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Airline sustainability: Employing right principle

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All too often, airlines are held responsible for problems that are befalling them. For sustainable aviation development, it is not a task that they can accomplish alone. WOLE SHADARE writes

 

Scepticism
Any time a new airline signifies its intention to begin flight operations, the response of stakeholders is always not a cheery one.
The tendency is to see any start up airline as an oddity out of a magician’s hat, a kind of illusion that will soon fade away.
Those in aviation business and the general Nigerian public roll their eyes and say, “they have come again.” There is a sense that this too shall pass and hopefully, like the plague, pass over us.
An alternative to this posture of sceptical paralysis is to find a renew commitment on how to do business and see aviation as serious business and not as status symbol or one, which gives them access to huge loans, foreign exchange that are mostly diverted to issues not related to their core aviation business.

Few genuine ones
A few of the airlines are sincere with their services, just that the enormity of the business is taking a huge toll on many of them as they soldier on. But how long can they go in the face of hostile operating environment, tough economic reality, difficulty in accessing foreign exchange coupled with huge competition posed by mega airlines that are eating deep into their market.
The new order is competition and deregulation. These are the twin monsters that have perpetually put the carriers down or made them to struggle. How long can they struggle before something snaps?
Even financially well backed airline could not withstand the aero politics of aviation. Aside that, Arik was self-destruct; a situation that has put the carrier at the mercy of the Assets Management Corporation of Nigeria (AMCON). which came for a rescue mission the troubled airline.

Airlines evolvement
Since 1980s, several airlines have evolved, operate and collapse in Nigeria as a result of unfavorable business conditions.
The major operational issue identified with airlines is incoherent manipulation of the components of their business models in response to competitive pressures and external factors within Nigeria air transportation systems.
Airline business is highly challenging and involves complex and capital intensive operations. Regrettably, the traditional business models (Full – Service, Low – Cost, and Charter Carriers) that have been deployed elsewhere do not adequately address the dynamics of air transport environment in the developing Nigeria economy.
The air transport services in Nigeria has been on the increase since 1980s that has brought about 50 airlines between mid-1980’s and early 2000 including domestic airlines in the likes of Aero Contractors, Afrijet Airlines, Arik Air, Air Nigeria, IRS, Nicon, etc.
According to Air Transport Action Group, the air transport industry generates and supports 6.7 million jobs in Africa and contributes $67.8 billion to Africa Gross Domestic Product (GDP) – direct, indirect and induced impacts.

Expected growth
It was forecast that this contribution will grow in Nigeria consistently by 5 per cent over the next 20 years and that the increasing demands of air transport services has enabled airlines contribute about $0.4 billion and over 61,000 jobs to Nigeria.
Despite the forecast growth, the numbers of airlines depreciated to the extent that most of them no longer exist. In 2010, of the nearly 40 airlines operating in the 1990’s, there remained only seven operating scheduled flights in Nigeria as at today.
Although inconsistency in regulatory policies, deteriorating airports with obsolete facilities contributed to the failings, however, two major factors inclusive of negligence and managerial incompetence contributed to their failures.

Lack of best practice
Airlines negligence of industry best practices in aircraft operations and maintenances contributed to several aircraft crashes and folding up of the airlines while managerial incompetence led to fund misappropriations, manpower mismanagement and high indebtedness.
Not a few believe that there is need for financial capital by Nigeria airlines with associated direct and indirect employment impact to economic development given a comfortable regulatory framework, modern infrastructure and taking advantage of the inherent geographical location of Nigeria.
It further depicts amongst others, the importance of travel needs in economic development and resulting demand for airline products. Using the appropriate pricing and scheduling mechanisms, the airline could contribute immensely to economic development.

Expert’s view
Managing Director of Medview Airlines, Alhaji Muneer Bankole, at a press briefing to announce his airline’s suspension of Dubai route last week, admitted that it is practically impossible for Nigerian airlines to compete with mega airlines such as British Airways, Air France, KLM, Emirates, Lufthansa, Delta and others because of difficulty in accessing foreign exchange, tough operating environment and access to spare parts.
He said, “Let me tell you this. From this part of the world, it is absolutely difficult to compete with these other airlines. For you to compete with the big boys on the other9 side there are three basic things you need to do. We do not have the resources to get aircraft of $50million. You cannot access dollars. I am still looking for $2.3 million dollars from the Central Bank of Nigeria (CBN) to pay for lease of aircraft. Secondly, there is no place in this country or this part of the world where you have basic maintenance facilities in case anything happens to your aircraft.”
He lamented that aircraft remain on ground for so long because of lack of spare parts for airplanes that ordinarily should be flying.
“When an aircraft is AOG, there is no AOG support here; that is what is keeping the aircraft flying. When an aircraft is AOG, you know that somebody is there. In Europe, there are platforms. If we have issues of spare parts, we have to wait scanning all over Europe, America asking them whether they have parts or not. While doing this, we catch up flight to London and wait for the airline. That aircraft will remain on ground throughout that period”.

Last line
Aviation overview in Nigeria depicts that the industry is battered with socio-political, cultural and economic factors. However, there are still potential for sustainability of airline operations. A strong potential has been propelled by goodwill gestures including the government recapitalisation policies, tax-free aircraft parts importation among others.

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Aviation

Threat amid runway risks

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With every tragic high profile crash, the general public’s feeling about airline safety takes a punch. WOLE SHADARE writes

 

Safety issue

The recent incursion of Akure airport runway by cows that prevented Air Peace aircraft to delay landing for about 20 minutes has again brought to the fore the need to improve aviation safety through ensuring that airport runways are clear of obstruction.

A runway incursion is an incident where an unauthorized aircraft, vehicle or person is on a runway. This adversely affects runway safety, as it creates the risk that an airplane taking off or landing will collide with the object. It is defined by the International Civil Aviation Organisation (ICAO) as any occurrence at an aerodrome involving the incorrect presence of an aircraft, vehicles or persons on the protected area of a surface designated for the landing and take-off of aircraft.

While aviation has been getting safer of late, runway incursions by aircraft or vehicles remain a weak spot. After all, during each flight, the passengers literally put their lives in the hands of complete strangers.

Rising incursions

Although general aviation accidents have been decreasing over the past few years, incursions with all dangers attached to them have been increasing at an alarming rate. It is merely a matter of time for these incursions to become tragic accidents. Last week Saturday, scores of cattle made incursion into the runway of the Akure Airport, in Ondo State, preventing an Air Peace flight, which left Lagos for Akure from landing immediately until they were dispersed by security men.

March 8, 2011, the Hawker 850 aircraft carrying the then Vice-Presidential candidate of ACN, Mr. Fola Adeola, experienced scenario of runway incursion by goats and sheep at Bauchi airport.

Sources at the airport said the incident, which has become a regular feature at the airport premises occurred around 12:00 am, causing initial disturbance to the airline and passengers, forcing the former to hover mid-air for some minutes.

“The herdsmen foraged into the runaway causing some disturbance and preventing the aircraft from landing around 11:30am. The incident lasted for about 10 minutes until Aviation Security personnel, (AvSec), arrested the situation,” a source at the airport told New Telegraph.

Rising to the occasion

The management Air Peace said that flight P4 7002 from Lagos had to delay landing into Akure Airport when the pilot-in-command sighted cows on the runway at about 12.15pm. “On being alerted by control tower, aviation security personnel of the Federal Airports Authority of Nigeria (FAAN AVSEC) quickly intervened and cleared the runway. “The flight was eventually cleared to land after about seven minutes.

Our guests on board were all calm while the delay lasted. The aircraft departed for Lagos at about 11.06 with full escort from FAAN security personnel. Confirming the incident, Air Peace Corporate Communications Manager, Mr. Chris Iwarah said: “We confirm that flight P4 7002 from Lagos had to delay landing into Akure Airport today (Saturday) when the pilot-in-command sighted cows on the runway at about 12.15pm.

“On being alerted by control tower, aviation security personnel of the Federal Airports Authority of Nigeria (FAAN AVSEC) quickly intervened and cleared the runway.

“The flight was eventually cleared to land after about seven minutes. Our guests on board were all calm while the delay lasted. The aircraft departed for Lagos at about 1.06 with full escort from FAAN security personnel.”

India tops

Last week’s incident is reminiscent of what happened in 2005 when Air France plane, with 196 people on board, ploughed into the cows as it touched down at Port Harcourt.

No-one on board was hurt, but the collision left seven cows dead and the runway was soaked with their blood. The embarrassment led to the Minister of Aviation at that time, Mallam Isa Yuguda to summon airport officials to explain the security breach.

Runway incursions are today one of the major factors affecting flight safety. In India, there are numerous cases of small accidents involving runway incursions every year, with the potential always present for a major disaster, such as the Tenerife airport collision on March 27, 1977, when two Boeing 747 passenger aircraft collided on the runway of Los Rodeos Airport (now known as Tenerife North Airport) on the Spanish island of Tenerife.

A total of 583 passengers died in that incident, making it the deadliest accident in aviation history. Even if accidents are avoided, incursions often cause costly flight delays.

Animals on the Runway

Animals on the runway are a particularly pervasive problem at many airports in India. There are numerous examples. In 2005, an aircraft taking off from Pune International Airport ran over a stray animal, which resulted in a two-hour delay for flights.

In 2008, an Air India aircraft narrowly escaped accident when it hit an Indian blue bull during landing at Kanpur Airport in Uttar Pradesh. Also in 2008, a Kingfisher Airlines aircraft hit a stray dog on the runway at the HAL Bangalore International Airport, resulting in the aircraft’s landing gear collapsing.

The aircraft skidded off the runway and its nose collapsed; four passengers were injured. Maharashtra Chief Minister Prithviraj Chavan recently ordered an Airport Environmental Committee (AEC) enquiry into the recurring mishaps – hundreds every year – caused by stray animals on the runway at Babasaheb Ambedkar International Airport in Nagpur.

Perimeter absence at most airports

The absence of perimeter fences at most of the country’s airports has always posed a challenge to FAAN because of the huge capital outlay required in constructing perimeter fences, some of which are as long as 40 kilometres, across the 22 network of airports across the country. Some of the perimeter fence projects commenced in 2014 while the remaining ones were expected to be executed in 2015.

Bushes around the runways, particularly, airports that are not busy like the Akure, Ibadan, Jigawa and many others that were built by state governments but forced down the throats of FAAN, do not give full view of the perimeter, to allow both the control tower, FAAN Fire and Rescue observation posts and aviation security patrol teams have a sweeping view of the entire perimeter of an airport from their duty posts.

Static observation posts are yet to be erected at strategic locations within the perimeter fence of many of the airports to forestall premeditated and inadvertent unauthorized access to the airside.

Last line

What will really put the fear of flying into the hearts of passengers is when they personally experience an incident on the runway. Safety first is at the core of flight crew and air traffic control alike, still runway incidents and accidents keep occurring.

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Aviation

Gulfstream G500 Jet launches in Nigeria

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The all-new Gulfstream G500 business jet made its Nigerian debut this week, with Gulfstream Aerospace Corporation’s senior executives visiting Nigeria to give current and potential customers an opportunity to experience first-hand the new aircraft’s cutting-edge technology, unparalleled comfort and superior craftsmanship.

The Gulfstream G500 business jet was on display for private viewing at the ExecuJet Terminal of the Murtala muhammed International Airport in Lagos on February 16 and 17. At a networking event attended by senior leaders from diverse sectors of the Nigerian economy, Commercial Counsellor Brent Omdahl, according to a statement, reaffirmed the strong economic ties between the United States and Nigeria.

“The U.S. Foreign Commercial Service continues to facilitate long term business relationships between companies from the United States and Nigeria. We are excited to welcome this stellar group from the Gulfstream Aerospace Corporation to share their experience and expertise with Nigerian business executives,” Omdahl said. Private aviation is a growing industry in Nigeria, which is home to more than 20 Gulfstream business aircraft, most of them large-cabin, long-range jets capable of connecting companies and business owners with their corporate interests around the globe.

The Gulfstream G500, for example, can fly 8,149 km at nine-tenths the speed of sound, easily carrying passengers from Lagos to London or Moscow. At Mach 0.85, the aircraft can travel 9,630 km, linking Lagos with Caracas or Mumbai.

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Aviation

Long road to national carrier

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Anxiety mixed with uncertainty could best describe the slow pace of work to establish a national airline. WOLE SHADARE writes

Mission impossible?
Can Nigeria pull this through? Many are very desirous of a national airline for Nigeria but the slow speed of actualising the dream is beginning to dampen the spirit of many who thought by now, the issue of a national carrier would have been put to rest.
Just last weekend, Minister of State for Aviation, Hadi Sirika rekindled hope that in the next couple of months, “we should be closer to having a national airline. He noted that the country was very close to getting a national airline.”
Luthansa project flops
The Lufthansa saga seriously looked as if the entire project had collapsed before it even took off, leading to insinuations in some quarters that the government was not serious about one of the key things it promised to do in 2015.
Lufthansa Consortium’s contract that was expected to mid-wife a national carrier was terminated with the government explaining that the decision was taken in the best interest of the nation.
The minister alleged that the firm changed the term of contract it had with the government by demanding that aside asking for 75 per cent of N341 million upfront payments, which he said was not in line Nigeria’s procurement law, also alleged that the firm wanted the money to be converted to Euros, which was also not acceptable to them.
His words, “What transpired at the Federal Executive Council (FEC) meeting, which I explained very clearly is that we substituted Lufthansa Consulting as part of the consortium to provide transaction advisory services for the establishment of a national carrier.
“The reason is very simple and clear. We thought that Lufthansa Consortium is an arm of Lufthansa Airline Group and this may compromise the process. They might be interested party latter in the day of this procurement and this may compromise the system. We want it to be transparent, as fair and equitable as it should be.
“They wanted about 75 per cent to be paid of the sum ab nitio and this is not in line with procurement laws. The contract was in Naira N341million but they wanted to change it Euros and this was not acceptable to us. This was neither in our request for proposal. What we did was there were many in the consortium; we substituted them with another company that is even fair, that is no appendage to any other company that might be interested. So, they are more of a neutral company to take over the place of Lufthansa “, he added.
Although, Lufthansa Consortium is yet to speak on the matter, a source close to the firm said it has a reputation that would not want to be tarnished because of the  way the Federal Government went about the whole bidding process which was less than transparent.
Many, who spoke to New Telegraph, said the failure of flag carriers in Nigeria has made the government to look inwards with a view to making air transport easier for the teeming Nigerian public who have been short-changed over the years with bad services, unreliable schedule and many other customer related problems.
Lamentation
Many flag carriers have collapsed over the years. Many do not know where to turn to. While the lamentation continues, foreign airlines have perfectly filled the void and providing seamless air travel needs to very mobile populace.
While airline collapses have become commonplace with Aero and Arik going under during the past few years, the loss of flag carriers is a frequent phenomenon.
For sure, we ‘ve seen high profile bankruptcies; Arik and Aero immediately come to mind. But in both cases, the government worked hard to get them rescued.
Both Rwanda and Zimbabwe are good examples of why small countries need their own airlines. Big nation such as Nigeria needs it more than ever before.
With not enough space on the tarmac for a host of home-grown competition, countries need their own airlines to stimulate trade, boost tourism and in many cases, assert their  sovereignty.
Conventional wisdom suggests that states have no business running airlines. Indeed, the past few decades have seen most major economies sell their flag carriers to other airline groups or list them on the local bourse-often keeping minority stakes for sentimental purposes. The results have been mixed, at best.
Expert’s view
An aviation consultant, who spoke on condition of anonymity, said he also believes there’s a need for the governments to offer essential services to their citizens. In the case of countries with small populations or lacking strategic hubs, this also means underwriting the national airline.
Consultants might argue that this is wholly unnecessary, as other airlines will swoop down to soak up demand. But there is considerably more at stake than just ensuring every flight boasts 80 per cent load factor. On a good day, a national airline is an embassy with wings-transporting culture, cuisine, commerce and goodwill around the world.
Ethiopian Airlines is a flying example of resourcefulness and ingenuity. A flag carrier that instils a sense of pride when its tail is spotted on the runway of a far-off land; when it brings home the winning team or when it flies out of to evacuate citizens stranded in a conflict or disaster zone.
In an increasing globalised world, smart governments recognise the importance of having their flags fluttering on as many routes as possible. It is a mileage that certainly hasn’t been lost on Singapore, whose government owns the highly respected Singapore Airlines, or Dubai, home of Emirates. In both cases, these small states have made their airlines part of their national identity and growth strategy.
Last line
As governments around the world continue to tighten their belts, they also have the to remember there are some things you simply have to protect such as education, national security, banks and infrastructure are fundamental. An airline to call your own is also useful to get your citizens around the world and bring in visitors to invest and marvel at your achievements.

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