Aviation Stakeholders Brainstorm on Changing Times, Changing Strategies in Sector

• Harps on global market, sustainability, transformative technologies, others

 

 

The Aviation industry came to limelight again as the stakeholders in the industry were hosted by League Of Airport And Aviation Correspondents (LAAC), at its 27th Annual Conference with the theme: ‘Nigeria’s Aviation Industry: Changing Times, Changing Strategies,’ held At Providence Hotel, Ikeja, Lagos on July 27, 2023.

In his opening remark the Chairman, League of Airport and Aviation Correspondents (LAAC), Olusegun Koiki recalled exactly one year ago, July 28, 2022, how they gathered at Sheraton Hotels, Lagos to discuss the appropriateness or otherwise of the operation of some airports only at sunset and how to tackle the myriads of challenges confronting Nigeria’s airports development with the theme: ‘Sunset Airports: Economic & Safety Implications.’

Olusegun disclosed that the topics and discussions under the theme generated a lot of reactions from the public, especially the government and some industry players who critiqued the theme and the resolutions reached through the communique, which was issued in a record time.

He affirmed that between then and now, the industry has witnessed a lot of changes, either forwards or backwards, depending on who is doing the assessment.

Olusegun said: “Irrespective of divergent views held by stakeholders on the industry’s operating environment, safety standards and regulation, airline operations, airports management, airspace administration, manpower development, Jet A1 pricing and supply, ground handling and other issues, one thing is very clear, we are in changing times and we cannot do the same thing over and over same way and keep expecting a different result. We definitely need to change our strategies for aviation development, especially in the 21st century and under a new administration. The century is almost a quarter gone!”

According to him, this year’s conference: ‘Nigeria’s Aviation Industry: Changing Times, Changing Strategies,’ was informed by the emerging changes in approach to aviation business as regards technology, manpower development and training, airline management and operations, financing and other aspects of the aviation industry.

He opined that it is obvious, the global aviation industry will be determined by three factors in the next 77 years: a global market, sustainability, and transformative technologies, adding that the global market is not only a driver because of where planes are flying, but also because of where companies, manufacturers, and supply chains are located.

In his words: “Sustainability of the aviation industry is going to be a major driver in the years to come. This is sustainability in terms of the environment and climate change, which the world is already battling with. “Transformative technologies will be a major force for the industry and it will be very fast-moving and markets will have to contend with how to integrate them and how to do it quickly.

“We definitely need to do things differently if we expect Nigeria’s aviation industry to realise its full potential in Africa and the world, a feat that the location of the country has already positioned it to achieve, but for avoidable human factors. No local aviation sector.

“The air traveller or passenger is a very critical stakeholder in Nigeria’s aviation industry. Unfortunately, many failures in performance recorded by players such as poor airports infrastructure and flight cancellations and delays without compensation in line with regulations are products of a downplay of interest of the flying public, which boomerang on the image of the aviation industry in Nigeria. This is not exactly how aviation works in other climes today. You would agree with me that we definitely need to do things differently. Times have changed. We must change our strategies.”

He pointed out that it is important that in the execution of their various roles as stakeholders, they incorporate considerations for air travellers’ interests and the interest of other airport users, stressing that both government and private business concerns should in policy formulation, also be concerned about the economic interest of airlines, handlers and other service providers.

Olusegun lamented that the industry is tired of talk shows, while LAAC is not the only gathering of regular aviation stakeholders.

He argued that the industry is not short on ideas, but short on implementation, and harped on the need to start taking actions henceforth, especially on what are the acceptable standards of practice in more advanced climes and how do they adapt them.

He charged the stakeholders in Nigeria’s aviation industry on improved performance of all aspects of Nigeria’s aviation industry as major priority, noting that the Nigerian aviation industry needs to be at par with its counterparts elsewhere because there is no local aviation industry.

 

In his keynote address, the Director General, Civil Aviation (DGCA), Captain Musa Shuaibu Nuhu, represented by Director, Airworthiness, NCAA, Mr. Gbolaham Abatan, express his appreciation to the leadership and membership of the League of Airport and Aviation Correspondents (LAAC) for putting up yet another impactful conference.

Capt. Nuhu explained that the topic of this year’s discourse “Aviation Industry: Changing Times, Changing Strategies” is very apt on account of outstanding changes and paradigm shifts in our nature and approach to aviation business vis-a-vis technology, airline management and operations, financing and other aspects of the aviation industry.

Expectedly, the DG NCAA noted that as the largest black nation in the world and according to data released by the World Bank, Nigeria’s economy is the largest on the continent of Africa for the fifth consecutive year in 2022 with a nominal GDP of $477.4 billion.

Capt. Nuhu said “Considering that air transport has become very critical now due to other challenges of travelling by road, there is growing demand for aviation services which has encouraged many airlines to establish or plan to establish operations in Nigeria.

“On the one hand, the industry is battling with a string of challenges ranging from regulatory, institutional and structural challenges; on the other hand the industry is expected to experience significant improvements in areas of safety, security, technology, development infrastructure, airline management and operations among others.

“Hence, to provide for an effective legal and institutional framework for a virile and prosperous aviation in Nigeria and ensure that her obligations under international aviation agreements are implemented in conformity with the standards and recommended practices set by International Civil Aviation Organization (ICAO), in Y2022, the Civil Aviation Act (CAA) 2022 was assented by (now former) President Muhammadu Buhari.

“The new Act which had become operational from 16th August, 2022 repealed the CAA 2006 after the latter’s 16 years of use and currency. Others bills also assented to are Nigerian Airspace Management Act 2022, Federal Airports Authority Act 2022, Nigerian Meteorological Act 2022, Nigerian Safety Investigation Bureau Act 2022 and Nigerian College of Aviation Technology Act 2022.

“It was on the heels of that landmark development that the Nigeria Civil Aviation Authority (NCAA) kick started the process for the review of its major oversight document, Nigerian Civil Aviation Regulations (Nig. CARs) 2015 to align with recent ICAO amendments, other additional technology and procedural development etc that have transpired and industry observations received by the Authority over the years.

“NCAA has just concluded the rule-making process on the fourth amendment to the Nig. CARs 2023. The amended regulation to be cited as Nig.CARs 2023 is published and available (both in web based and PDF versions) on the NCAA website: www.ncaa.gov.ng.”

He added that the Authority will make known where and when the gazetted hard copies will be available for purchase at a later date, adding that meanwhile, all aviation stakeholders are required to comply as it effectively commenced on 10th July, 2023.

He expressed his delight that they are also beginning to see operators moving away from poor choice of aircraft, poor or bad route planning and operating models.

He highlighted that many Nigerian airline operators cutting across established and new entrants are appreciating the economics or intrinsic benefits of operating newer and narrow-body aircraft or single-aisle aircraft like Boeing 707, Boeing 727, Boeing 737, Boeing 757, Airbus A320 and Embraer E-Jet families as their immediate recovery and survival strategy.

Capt Nuhu added: “This is linked to prohibitive cost of fuelling, management and maintenance of larger aircraft. In this category are big jets configured for General Aviation such as Boeing 740/777, Boeing 767, Boeing 787, Airbus A330/340/380, MD-11 and MD-11ER. While operators should choose the aircraft that best suits their business plan as choice of decrepit and wrong aircraft-type for flight operations could be the greatest undoing of an airline.”

He opined that for a fact, global airline industry is one of the most competitive industries and therefore, to effectively tap into its huge market opportunity, cooperative behaviour and alliances among airlines became inevitable as it is prevalent in other climes.

In actual fact, he said, the first large alliance began in 1989 with large-scale code sharing between Northwest Airlines and KLM.

He noted that as of now, there are three global airline alliances operating in the air travel industry, namely: Star Alliance, SkyTeam, and Oneworld. Members of SkyTeam are Air France-KLM, Delta Virgin Atlantic;  adding that under Oneworld they have American Airlines, British Airways and Iberia; and under Star Alliance, which is the world’s largest global airline alliance, they have United Airlines, Air Canada and Lufthansa.

The airline industry in Nigeria, according to the DG NCAA, which currently contributes over $1.7 billion as well as supports over 240,000 jobs directly and indirectly, transformed to a more competitive market following its deregulation a couple of decades ago.

Taking a cue from legendary global alliances, sometime in 2022,  he revealed that there was also a revolutionary initiative in the industry when about six of our operators signed a pact tagged the ‘Spring Alliance’ to mutually support one another’s operations and improve service delivery for the mutual benefit of the passengers and the airlines alike.

“Even though the ‘Spring Alliance’ was a Nigerian initiative, there is a window for other like-minded airlines around the world to key into the scheme. Efficiency is the barometer for success in the industry as airlines’ On-Time-Performance (OTP) is an indispensable condition. Without any iota of doubt, such a landmark passenger-centric initiative will bring about sustainability and stability of airlines operations in terms of connectivity, low capacity and enhancement of seamless facilitation, thereby preventing flight delays and cancellations. Even though the phenomenon of delays is global, we are poised to minimize the number of delays to the simplest minimum,” he added.

He announced that synergy, collaboration, cooperation or merger is the rule of the game and encouraged Nigerian airlines to avoid I-want-to-do-it-alone as reflected in their lone-wolf operational tactic.

He appreciated the operators for a job well done in terms of the spirit and the impact and urged airlines to partner with their willing foreign counterparts through code sharing in developing Nigeria’s aviation industry.

He cited how Air France interlined with Aero Contractors and mooted that by nature and approach they should manifestly embrace collaboration and exhibit sustained commitment lest average Nigerian carriers become ever more fragmented and less competitive with mere individual identities.

“As aviation is global we have no choice than to keep aviation working by adopting workable initiatives and rightful changing strategies to contend with ever-changing times. What is happening to aviation is happening to all sectors. All these challenges notwithstanding, as the regulator, safety remains a priority, non-negotiable and it supersedes all other considerations for us. We are neither a police agency of the industry nor in existence to close airline businesses. The NCAA is willing to support the airline to get out of the woods,” he said.

The cynics, he said, have once expressed views that growth in the aviation sector could only double after 15 years but the reverse in the case.

He stressed “Rather we are seeing steady growth in the domestic sector with more airlines processing their Air Operator Certificates (AOCs) and the rate of connections among cities increasing. We are witnessing Nigerian airlines embarking on aggressive, but strategic expansion in regional connectivity and route strength as well.

“In spite of the numerous challenges, Nigeria’s air transport is making progress. The International Air Transportation Association (IATA) in a recent study recognized that the Nigeria air transportation sector has contributed over $1.7 billion in addition to provision of well over 240,00 jobs.

“As our traffic figures are doubling so is the number of young airports increasing with the old ones embarking on massive infrastructure upgrade, expansion and equipment modernization for safety, security, safe air navigation, weather observation and forecasting.

“Following the approval granted by the Federal Government, Aviation Security (AVSEC) personnel of the Federal Airports Authority of Nigeria (FAAN) have been licensed to bear light weapons like their counterparts in some European nations to enhance safety and boost their confidence to go to delicate areas at airports across the country. FAAN Training Centre was designated as ICAO Aviation Security Training Centre of Excellence while Nigerian College of Aviation Technology (NCAT) received Regional Training Centre of Excellence (RTCE).

“In addition, we have witnessed the transformation of the Accident Investigation Bureau (AIB) to a multi-modal Nigerian Safety Investigation Bureau (NSIB) with wider coverage; to determine the probable causes of accidents and serious incident occurrences in rail, maritime and aviation.

“ICAO conducts the audit of every member state about every three or four years and hence would be auditing Nigeria.  As you are aware, we are undergoing ICAO Universal Safety Oversight Audit Programme (USOAP)) yet again in August, 2023. We are on top of our duties, leaving nothing to chance in resolving deficiencies identified through the ICAO USOAP activities. We are positive as our preparations are in top gear for the forthcoming audits. We are prime to excel again as Nigeria has a lot riding on the modest credentials of the existing regime of robust regulations and almost-a-decade of zero accidents in scheduled flight operation,” DG NCAA emphasized.

On his part, Permanent Secretary, Ministry Of Aviation And Aerospace, Dr. Emmanuel C. Meribole, represented by Director, Air Transport Management Department, Mr. Hassan Ejibunu thanked the organizers of the Conference for coming up with a good theme: “Aviation Industry: Changing Times, Changing Strategies”, adding that the theme is apt, as it captures the dynamics of change in the aviation industry and the giant strides made in the Sector in Nigeria within the life span of the immediate past administration.

Meribole said: “It is pertinent to note that during the past administration, the aviation industry witnessed tremendous and tangible infrastructural development due to deliberate and consistent investments in critical projects and deployment of world class safety and security equipment to ensure air safety within the entire spectrum of Nigeria’s airspace. The programmes and activities were implemented in line with the Aviation Road Map which received accolades both within and outside Nigeria.”

Permanent Secretary, Ministry of Aviation and Aerospace, hinted that aviation is global and events are evolving at a fast speed particularly since the beginning of the twenty-first century, adding that Nigeria, as a country, will continue to work to ensure that it aligns herself with global best practices and implementation of the International Civil Aviation Organisation (ICAO’s) Standards and Recommended Practices (SARPs).

The Ministry of Aviation and Aerospace and its Agencies, he said, will continue to work assiduously towards the achievements of their individual mandates and in line with the laws establishing them.

It is in realization of the facts that aviation is dynamic which at times require changing strategies, when necessary, according to him that the Ministry got the 9th National Assembly to work on the enabling laws of the Agencies to give them the required impetus to deliver on their mandates.

“This is in line with the ICAO Recommended Practices. I am particularly confident that with the new enabling Acts, the Agencies under the Ministry of Aviation and Aerospace should be able to deliver without any form of encumbrances,” he enthused.

He assured that “As a Ministry, we shall continue to adhere to our mandate of formulation and implementation of policies and programmes on civil aviation and overseeing air transportation, airport development and infrastructural facilities, management, provision of Aviation provision of aviation security. Improvement of airspace management and other needs in conformity with international standards and best practices.

“As a crucial stakeholder in the aviation industry, the Ministry would continue to collaborate and synergize with LAAC to ensure that the aviation industry continues to make giant strides in Nigeria.”

In his address, Professor Mansur Bako Matazu, the Director General/CEO of Nigerian Meteorological Agency (NiMet) and Nigeria’s Permanent Representative with World Meteorological Organisation, who was represented by Director Research and Training (NIMET), Mr Effiom Oku stated that COVID experience revealed that the industry is highly dynamic, vulnerable, fast-paced in terms of changing technology, and thus require forward thinking initiatives and policies to keep up with success.

The industry therefore, he explained requires strategic long-term planning and innovations in relation to aviation business or economics, manpower management and competencies, infrastructure development, airline management, airport operations, Public-Private Sector financing, Airport Security, Safety of lives and property among many others; hence, the theme for this year’s annual conference is very apt.

“In aviation industry and as a Service Provider, my Agency, the Nigerian Meteorological Agency (NiMet) in line with its establishment mandate continues to promote and implement activities in support of national socio-economic development across all sectors of the Nigerian economy. The Agency is critical to the establishment, operations, and development of airports by providing climatic and insitu weather observations, weather predictions and continuous atmospheric monitoring for alerts and warnings.

“NiMet provides round-the-clock weather information that are critical for airport development e.g., wind rose; and safety of air navigation which includes weather information for take-off and landing, enroute, destination and alternate airports. Our personnel are highly skilled, competent, and re-trained regularly to provide aeronautical meteorology services.

“For every flying person, the services of the Agency must have been consumed albeit behind the scenes. We have invested and continue to invest in facility upgrades to promote efficiency of our operations. Our briefing rooms have been equipped and access to aeronautical weather information has been improved through automation.

“The Agency develops various products and services that are reliable, accurate, timely and actionable. These include the Seasonal Climate Prediction (SCP) which highlights vital Weather and Climate information that may affect socio-economic activities in air, land, and water transportation, agriculture, water resources, disaster management and mitigation, health, tourism, sports, power & energy etc. Other products include the Marine inshore and offshore forecasts, public weather forecasts, Impact-based weather forecast, Heavy rainfall forecasts and many more,” DG NiMET stated.

He reiterated that NiMet will continue to sensitize Nigerians on weather and climate related issues via their different products and services, while the Agency will sustain efficiency, excellent cooperation, competency, and uncompromising actions in the provision of products and services for the sustainable development of the aviation industry in Nigeria.

“I urge us to uptake the Early Warning for Early Action information from the Agency into your plans and programmes even beyond aviation for continuous proactive actions to avert losses, promote sustainable development and improve livelihoods,” Prof. Matazu concluded.

The event climaxed with the unveiling of the League of Airport and Aviation Correspondents (LAAC) magazine and the presentation of awards to some distinguished personalities and organizations in the Aviation industry in Nigeria by LAAC.