Experts in the aviation sector have said that majority of airlines’ failure in Nigeria is tied to the country’s harsh operating environment, which has reduced the number of operational airlines from 15o in year 2000 to less than nine airlines in year 2017.
It will be recalled that the Nigerian Civil Aviation Authority few weeks back disclosed that when the regulator commenced operation in year 2000, it had 150 operating airlines in its register but that numbers have reduced today to about nine airlines.
Gabriel Olowo, the president and Chief Executive Officer, Sabre Network NMC West Africa and President of the Aviation Safety Round Table Initiative told BusinessDay that 30 percent of the failures of the airlines are as a result of mismanagement by the owners and 70percent are as a result of the harsh government policies.
“I have been in the sector since 1973 and I have seen the airlines failing within a space of ten years they started operations. So, there is a common factor. The business of Nigeria Airways was government business. The problem of corporate governance has always been there. The airline was supposed to be repackaged and become a new carrier but the then president said the government was not buying into the repackaging,” Olowo added.
He recalled that the second generation airlines such as Okada airline, Hak air, amongst others all meant well, adding that Okada brought a Boeing 747 and that aircraft never flew but rot.
“The operator of the airline got a promise from the vice president then but we were looking at the airplane everyday positioned to do Lagos-London-Lagos routes. That was on the side of government and this was the same situation for Okada air and Hak Air,” Olowo said.
Experts have also accused federal government of giving equal routes to foreign airlines in Nigeria, while domestic airlines cannot reciprocate such routes considering their capacity and fleet number.
BusinessDay’s checks show that South African airways has 53 aircraft, Ethiopian airline has close to 100 but domestic airlines does not have up to 30 operational aircraft because scarcity of foreign exchange have made most of them abandon some of their aircraft abroad.
Tayo Ojuri, Chief Executive Officer, Aglo Limited, an aviation support service told BusinessDay that Nigeria does not have airlines that will be able to compete with foreign airlines, however, federal government can look at the viable airlines and give them some encouragement through vats and discounts on spare parts.
“From the passengers’ side, they will be at the good receiving end because the passengers will be able to travel across Africa and the world without having to go through connecting flights,” Ojuri added.
Harold Demuren, former Director-General of the Nigeria said that presently, Nigeria airlines cannot compete with Qatar Airways in terms of equipment, personnel, maintenance and other areas.
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