… Olowo suggests two strong flag carriers for Nigeria
Chairman and CEO of Air Peace airline, Barrister Allen Onyema has expressed his displeasure at putting the blames of flight delay or cancellations on airlines operating in the country. This is just as the out-gone President of Aviation Safety Round Table Initiative (ASRTI), Dr Gabriel Olowo proposed that all the domestic airlines in Nigeria should merged to two strong and efficient flag carriers.
Onyema who presented the lead paper at . Quarter Brunch Business Meeting (BBM) of Aviation Safety Round Table Initiative (ART) held at Golfview Suites & Conference Centre, GRA, Ikeja, Lagos on Tuesday frowned at the statistics recently published by Nigeria Civil Aviation Authority (NCAA) on the operations of domestic airlines in the country.
He said the regulatory authority should have added what were responsible for the delays or cancellations as well as providing the statistics to the public, the delays caused by nature and those caused by the airlines, due to technical reasons.
“On this issue of flight delays and cancellations, we have to tell the truth,” Onyema said, “it is unfair for NCAA not to have added what caused delays or cancellations. They should bring statistics telling us the delays caused by nature and the ones caused by airlines; may be due to technical reasons or anything. In Aviation safety is a key thing. But blaming the airlines outrightly without letting the passengers know what the airlines are passing through is not fair about the airlines. Sometimes VIP movement can cause you one or two hours and you are not allowed to say it. It is the airlines that carry the blames.”
Also in his address at the eventAlso speaking at the event with the theme Aviation Reset: Agenda for the new Dispensation (Increasing The Numbers). the immediate past President of ASRTI Dr. Gabriel Olowo lamented the lack of support from the government for the private players and pointed out that the government cannot exonerate itself from the deaths of past carriers.
He however noted that Nigerian airlines are dwelling on fleet size rather than share capital.
On time Performance (OTP) of Nigeria Airlines, Olowo regretted that the situation is woeful and deplorable with an average of 61 percent delay (except Ibom Air, 30 percent) yet very far below acceptable world average.
The ART leader said Nigerian airlines remain small and highly fragmented with a total fleet size of 104 airplanes which is less than Ethiopia airline which parades a total fleet of 144 aircraft
He however said that despite the small size of the fleet combined, Nigeria can change the status quo by making use of what is available through collaboration, cooperation a and merger leading to establishing two competing oligopoly airlines
‘”Permit me to again fly a kite on collaboration, cooperation and or merger by establishing two competing oligopoly flag carriers … We are all familiar with Oneworld, Skyteam,etc delivering sumptuous services globally with each airline maintaining its own individual identity.
“If our airlines (who are competing) can go to court on common interest, they can as well come together to drive a more efficient service delivery,” Olowo said.
He said, “I propose two airlines christened NIGERIA FIRST:
A. Nigeria First Airlines – White livery and to be led by Air Peace and operating 51 aircraft. Its component members would be Air Peace – 30; Ibom Air – 7; Overland – 7; United Nigeria – 4 and Green Africa – 3
While the Nigeria First Airline B to be led by Arik Air operating 53 aircraft. Would have Arik – 17, Max air – 13; Dana – 7; ValueJet – 6; Azman – 5 and Rano Air – 5 as its members.
Olowo instructed that: Airlines A and B must develop robust schedules for their total fleet, to operate all domestic, regional and international destinations.
The two airlines must be intentional in turning Lagos to a West African hub.
The ART leader who said that it is disheartening to know that passengers still fly to Paris in order to come to Dakar said when the two big airlines are operational,hub creation will challenge the airport service providers on delivery of seamless connections (Transit/Transfer) at the Lagos airport.
While submitting that foreign airlines MUST be RESTRICTED to a single point of entry into Nigerian destination of their choice – to enhance hub creation, Olowo insisted that the two airlines must be designated to ALL International destinations presently being serviced by foreign airlines.
He added that airlines A and B will operate equal frequency to reciprocate the foreign airlines; even as he averred that government backing on this will be very necessary.
He also suggested that a clearing house and clearing bank will be set up, along IATA values for billing and settlements.
He also added that membership and operational values (with minimum standard) will be clearly defined and midwifed by NCAA.
Recognized that teething problems will arise, but not unsolvable because members will be subject to IOSA certification and all necessary CAA oversights including EASA where need be.
He concluded that this will result in efficient passenger delivery, increased load factor, economies of scale, cost reduction through common user fees, insurance premiums, fueling, handling , etc.