route. It provides huge gains for passengers but a glut for airlines.

Changing dynamics

It could equally add to raising the number of aircraft in operation. Currently, Nigerian airlines are faced with a reduction in the number of serviceable aircraft in their fleet. This has led triggered a huge spike in airfares charged on local routes.

The development has led to a sharp spike in domestic flight fares in the country, ranging from between N130, 000 and N250,000 for a one–hour flight and also depending on the time of booking.

Nigeria’s busiest route: Lagos-Abuja, parades the highest fares, with passengers rushing to booking platforms days before their intended date of travel, only to meet prohibitive offers.

The reduction of aircraft has caused untold challenges to operators and passengers, leading to flight delays and cancellations, which have become the new normal in the aviation industry.

The airlines have a limited supply of equipment, so when the supply is not meeting the demand, there is going to be a lot of problems with flight delays, flight cancellations, and there will be so many reasons for aircraft on the ground.

Experts’ views

Experts who spoke to Aviation Metric said that establishing new airlines means new investment into Nigeria’s economy, new jobs for Nigerians and development of new routes, which would benefit air travellers.

The Managing Director of Aero Contractors, Capt. Ado Sanusi recently lauded the government for putting a lot of policies in place to enhance new investment in the aviation industry with the introduction of zero duty on imported aircraft and spares and the removal of VAT.

He said that more airlines joining the market do not mean that they would concentrate on already established routes, but many of them would develop the secondary airports, develop new routes and also enhance manpower development.

The Enugu Air’s operations have come under scrutiny by airline operators under the aegis of Airline Operators of Nigeria (AON), who specifically highlighted a lack of digital infrastructure for direct bookings and the absence of an Air Operator Certificate (AOC).

Reports suggest that Enugu Air commenced flights without first obtaining the necessary AOC from the Nigerian Civil Aviation Authority (NCAA).

Investigation by our correspondent shows that the airline has not breached any rule. It has complied fully with all regulations and is in the final stages of obtaining its AOC.

The Director-General of NCAA, Capt. Chris Najomo told our correspondent that the initial mistake was the announcement by the handlers that they were going to start operations by giving it a timeline when the necessary procedure had not been followed.

“What Enugu did was to start six months ago, and they went to the media to say Enugu Air would be starting next month. We said that these people are jokers. They just came and said they wanted to start operations, equating it to a bus service.”

“Somebody immediately alerted them to seek clarification on how to go about it. They followed the guidelines. They took it upon themselves and wrote a letter to the Ministry. The governor went to see the Minister and said he wanted to do this. The Minister directed them to us. They wrote to us and we told them that they had to go through a process. The AOC process will take up to six months to one year. It is a five-stage process.”

“When we told them what to do, they said they had bought aeroplanes. We told them to get an airline with an AOC.  They came up with two or three choices and settled for XEJET. They came with XEJET to run everything. First of all, we told them to go and get their ATL. They did. We instructed them to register with the CAC. They did. We told them to go and get security clearance. They did.”

“They have gotten those things as Enugu Air. Enugu Air is not operating it on Enugu Air. If you go into their aeroplane, even the emergency card is XEJET. On the aircraft body, it is written operated by XEJET. We did not give Enugu Air any number. It is the XEJET number. If you get your boarding pass, it says XEJET. All these criticisms are not necessary. They went through a five-stage process.”

This five-stage process to getting an AOC, according to Najomo, includes a must-do demo flight, evacuation, demonstration and all others, stressing that the aviation regulatory body ensures that they go through before they get certified.

“The minister said it publicly when they were launching the airline that the president has said that we must encourage airlines coming into existence. The more the merrier. Maybe ticket fares will come down. More people will travel. AON should learn to compete, showcase its product. Today, Ibom Air has its product. Arik, Air Peace, and ValueJet have their products. Showcase your product.”

“The carrier demonstrated Enugu-Abuja, Abuja-Kano, Abuja-Lagos, night time and day time they demonstrated it. Where were these other people? They didn’t know? Two inspectors were there on those flights. My two revered General Managers were there.

Last line

The coming of Enugu Air and others is expected to bring back optimism. This could foster competition and help drive down fares. Competition is a natural result of many players in an industry.

Google+