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We’ll Stop Airport Concession if Any Job Loss Occurs – Sirika

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The controversy over whether the Federal Government will concession the four major airports in the country or not has been laid to rest, as the Minister of Aviation Senator Hadi Sirika Thursday said by the process will concluded and sent to the Federal Executive Council, FEC by February 2022

And for umpteenth time, minister has promised that there will be no job losses and if there will be any, concession will be halted.

Sirika, who was speaking at the Airport Business Summit in Lagos said, starting June 2021, the ministry will advertise and request for qualifications from bidders.

He assured that the bidders will be requested to demonstrate their competence, the financial and management capacity to handle the concession.

According to him, everything that will be done will transparent and in the best interest of Nigerians and due diligence will be done throughout the entire process.

Sirika said, the concession was not selling off the assets of Nigerians but rather a loan to make the airports better and business oriented to compete with other airports in the world.

“We are not going to sell because those that were sold were lost, so we in government believe that we should hold those assets for the Nigerian people in trust. But we must make those assets better to provide the service that is needed. So, we said rather than sell outrightly, we will concession. In other words, we would give it up to someone who would operate them, make them better and we get more money and the people will also enjoy better service and the industry grows and after certain time, it comes back to us. So, the decision has been made by government that we are not selling any asset any more and that we would do concession and get it back under certain condition”.

He said the proposal will be presented to the Federal Executive Council (FEC) in February 2022.

“We have a government that came in and is popularly elected and re-elected because we were able to offer something different and we understand that the committee on privatization of government entities.We in APC, which is the current government and the party in power do not believe that we will begin to sell the assets that belong to the 200 million people and the future generation of this country”.

Sirika stated that, everything about the concession process had been outlined in the business case and warned mischief makers to stop causing confusion where there is none, adding that they have engaged the best hands as consultants.

According to him, about 4 stakeholders engagement have been held to educate people on concession, its viability and benefits to Nigerians yet some stakeholders were not willing to accept that the concession is the way to go.

For transparency, Sirika said, he involved Labour which is not part of the law but just to show to all stakeholders that they had nothing to hide.

He said, “Once the concession happen, there will be no job loss. If we employ you and give you letter, it means you are qualified and equipped and therefore you will continue to be a FAAN staff, there will be no single job loss and as a matter of fact, we will be needing more hands”.

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Aviation

AIB-N, NAF Collaborate for Improved Air Safety

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 Group Capt. B. A . Usman and COMM/CEO, Engr. Akin Olateru, at AIB Head office, Abuja.

Accident Investigation Bureau Nigeria (AIB-N), has reiterated its commitment to maintaining partnership and institutional collaboration with the Nigerian Airforce (NAF).

This is part of its drive to ensure sustainable cooperation with relevant authorities for safer airspace in Nigeria.

The Commissioner AIB, Mr Akin Olateru, who stated this while receiving the newly appointed Abuja Military Airport Commandant, Group Capt. B. A. Usman says the NAF had the Bureau’s full support and cooperation in ensuring air safety in the country.

He disclosed that AIB-N, as a government agency, has a strong relationship with the NAF, which was sealed with a pact between the two government establishments.

“AIB-N cannot do it alone. A strong collaboration must exist among relevant agencies in order to ensure the continuous safety of the Nigerian air space,” the Commissioner said.

While soliciting the Bureau’s support, Group Capt. Usman said, his team were seeking ways to consolidate the existing synergy between the agencies to ensure maximum safety and security within and outside the airport’s environment.

The Commandant further urged the Bureau not to hesitate to call NAF in times of distress, assuring the Bureau of readiness of a rapid response at all times

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Aviation

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DEFINING A NATIONAL SELF INTEREST-LESSONS FROM A BASA AGREEMENT GONE SOUR

By Tunde Adeniji

The DG NCAA Captain Musa Nuhu recently issued a Press release, conveying the decision of the Honourable Minister of Aviation Sen. Sirika Hadi to replace the operating schedule approval for 21 frequencies/week given to Emirates airlines with 1 weekly Frequency. He had relied on the spirit and letter of the Bilateral Services Agreement (BASA) between the two countries in responding to the single slots weekly offered to Air Peace at Sharjah Airport. The DG’s letter ended with his assurance to members of the public that national interests in all Aviation matters will be jealously protected.

The Aviation Policy and Strategic group discussed the fallout from this decision exhaustively, deconstructing the issues involved, even as its erudite members put forward many good suggestions about how to proceed. The engagements have been rich and enlightening and our intention in contributing to this discourse is to focus on the need to define a National Self Interest in a robust policy framework to guide future BASA/external Aviation relations engagements.

This need is justified based on our experience as a Nation which seems to suggest that we may be haunted yet again by the many decision makers who fell into the trap described below by Jon Moen:

“People who are managing a (financial or economic) crisis are not immune from personal motivations…Sometimes the people in charge don’t know at first that their personal motivations and past experiences might not be compatible with what is best for the greater good.”

We view National Self Interest ‘’As the overriding purpose governing the state’s relationship with the outside world, it serves two purposes. It gives policy a general orientation towards the external environment. More importantly, it serves as the controlling criterion of choice in immediate situations. The dominant view of national interest, in other words, dictates the nature of a state’s long-term effort in foreign policy and governs what it does in a short-term context’’.

The concept of Bilateral Air Services Agreement (BASA) is the outcome of the compromise between the Open Skies advocacy of the US and the strong opposition by the UK and European countries, as a protection from their inability to compete with the formidable dominance of the US in post WW2 world. The delegates at the Chicago convention therefore agreed to a regime that allowed every country complete and exclusive sovereignty over its airspace with the provision that permissions were to be negotiated between contracting states on a bilateral basis. There are at least three different models of BASA, with varying levels of liberality, as may be agreed by the parties to it. We may therefore consider is a contract that should be mutually negotiated like any other

Slots on the other hand ‘’is the most emotive subject in civil aviation. It is the approval from an appropriate authority to take off at a particular time at one airport and land at its destination at another time. The difficulty arises in so called coordinated airports i.e., congested airports where there are severe capacity limits at certain times of the day. It subsequently dictates the difference between operating a route or not’’-D.H. Bunker

The Adam Smith model of Self-interest as the motivator of economic activity with competition as regulator to ensure the market runs efficiently without intervention, is situated below:

“It is not from the benevolence (kindness) of the government (of UAE), Its flag carrier (Emirates), or Airport (Sharjah) that we expect access to Air Peace, but from their regard to their own interest.”

It is important to state at the outset that the self-interest we advocate is (in the words of Lauren Hall) consistent with the demands of justice and becomes the germ from which virtuous, fair behaviour grows, to drive the larger economic engine of society.

In clear economic terms slots represents a barrier to entry and airlines awarded slots benefit from an economic rent. A system established to ensure stability has slowly become the property of the airlines. Slots are sold at a remarkable premium or used as a tool to exert unfair competitive pressures. It has been reported that many European countries who oppose the sale of slots, do so on the principle that, a private firm cannot benefit from a public good (Mackay 2008)

The decision to operate slot system or not remain those of the relevant airport and can be considered “its own internal cuisine‘’ just as ‘’A country’s motivation is its own concern, but the righteousness of its actions is the concern of all’’.

Nigeria like other states deliberately follow certain policies in pursuit of their national interest. The current face off with UAE, shows clearly that we have been a bit too eager to give than to receive or at least gave out before we received.

Our BASA is seemingly driven by the needs and ease of other countries. We have offered multiple entry points to countries, even where our own carriers have faced issues with slots for decades. These incongruities have never been convincingly explained to operators and other stakeholders

We have a unique opportunity to review our thinking and position in this area, especially as our slow adoption of Single African Air Transport Market (SSATM) and African Continental Free Trade Areas (AfCFTA) is totally in sharp contrast to our rush to embrace these dominant international brands

Our policies can start by ensuring that the investment by Nigerian carriers is complimented by access to the best of our facilities as no other country will ever offer them same.

A crisis, they say, is a terrible thing to waste, and so we suggest  that the minimum positive outcome from this saga should be a comprehensive policy paper that will spell out in clear terms, how Nigeria will take actions that will reduce to the barest costs and increase to maximum  benefits its engagements to further our National Aviation Interests.

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Aviation

NiMet warns of Imminent Temperature Across Northern States

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The Nigerian Meteorological Agency (NiMet) has in its ‘High-temperature outlook’ issued yesterday in Abuja predicted that most parts of the northern region will experience temperatures greater than 35°C and less than 40°C between November 30 and December 1. Pervade

It also stated that northeast – Borno, Yobe, Bauchi, Gombe, the eastern part of Jigawa, Northern Adamawa, and Northern Taraba are all expected to have temperatures in the excess of 35°C.

Similarly, Sokoto, the western part of Zamfara, and the Eastern half of Kebbi, in the North East, are all expected to experience temperatures in the excess of 35°C during the forecast period.

In the central part of the country, Niger, Northern part of Kwara, west of FCT, southern Plateau, northeast of Kogi, and northwest of Benue are all expected to experience high temperatures.

In its forecast for December 1, the agency predicted high-temperature greater than 40°C over parts of Niger State.

However, other parts of Niger, FCT, northern Kwara, Kogi, Benue, Nasarawa, and eastern Plateau in the central states are expected to experience temperatures above 35°C.

Similarly, Sokoto, Kebbi, and Zamfara in the northwest as well as northern Jigawa,  southern Yobe, Borno, Gombe, eastern Bauchi, northern Adamawa, and northern  Taraba in the northeast is expected to record temperatures greater than 35°C.

Also, parts of Ogun State in the southwest could experience 35°C.

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