A Wrap Up on the Nigerian Aviation Industry in 2018

A Wrap Up on the Nigerian Aviation Industry in 2018

 

With the exit of the Nigerian economy from recession and the government’s plans for the sector gradually taking shape, the aviation industry performed creditably well in 2018, with stakeholders expressing optimism that the gains will be sustained in the incoming year, in order to make Nigeria a hub in West and Central Africa, which has a population of over 400 million people.

However, the sector also witnessed some challenges that need to be addressed to enable the country actualise its Aviation Sector Road Map, which is being driven by the President Muhammadu Buhari-led administration.

Below is a review of some major issues and events which occurred in the sector in the outgone year.

 

Aero Contractors Begin C-Checks on Boeing Aircraft

In January, Nigeria’s oldest airline, Aero Contractors, successfully conducted the first C-Check on Boeing B737-500 in Nigeria. This was carried out by Aero Contractors’ Aircraft Maintenance Organisation (AMO) at the Murtala Muhammed Airport, Lagos.

Sen. Hadi Sirika, Minister of State for Aviation, said the Nigerian economy would retain over N20 billion annually through local C-Checks on Boeing 737-300, B737-400 and B737-500 aircraft.

Sirika said: “Boeing is the most common aircraft type used by indigenous operators in Nigeria and we have over 30 of such aircraft.

“A normal C-Check costs between $1.8 million to $2 million outside the country and the fact that we can now do it here in Nigeria is a huge milestone because it will reduce the demand for foreign exchange by airlines.’’

According to him, it will also reflect directly in a significant drop in maintenance costs for airlines in Nigeria and the sub-region, as well as a reduction in downtime for such checks.

The minister said the feat had made Aero the only airline carrying out Boeing C-Checks in West and Central Africa.

 

Nigeria, Others Adopt Single African Air Transport Market

On Jan. 26, the Single African Air Transport Market (SAATM) was inaugurated in Addis Ababa, Ethiopia by the African Union Commission (AUC).

The SAATM is a flagship project of the African Union Agenda 2063, to create a single unified air transport market in Africa, the liberalisation of civil aviation in Africa and as an impetus to the continent’s economic integration agenda.

The minister of state for aviation said the federal government was committed to the full implementation of SAATM by 2018, despite the opposition from indigenous airlines.

 

Nigeria Retains Category 1 status

In February, Nigeria retained its Category One (CAT 1) Status following a successful re-certification audit conducted on its aviation facilities by the United States Federal Aviation Administration (FAA).

A letter from the FAA Administrator, Mr Dan Elwell, was formally conveyed to the Nigerian aviation authorities on the issue.

A team of auditors from the FAA had visited Nigeria for the audit of the safety status of the country’s civil aviation industry in November 2017.

The re-certification status enables Nigerian-registered carriers to continue to fly directly to the United States of America. Nigeria had attained Category 1 status in 2010 and also retained it in 2014 before the 2018 success.

There are eight critical elements required to be fulfilled before a country can scale the FAA audit. They are: legislation, regulations, organisations, technical staff, technical guidance tools, licensing, continuous surveillance and resolution of safety concerns.

 

FG Probes Dana Air over Air Mishaps

In March, the federal government constituted a panel to carry out a comprehensive audit of Dana Air’s personnel, operations and technical capacity following two near mishaps suffered by the airline’s aircraft.

This followed the consideration of a preliminary report submitted to the Federal Executive Council (FEC) by Sirika.

One of the airline’s aircraft had its door yanked off while taxing at the Nnamdi Azikiwe International Airport, Abuja on Feb. 8, while another of its aircraft overshot the runway at the Port Harcourt International Airport on Feb. 21.

Dana Air Media and Communications Manager, Mr Kingsley Ezenwa, said the airline welcomed the audit and was willing to work with the team and the federal government to demonstrate its commitment to flying safe.Nigeria hosts 59th Airports Council International (ACI) Africa Conference

In April, Nigeria hosted the 59th Airports Council International (ACI) Africa Conference in Lagos, which attracted key players in the global aviation industry to the country.

The three-day conference was organised by the Federal Airports Authority of Nigeria (FAAN) and had the theme: “Business Transformation for Sustainable Development of African Airports’’.

The Secretary to the Government of the Federation (SGF), Mr Boss Mustapha, who opened the conference, said the full implementation of the Nigeria Aviation Sector Roadmap would result in the transformation of business and economic growth in the sector.

Mustapha noted that the importance of aviation as a critical tool for social and economic development could not be over-emphasised, given its potential for immense contributions to the broader economy.

He said in 2017, the sector facilitated the movement of over 7.6 billion passengers, 109 million tons of cargo and recorded 89 million aircraft movements.

The SGF said that with a highly mobile population of 180 million people, these explain the importance Nigeria attaches to the sector and the reason why the president readily approved the hosting of the event.

 

NCAA Suspends FirstNation Airways as Max Air Begins Scheduled flights

On May 11, the Nigerian Civil Aviation Authority (NCAA) suspended the Air Operators’ Certificate (AOC) of FirstNation Airways indefinitely.

The suspension was conveyed to the airline via a letter referenced: NCAA/DG/CSLA/RM/1-06/18/2304 and dated May 11, 2018, which was signed by the Director General of NCAA, Capt. Muhtar Usman.

The NCAA said the suspension was sequel to the flagrant and continuous violation of the terms and conditions of issuance of its AOC by the airline, thereby carrying out unauthorised and illegal operations.

“When the AOC of FirstNation Airways expired, the airline did not have at least two airworthy aircraft capable of servicing its approved schedule as required by Part 9.1.1.6(b)(2) (ii) of Nigerian Civil Aviation Regulations (Nig.CARS) 2015.

“Consequently, the airline’s Air Operators Certificate (AOC) was, upon renewal, restricted to non-scheduled operations (Charter only),’’ the NCAA said.

However, the vacuum created by the revocation of FirstNation Airways AOC was quickly filled by another indigenous airline, Max Air, which began scheduled flight operations within the same period.

 

FG Removes VAT on Transportation

On June 6, President Buhari signed an Executive Order for the removal of Value Added Tax (VAT) from “All Forms of Shared Transportation,’’ to the delight of domestic airline operators.

The Chairman of Airline Operators of Nigeria (AON), Capt. Noggie Meggisson, said the decision presents a veritable opportunity for the aviation industry to immediately take advantage of the order to expedite a White Paper to that effect.

He said: “We as Nigerians have been crying out for decades now for discussions on the immediate removal of VAT from domestic air transportation, in line with global best practice, but we have barely been heard over the years.

“VAT is an added burden on our passengers who have limited funds at their disposal and have reached their elastic point in this difficult time in the nation’s economy.

“This adversely affects the sector by reducing the number of those who can afford to travel by air due to high fares in this tough economic times.’’

 

FG Unveils Logo, Name of New National Carrier

On July 18, the federal government unveiled the name and logo of the new national carrier, ‘Nigeria Air’, at the Farnborough Airshow in London, United Kingdom.

Although the project was temporarily suspended on Sept.19 by the Federal Executive Council (FEC), the aviation minister said it was back on track and currently at procurement stage and had several willing investors.

Sirika said a consortium of Transaction Advisers, comprising Airline Management Group Ltd, Avia Solutions Ltd and Tianaero FZE, were appointed for the project, in line with best practices.

He said the TAs completed the Outline Business Case (OBC) Report, which was reviewed by the Infrastructure Concession Regulatory Commission (ICRC), which subsequently issued the OBC Certificate of Compliance.

According to him, the report has been presented to FEC for consideration to move to the procurement phase and then Full Business Case (FBC), where it will be opened for bidding by investors, including ordinary Nigerians.

The minister explained that the estimated funding requirement for the establishment of the project was 300 million dollars, up to 2020.

 

Air Peace, Boeing Sign Multi-Million Dollars Agreement to Purchase 10 B737 Max Aircraft

On Sept. 13, Nigerian carrier, Air Peace signed a multi-million dollar agreement with aircraft manufacturers, The Boeing Company, for the purchase of 10 brand new B737 Max aircraft.

The agreement was signed at the United States Consulate in Lagos by the Chief Executive Officer of Air Peace, Mr Allen Onyema and Boeing Sales Director for West and Central Africa, Mr Larry Tolliver.

Onyema said the procurement of the aircraft, which is the latest by Boeing, was being financed by Fidelity Bank and would be deployed for Air Peace international operations.

He said the federal government had granted approval to Air Peace to begin flights to six international destinations which are London, Dubai, Sharjah, Guangzhou-China, Mumbai and Johannesburg, in the next few months.

 

Aviation Unions Ground MMA2

On Oct. 10, trade unions in the aviation sector picketed the Murtala Muhammed Airport 2, Lagos over the alleged sack of 24 employees who indicated interest to unionise by Bi-Courtney Aviation Services Limited, operators of the MMA2.

The unions were: the Air Transport Services Senior Staff Association of Nigeria (ATSSSAN), the National Union of Air Transport Employees (NUATE) and the National Association of Aircraft Pilots and Engineers (NAAPE).

Despite a subsisting court order issued by Justice Ibrahim Buba of a Federal High Court, Lagos restraining them from the action, the unions shutdown flights and business activities at the terminal.

Airlines affected by the action included Arik Air, Medview Airline, Azman Air, Max Air, Dana Air and Aero Contractors, who operate flights from the terminal.

The airlines were forced to temporarily move their passenger boarding and processing to the General Aviation Terminal (GAT), operated by the Federal Airports Authority of Nigeria (FAAN), before the dispute was eventually resolved by the parties.

 

Overland Aircraft Catches Fire at Lagos Airport

On Oct.12, a turboprop aircraft belonging to Overland Airways was severely damaged by fire while parked at the airline’s hanger at the GAT.

The ATR aircraft, with registration number: 5N-BPE was being powered by the Ground Power Unit (GPU) when the incident occurred.

However, there were no casualties as the fire was quickly contained by fire fighters from the FAAN.

 

FG Pays N22.6bn Entitlements of Defunct Nigeria Airways Workers

From Oct. 15, the Presidential Initiative on Continuous Audit (PICA), began the verification exercise of ex-workers of the defunct Nigeria Airways at three centres in Lagos, Enugu and Kano.

The exercise was conducted by PICA following the approval of the N22.6 billion approved as part payment of their entitlements by the federal government.

At the conclusion of the verification, the government began crediting the accounts of the over 5,000 beneficiaries who had been in pitiable states due to their inability to cater for themselves and their families.

The former national carrier was liquidated in 2004 by the President Olusegun Obasanjo’s government, without paying the workers their severance packages, as stipulated in extant labour laws.

The workers were paid a fraction of their entitlements by the late President Umaru Yar’Adua regime in 2008 before President Muhammadu Buhari recently approved the part payment of N22.6 billion to them.

The government has also promised to pay the other half of the money to them as soon as funds are available.

Mr Godwin Jibodu, Chairman, Nigeria Airways Elders’ Forum, commended the president for coming to their rescue.

“We are very grateful to the President Muhammadu Buhari-led administration for finally coming to wipe our tears away, after all these years.

“The government has given hope to these pensioners and now they will be able to attend to their health issues and other responsibilities,” Jibodu said.

 

Inauguration of Port Harcourt International Airport Terminal

On Oct. 25, Buhari inaugurated the new International Terminal of the Port Harcourt International Airport, Omagwa, Rivers State.

The construction of the new terminal which was built by the China Civil Engineering Construction Corporation started in Sept. 2013 and was inherited by the current government at less than 30 per cent completion.

 

ICAO Inaugurates FAAN Training Centre at Lagos Airport

The International Civil Aviation Organisation (ICAO) on Dec. 7 inaugurated the FAAN Training Centre at the MMIA and designated the facility as an ICAO/ACI Global Training Centre.

Mr Mam Jallow, ICAO Regional Director, West and Central Africa, commended the federal government for supporting the civil aviation sector and its commitment to fulfilling Nigeria’s international obligations in this respect.

 

Inauguration of Nnamdi Azikiwe New International Terminal

On Dec. 20, President Muhammadu Buhari inaugurated the new International Terminal of the Nnamdi Azikiwe International Airport, Abuja.

The President said the terminal was a significant milestone and will be a catalyst for economic growth and as well sustain developments in civil aviation in Nigeria.

 

 

 

By Solomon Asowata, News Agency of Nigeria (NAN)

Photo: Credit: Google