Business

January 16, 2010

‘Local airline operators not ready for BASA’

Assistant secretary general, Airline Operators of Nigeria (AON), Mohammed Tukur, has dismissed allegation by  some  players in  the  aviation sector that government’s policy in 2009 brought about Bilateral Air Service Agreement (BASA) initiative in favour of foreign flag carriers to the detriment of local carriers.

Tukur stated this while speaking with Sunday Vanguard in Lagos.
He  explained that most Nigerian flag carriers were not ready for BASA because they lacked  the financial capability to run the business viably. “Were the local carriers ready? Do they have the funds to carry out the business as expected?” he asked.

On what some airline operators described as harsh government policy and stringent conditions on the operating environment, especially the refusal to grant financial bailout to local carriers despite the global financial meltdown, the AON scribe stressed that, “The problem in Nigerian aviation industry largely is corruption and misappropriation of funds. For  instance, some airlines stopped flying last year not because of the meltdown, but due to corruption and diversion of company’s funds for personal interest.  Obviously, some airlines were truly affected by the meltdown, but others went under due to mismanagement”.

Tukur explained that some airlines performed poorly because they did not follow their business plan and were not prudent in managing their resources.  He  explained that while some airlines gave their aircraft on mortgage, others operated fraudulently without accountability.

He advised government to fast track its policy on airports concession, as that would pave the way for investors to come in. His words: “Government should give out the airports to investors who have the resources and can manage the airports efficiently to stimulate rapid development. Government has many things to handle and does not have money to develop the airports, so investors should be encouraged to come in.

“At present, we do not have any good airport in the country that can meet the standards of what is obtainable in advanced economies.