FG Pledges to Boost Local Airline Operators’ Capabilities
The Federal Government on Friday pledged to formulate policies aimed at boosting the capacities of local airline operators.
The Minister of Aviation and Aerospace Development, Mr Festus Keyamo (SAN), gave the assurance at the 28th edition of the League of Aviation and Airport Correspondents (LAAC) Conference, on Friday in Lagos.
Keyamo also said that development of Maintenance Repair Organisation (MRO) facilities in some parts of the country was a priority of the government. According to him, MRO development will help in advancing the aviation industry.
He said that, already, investors from Europe, Asia, America and Middle East were talking with the Federal Government on how to invest in MRO. Keyamo said that some bilateral air services agreement had not benefitted Nigeria.
He expressed concerns that some carriers would have choice Nigeria routes but would give Nigerian airlines second tier airports in their countries.
“Lufthansa is coming here but we are not going to Frankfurt. Delta, United are coming from America but we are not going there. South Africa is coming here with no reciprocity,” he said.
The Managing Director of the Nigeria Airspace Management Agency, Mr Umar Farouk, said that the agency was proposing an 800 per cent increase in navigation fees and charges.
He said that the charges were last reviewed in 2008. According to him, the increase might come into effect by Sept. 1 after due consultations with stakeholders.
Farouk proposed that en-route and terminal navigation charges should be reviewed from N2,000 and N6,000 to N18,000 and N104,000 per flight.
“Additionally, the extension of service hours will be reviewed from N50,000 to N450,000 per extension to enable the agency to recover the cost of diesel and other logistics. He said that without funds, the agency could not discharge its safety responsibilities effectively.
Dr Thomas Ogungbangbe, the Chairman of the conference and Chief Executive Officer of CITA Aviation Fueling Ltd., said that the Nigerian aviation sector, like many others around the world, had been severely impacted by the macro-economic environment.
Ogungbangbe said that high cost of fuel, poor access to foreign exchange, weakening currency, and the constant need for maintenance and infrastructure improvement were some challenges to be surmounted.
He, however, said that the challenges also presented the country with a unique opportunity to innovate, collaborate and drive the industry forward.
“Nigeria, a nation with a population of approximately 250 million, has over 30 airports. Yet, only three of these airports are financially viable.
“This stark reality underscores a severe under-utilisation of our aviation infrastructure and highlights the need for a strategic shift in how we approach aviation sustainability.
“Passenger traffic in our sector is closely tied to economic activities. A robust economy generates increased business and leisure travel, leading to higher passenger volumes. Therefore, our focus must be on stimulating economic growth and activities that will, in turn, boost demand for air travel.
“This requires a concerted effort from all stakeholders, including the government, private sector and international partners.
“Investing in new airport projects while neglecting essential infrastructure like roads is counterproductive. Improved road networks facilitate easier access to airports, making air travel a more attractive option for our populace,” he said.
Ogungbangbe said there was need to stimulate economic growth, allocate resources efficiently, encourage public/private partnerships, develop integrated transport plans and promote Nigeria as a travel destination. In his opening remarks, the Chairman of LAAC, Mr Suleiman Idris, reflected on unforeseen economic downturns that affected the aviation industry.
Idris identified poor access to foreign exchange, weakening currency, high fuel costs, high maintenance costs, decaying airport infrastructure, regulatory constraints and growing manpower demand as challenges.
He added that technology upgrades and passenger comfort were important for the growth of the aviation sector.
“The theme of this year’s conference was inspired by the challenging state of our economy, which has amplified the already existing constraints to growth and development of the country’s aviation sector,” he said.
Idris noted the capital-intensive nature of the aviation business, saying that transactions for equipment acquisition, spare parts procurement, leasing, maintenance and manpower development would require foreign exchange.
The theme of this year’s conference was: “Aviation Survivability Amidst a Challenging Macro-Economic Environment”. It was the 28th in its series and had aviation agencies represented. CBN Sells $148m to Authorised Dealers
