Partly typical of a transition year, the last 12 months were like a round-trip operated by different crews. Different issues influenced operations of the sector. The first was the climax of failed promises, while the second was its anti-climax and in the hand of a neophyte. All through the turbulent flights were the same old challenges that got worse, depleting already distressed industry,
WOLE OYEBADE reports.
If 2022 was bad in numbers, 2023 turned out worse, shattering all economic projections in aviation. And for all the beautiful business plans airlines brought onboard, no operator could have seen the headwinds ahead.
Indeed, it was the year the U.S. Dollar – the currency of global aviation business – ballooned to N1250 against the Naira on the open market (the most reliable source for forex). Aviation fuel also steadied at the N1000/litre mark. Air tickets sold for an average of N250,000 per Economy class seat, as operators rallied to recoup higher cost of operations.
The international segment was not any better. Airfares further peaked as the Rate of Exchange (RoE) hit N981/$, just as the foreign airlines’ stuck fund crisis persisted for the second year on the bounce.
More conspicuous at the administrative end, where it matters the most, is the failure of the last administration to deliver on its promise of a new national carrier – leaving behind a heap of complicated mess for an inexperienced successor to handle.
Airlines pushback with high fares
To start with, it was the year air travel in Nigeria became more elitist as a result of high cost of airfares that barred more average Nigerians.
Steady free-fall of the naira value to dollar registered new odd records in the air transport sector. Aviation fuel sold for an average of N1000/litre, leaving operators cum travel agencies in a pricing dilemma.
Across both local and international segments of the sector, the rate of N1200/$1 in the open market and almost 400 per cent surge in price of aviation fuel threatened to double already high airfares – and further shrink the air travel market.
On the domestic front, the average fare of N75,000 for one-hour (one-way) Economy flight tickets increased to N100,000, and later peaked at N250,000-plus.
Foreign airlines operating on Nigerian routes also adjusted their airfares and much to the confusion of travel agencies. In one weekend, the IATA Rate of Exchange (IRoE) soared by N139, shifting from N842 to N981/$1 in one leap.
While the International Air Transport Association (IATA) reiterated not increasing airfares, it however, bemoaned the complicated foreign exchange liquidity crisis that has kept foreign airlines’ $793 million trapped in Nigeria (as of August 2023 entry). Of the sum, $300 million is legacy debt, which the Central Bank of Nigeria (CBN) has taken but not yet remitted to IATA on behalf of the airlines.
Notwithstanding, local airlines showed resilience in operation. There were some consolidations in fleet size, route network and safe operations.
For instance, Ibom Air made history with the delivery of the first of 10-brand new Airbus A220-300 series airplanes, which has been in the works since 2021. Overland Airways also took delivery of the first of three new E175LRs, signalling a strategic shift from its predominantly turboprop fleet.
Bizarre incidences
The operating commercial carriers, however, took turns in mild to severe incidents – but without fatality, to sustain Nigeria’s a-rated aviation safety record in the world.
Max Air had its encounter with contaminated aviation fuel that saw its entire operations grounded for months. The airline earlier recorded a serious incident when its aircraft with 143 souls on board lost a landing wheel on the runway of Nnamdi Azikiwe International Airport.
Similarly, a Boeing 737 Jet with registration number 5N-BYQ belonging to Aero Contractors Airlines crash-landed in Abuja.
United Nigeria Air (UNA) was in the news for arriving at the wrong destination. The airline earlier skidded off the Lagos runway with 50 passengers onboard.
More bizarre occurrence was the theft of the runway lights of the Murtala Muhammed International Airport (MMIA), Lagos, in July.
The Runway 18R has been out of service for about two months and was awaiting repairs when its approach lights developed wings and flew away without trace. Findings showed that it was the second theft recorded on the runway in less than a month. Till date, the lights have not been replaced nor the runway functional.
It was therefore a little surprise that the Nigerian air transport sector in September failed the Universal Safety Oversight Audit Programme (USOAP) of the International Civil Aviation Organisation (ICAO), scoring five points short of the 75 per cent benchmark.
It was the first time in 15 years the sector would fail the mandatory audit. The sector has been handed the statutory 60 to 90 days lifeline to close all identified gaps.
A new national carrier that never was
Perhaps one of the biggest disappointments of the last administration was its failure to eventually deliver the much-vaunted national carrier, under the Aviation Roadmap initiative.
Not for lack of trying. The controversial national carrier, Nigeria Air created the loudest buzz till the exit of the Buhari-led administration.
In a weird finale and almost on the last day in office, the Federal Government inaugurated the new national carrier in Abuja, with a ‘Nigeria Air’ branded aircraft, contrary to a court order on status quo ante. The national carrier was without an Air Operator’s Certificate (AOC) and its branded aircraft operated with an Ethiopian registration number, ET-APL, instead of Nigeria’s 5N.
Spokesperson for the AON, Prof. Obiora Okonkwo, said the implication of granting an AOC to the national carrier without successfully going through the process is considered by the International Civil Aviation Organisation (ICAO) as a serious infraction, which is punishable.
The management of Ethiopian Airlines (ET) later denied having interest in the controversial Nigeria Air, contrary to erstwhile claim that it emerged the preferred bidder from a ‘rigorous process’.
Group Chief Executive Officer of the East African carrier, Mesfin Tasew, said Ethiopian Airlines got into the mix on the invitation of the ministry, headed by the former Minister, to partner the already established Nigeria Air project.
Tasew said besides entreaties that had kept ET in the complicated deal to date, they were also persuaded to rebrand an Ethiopian aircraft in Nigeria Air colours just for the hurried launch in Abuja at the twilight of the last administration.
Seven months after the hurried rollout, the current administration is still at a loss on what to do with the controversial project.
Next comes a neophyte with baby steps
Inadequacies of Sirika, a supposed square peg in a square hole, apparently left very little for complaint on the choice of Festus Keyamo – a sound lawyer but with zero credential in aviation – to head the sensitive air transport sector in the Tinubu-led administration.
If his expertise in jurisprudence was the eligibility factor for the Ministry of Aviation and Aerospace Development, the last seven months has not proven that logic to be sound. Besides photo-ups at international aviation events and bilateral meetings, no magic wand has been seen on issues bothering the sector.
For instance, Keyamo immediately suspended further moves on the Nigeria Air projects, and all other earlier programmes of his predecessor. He has also put on hold the airport concession project, saying that he owes it to the federal government and Nigerians to give an honest assessment.
Apparently alarmed by the decrepit state of the MMIA old terminal, while the new facility is largely unoccupied, Keyamo in one fell swoop ordered the relocation of all foreign airlines into the new terminal.
It was an unusual tone in international aviation business, which is governed by strict rules and standard operating procedures. Keyamo’s order backfired with chaotic flight services in and out of Lagos, which rapidly brought the country to avoidable negative spotlight globally.
Further taking the industry by storm, the minister fired all heads of aviation agencies – the most experienced active minds in the sector – in one fell swoop. A day later, he also fired 33 directors in what he described as a “clean sweep and reversal of the last-minute appointments” made by Sirika.
A union leader and former General Secretary of the National Union of Air Transport Employees (NUATE), Olayinka Abioye, said the mass sack was not surprising.
Abioye said: “It is expected since the new Sheriff came to town, and this is very interesting to some of us.
“I am saddened, however, that some directors who have been in the saddle normally and doing well have been swept away by this executive tsunami, though expected since the immediate aviation minister abused his powers and office to appoint hundreds of people into various positions; some of them were not even fit in the first instance.
“I do hope that Minister Keyamo will not make the mistake of the past by bringing every Tom, Dick and Harry into the system as a way of compensating them,” Abioye said.
The minister has alluded to the new helmsmen as his strategic beginning of transforming the sector and steading the ship of a turbulent yesterday. The New Year will tell.
