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Friday, August 10, 2012

Nigerian Aviation:time to arrest this capital flight by Alkasim Abdulkadir

Despite its chequered
political history and food
crisis Ethiopia is a
sterling example of a
functional aviation
industry, the following
recent achievements
are the reason for this
statement. One of its
main businesses -Asky
Airlines operates out of
Lome-Tokoin airport
and travels to 18
countries and has just
made Togo its regional
hub aside having its
headquarters there.
Ethiopia Airlines has also
made history as the
first airline to take
delivery of a Boeing 787
Dreamliner and also the
first non-Japanese
carrier to receive the
aircraft. The remarks of
Tewolde Gebremariam
are worth recounting
here “The fact that we
are the first airline
outside Japan to receive
this ultra modern
aircraft is an
affirmation of our
continuing pioneering
role in African aviation…”
The aforementioned is
exactly what the MD of
the defunct Nigerian
airways would have
said in the late 1970s
and ‘80s Nigeria. Despite
the extreme turbulence
that has characterised
the flight of the
Nigerian aviation sector
statistically it is still one
of the most important
markets in Africa,
especially giving the high
business, tourist, and
pilgrimage mobility of
Nigerians.
The NCAA says about 5
million people make up
the passenger traffic at
the Murtala Muhammed
International Airport in
Lagos; another 4 million
pass through the
Nnamdi Azikiwe
International Airport,
Abuja while an
aggregate of over 7
million travel through all
the airports in Lagos. No
doubt any aviation
investor, who ignores
these numbers, will be
losing out on a risky but
highly viable enterprise.
There’s no need
emphasising the loss to
our national coffers
capital to other
countries annually on
cost of routine (C –
checks) maintenance
carried out outside the
country. This is due to
the fact that we don’t
currently have the
capacity to conduct
these C – checks locally.
However, there are
facilities for A and B
checks. The funds
expended by Nigerian
pilots on gaining the
requisite flying
recertification and
aircraft simulator
training tests can be
conserved if some
these activities take
place here. A classic
example is an airline
with 3 or 4 aircrafts will
need to spend an
estimated $450,000 on
its pilots; as such some
of these investment
vistas include running of
an aircraft maintenance
hangar, establishment
of ground handling
companies and aviation
training schools. Others
are running a cabin
simulator and flight
simulator machines,
importation of aircraft
parts and navigational
aids facilities.
One cannot rule out the
multiplier effect of
business activities that
surround the airport
from aviation fuel
supply suppliers to
haulage companies and
catering services We
need to understand
that an airport goes
beyond the operational
components of the
runway, helipad, control
towers, hangars and
terminal buildings; but
also the components of
base operators,
seaplane docks and
ramps, air traffic
control, passenger
facilities and other not
only aesthetic but
functional parts like
restaurants, Telecom
and bank outlets,
lounges and emergency
services.
Nigeria must begin to
learn viable lessons
from other global
players take Air Berlin,
Germany’s second
largest airline, which
has approached several
airlines to find out
whether they would be
interested in becoming
a strategic investor,
amongst those
contacted are Etihad
Airways, Hainan Airlines
and Emirates are
understood to be
among the companies
that have been
contacted. This is
despite the fact that
the company’s equity is
currently €368 million
and not considered an
operating profit.
The federal ministry of
Aviation and some of
her agencies have
embarked on the first
phase of a long planned
international
investment road show
this past weekend. The
trip will take the team
to China, the United
States and Canada
involving companies in
finance and aerospace
industries like CSCEC,
ICBC, Hauwei, Boeing
and Bombardier.
More than ever before
there is an urgent need
to attract diverse
sources of funding for
our aviation sector to
grow; however it must
be emphatically stated
that there is an equally
important obligation
that the Ministry of
Aviation must provide
the enabling
environment for these
investments to flourish,
the National Assembly
must also carry out the
legal frameworks that
can provide the
ambience for the
investments platform
to bear fruition. Like
Harold Demuren of the
NCAA said “what is
therefore required at
this time is abundant
political will, adequate
legislation and a review
of the civil aviation
policy to propose cogent
guidelines for
infrastructural
development in all
facets including
funding”.

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