2023 COMMUNIQUE OF THE 27TH ANNUAL CONFERENCE OF LAAC

*COMMUNIQUE OF 27TH ANNUAL CONFERENCE OF THE LEAGUE OF AIRPORT AND AVIATION CORRESPONDENTS (LAAC), THEMED: ‘AVIATION INDUSTRY: CHANGING TIMES, CHANGING STRATEGIES,’ HELD ON JULY 27, 2023 AT PROVIDENCE HOTEL, G.R.A, IKEJA, LAGOS.*

The well-attended physical and virtual conference, under the chairmanship of the Director-General of Nigeria Meteorological Agency, Prof. Mansur Matazu (represented), drew participants from all fingers of aviation and allied sector. Among them are the regulators, service providers, operators, aviation enthusiasts, passengers, and members of the public.

The participants acknowledged challenges facing the aviation sector, emerging dynamics of global air transport, requirements to stay afloat, and opportunities alike. They pointed at the aviation industry in Nigeria lagging through poor airport infrastructure, chaotic airlines’ operations, and add-on effects on dissatisfied travelling public.

Specifically, they reckoned that the changing times would require good preparation that is equipped with the right policies, technology, financing, and efficient operations to cope with the market realities, profitability and ensure sustainability.

Participants observed that the changing times requires manpower development across the supply chain of air transport. Human capital and its development should entail having the right people, right equipment, good knowledge of usage and proper programme to support their growth.

Participants noted that there is no separating airlines profitability from the environment they operate. And where the environment is bloated by the wrong workforce, unfriendly and merely reactive policies, then airline operations and attendant profitability are hampered. Mentioned were the routine appointments of non-technical workforce in aviation agencies based on patronage and attendant overhead burden on both agencies and airlines (in taxes and charges). Similarly, Civil aviation’s unfriendly policy of starting a new airline with a six-aircraft fleet, while airlines globally test the waters with one or two.

The participants agreed that both airlines and consumers are at the receiving end of the dysfunctional system. Despite the vast untapped market, the current airlines have emerged from the same old model of defunct Nigeria Airways – flying middle size aircraft on traditional domestic routes, with Lagos, Abuja, Port Harcourt and Kano networks accounting for 82 per cent of the total traffic. The consumers are also complaining of unreliable services, but most of the issues of delays and cancellations are beyond the airlines.

The conference, therefore, recommended as follows:

1. More than ever before, the industry needs house cleaning across the board, to get to the foundation of the problem. That is, the industry must restructure to align with modern demands and growth in infrastructure, skills-set, technology, and innovation.

2. The Civil Aviation Authority (CAA) is not the policeman of aviation, but primarily for the safety and health of the sector. Therefore, the apex regulator should (proactively) review policies that are detrimental to the airlines and the industry in general. Specifically, the industry needs a national air connectivity agenda that licences operators at three tiers – small, medium, and major airlines (for regional and international operations). The decentralised licensing mechanism will open the niche market in accordance with operator’s strength and for-profit optimisation. Similarly, there is a need to review the albatross of multiple taxation and charges on airlines. The requirement for new startups to present six aircraft as a condition for AOC should be expunged from the civil regulation.

3.  Aviation agencies are unduly over-staffed, and core technical ones are populated by non-technical personnel. These agencies must shed those weights and desist from profit motives that circle back to hurt airlines’ revenue through multiple taxation and charges. Aviation agencies are neither for profit nor excess revenue.

4.  The industry needs people that understand what policies are and their implementation. Ministers and heads of agencies must desist from allocating positions based on patronage.

5.  Investment in knowledge and capacity building should be paramount. Training is no favours to the employees, rather, an investment in the health of the industry. Companies must go beyond mere regulatory compliance to put in place a robust process that would chaperon an effective and non-chaotic change of leadership or ownership in the future.

6.  The travelling public remains the king of the aviation business and must be treated accordingly. There is the need for all stakeholders including the service providers (agencies); the operators (airlines, ground handlers, catering companies among others) to synergise to up the ante on consumer protection and satisfaction. All stakeholders exist to serve the consumers.

7.  Operators, especially airlines, must keep innovating and cooperate through alliances. Only through partnership can they balance revenue with the cost of operation, have better connectivity, and aim at profitability. For sustainability, there must be accountability and consequences of actions or inactions.

8. Government should desist from approving only unprofitable routes (Red Routes) to Nigerian airlines and should have confidence in the airlines. The ‘Red Routes’ drain the resources and businesses of the airlines. Participants also advised the indigenous airlines to reject these ‘Red Routes’ and desist from the ‘can do it’ attitude.

9. Civil Aviation master plan should be fully implemented by the government and its agencies. This will lead to the elevation of civil aviation industry in Nigeria.

10. Participants also called for the review of the Nigeria Civil Aviation Regulations (Nig.CARs), which stipulates a minimum of six aircraft for startup airlines before they are issued Air Operator’s Certificates (AOCs).

Mr. Albinus Chiedu

Secretary, Conference Planning Committee, LAAC