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Waiting With Bated Breath Amid Challenges
First-quarter 2022 shows the tremendous pace the Federal Government is putting into some projects it wants to bring to fruition and one that it has inexplicably struggled to seal. Overall, the sector had its fair share of challenges that it is bound to surmount, writes WOLE SHADARE
Concession, national carrier project gather pace
The Nigerian aviation industry in the first quarter of 2022 is one that came with its ups and downs and one that preparations to birth a new national carrier and concession four major airports are taking a rather frenzy approach for those in support of the two major projects.
To ensure that the projects are finalized before the end of the administration’s lifespan, President Muhammadu Buhari at the commissioning of the multi-million Naira new international terminal at the Lagos airport directed the Minister of Aviation, Hadi Sirika to fast track the airport concession programme; an indication that four of the major four aerodromes in Lagos, Abuja, Kano, and Port-Harcourt could be handed to new owners any time from now.
In particular, the airport concession project (including the newly commissioned terminals) has reached an advanced stage.
The Ministry of Aviation said it would issue a Request for Proposal (RFP) to the shortlisted firms before the end of March, saying it expected to announce a partner in the second quarter of 2022 and handover by the fourth quarter of 2022.
The concession of four major international airports in Nigeria, Abuja, Lagos, Port Harcourt, and Kano, will be completed by the last quarter of 2022.
Sirika said the airport concession project (including the newly commissioned terminals) has reached an advanced stage and that the Ministry will be issuing a Request for Proposal (RFP) to the shortlisted firms before the end of March.
Sirika said the concession is expected to announce a partner in the second quarter of 2022 and handover by the fourth quarter of 2022.
The concession of the Lagos, Abuja, Port-Harcourt and Kano airports would relieve the government enormously and help it to pull back on major investment in airports investment while ceding that power to the private sector.
According to Sirika, “The aviation roadmap was developed and approved by Mr. President on October 18, 2016, which includes: National Carrier, Airport Concession, Maintenance, Repair, and Overhaul Center ( MRO), Aviation Leasing Company, Agro-Allied Cargo terminals, as well as Aerospace University, etc. The roadmap projects are being undertaken through Public-Private Partnership (PPP) and the Ministry has been working very closely with Infrastructure Concession Regulatory Commission (CRC) to ensure we have a credible and transparent process”.
Airport security challenges
Common criminals and terrorists breaching security layers at many airports, particularly the Kaduna airport, raises a red flag.
While flying has always been one of the safest ways to travel, thanks to its wide-ranging international regulatory frameworks, aviation incidents have an outsize impact on the public consciousness.
From airport attacks in Brussels and Istanbul to the shooting down of MH17 over Ukraine, the recent attacks on Kaduna airport (twice in one year) horrifying images are more powerful than reassuring statistics.
Nigeria has twenty-six airports under the control of the Federal Airports Authority of Nigeria (FAAN). The Nigerian army has already assumed responsibility for security at the airports in northern Nigeria.
Of the airports, apart from Lagos and Abuja, the two with by far the largest international and domestic traffic, the aerodromes in the north are in areas where jihadists or bandits — sometimes both — have been active.
One year after bandits stormed the staff quarters of the Federal Airport Authority of Nigeria (FAAN) at Kaduna airport, bandits, at the weekend, again caused panic at the same airport.
The action prevented smooth operations of flight operations as the military engaged them in a fierce battle.
The bandits were said to have prevented an AZMAN aircraft scheduled for Lagos from take-off owing to sporadic gun battle at the aerodrome as the military repelled the attack from the criminals.
One of the major issues in the first quarter of the year was the rate at which Jet A1 hit the rooftop, almost beyond the reach of domestic airlines following the sharp rise of the commodity to more than N580 per litre. The situation worsened as the carriers threatened to close down operations. Another reason for the threat was the high cost of operations.
Jet A1 high cost put travel on edge
The months of February and March were hectic for Nigerian airlines and travelers. The scarcity and high cost of aviation fuel, otherwise known as Jet A1, had put the domestic aviation industry in total disarray.
Not only in Nigeria are airlines and passengers groaning over the spike in Jet A1, but global jet fuel prices have also surged to near 14-year highs in line with crude oil’s surge on supply shortfall worries, slamming air carriers and travellers with steep cost increases just as air travel was starting to recover from COVID-19 restrictions.
The race for crude has jacked up prices for refined products that will be affected if crude supplies tighten.
Aside from the scarcity of Jet A1, the astronomic increase of over 300 percent makes it unsustainable for airlines to continue to operate at full capacity.
Unable to bear this, the carriers came together to do the unthinkable by fixing airfares of N50000 as the base fare in what jolted many people to condemn what is regarded as \price fixing’, an illegal way of doing things.
Airlines form cartel
They used all manner of words such as ‘collusion’ ‘cartel’ and other expletives to describe the action of the carriers. They were not also convinced because the new fare regime took place almost the same day and almost at the same time.
In response to passenger complaints about flight delays and cancellations, six Nigerian airlines teamed up to form an alliance code-named ‘Spring Alliance’, to ease operational hitches and tackle other challenges facing them.
Airlines involved in the new alliance include Air Peace, Azman Air, United Nigeria Airline, Arik Air, Aero Contractors, and Max Air, all signed the agreement on Tuesday, March 8, 2022, in Lagos.
The Chairman of Air Peace and Vice-president of the Airline Operators of Nigeria (AON), Allen Onyema, said the alliance was for the benefit of the passengers who fly with the six airlines.
“In the Aviation world, we have so many airline alliances like Star Alliance, One World, and several others. Airlines go into those alliances for the benefit of both passengers and themselves. So today, these six airlines have decided to come together to form the Spring Alliance for the benefit of the flying public that uses the opportunity provided by these airlines to fly
By this alliance, our passengers are protected whenever there is a problem with one airline. It is our response to the complaints of the flying public, so this alliance will enable us to satisfy them. But with this alliance and what we are going to be doing henceforth, the flying public will reap the benefit”
Olumide gets the job
The news two weeks ago that one of the brightest minds in the aviation industry in Nigeria today, Capt Dapo Olumide, had been appointed as the Chief Operating Officer of the airline had rekindled hope that the Federal Government truly means business.
His responsibility is to push and pull through the processes and procedures necessary for the take-off of the new airline.
These include registration of the airline, acquisition of an Air Operating Certificate – AOC, acquisition of offices, engagement of personnel, and acquisition and choice of aircraft for the new airline.
For Olumide to have accepted the appointment, he must have been convinced about it because the former Managing Director of Aero Contractors and Virgin Nigeria/Nigerian Eagle is a very meticulous and principled technocrat.
In its first-quarter breakfast meeting, the dominant discussion was multiple designations granted to foreign airlines at the expense of the country’s airlines.
Multiple designations stoppage
Speakers at the event included Mr. Abayomi Jones E, Former MD/CEO, Nigeria Airways; Alhaji Abdulmunaf Y. S, President, Airline Operators of Nigeria; Senator Hadi Sirika, Minister of Aviation; Capt. Prex Pobeni of ASRT; Mrs. Susan Akporiaye, President, National Association of Nigeria Travel Agents (NANTA), Dr. Gbenga Olowo, President, ASRTI and Mr. Andrew Okunnuga.
Among their demands was that picking and dropping of passengers beyond the designated point of entry should be banned, while entry points to the secondary international airports should be granted to anyone specific airline.
While Nigeria is busy opening up its airports to various foreign airlines, their counterparts elsewhere were restricting Nigerian carriers from flying into airports of their choice. Nigerian airlines have been put in the ring to box with champions or with the giants with their hands tied behind.
Last line
The future looks bright for aviation in Nigeria despite the occasional hiccups that most times dampen hope. The Federal Government is on course.
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