The Aviation Industry in Nigeria

The recent three air crashes in Lisa Village, Kaduna and Port Harcourt that consumed more than 200 lives, and the crisis in evacuating Hajj Pilgrims to Saudi Arabia have doubtlessly exposed the serious shortcomings associated with the aviation industry in Nigeria. Underlining government concern over the crashes and subsequent loss of lives it became obvious that "drastic measures needed to be taken to stem the tide of aviation mishaps in the country and to urgently upgrade both the airports and the airlines equipment and facilities so as to rebuild confidence in the industry."

Inadequate facilities, rickety aircraft and failure on the side of the airlines to avoid "cutting corners" allegedly contributed to the crashes, the loss of lives and national indignation as observed by the SGF. But the government is now working hard to remedy the situation and save the citizens of this country from avoidable incidents in the future.

It is within the context of caring for Nigerians and ensuring the safety of the country's aviation industry that the government set up the Presidential Task Force on Aviation Industry. The Task Force was given nine terms of reference, such as "to critically examine the current status of the nation's airports, facilities, equipment and associated infrastructure with a view to identifying those in need of repairs or replacement in accordance with ICAO standards and regulations."

The term of reference quoted in full above is a key aspect of the current effort, as many in the past have pointed out that lack of total radar coverage in the country for example, airports without parameter fence leading to stray animals on runways and rundown runways have created doubts and fear of flying in some Nigerians.
Another term of reference for the Presidential Task Force is "to identify the level of maintenance and the competency of both in-house and out-sourced maintenance of the facilities and equipment at the airports."

Maintenance has been a national bane as far as public facilities are concerned. Often those entrusted with such maintenance are found wanting as made evident in various government reports. A previous government in the last decade, alongside the Nigerian Telecommunications Limited, the Nigerian Ports Authority, the defunct National Electric Power Authority and the Nigerian Customs Service, investigated the aviation sector itself.

The attention the aviation industry is currently receiving through media scrutiny and the Presidential Task Force, which has swung into action and made some startling findings at Malam Aminu Kano International Airport (MAKIA), is a sign of good omen that the sector would eventually be transformed so that security and safety would be so obviously enhanced that the traveling public would have total confidence in the industry.

The fact that one of the operators in the aviation industry was frank and honest enough to admit at the recent Presidential Forum on the Aviation Industry that he and his colleagues "cut corners" to remain afloat provides a strong and valid reason for the term of reference mandating the Task Force "to examine the staffing, competency, professionalism and commitment of the staff of the regulatory bodies and ascertain whether or not laid down rules and procedures are strictly adhered to in the discharge of their statutory responsibilities."

This is especially significant as the Minister of Aviation recently dubbed the aviation sector as corrupt and in need of a major cleansing exercise. President Obasanjo himself was so worried about the way the aviation industry is run that he threatened to sack all the management of the agencies supervising and regulating the sector and replace them with expatriates.

Nigeria could address the current shortage of high-grade manpower in the civil aviation industry if it restores the Nigeria College of Aviation Technology, Zaria, to the status accorded it by its founding father, Sir Ahmadu Bello, the late Sardauna of Sokoto, by ensuring that merit, as opposed to ability to pay school fees, is the main criterion for admitting cadets. Alleged ethnicity and seeming desire to edge out a section of the country from gaining access to its courses need to be reversed.

Employing some of the best trained in the college, who may now be in retirement or about to retire, as visiting tutors at the college, could accelerate the training of additional proficient manpower for the civil aviation industry. The school currently needs more government attention even as its admission policy is perceived by many people to disregard the need to reflect the diversity of Nigeria. If it is so, it should be corrected.
But must the aviation industry in this country rely on old, even if not necessarily outdated, planes? Is it not possible to improve the age and quality of the aircraft operated in Nigeria? Is it not possible for investors in the industry to order and pay for brand new aircraft and deploy them to the Nigerian domestic air travel market?

All these questions were raised in view of the fact that an upstart airline in India, IndiGo, is going into the field with brand new airplanes worth US$6 billion. "Airbus SAS won an order for 100 single-aisle A320 planes valued at $6 billion from IndiGo, a new Indian carrier," a report on the site of Middle East North Africa Financial News (MENAFN) said, adding that the Indian middle class is increasingly traveling by air, so IndiGo came in to cash on that.

If a new company could do it, those old in the industry are also not sleeping. A Saudi Arabian newspaper, the Arab News reported, "Saudi Arabian Airlines said yesterday it will buy 15 new aircraft to fly domestic and regional routes and boost its 139-strong fleet. A company official said all 15 planes will be the same 66-seat model but declined to give further details."

Another report showing that developing countries like Nigeria buy new airplanes and put them in the air commercially is posted on the website of the USA Today newspaper on 12 December, 2005 "Airbus, the world's largest commercial plane maker, won an order from China for 150 aircraft valued at almost $10 billion. China plans to buy A-320 single-aisle planes, Premier Wen Jiabao said at a press conference in Paris with his French counterpart, Dominique de Villepin. Airbus said the order is its largest ever from China and that the planes will be allocated to six Chinese airlines."

With at least 135 million people, there is a potential that investors in brand new aircraft could succeed commercially in Nigeria. In Africa, Sudan Air, Egypt Air, South African Airways, Ghana Airways and Air Namibia are operating successfully, flying their national flags profitably. But the most stunning success in Africa, in the opinion of many, is Ethiopian Airlines.

The 60-year old airline said in its web site, "Ethiopian operates a modern fleet of aircraft headed by six Boeing 767-300s, which are used for long haul passenger services. Medium-range flights are covered by four Boeing 757s, four Boeing 737-700s (Winglets) and a Boeing 737-260. Five Fokker 50s and three DHC Twin Otters fly the domestic routes. The fleet is flexible, cost effective and maximizes passenger comfort and safety. "
The airline proudly reported something that should be studied closely by the players in the aviation industry in Nigeria "An on-going fleet enhancement policy also ensures that Ethiopian's fleet will continue to reflect the latest developments in passenger and cargo aircraft technology. With this regard, Ethiopian has placed a firm order for 10 of the state-of-the-art Boeing 787 'Dreamliner', the first of which is scheduled for delivery beginning early 2008. Ethiopian is once again proud to be the first to introduce this cutting-edge technology aircraft into African skies. "

Back home: A spokesman of the Chanchangi Airline was quoted lamenting that the week-long grounding of its fleet caused a loss of N350 million in revenues. This implies that the airline could be making a turnover of N1.4 billion in a month. With brand new planes operating more efficiently in terms of lower cost of maintenance, fuel consumption and in all other detail, the sky is the limit for the investor. Just 15 per cent of 135 million Nigerians could sustain a number of such airlines profitably in this country.
Investment in the aviation industry should be considered by TransCorp, the newly formed Nigerian investment group believed to have the wherewithal to raise the money for just 25 per cent of the planes that were ordered by IndiGo of India. Buying government companies is not innovative.

The 25 planes could cost TransCorp, depending on the quality of negotiation, US$1.5 billion, just a shade under the US$1.3 billion facility being raised by a consortium of Nigerian banks for a Mobile phone operator in the country. Investing in aviation is more strategic and valuable, both in peace time and in national emergencies that warrant mass evacuations. The country must think seriously and organise the sector properly.

It is hoped that TransCorp and existing local airlines would consider investing in new planes. Doing so would save this country from further embarrassment whenever a need to evacuate some 60,000 people, such as those going on pilgrimage, arose. The lack of adequate number of wide-bodied airplanes owned by Nigerians to engage in such an operation is a shame, and regretfully exposes our vulnerability as a nation. This problem is repeated in the shipping industry and other means of mass transportation, such as rail transportation. It is a national error on a strategic scale.

While consolidated Nigerian banks could comfortably provide the financing required to buy new airplanes, Nigerian insurance companies, given their new minimum capital base, could give them full insurance cover.