Anthony Omoh
4 January 2008
Lagos — Aviation correspondent, ANTHONY OMOH, takes a view of the industry and identifies some of the main challenges that the industry will face this year.
Many stakeholders and experts in the air transport industry describe the year 2007 as being a very good year given the problems encountered in the previous years.
However, a New Year has come and there are so many expectations and unfinished businesses from the last year, these are the many challenges that these industry watchers believe will shape the year.
E-TICKETING
The International Air Transport Association (IATA) in its drive to simplify business and make it economical for the operators and air travellers as well as cargo operations alike introduced the electronic ticketing programme for countries that are yet to attain that status. As part of its five key projects to simplify the travel business, the IATA has instituted a program to switch the industry to 100% electronic ticketing. The association says the program would result in upwards of US$3 billion in annual savings. In 2004, IATA Board of Governors set the end of 2007 as the deadline for airlines to make the transition to 100% electronic ticketing for tickets processed through the IATA billing and settlement plan; in June 2007, the deadline was extended to May 31, 2008. Nigeria is one of the countries trying to meet up with the May deadline. According to the NCAA boss, Dr. Harold Demuren, statistics show that all 20 foreign/ international airlines operating in the country today are e-ticketing compliant and that the Board of Airline Representatives (BAR) the body which speaks for foreign airlines, has formally agreed to fully support the BSP in the country without delay.
He also encouraged major banks in Nigeria including Zenith, UBA, GTB, First Bank, Citibank, EcoBank, Access Bank have responded to IATA's invitation to participate in the BSP implementation programme as clearing banks.
FLEET RENEWAL
The country has also been agitating for newer fleet to ply the Nigerian airspace, according to various watchers in the industry, this came about as a result of the unfortunate air crashes of 2005 and 2006 that cost the country over 300 persons including women and children.
The drive however has moved most domestic airline in the country to acquire new aircraft and with the recent domestication of Cape Town Convention in UNIDROIT, Rome it has made it easier for Nigerian airlines to acquire aircraft and give the lessors the confidence to lease their aircraft without fear that there will be default in the payment.
Industry watchers are of the opinion that the entire fleet acquisition and renewal idea is one of the best things that can happen to aviation sub-sector in Nigeria especially once it is achieved 100 per cent.
The Director General of the Nigeria Civil Aviation Authority (NCAA), Dr. Harold Demuren, has put it on the top of his list to make sure that airlines in the country acquire newer aircraft stating that from 2008 many airlines will be bringing in their new aircraft.
Already airlines like Arik Air, Chanchangi Airlines and Virgin Nigeria have started bringing in their new aircraft.
UNITED STATES FAA AUDIT
Already a mock audit by the United States of America Federal Airports Administration (FAA) was conducted sometime in June 2007 but the experts are due in the country by January 14 2008 to commence the full blown audit of the Nigeria Civil Aviation Authority (NCAA) and the three Nigerian carriers designated for the lucrative US route.
The airlines in question, Arik Air, Bellview Airlines and Virgin Nigeria Airways are expected to operate Atlanta, New ark and New York respectively while the American carriers Delta and North American Airlines have already commenced operations into the country under the open skies agreement signed by both countries.
Although the certification of both the regulatory body and the carriers might take some time, the airlines have been told that they can commence operations by leasing aircraft from a category one country.
Nigerian carriers are currently rated on a category two status but with the country's airlines current drive for newer aircraft and the safety consciousness stand of the NCAA especially when it comes to the safety oversight functions, experts are optimistic that the country will be upgraded to category one.
AUTOMATION OF FAAN ACTIVITIES TO BLOCK FINANCIAL LEAKAGES
Another challenge that will face the industry in the year 2008 will be the automation of activities at the nation's airport by the Federal Airport Authority of Nigeria (FAAN) which according to a vast number of experts is long overdue.
The new managing director of FAAN, Mr. Richard Aiseubeogun, is saddled with the responsibility of the computerization of operations at the Federal Airport Authority of Nigeria (FAAN) because the airport authority is said to be losing billions of naira daily because of their manual modus operandi.
Many experts and industry watchers are of the opinion that once FAAN goes computerized that its operations will improve and it will aid in the blocking of financial leakages and will also help the authority to meet up with the best global practices.
If all goes well and the Integrated Common Use Terminal Equipment (IMUSE) is implemented by January according to the project coordinator, Mr. Tunde Fagbemi then the over N5billion project will aid the blocking of financial leakages, and create a billing settlement payment (BSP) platform that will ensure seamless operations for all service providers and users including banks, airlines, FAAN in particular, SAHCOL and NAHCO.
The Federal Airports Authority of Nigeria (FAAN) had at a point stopped the project to review it but experts are of the opinion that the project and any other of such benefit to FAAN should be allowed, especially at a time like this when corruption is rife at the airport authority.
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