With poor and obsolete airport infrastructure, airlines threatened by high cost of operation and agencies laden with over bloated workforce, key stakeholders in the aviation sector on Friday called on the federal government to declare a state of emergency in the industry.
The stakeholders in various presentations ventilated their frustrations with what they referred to as a cesspool of underdevelopment in the sector and lamented that over the years the air transport sector has remained a circuit where every two steps forward seem to be backed by the same number of backward steps.
Industry operators, political and economic decision makers, top officials of government agencies current and retired, members of the labour unions, security experts, some members from the National Assembly and others met at the Sheraton Hotel, Lagos and demanded that the government should be cautious in its plan to concession the airports.
The stakeholders posited that there are steps that must be taken to arrive at the plan to concession the nation’s 22 airports currently under the management of the Federal Airports Authority of Nigeria (FAAN) with a process that would span an interregnum under which certain things must be put in place before the actualisation of the concession programme.
Former Director General of the NCAA, Dr Harold Demuren said that for foreign investors to come to Nigeria and invest their funds in infrastructure projects, government must learn to honour its agreements.
He recalled that few years ago Nigeria reached agreement with China on a loan to build five terminals in Lagos, Abuja, Port Harcourt, Kano and Enugu on build, operate and transfer (BOT) agreement, but incidentally it is these facilities that the same Nigerian government wants to give out in concession.
“I am a bit confused about what the government wants to concession. There are already existing issues and litigation cases in courts with some of the airports which should first be resolved if we want to get the best out of them.
“So how do you want to go ahead to concession airports that China granted you loans and they are still constructing the airports and they are yet to commence the execution of the BOT. Someone should educate me better because it doesn’t add up,” Demuren said.
In 2013, the Chinese Exim Bank had granted Nigeria a $500 million loan to build international airport terminals at the Lagos, Enugu, Abuja and Kano airports on BOT arrangement that allows China to first manage and recoup its investments before transferring the assets back to Nigeria.
Demuren who lamented the sorry state of the domestic airline industry said concessioning the airports without giving top priority to the resuscitation of the domestic airlines would amount to a futile venture.
“Without vibrant airlines we cannot talk about concessioning of airports because the airports need the airlines to function and also for investors to recoup their monies,” he added.
Chairman, Senate Committee on Privatisation, Senator Ben Bruce said the federal government must take urgent steps to resuscitate the local airline industry, noting that apart from Arik Air with 28 aircraft and Air Peace with 10 aircraft, other airlines could not boast of more than four aircraft while the Presidential fleet had 10 aircraft.
He therefore called on President Muhammadu Buhari to off load some aircraft in the Presidential fleet to boost the local airline fleet, even if it was on a lease agreement, noting that while few number of highly places Nigerians enjoy a fleet of 10 aircraft in the Presidential fleet, over 170 million Nigerians are contending with about 54 aircraft.
“The alarming rate at which Nigerian airlines are shutting down at short notices must be halted. This is an emergency situation. The aviation sector is going through a desperate time and needs a desperate solution,” said Bruce.
Also Chairman, Airlines Operators of Nigeria (AON), Capt. Nogie Meggison in his presentation said the entire concession plan was immersed in ambiguity and advised government to define its concession plan so that Nigerians would know whether it is the airport terminals and other facilities at the landside of the airports that would be given out in concession; or the facilities on the airside like runways, navigational aids and others that would be given out in concession or all the facilities that make up the airport.
THISDAY
