A lot of people think that air transportation is for Nigeria’s rich elite. That explains why less than one per cent of the nation’s population travels by air.
There are two factors that experts say constrain more people from travelling by air. One is the income of average Nigerian and two is poor connectivity. Airlines flight schedule is tailored towards maximisation of load factor and so it does not connect to certain destinations where there could be potential traffic but currently have not been developed like Warri to Port Harcourt, Eket to Lagos etc.
However, for air travel to develop, there must be more people that would travel by air and when that is done Nigerian airlines would become profitable. How can this feat be achieved?
Recent survey conducted in the aviation industry by Philips Consulting showed that the number of Nigerians that travel by air is increasing and that brings to the fore whether the facilities on ground, the services and the whole airport environment enhance passenger movement and comfort.
According to the report by Philips Consulting, those who responded to the survey showed that 69 per cent of them had travelled to domestic destinations and most of them (76 per cent) booked their flights online.
But challenges frequently experienced in booking online include unstable Internet connections (35 per cent), inconsistent ticket pricing (27 per cent) and online payment difficulties.
The major determinant factors passengers considered, according to the report were price and safety. Respondents to the survey gave affordable pricing, 23 per cent; high safety standards, 22 per cent and good quality of service, 21 per cent. These were the three most important factors that majority of respondents said determined their choice of airlines.
“On the other hand, a high rate of flight delays and cancellations (21 per cent), poor quality of service (20 per cent) and low safety standards (17 per cent) were revealed as major reasons why many customers avoided certain airlines,” the report said.
On travel experiences, virtually all respondents (90 per cent) have experienced an experienced flight delays or cancellations, with 36 per cent regarding it as a regular occurrence. Many, 58 per cent said they have experienced prolonged delays in retrieving their luggage on arrival at their destinations.
On a positive note, the report said, 70 per cent have never had their checked-in luggage misplaced by airline staff or baggage handlers during travels.
The report said the most frequented airports terminals are the Murtala Muhammed International Airport Terminal 2 (MMA2), Lagos (42 per cent), Nnamdi Azikiwe International Airport, Abuja (21 per cent), General Aviation Terminal (GAT) of Murtala Muhammed International Airport, Lagos (14 per cent) and Port Harcourt International Airport (10 per cent) were the most frequented airports of departure for a combined 87 per cent of respondents.
Philips Consulting survey said most respondents were satisfied with the ease of access to, from and within airports. However, 31 per cent were dissatisfied with the availability and costs of using luggage trolleys.
The report noted that in Nigeria, domestic passenger traffic has increased remarkably over the past decade.
“This has been achieved through the increase in the number of airline operators, increasing flight frequencies and the (re)construction of airports in various states, hence enabling flight route connectivity. According to the National Bureau of Statistics (NBS), the Lagos domestic airport has experienced the largest amount of passenger traffic, with an average of 4 million passengers annually between 2010 and 2013,” the report noted.
In comparison to other international airports, the report said the Murtala Mohammed International Airport in Lagos remains the busiest airport, with passenger traffic increasing by more than 40 per cent between 2010 and 2013. This was attributed to increased flight routes and the emergence of new airline operators. The Abuja International airport has also experienced an increase in passenger traffic by about 48 per cent, ranking in second place after Lagos.
“Other airports such as Kano and Port Harcourt have lower passenger traffic, although these have also experienced significant increases in passenger traffic. In the Port Harcourt airport, passenger traffic grew from 13,148 to an astounding 125,577 between 2010 and 2013 (i.e. 855 per cent total growth).
“International airlines such as Lufthansa and Air France have heavily contributed to this increase, by operating daily flights from Port Harcourt to various destinations (through connecting flights). However, although international passenger traffic has experienced growth over the years, the number of travellers at international airports remains considerably fewer than at domestic airports,” the report said.
However, it is believed that if the domestic airlines develop new routes and destinations that are unexploited presently more Nigerians would travel by air. Managing Director of IRS, Yemi Dada said at a recent event that the low purchasing power of the average Nigerian is the major reason why Nigerian airlines do not have consistent high load factor. He said the industry would explode if up to five per cent of the population travels by air. That will make the aviation industry contribute more to the GDP.
Also, travel expert, Ikechi Uko said many parts of the country have not been connected by air and that airlines are yet to develop new routes, which would also boost air travel.
In the Philips Consulting Aviation Survey report, it was indicated that the challenges being faced by the airlines in the industry include the cost of aviation fuel, which is the highest expenditure item for airline carriers.
“In 2008, based on a sample of 45 major global airlines, fuel represented 32.3 per cent of the total operating costs.
Nigerian airline carriers spend on average 40 per cent of their expenditure on fuel, whereas global counterparts spend about 29 per cent on average. In Africa, aviation fuel is about 20 per cent more expensive, when compared with other continents.”
The report also pointed out that the high tariff costs for imported airline (e.g. aircraft spare parts) and airport (e.g. ramps, conveyor belts, x-rays, etc.) equipment are burdensome, especially for handling companies, adding that there have been a few too many plane crashes, emergency landings and near collisions in the Nigerian industry over the last 10 years.
The report also identified safety-related issues, including inadequate infrastructure, human error, and poor emergency response guidelines, procedures and capabilities to combat air disasters as part of the major challenges.
“The risky nature of the aviation business is often a major obstacle in the acquisition of funding and financing by airlines. High insurance premiums are also borne by operators due to the perceived risks associated with flight operations locally. Many airports in Nigeria are in a state of disrepair. Basic infrastructure such as adequate runway capacities and terminal facilities are often lacking at major airports in the country,” the report also said.
