August 01, (THEWILL) – It has been observed that Nigeria, as a country, needs a new and sustainable aviation business policy that drives growth, and positions the nation for the coming common trade area for goods, services and in particular, a single air traffic market.
This observation was made by the President of the Aircraft Owners and Pilots Association of Nigeria (AOPAN), Dr Alex Nwuba, while speaking at the 28th edition of the League of Airport and Aviation Correspondents (LAAC) Annual Conference with the theme: “Aviation Survivability amidst a Challenging Micro-Economic”.
Dr Nwuba, who made a presentation on the topic: “Infrastructural Impediments to Aviation Industry Growth” informed that Nigeria believes it has a large market, yet the country sees the same 5% of the population who have bank accounts as the percentage of air travellers.
The aviation expert in his presentation equally kicked against the proposal for key industry players to continue importation of their aviation fuel, stressing that such proposal represents a poorly thought-through demand that will fail to address the issue of high prices of the product.
The former Chief Executive Officer (CEO) of Associated Airlines, therefore, suggested hedging as a way out, noting that such initiative has provided some succor to airlines in other climes where it is being practiced. Hedging is an advanced risk management strategy that involves buying or selling an investment to potentially help reduce the risk of loss of an existing position.
Confirming that the airlines are faced with huge cost of operation, he said, “There are no exceptions to the challenges facing the aviation industry, not just airlines. Airlines are faced with huge costs from all service providers and airports are equally faced with what they deem, and many will agree, are unnecessary charges. The rest of the industry are economic players and the difficulties bite everyone. If we examine aviation fuel, which is probably the largest cost component in the airline business, the prices keep rising. In many climes, hedging provides some breather, here, the business environment provides no such opportunity.
“The industry has proposed importing their fuel but this, like many proposals, represents a poorly thought-through demand that will fail to address the issue”, Nwuba added.
On manpower, the aviation expert also pointed out that the current limited technical personnel in the Nigerian aviation industry is a challenge waiting to hit the sector in the years to come, stressing that despite the current situation, Nigeria was making limited efforts in developing pilots and engineers, Air Traffic Controllers (ATCs) and others.
Nwuba said: “The issue of pilot shortage is a future problem, not a current one, but one that is going to become a major problem in the future as we are making limited efforts in developing new pilots, engineers’ dispatchers and air traffic controllers, even though we can see the challenges ahead.”
Also part of the regulatory impediments, according to Nwuba are the complex, complicated and ever-changing aviation regulations that add to operational costs which are already out of control.
He also noted that Nigeria has not taken seriously future environmental restrictions aimed at reducing carbon emissions which will ultimately lead to higher costs and operational limitations.
Similarly, Nwuba stated that the lack of respect for government policy
around duties and AOG requirements add to the burden of the industry while evolving trade policies will have an impact on aircraft manufacturing and maintenance.
Anthony Awunor, is a business correspondent who holds a Bachelor of Arts Degree in Linguistics (UNILAG). He is also an alumnus of the Nigerian College of Aviation Technology (NCAT), Zaria Kaduna State. He lives in Lagos.
