•Urges scrapping of 6 aircraft policy for startups
By Chinelo Obogo
Airline Operators of Nigeria (AON) has urged the Federal Government to carry out sweeping reforms in the aviation sector including the cancellation of eight and ninth ‘freedom of free’ flights by foreign airlines into Nigeria among others.
During a meeting with the Minister of Aviation and Aerospace Development, Festus Keyamo, the AON made a presentation, outlining the challenges in the sector and proffering solutions to them. Capt. Roland Iyayi who made the presentation on behalf of the body said that unavailability of foreign exchange, scarcity of jet-A1 fuel, inadequate infrastructure, cost of capital and funding options, government policies, multiple taxes, fees and charges, lack of local aircraft maintenance, repair and overhaul (mro) facility, cabotage operations by foreign airlines are some of the challenges facing the industry.
On the minimum of six aircraft fleet size for scheduled operations, application of similar airport charges by FAAN for primary and secondary airports, requirements for six monthly stimulator recurrency checks for flight crew members, AON said the government should reverse all ‘ill conceived’ policies inimical to industry growth. On the issue of forex scarcity and jet fuel, AON said the FG should establish and provide a dedicated support line for domestic airline operators to unfettered access of foreign exchange through the Central Bank of Nigeria (CBN) at the official I and E window in support of local and international transactions. Facilitate the liberalisation, procurement and distribution of jet A1 nationwide and allow the AON to procure requisite licenses for product importation and distribution through strategic partnerships.
On Cabotage operations, the body said: “Some foreign airlines operating in the country have been given dispensation to operate cabotage and it has given them undue competitive advantage in the domestic market, reduces the market size and increases the failure of domestic airlines. The Federal Government should cancel all existing 8th and 9th freedom of free flights of foreign airlines operating within the county. We also suggest that foreign carriers’ codeshare arrangement with domestic airlines should be encouraged.” On the Bilateral and Multilateral Air Services Agreements, AON said they should be renegotiated in line with the provisions of SAATM, saying that domestic airlines have not had major contributions in previous negotiations and that lack of domestic representation has resulted in huge caotual flught and sidelining of the AON membership.
“Ensure the immediate prioritisation of a modernisation program for passenger facilitation equipment at major airports for the efficient management of passengers and associated baggage, prioritise the immediate installation and commissioning of bird hazard management equipment at all airports nationwide to enhance safety, reduce aircraft damage and increasing insurance premiums;
“Immediate reversion of all ill-conceived stifling policies inimical to industry growth, adoption of an annual simulator recurrency check for flight crews and the adoption of the manufacturers’ recommended maintenance service intervals as enshrined in the aircraft type maintenance planning document by the NCAA. There should be an immediate review of all industry taxes, fees and charges to determine applicability in line with the cost recovery model of the aviation parastatals.
“There should be immediate engagement with the Minister of Finance for the formal inclusion of the full customs exemptions in the current fiscal policy and finance act. There should be an immediate cancellation of all existing 8th & 9th freedom rights allocated to foreign airlines operating within the country and encourage such carriers to codeshare with domestic airlines.
Call for the immediate renegotiation of all existing BASA’s and MASA’s in line with the provisions of SAATM, with emphasis on the principle of reciprocity in favour of domestic airlines aspiring to expand operations into the international and sub-regional markets.
“Constitute a committee with membership drawn from key industry stakeholders, headed by IATA to review and update the industry civil aviation policy document in line with global standards and trends, and develop an industry 15- year strategic development plan for implementation. Initiate the immediate conduct of exhaustive fiscal and personnel audits of all aviation parastatals, to determine actual needs and gaps in line with their cost recovery model as enshrined in their various enabling acts and address the skewed workforce in favour of technical personnel.”