The Twists and Turns of a Turbulent Sector
Aviation
By Ndubuisi Francis

One notable reason why 2002 was very significant is that the year came on the heels of the very devastating terrorist attacks in the United States of America on September 11, 2001. Not a few airlines have been reeling under the weight of the attacks. A number of airlines sent their employees to the job market. Only recently, United Airlines, reputed to be the second biggest airline in the world went bankrupt. This is largely no thanks to the terrorist attacks.

In Nigeria, the aviation industry has been a hotchpotch of incidents, some of which have thrown up enormous controversies and bad blood.

Retrenchment of 1000 Employees of Nigeria Airways

The year started on a rather sad note for about 1000 employees of the troubled national carrier, Nigeria Airways. The workers were retrenched in the first week of the new year in what many have dubbed an unsavoury new year package.

The retrenchment, it was said, was a necessary evil to reposition the ailing national carrier. The workers were promised their retirement benefits in full in March which was not to be.

The May 4 EAS Plane Crash

Saturday, May 4, 2002 was a black day for the aviation industry in particular and the nation at large. This was the day no fewer than 100 passengers died in a BAC1-11 EAS plane crash in Kano. Among the dead was a serving minister, Ishaya Mark Aku, who until his death was the Minister of Sports. The crash jolted the aviation industry to its very foundation and led to chains of reactions, some of which have been described as lethal for the industry.

The EAS crash was immediately followed by the ban on all BAC1-11 aircraft type in the country. In ordering the ban, the Federal Government which had earlier, through recommendations by the Aviation Ministry banned aircraft above 22 years old from flying in the Nigerian airspace, said the BAC1-11 aircraft type were no longer safe as passenger aircraft. This aircraft type was thereafter constrained for cargo operations.

Shortly after this, another crash involving Sky Executive Air Services occurred in a suburb between Akwa Ibom and Cross River States with about four people killed.

The government followed both the EAS and Sky Executive Air Services air mishaps with a ban on single aircraft operators, believing that single aircraft operators were under immense pressure to meet up with the demands of their business and in the circumstance, strive to meet the obligations with the attendant safety risks.

These tough policies, which though may be necessary, have brought a number of airlines to their knees. Some big operators like Chanchangi and Albarka, among others, have had their fleet depleted with the ban on BAC1-11 aircraft type while some operators without such luxury have literally closed shop.

Lagos Airport Terminal Building

Contract for the construction of a terminal building at the site of the former one which was razed down in 2000 was awarded to Sanderton Ventures Limited last year on a Build Operate and Transfer(BOT) arrangement. The project was valued at over N2.6 billion and was slated for 18 months completion target.

However, more than nine months after the contract was awarded, the project was not executed. After series of threats, the Federal Government finally revoked the contract in July and re-awarded same to another company--Stabilini Visinoni.

Feeling aggrieved and short-changed, Sanderton sought relief in the court. An injunction was given by the court. The court injunction was given different interpretations by the parties involved.

Currently, Stabilini has taken over the site of the project which seems to have recorded some activities for some time now. This was after the officials of Sanderton and pockets of workers at the site were forcefully ejected.

Ban on Port Harcourt NAF Base

For four airline operators, including Aero Contractors, Bristow Helicopters, DANA and Skyline, 2002 may as well be regarded as a sad one. The aviation authorities dislodged them from the base where they had regarded as home. Citing safety reasons, among others, the authorities had given the airlines an ultimatum to relocate. Before the hammer finally fell, the affected airlines put up some spirited effort but the Federal might overwhelmed them and they had to relocate to the civil airport.

Increase in Air Fares

Several attempts were made by foreign and domestic airline operators to hike fares. The domestic airlines twice increased their fares this year. It is currently pegged at N8, 500.

Return of Nigeria Airways on the International Route

After many years of the cessation of operations at the international routes, the Minister of Aviation, Dr.(Mrs) Kema Chikwe who had earlier vowed to take the airline back to the international routes, approved the commencement of operations at the London, New York, Dubai and Jeddah routes. This was through leased aircraft from Air Atlanta. The commercial cooperation arrangement between Nigeria Airways and South African Airways had collapsed before the leased arrangement with Air Atlanta was mooted.

South African Airways had suddenly pulled out of the deal claiming the partnership was not in its favour.

Airways/Airwing Aerospace Limited Joint Venture

This is about the most controversial event of the year under review. The nation was woken to the sudden report of a joint venture purportedly entered into by the Federal Ministry of Aviation on behalf of Nigeria Airways and a United Kingdom-based Airwing Aerospace Limited(AAL). The joint venture was such that another national carrier, Air Nigeria, was to emerge after the liquidation of Nigeria Airways. Air Nigeria was to use 51 per cent of Airways' assets as its shares in the joint venture while the British firm would contribute 49 per cent.

The joint venture was trailed by a deafening hue and cry, particularly by the workers of the ailing national carrier, who saw in the deal, a surreptitious attempt to rob them not only of their job but their deserved entitlements.

Following the public interest the deal had evoked, a joint public hearing of the House of Representatives Committees on Aviation and Privatisation sat for three days to scrutinise the joint venture.

After three days, the verdict was that the deal was replete with a number of flaws and should be discontinued.

It was indeed included as one of the impeachable offences being leveled against President Olusegun Obasanjo when the National Assembly rose against him in September.

When some statesmen were making overtures to the lawmakers to drop the impeachment move, they(lawmakers) indeed gave the dropping of the joint venture as one of their conditions to back down.

But while many thought the deal had died a natural death, the Nigerian Envoy to the United Kingdom, Mr. Christopher Kolade was early in November directed by the Federal Government to write the British Government intimating them of the imminent replacement of Nigeria Airways by Air Nigeria.

Although nothing concrete seems to have emerged from the controversial joint venture, the last certainly has not been heard about it.

The Nwazota Report on Nigeria Airways

The Federal Government recently unveiled, albeit half-heartedly, the report of the Justice Obiora Nwazota Panel of Enquiry which scrutinised the running of Nigeria Airways between 1983 and 1999. Although the actors are yet to be unmasked, the government has however set up a committee headed by the Defence Minister, General T.Y. Danjuma to recover a mind-boggling $400 million and another N300 million said to have been either embezzled or mismanaged during the period covered by the enquiry.

Pension Arrears/Resignation of Airways Chiefs

The pension arrears of Nigeria Airways employees retrenched in 2002 and earlier have become more of an Albatross to the ailing airline. The pensioners are currently owed about nine months arrears, a situation which incensed them about three weeks ago to seize the premises of the airline for two days.

Amidst the confusion, the airline's Acting Managing Director, Mr. Jonathan Jiya resigned voluntarily.

Barely twenty-four hours after his resignation, the Federal Government rejected his voluntary retirement/resignation predicating the rejection on the grounds that Jiya has some questions to answer.

Few days later, the General Manger, Public Affairs of the airline, Mr. Chris Azu Aligbe threw in the towel, saying he was quitting since he could no longer cope with the current situation where the policies of the Ministry of Aviation which allegedly directly manages the airline were such that spell rapid death for the national carrier.

"My reason is that I can no longer work under the present dispensation where all policies, actions and statements from the supervising Ministry, which now directly manages the airline, are a complex amalgam of lethal therapies for a rapid death of the airline.

"Secondly, the on-going attempt to slander and dirty officers of the airline in addition to threats to the lives of officers and their families do not anymore conduce to productive activities", Aligbe said, adding that "my formal exit from the airline will allow me express myself as and when necessary without threat to my family and of sack".

He expressed his readiness to make himself available "to answer any question that may arise" and asked that his three months basic pay should be deducted from his outstanding Daily Travel Allowance(DTA) of US$1050 in lieu of notice.

In his own letter of voluntary retirement, the Acting Director of Marketing, Alhaji A.M. Mamman predicated his action on family commitments and also asked that his unpaid October, November and December, 2002 salaries should "be kept with the company in lieu of three months notice".

The SAHCOL Inferno

The only viable subsidiary of Nigeria Airways recently went up in flames under very questionable circumstances with enormous losses. While the cause of the inferno is yet to be ascertained, the company has resumed operations in a makeshift basis.

Although the industry had more than its fair share of negative occurrences in 2002, it recorded very impressive results in many areas.

The Emergence of New Airlines

The industry, in spite of the ups and downs, saw the emergence of very purposeful new airlines like IRS Airlines and efforts by those that took "leave of absence" like ADC Airlines, among others to re-launch their operations.

More foreign airlines like Virgin Atlantic, Lufthansa, British Airways and KLM, among others, have either increased their frequencies to the country or expanded their destinations.

Revenue Drive and Infrastructural Development

The Nigerian Airspace Management Agency(NAMA) has embarked on an aggressive revenue drive with other parastatals, including the Nigerian Civil Aviation Authority(NCAA) and the Federal Airports Authority of Nigeria(FAAN). They are now self-sustaining. Recently, NAMA grounded debtor airlines in order to recover debts owed it

Infrastructural development also remains one area where there seems to be a meeting point between critics of Chikwe and her friends. There has been appreciable development of infrastructure at the nation's airports. The Kano, Abuja, Lagos and Port Harcourt airports rank first among the ones that have first class facilities.

The radar equipment that has been in complete disuse for over ten years have been made functional while enormous investments have been made to make the nation's airspace safer.

Open Skies Agreement and MoU with US

This is yielding immense dividends, particularly the donation of security equipment to Nigeria by the United States which have been installed at some of the airports.

Despite the several controversies in the aviation industry in 2002, it could be said to have performed averagely when considered more in terms of infrastructural development than policies.


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