Aviation

Nigerian Airline Status 2022 – What is next in 2023

Published

11 months ago

January 1, 2023

By Prof. Tilmann Gabriel

For the last 70 years, Nigeria is aiming to develop a healthy airline industry, originally as a one national airline construct, as so many other nations, then leaning towards a minority share with reputable airlines, now focusing on a primarily private airline industry, as customary in most economies around the world.

The only successful airlines in Africa are currently all owned by the respective Governments: Ethiopian Airlines, Royal Air Maroc, Egypt Air. Most other national carriers owned by their Governments like Kenya Airlines, South African Airways, Air Mauritius etc are struggling to survive, only possible by significant annual subsidies from the Government. What is the truth then, looking at this airline business, specifically in Africa?

Business is an infinite game, never ending, with new rules and new players all the time, frustrating for executives and employees to remain the number one, never sure if this is sustainable for the years to come. ‘Too big to fail’ is a book that describes the dilemma of executives who have to innovate a huge company to stay abreast with changing rules and aggressive new players. IBM, General Motors, Sears and others are such examples, and airlines like PanAm, TWA, Alitalia were considered too big to fail.

In Nigeria, the largest African nation by people (220 million, going towards 400 million in the next 30 years), all initiatives to launch a sustainable National Carrier were doomed to fail. Nigeria Airways, founded in 1958, was the longest symbol of Nigerian national pride. The author counted some 130 AOC (Air Operator’s Certificate) holders in Nigeria, which went under in those 70 years of Nigerian airline industry, assuming this is a world record. Many of these 130 airlines were only flying for a few years, after spending lots of money (an airline launch costs at least 150M USD today), energy and disappointed hopes. Nigeria Airways was the longest existing airline so far, shut down in 2003, after 45 years in the domestic, regional and international skies.

Key reason for the demise of Nigerian Airways was the involvement of the Nigerian Government, dictating fares, rules, and free tickets for many. No airline can survive such intervention in the revenue creation. Sucking the lifeblood out of an airline, which has critical costs in the US dollar (aircraft leases, fuel, foreign fees), is a sure recipe for failure. Eventually, the then Government was no longer able to substitute such failure. What happened with the next hope of a successful Nigerian airline project, Virgin Nigeria? An agreement for Virgin Nigeria, to use the same terminal for domestic and international operation in Lagos, was no longer honoured by the new Government elected in 2007. Eventually, the 51% Government majority share in Virgin Nigeria was left with the pull-out of Virgin’s 49%, and with it the loss of the international relations and the Virgin supplied aircraft. Successor Air Nigeria was not able to survive without the Virgin assets and expertise.

Why is Ethiopian Airlines successful then as a 100% Government owned airline. Not a short story. Over 70 years it grew mainly organically, slowly and with realistic budgets and expectations. The main difference was that the Management, still led today by the highly regarded Girma Wake as Chairman, was never directed by the Government and by the inevitable changes of Governments in a democracy. Today, Ethiopian is the leading African Airline, with a 20% profit margin and a strategic plan to double its fleet of 130 aircraft by 2035. Vision, strategy, and a highly competent management governed by a Board of experts is the key for success. Disruptive innovations, adjusting to the fast changes in aviation (for example ET’s new cargo focus during the years of Covid), lean cost structures and as a reliable contractual partner with its lenders and aircraft lease companies, have made Ethiopian a valuable African airline, winning awards, and global recognition.

Is this possible in Nigeria as well? The Buhari Government, early on in its 8 years of ruling, agreed on an aviation roadmap with a National Airline, a leasing company, a maintenance company, and an Aviation University as its key components. Under the Minister of Aviation Hadi Sirika, all these roadmap projects are well under way, proof of a successful strategic political direction of this Government of the last eight years. It is important that the next elected Government continues this direction and present a stable aviation industry in Nigeria to the world, based on international aviation laws and supportive political governance.

The Private Public Partnership (PPP) concept which governs all these aviation projects, ensure that it is not the Government and taxpayers’ money, which the success of these aviation companies is based on, but a consortium of industrial investors, carefully selected by the independent Infrastructure Concession Regulatory Commission (ICRC) governed privatisation process. This way the Government has initiated its political strategy to create a profitable aviation industry in Nigeria but sustain from political influence and the reliance on taxpayers’ money.

The African continent is looking into a brighter future, the aviation industry is going to grow rapidly, far behind the rest of the world. Airlines will be a key infrastructure development for the continent, driven by the African Union agenda 2063. African free trade, combined with an open sky for African based airlines is the prerequisite for this development, which shall improve the infrastructure of the continent and contribute well above 5% to the country’s Gross Domestic Product, but also create tenths of thousands of jobs. The Single African Air Transport Market (SAATM) will be the frame for the success of those African airlines which get it right. Serving not only their own country but many of the 54 African nations, as flying between those nations will be enabled by SAATM. It is high time that Nigeria therefore has a strong domestic airline to cope with the SAATM challenges of an Africa wide competition.

The existing airlines in Nigeria are organised in the Airlines of Nigeria (AON), and Nigeria Air, the new National Carrier, has meanwhile applied for its membership as well, becoming a respected party of the common interests of the Nigerian airline industry. Some member airlines objected recently against the Ethiopian shareholding (49%) in Nigeria Air, starting a court case, which will be heard on 16 January at a Lagos court. The Aviation Union called this recently an unpatriotic attack on the interests of Nigerian aviation. At the end, Nigeria Air will be launched, the AOC application is in ‘phase three’ at Nigerian Civil Aviation Authority (NCAA), the launch is very near. The PPP process governed by ICRC is also about to close, with the Federal Executive Council’s approval of the contracts with the investor consortium to be signed shortly. The decision process of selecting the preferred bidder consortium of respectable Nigerian owners and Ethiopian Airlines was completely transparent and managed by the ICRC governed PPP procedures.

Nigeria Air is ready to launch with a fleet of Boeing 737 on domestic services, is currently recruiting many Nigerian aviation professionals to help start the airline operation. The Operations Control Centre at the Abuja Airport is ready to be opened with most modern IT systems. The booking engines on the airline website and App will be available shortly with loyalty credit cards and other innovative pay systems. The immediate goal is to introduce all up-to-date customer service systems to make flying a pleasurable and easy-to-use enjoyment.

Nigeria Air will be a new competitor in the Nigerian market, adding to the existing airlines. As Michael Porter taught us many years ago, the five factors of competition are for all businesses to recognise, amongst them that all competition creates new business for all, as the customer has added choices. In short, the new year 2023 will have added choices for domestic flights for all customers, soon also on the regional and international markets. Nigeria Air has the strategic direction, with a solid business plan for the next ten years and a start-up budget of 250 million US dollars. The Nigerian Government only invests 5% into this start-up funding (12.5 million US dollars), in line with its 5% share in Nigeria Air. By the transparent and structured PPP process the Government has ensured a clear ownership structure, including the leading African airline, with a secured start-up budget which gives Nigeria Air a solid financial foundation. The Buhari Government had promised a new aviation industry which the future of Nigeria can rely on. It took hard work by the many involved, driven by a Minister of Aviation never tired of pushing this Buhari strategy in the last seven years.

…
Prof. Tilmann Gabriel lives in Abuja and researches and works on African aviation projects.

Aviation

Flight Diversion: NCAA Investigates United Nigeria Airlines ✈️

Published

3 days ago

November 27, 2023

Sunrise Nigeria

By Elizabeth Okwe

The Nigeria Civil Aviation Authority (NCAA) has commenced investigation into the circumstances surrounding United Nigeria flight NUA 0506 to Asaba and the confusion it has created in the public domain.

This is according to a statement signed by the Director General of NCAA, Captain Musa Nuhu.

The statement however affirmed that preliminary steps have been taken pending conclusions of ongoing investigation.

“The Authority wishes to reassure the traveling public that it will leave no stone unturned as it has always done in the past to ensure continued safety of the aviation industry” it concluded.

But in its defence few hours after the incident, United Nigeria Airlines claimed the flight was diverted to Asaba as a result of bad weather.

Achilleus-Chud Uchegbu, the airline spokesperson, said the pilot was properly briefed about the diversion, noting that the cabin crew made “wrong announcement upon landing safely in Asaba [and] created confusion among the passengers.”

Capt. Musa Nuhu DG, CAA

However, unconfirmed reports indicate that the regulatory agency may have suspended the operations of wetleased aircraft in the stable of United Nigeria Airlines pending the conclusion of the investigations.

According to the sources, the Civil Aviation Authority is not satisfied with the explanations of the airline and is determined to unravel the remote and immediate causes of the flight misdirection.

Aviation

Omni-Blu AOC: Olateru Duely Resigned as Director of Airline, NCAA DG Affirms

Published

2 months ago

October 15, 2023

Sunrise Nigeria

Contrary to recent reports regarding the involvement of the Director-General of the Nigerian Safety Investigation Bureau (NSIB), Engr Akin Olateru in the management of Omni-Blu Aviation, a jet and helicopter charter company, it has been revealed that the NSIB Director-General actually resigned his position as a Director in the company before taking up appointment with the company.

Director general, Nigerian Civil Aviation Authority (NCAA), Capt. Musa Nuhu who has put the controversy to rest, has also revealed that the documents provided by the management of Omni-Blu aviation show that the Director General of Nigeria Safety Investigation Bureau (NSIB), Engr. Akin Olateru, duly resigned from the company before taking up appointment with government.

Capt. Musa Nuhu DG, NCAA

The NCAA DG spoke yesterday at the launch of a book ‘Handbook on Public Relation Practice and Aviation Reporting’, written by Sam Adurogboye, former public relations manager of NCAA.

He said the NCAA only asked somes questions in the course of the processing of the AOC which some quarters have conined to be suspension.

“It is unfortunate that it is coined that NCAA has suspended the AOC processes of Omni-Blu Aviation. One of the directors of Omni-Blu who is DG NSIB, Engr. Akin Olateru, a very close colleague and a friend of mine is a shareholder in Ombi-Blu and this was something he had before he came to the public service. Just because you came to public service does not mean you should wipe off your previous years.

Engr Akin Olateru
Director-General /CEO, NSIB

“There was just a question from NCAA that it appears there was a conflict between this application and the Act of NSIB and NCAA. So, they were asked to respond and they responded. He has provided all the documents, he has shown proof he has resigned and he has declared his interest in those organisations. So, he has provided the appropriate documentation to show that there is no conflict of interest.

“We cannot wipe out our previous lives just because we got to work for government, but there are conditions. In an industry that you are a CEO or a staff, you cannot have an interest, but there are procedures and he has given proof for those procedures; he has showed us that he actually resigned and that letter is actually confirmed by the Corporate Affairs Commission (CAC). He showed that he has done all the necessary declarations to show that he has resigned.

“The only thing is that he has given the necessary documents required, but we have to take it through the normal procedures, legal process so that when documentation is done that he has been cleared, somebody tomorrow will not go and challenge it. It is important to go through the process of clearing him so that the records are put there. Anybody that comes in the future, can look at the file, see that the issue was raised, but the appropriate information had been provided and individual is cleared”, he said.

Nuhu said the process would be completed during the new week.

“However, in this new week. It would have been done, but our legal adviser travelled out with me. So, we will work on it and the process will continue.”, he added.

He said the conflict of interest aspect has also be resolved.

It was reported last week that the NCAA had suspended the Air Operator Certificate (AOC) processes for Omn-Blu Aviation (OBA), which would enable it to operate as a scheduled operator.

Ombi-Blu currently operates as a chartered helicopter and jet company.

Aviation

Soludo Renames Anambra Airport After Literary Icon, Chinua Achebe

Published

2 months ago

October 6, 2023

Sunrise Nigeria

By Elizabeth Okwe and Ojone Grace Odaudu
…

Governor Charles Chukwuma Soludo has renamed the Anambra International and Cargo Airport, Umueri, to Chinua Achebe International Passenger and Cargo Airport.

In his speech at the 63rd Nigerian Independence Anniversary which took place at Dr Alex Ekwueme Square, Awka, on October 1, Soludo informed the applauding large audience that the airport was named after Achebe after wide consultations because Chinua Achebe is an African and global hero.

Soludo recalled that in his lifetime, Achebe declined to accept two high Nigerian national honours in protest against what he perceived as injustice to his home state that had tacit support from high officialdom.
For Soludo, it’s now incumbent on Achebe’s home state of Anambra to honour Anambra’s greatest gift to the literary world. Mr Governor stated that his administration will work in tandem with the Federal Government to offer an international airport worthy of the Achebe legacy.

Chinua Achebe is globally acclaimed as Africa’s most influential writer. His classic novel, Things Fall Apart, published in 1958, ranks amongst the greatest novels ever written in the world.

Achebe was the founder of Association of Nigerian Authors (ANA) in 1981 at the University of Nigeria, Nsukka, where Soludo was then a young student.

It needs to be stressed that Achebe was not just a writer. He was at once also a critic, activist, organiser, publisher, politician, and an uncommon leader who served as the President-General (PG) of his native town union in Ogidi, Anambra State. As a national political leader, Achebe was the Vice-Chairman of Aminu Kano’s Peoples Redemption Party (PRP) of the Second Republic.

A man of unshakable principle, Achebe wrote the following words when he rejected the award of the high national honour of Commander of the Federal Republic (CFR) in October, 2004: “I write this letter with a very heavy heart. For some time now, I have watched events in Nigeria with alarm and dismay. I have watched particularly the chaos in my own state of Anambra where a small clique of renegades, openly boasting its connection in high places, seems determined to turn my homeland into a bankrupt and lawless fiefdom. I am appalled by the brazenness of this clique and the silence, if not connivance, of the Presidency.” Achebe also rejected the award when it was re-offered in 2011.

If he were to be alive today, and seeing the dire circumstances of the country, Achebe would have made his word count as he did in his 1983 epochal book ‘The Trouble with Nigeria’ that began with these famous damning words: “The trouble with Nigeria is simply and squarely a failure of leadership. There is nothing basically wrong with the Nigerian character. There is nothing wrong with the Nigerian land or climate or water or air or anything else. The Nigerian problem is the unwillingness or inability of its leaders to rise to the responsibility, to the challenge of personal example which are the hallmarks of true leadership.”

Chinua Achebe’s oeuvre is indeed intimidating starting from the legendary Things Fall Apart in 1958 and grandly lapping all the way through No Longer at Ease, Arrow of God, A Man of the People, Anthills of the Savannah, Girls at War and Other Stories, Beware Soul Brother, Morning Yet on Creation Day, The Trouble with Nigeria, Chike and the River, Home and Exile, Hopes and Impediments, The Education of a British-Protected Child, There Was A Country etc.

When Chinua Achebe died at exactly 11:51pm (US time), that is 4.51am (Nigerian time), on Thursday, March 21 at the Harvard University Teaching Hospital, Massachusetts, USA, aged 82, it was one death that shook the entire world as tributes came pouring in from all the continents of the world, from presidents down to paupers.

The great Kenyan novelist, Ngugi wa Thiongo, who Achebe mentored paid him this tribute: “Achebe bestrides generations and geographies. Every country in Africa claims him as their own.”

The then American President Barack Obama extolled Achebe thusly: “A revolutionary author, educator, and cultural ambassador, Chinua shattered the conventions of literature and shaped the collective identity of Nigerians throughout the world. With a dream of taking on misperceptions of his homeland, he gave voice to perspectives that cultivated understanding and drew our world closer together. His legacy will endure in the hearts of all whose lives he touched with the everlasting power of his art.”

Soludo has delivered a universal masterstroke by renaming the airport to Chinua Achebe International Passenger and Cargo Airport, Umueri. Global tourists will in due course flood in because of the Achebe appeal in the same manner that Bard College, New York, USA built the Achebe House in the University.

Governor Soludo’s drive to turn Anambra State into a liveable and prosperous homeland that will be a destination point instead of a departure lounge has received the ultimate uplift with the naming of the Achebe International Airport.