Establishment of Maintenance Repair Overhaul(MRO) by some domestic airlines:Besides the owners,what does Nigeria stands to benefit?
By Qwiwiomanyen Kolosi
Maintenance takes large chunk of airline revenue. Unlike motor vehicles,aeroplane maintenance repair and overhauls are specified, scheduled and mandatory as directed by the manufacturer of the aircraft.Many of the domestic airlines run into murky waters because their owners failed to do a detailed study of what the sector entails before they veer into it.Those that were availed of the nitty gritty,out of pride and arrogance felt there were nothing special about aviation.Some of them equate it with their other businesses. They only look at the huge Naira coming from the sale of flight tickets .It became done on them when the aircraft is due for major overhaul that can only be done outside the shores of the country. Those that opted for wet lease could not muster enough funds to remain in business for too long.Thus contributed to the high mortality rate of the domestic airlines .The sooner they come,the sooner they fly into perdition.Lots of them fizzled out before their first anniversary.
However,some airlines are determined to make the Nigerian aviation industry a force to be reckon with globally despite myriad challenges besetting them. Not just in flying but in vital area such as maintenance facilities.Some of them have set up their own MRO,those that do not have are showing serious commitment to having one.
In 1976,hangar project was initially conceived when the original plan was developed by joint effort of the Nigeria Airways staff and the Aviation Planning Services of Canada.Were the project successfully delivered,maintenance challenges being experienced by local airlines will not be a major one today.
The defunct Nigeria Airways though had maintenance outfit,was not big enough to carry out all the checks in all its fleet of aircraft. To eliminate the shortcomings, the Federal Government planned to set up aircraft maintenance facilities in Lagos,Ilorin,Abuja,Kaduna,Jos and Enugu.According to Samaila Consultants Limited”NIGERIA AIRWAYS MAINTENANCE CENTRE,REVIEW OF CONCEPT AND DEVELOPMENT POLICIES “ AUGUST 1986,the objectives are to achieve a high level of maintenance self sufficiency and reduce very drastically the reliance on outside organizations for its maintenance requirements, elimination of lengthy turn -round time due to long distance to repairs centres,development of technical skills of Nigerians employed,cut in amount of foreign currency spent on maintenance.It also noted that the objective could also be expanded to include for an anticipated maintenance of private and foreign aircraft.It explains that it would be necessary that the private airlines are made to sign an undertaking to fully patronize the Nigeria Airways maintenance centre.Conflicting views did not allow the project to come into fruition.Cost of initial construction of the hangar and taxi-ways,stores etc :US$60million
Initial Equipment:US$60million
Total:US$120million.
“Any expansion programmes afterwards would be fully reflective of the total demand,turnover of the centre and the technological pressures bearing on the aircraft industry.There may well be a necessity to produce local parts sooner than envisaged and the production centres for such products should be within a location that would enhance greater economies of scale for the aircraft industry.
This issue of the predictable pressures on the aircraft in Nigeria and the location of production centre which should interact easily and corporately with the hangar and maintenance centre is a central policy issue.It not only bears on the initial cost of the project,but should dictate also the choice of theLOCATION of the hangar.”
Engr.Kyari expresses displeasure over the failure of the Federal Government to bring into reality its planned maintenance centre”.It is painful for a Nigerian to remind himself of what the Federal Government did to Aircraft Maintenance Centre.They set up a committee and the committee toured some countries in the world to select the type of maintenance centre that the country needs.That committee spent N50million which was equivalent to $70million at the time. Corruption, procrastination stall the project.”
Engr.Ayuba Kyari posited that there are standard costs in maintenance,it depends on location.The cost to airlines hovers around 40%.If it is United States it is about 25%.But in Nigeria because of many factors maintenance cost is a little bit escalated above global average. You source for foreign exchange in Nigeria to bring spare parts which add to the maintenance cost whereas the man in US has the hard currency with him.Apart from bulky components which have to come by sea or aircraft.Airline in Nigeria may ask vendors to source for part for it,they(vendors) will add their own costs which jerk up the cost of maintence.
Speaking further, kyari notes”airlines setting up MRO, employment opportunities will rise tremendously.Nobody sets up such facilities and want them idle. They will pay tax to government.They will all also provide research facilities to those who want to research into aircraft.Those who own the business and constructed these facilities,are vendors to the airlines,they are contractors who will come with their own workers.If he(constructor) does not have enough manpower,he will hire or employ more.It is a chain that goes round.If the constructors have to buy more parts,more business for those selling the parts.It is a boost to the economy.Even Federal Airports Authority of Nigeria(FAAN),those facilities will pay ground rent to FAAN,likely that is payment to government. An MRO will service not just Nigeria airlines some may come from outside the country.The owner of the MRO will employ more people,will buy a lot of machinery,tools and equipment for aircraft .With that,it will help many airlines not to leave the country.It saves time moving aircraft from the tarmac to the maintenance, centre,no more overfly charges,landing and parking charges,cost of fueling the aircraft to ferry it to where it will undergo the checks.The local hangar can be leased to other airlines for parking.This brings extra money.They can also have specialized services such as maintenance auditing.They can train for other organizations like NDT(Non Distructive Test),testing aircraft weight and aircraft painting.
Giving his own perspective,Engr.Obed Tasieobi indicates”MRO to the country’s economy is very important.It will stem capital flight.Taking out our money which can serve us here. It is huge economic benefit to the country.It is self reliance.It adds to national security.No country can hold you to ransome.The danger of going to maintain your aircraft in the country of your competitor is avoided.Airlines having their MROs make them more competitive,It saves the airlines of arbitrary maintenance charges abroad.The personnel is local.If it is here you can inspect the airline staff, can inspect the maintenance when it is on going.The airline staff can visit the maintenance facilities at will and help to train local staff on the job.(OJT))There is no pressure on foreign exchange because you can get your money locally.Government should come in to protect the local MRO owners against unpatriotic Nigerians.Many Nigerian airlines may not want to patronize the facilities because it may block their way to siphone foreign exchange from this country.Government should come in to make a law that will make it mandatory for all local airlines to make use of the local MRO.







