Wednesday, December 19, 2012

ANOTHER NATIONAL CARRIER? PERISH THE IDEA!(Thisday Editorial)

Government is on the wrong route to salvaging the aviation industry

The Federal Government is toying with a new pet project - the floating of a new national carrier with at least 30 brand new aircraft that would be 'private sector-driven'. The Director of Operations, Federal Airports Authority of Nigeria (FAAN), Mr. Henry Omeogu, said the idea was to bring the aviation industry to 'world-class'  level. There were even reports of a meeting between a Federal Government delegation led by FAAN Managing Director, Mr. George Uriesi, and aircraft maker, Embraer of Brazil, on the acquisition of new aircraft for domestic airlines. As noble as government's intention may be, it is a wrong route towards salvaging the aviation industry from its present distress.

We stated clearly in a previous editorial that government need not own an airline to have a national carrier, and that one of the private airlines could do that as long as the environment was right and policies and support, adequate. Our position on the issue has not changed. Our position is premised on the fact that even in the days when government ownership of enterprises were in vogue, and with lots of idle funds to play around with, our government proved beyond reasonable doubts that it was incapable of running enterprises for profit and efficient service delivery. That explains why government continues to pursue, vigorously, the privatisation of state-owned enterpirses.
The pathetic state of our aviation industry is not because of the absence of brand new aircraft or national carrier, but a function of a combination of factors including weak and inefficient aviation regulatory bodies that condone sharp practices by operators, poor aviation infrastructure, inconsistent aviation policies, and lack of emphasis on quality service delivery. Not too long ago, a government-managed N300 billion aviation intervention fund  was disbursed to help domestic airlines reposition their operations with reports alleging diversion of those funds by some of the airline operators. But regrettably, nobody has been brought forward to account for the mismanagement of these funds. Rather, government has continued to lament the pathetic state of the aviation sector, as well as bemoan the failure of the intervention fund. 
It is a fact that domestic air travel in Nigeria is one of the most expensive in the world, with a one-hour, one-way flight going for as much as N32,000 (approximately $200). Yet, Nigeria is no doubt a huge aviation market going by its large population and the increasing demand for air travels because of poor road network and security challenges confronting ground transportation. That, ordinarily, should make our domestic routes a goldmine for local airlines. Sadly, that is not the case. Routes that are considered lucrative by foreign, but privately-owned airlines, are where Nigerian airline operators record their worst performance.

Government's concern should be how to probe why this is the case and how to correct the situation. It is not the work of government's bureaucrats to source for aircraft for privately-owned enterprises, or to float a national carrier that would then be private sector-driven. Such enterprises should come into being like any other private business and should be allowed to source for their own tools of operations and seek government guarantee, only where necessary, not the other way round.
In any case, world class service is not about new aircraft. It is about quality service delivery; keeping to flight schedules; ensuring safety of passengers and their luggage; providing competitive fares; complying with aviation regulations; providing  modern screening equipment that are travellers'-friendly and stress-free without compromising security. Other factors include the existence of conducive environment for air travels like modern terminals equipped with effective and efficient fire service, modern navigational aids, efficient and modern surface transport system, and well-trained aviation personnel. Most of these are within the confines of FAAN's responsibilities. That is what should be the priority of government and not floating a national carrier or sourcing for aircraft for privately-owned companies.

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