Aviation industry in 2024 started on a shaky note as the stakeholders were still adjusting to the sweeping change of leadership in the agencies by the President Bola Ahmed Tinubu-led administration.
Tinubu had in December 13, 2023 sacked all heads of aviation agencies and in the case of the Nigeria Civil Aviation Authority (NCAA), which requires the two-third approval of the Senate, the helmsman was placed on suspension and an acting director general has been in charge of the agency in the last one year.
Therefore, the year 2024 started with stakeholders tasking the new helmsmen to deliver on their mandate of repositioning the industry for improved passengers' experience and safety records.
However, the national macroeconomic challenges generally slowed down the growth of the industry as the exchange rate crisis stifled airlines' ability to expand with acquisition of more aircraft.
Daily Trust reports that aviation is largely described as a dollar based industry. From aircraft acquisition, maintenance of the aircraft whether full or routine, as well as aircraft lease, it is fully dollar based.
So going by the floating of the naira in the previous year by the nation's monetary authorities as a policy thrust of the Bola Tinubu-led administration, the exchange rate skyrocketed, worsening the challenges faced by airlines.
From N1,000 to one dollar in the beginning of the year, the exchange rate almost exceeded N2,000 before it stabilised further at around N1,700 at the current black market rate.
It means that if the cost of a new Boeing 737 classic costs $80m; an equivalence of N80bn in the beginning of the year at the rate of N1,000 to a dollar, it is over N130bn to buy the same aircraft at the current exchange rate.
For instance, aircraft maintenance gulps an average of $1m every 18 months when an aircraft is due for maintenance. Nigeria still depends largely on overseas maintenance facilities to meet the aircraft maintenance, repair and overhaul (MRO) requirements and many airlines have been strained by the foreign exchange scarcity as well as the high rate of exchange.
Airline Operators of Nigeria (AON) spokesman, Obiora Okonkwo said, "We are making losses on factors that are beyond our control. We are not only faced with the problem of scarcity of dollars; even the aviation ecosystem is feeling the heat. Handling companies have increased the cost of their services, airports have increased their charges and those that service the aircraft have also increased the cost of their services."
Chief Executive Officer of Aero Contractors, Capt. Ado Sanusi said, "The forex issue has affected those that have planned to bring their airplanes back because now they have to pay more naira to get their aircraft back, especially those that have taken their airplanes out of the country to do maintenance."
Currently, most Nigerian airlines have their aircraft stranded abroad while they are unable to source for dollars to bring them back. The resultant effect of this development could be seen in the high cost of air fares on the domestic routes. A Lagos-Abuja return ticket exceeded N400,000 during the year, making air transportation the exclusive reserve of the high and the affluent.
In 2024, the Federal Competition and Consumer Protection Commission (FCCPC) had a running battle with some domestic airlines over alleged exploitative fares, prompting airlines to begin to explain the economics of air fares.
However, the aviation industry in 2024 recorded major firsts in infrastructural development.
Reopening of Runway 18R/36L
After starting the year with uncertainty over the unending closure of the international runway of the Murtala Muhammed International Airport (MMIA), Lagos better known as runway 18R/36L, the runway was reopened during the year to the excitement of operators especially foreign airlines who had to endure the stress of using a shorter runway for their landing and departure.
It would be recalled that FAAN had closed the runway 18R/36L on March 11th, 2023 for a period of eight weeks to carry out maintenance works on it while both international and local flights were diverted to runway Runway 18L/36R, which is meant to serve only the domestic flights.
However, the runway could not be reopened afterwards following the theft of the Airfield Lighting (AFL) but it was eventually reopened in February.
Air Peace's commencement of London operation
2024 witnessed the commencement of flight operations to London by Nigeria's biggest carrier, Air Peace after years of what stakeholders called "exploitative fares" on the ever busy Lagos-London route by the British carriers. On March 31, 2024, Air Peace stormed the London-Gatwick with a bang, crashing fares on the Lagos-London route.
Nigeria clears $831m foreign airlines' funds
In the outgone year, Nigeria was able to clear the foreign airlines' trapped funds amounting to over $831m, which prompted the airlines to restrict Nigerian passengers from lower ticket inventories. This dominated discussion in the industry in 2024 with most airlines threatening to suspend flights to Nigeria. But in June, the Central Bank of Nigeria cleared the trapped funds as confirmed by the International Air Transport Association (IATA).
Grounding of Dana Air
In April 2024, the federal government grounded Dana Air, one of the nation's domestic carriers - 24 hours after a runway incident involving its flight from Abuja to Lagos.
The suspension came hours after the Minister of Aviation and Aerospace Development, Mr. Festus Keyamo gave the directive to the NCAA, which was greeted with mixed reactions from aviation stakeholders and experts, who described the minister's directive as "an interference" in the regulatory power of the NCAA. Since then, Dana Air's operation remains suspended.
Ibom Air deploys brand new A220-300 aircraft
Also, in April, Ibom Air launched its Airbus A220-300 into commercial service with flights from Uyo to Lagos.
The A220 with registration 5N-CDA, which arrived at the airline's base in Uyo on December 8, 2023, from Mirabel, Canada is the first of ten ordered in November 2021.
Ibom Air's aircraft debuted on Flight QI515 from Victor Attah International Airport, Uyo (QUO) to Murtala Muhammed Airport, Lagos(LOS).
FG arms aviation security
The aviation security architecture was rejigged in the previous year with the arming of aviation security (AVSEC) by the federal government.
Daily Trust reports that the decision to finally arm aviation security was in response to the emerging trends and in line with the ICAO Annex 17 designed to safeguard International Civil Aviation Against Acts of Unlawful Interference more so when it is the only recognised body to provide aviation security.
The Federal Airports Authority of Nigeria (FAAN) unveiled the Special Armed Squad of AVSEC with about 120 personnel fully armed and deployed to airports across the country. Managing Director of FAAN, Mrs. Olubunmi Kuku who unveiled the 30 armed personnel for the MMIA, said their deployment became necessary to check emerging threats in airport security.
NSIB opens new office in Lagos
The Nigeria Safety Investigation Bureau (NSIB) during the year opened a new office in Lagos after the demolition of its corporate headquarters building at the MMIA to give way for the expansion of the MMIA terminal two runway. Minister of Aviation, Festus Keyamo described the demolition of the building as sad.
UAE lifts visa ban on Nigeria two years after and Emirates resumes flights
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2024 saw the bilateral relationship between Nigeria and the United Arab Emirates (UAE) straightened, which led to the resumption of flights by the Dubai-based UAE flag carrier, Emirates Airlines on October 1 while the country also lifted visa ban slammed on Nigerians about two years ago.
Series of aircraft incidents and helicopter crash
The outgoing year witnessed a series of aircraft incidents involving domestic airlines. Max Air flight experienced a tyre burst at Yola Airport, which led to the aircraft, a Boeing 737, grounded with over 100 passengers stranded.
In April, Dana Air was involved in a serious incident involving its MD-82 aircraft with registration number 5N-BKI, which occurred on runway 18L Murtala Muhammed International Airport, Lagos.
Daily Trust reports that there was panic following the incident, which led to the suspension of Dana Air by the Nigeria Civil Aviation Authority (NCAA).
Repositioning of NCAA Consumer Protection Directorate
One major achievement in the outgoing year was the repositioning of the NCAA Consumer Protection Directorate beginning with the rebranding of the unit to empower them to address issues of consumer rights abuse in the industry.
Early in the year, the NCAA launched a new dress code for consumer protection officers spread across airports in the country. The intent was to make them visible to passengers at the airports so they could be approached for possible assistance.
The dress code unveiling was followed by consumer awareness campaigns at major airports to educate passengers on their rights when their flights are either delayed or cancelled.
Generally, the year 2024 was described as a mixture of good developments and unfulfilled expectations as air passengers were forced to abandon air transportation owing largely to skyrocketing air fares coupled with the inflationary pressures.
