Business

October 16, 2011

‘How we raised the profile of the aviation sector’

By UDEME CLEMENT

Alhaji Muhammed Tukur, the assistant secretary general, Airline Operators of Nigeria (AON), speaks, in this interview, on the aviation industry, after 51 years of independence.

How would you assess the aviation sector five decades after independence?

Today, there are a lot of positive changes since government granted Nigeria Civil Aviation Authority (NCAA) autonomy. There are cases of plane crash in Europe, but, in the last two years, Nigeria has not recorded a major plane crash. We now have safer airspace and new aircraft flying in the country. We do not have cases of air return, crash landing and other problems associated with aviation industry before the autonomy.

Now, there are regular capacity building programmes designed to enhance professionalism in the industry. So, we have to appreciate the efforts of government and the director general of NCAA, Dr. Harold Demuren, on these achievements. Recently, government removed some top directors and is bringing in fresh ones, which is also a new development. My appeal to government is do everything possible to make the aviation industry greater.

Can you give us en estimate on how much capital an individual needs to start an airline business?

The business is capital intensive and there are guidelines that the operator must follow. For instance, the minimum capital for local airline operations is N500million but expanding operations to the West coast requires about N2billion and above. Also, you must have your headquarter for operations, comply with all the requirements from the regulatory authority, set up a management team and then acquire the aircraft, which is where the problem is. You can acquire an aircraft for $2,500, $3,500, $5,000 or $8,000 and even more depending on the type.

Muhammed-Tukur

Insecurity is one the challenges facing government in the country, don’t you think that the adverse effect would spread to the aviation industry?

Government and security agencies in the country have the ability to tackle insecurity if they really want to. For instance, the issue of Boko Haram is not beyond Nigeria because government has the capacity to tackle the problem or any form insecurity capable of preventing influx of foreign investments into the country.

Our security personnel are well trained and most of them go for peace keeping in other countries and return with success stories and awards. They can tackle the insecurity in the country unless they do not want to do their job because of religious and political differences. We do not need experts from other countries to tackle insecurity in our country.

The Boko Haram issue was escalated through the media. If you go to the northern region, you will see people going about their normal businesses. Also, any small thing in Nigeria is always blown out of proportion because of political interest. Some people who think they can use political interest to divide Nigeria are making a big mistake.

At present, we are living with people from Ghana, Cameroon, people from Benin-Republic and other neighbouring countries and we are not fighting. Living together is even better than trying to divide the country for selfish interest.

What measures would you advise government to put in place to make the industry more efficient?

Government should improve on infrastructure. For instance, there is need for another run-way in Abuja for safety reasons. When a new run-way is provided, the old one must be closed and put back to shape. Government does not have the resources to maintain the airport alone, that is why we are calling for private sector participation.

The Federal Government granted airline operators N500 billion bailout fund, has the money been fully utilised?

The N500 billion bailout fund approved by government for the sector was a good initiative but accessing the money became a problem because some airlines are indebted to government, commercial banks and oil companies that they transacted business with over the years.

Commercial banks are not ready to fund airlines now due to the reforms in the banking industry. If government can review the debt and allow airlines to pay five per cent interest rate, it would be better. Also, government should look at the issue of multiple charges imposed on airlines. Above all, reports written by various committees on how the industry must be restructured should be implemented.