Sirika: FG will not allow airlines with poor financial conditions to operate in Nigeria again | Live Today

2021-12-08 08:17:30 By : Ms. Ya mu鈥唂ang furniture

After taking office, Minister of Aviation Hadi Sirika proposed a road map that included the establishment of national airlines, leasing companies, maintenance facilities, aviation universities, and franchise rights for the country's major airports. In this exclusive interview with Chinedu Eze, the Minister gave an update on the roadmap and discussed other issues in the aviation industry, including investment in airspace management and other areas of the industry. extract

So far, what is your opinion on the contribution of your government to the industry? Well, thank you very much for asking this question, but it is a very broad question, but I will try to answer it briefly and try to touch all the questions I think of. Of course, first and foremost, I will start with the development of the aviation industry during the current administration from 2015 to the present.

Growth takes many forms. For example, when we first started, there was almost no strong catering company in China. There are quite a few, but none of them are as strong as they are now. We increased the number of passengers from 8 million to 18 million in four years. Before COVID-19, we became the fastest growing sector of Nigeria's economy. Even with COVID-19, we are still the third fastest growing industry, accounting for about 33.5%.

Overall, the country’s aviation activities have improved tremendously. There are more airlines now than before. There are more planes in the country now than before. More and more civil aviation companies have sprung up. More people have received aviation training. More airports are under construction than before. Therefore, if you will, the industry is exploding.

So this is real growth. Our contribution to GDP increased from 0.42% to 0.6% for the first time. We have a roadmap that we have promoted in this administration. The roadmap is made up of components that are intertwined. For example, we have a national airline; we have maintenance repair and overhaul (MRO) facilities. We have an aviation leasing company. We have the University of Aeronautics and Astronautics. We have cargo terminals under development in all airports and other places.

Each of these are intertwined. For example, MRO depends on raw materials, namely airlines and airlines that are being established, as well as several other airlines in the country. Then, of course, the airline will rely on the MRO itself, and the leasing company will provide capital and equipment at a cheaper and more affordable price than before. Then exports will also support the business. All of this will happen in the free zones of our five airports.

The federal government has developed and approved these airports as free zones. This fully demonstrates the business capabilities we will do. For example, in our time, we have made it possible for aircraft and spare parts to attract zero tariffs and zero value-added tax. This is also a contribution to the business, because our understanding is that we should develop all of these and help companies grow so that they can provide the services they need and hire our employees. We are building, or we are consolidating the concessions of the airport, we have gone a long way. So all of these are within the scope of the roadmap. So, for me, in general, yes, we have developed government policies and plans that have led to the growth of this industry and made this industry the fastest growing industry in the Nigerian economy, which is an advantage for us.

You have made real progress in all roadmaps and industry plans. However, there are still some things that have not been completed. Do you believe you will complete it before 2023?

Of course, this is because if I list them one by one, we have already obtained the approval of the National University Council (NUC) to establish a University of Aeronautics and Astronautics. We are putting things together to start it. We found a temporary location for it. We are working hard to enroll the first batch of students this season. This is in place. MRO and leasing companies have completed their business case outline (OBC). We have entered the market; we have chosen a partner. We have found someone to invest in it, it will start, and then the complete OBC will be handed over to FEC (Federal Executive Committee) for approval.

So we hope to start MRO and leasing companies in the first quarter of next year. The airline also obtained OBC approval. I will put it together before the end of the second quarter of next year. It will also be in place. So everything happened at the same time. As you know, it takes a long time for the plan to make the entire program run on its own once you start running. Therefore, I believe that everything will be in place before this government is alive. Don’t forget, most of what we do in the aviation sector comes from this ministry. Passengers cannot see most of what we do. Passengers worry about the functional airport terminal, air-conditioning, toilets, elevators, and so on. These are very, very important because they provide a favorable environment for our passengers and customers. Make our trip easy and enjoyable and enjoyable; so they came back.

But more important than these beautiful things is that you know how safe and secure you are when you leave point A and arrive at point B and everything in between. This is our main focus. Therefore, our main focus is on the safety, security and efficiency of the department. The department must be very efficient so that time is not wasted on customers, passengers and business people. Airlines also save money, which means saving time , Which means money. So everything that happens from point A to point B, such as from Port Harcourt to Lagos, or from Lagos to Abuja, or from Lagos to London. So, everything that happens from takeoff to landing, how safe, safe, and efficient you are, is what worries us, and everything that happens between the two. Therefore, the equipment we will place there is to ensure that this happens. Systems, procedures, and policies are things that passengers cannot see, but they are very, very important, and even more important.

So, what I want to say is that these things need time to plan, everything will be fine, don't worry. You plan it carefully because it will stay. And there is a system in which most of the things are done under a public-private partnership (PPP), and there is an entire body responsible, the International Committee of the Red Cross (Infrastructure Chartered Regulatory Commission). Therefore, there is a bill in the National Assembly that promotes all of these. We are working hard to follow these principles, so we can't go wrong.

Of course, you know, in this field, things have changed compared to twenty years ago. The types of aircraft currently in production are those that are environmentally friendly​​. Then the entire industry is also turning green. Nigeria is participating, which is important in all these projects. I believe we have done a good job in this field. I can also explain to you what we are doing in this area in the next interview, but it can be said that we have done things right now. The new civil aviation law has been submitted to the National Assembly. After the first reading, the second reading and the final third reading, it will be carried out in December or even November this year. Once the bill is introduced, new policies will emerge from the bill, and the whole thing will change.

We have set up new management in the NCAA and some para-national teams, they have done a good job, everything is changing. Just recently, at FEC last week, new software manufactured by MPT is being purchased, which will change and make everything digital and electronic, all NCAA processes and systems.

Industry stakeholders pointed out two problems with the national airline plan. They observed that the federal government’s 5% stake means it would assume the responsibilities of the new airline, and worried that the National Assembly could increase government shareholding at any time. Do you have a clause that can prevent this from happening?

No, first of all, you should understand that this is an airline entirely driven by the private sector. The only reason we have government participation is that the government will start the game and provide the necessary sovereign shoulders. This airline will rely on it and boost investor confidence. But the federal government will not have any single control over the management of this airline. Therefore, it is an airline driven entirely by the private sector. And without the right of the government, the government will have the will to zero management control. The 5% reserved for the government, she can take away the 5% at any time. If the government decides to postpone acceptance, they have 5%; they delay, no matter what the company pays for this in the future, the government will pay for it. If they pay today, they will pay at 5% of today's price. If they postpone it until tomorrow, they will pay five percent of the price tomorrow. Therefore, it is a company.

Can you give us a detailed description of the strategic equity partners that will have a 49% controlling stake?

Well, they don't have a controlling stake. The 51% belonging to Nigeria will be a controlling stake, but 49% will belong to equity partners or equity partners. When we enter the next stage, the procurement stage, there will be strategic equity partners. We will send out a request for proposals in the next one or two weeks. In these requests for proposals, the strategic equity partners will be specified in detail. Then they will own 49%. We evaluate and choose the best.

What is the level of operation or cooperation between the University of Aeronautics and Astronautics and the Nigeria Institute of Aeronautics and Technology (NCAT)?

They are two different institutions, and their structures and settings are also different. The university will conduct pure research and development, as well as the growth of necessary manpower to promote Nigeria's civil aviation to this level. Although NCAT is a skill acquisition center, engineers, pilots, crew members, air traffic controllers, and all of these personnel receive training mainly from NCAT. So they are two different institutions, and one is a skill acquisition training institution, which issues licenses to people and permits them to perform certain functions. For example, you are permitted to fly an airplane. You have obtained an engineer's license, can be authorized to stamp on maintenance on the aircraft, or you have an air traffic controller license. This is what Zaria is doing. Although this university is a mature university, it aims to train future leaders, managers and thinkers. These leaders, managers and thinkers must not only conduct research and development in the aviation field, but also in the aerospace field. There is no such university in Africa. This is the reason for the establishment of the African University of Aeronautics and Astronautics in Nigeria. So, I think it is very different. Therefore, the relevance of these two institutions, spelling, one is university, the core competitiveness is aerospace, aviation research and development, and then management skills; and NCAT will continue to be the center for training people to acquire skills and become pilots.

The air traffic controllers and other personnel of the Nigeria Airspace Authority look forward to your intervention in TRACON. What are you going to do to upgrade the equipment?

Well, maybe you missed the news. We recently approved approximately N13 billion to continue the TRACON process, and we are proceeding in phases. I believe we have spent a lot of money to continue the TRACON process. Of course, if you follow up with all the FEC approvals we have obtained to drive this TRACON, then, you know, we are working hard to ensure that it happens, it is done and it is sustainable.

When do you think Nigerians will fly and land normally in the haze of Hamatan?

Recently, we purchased some equipment to help landing in low visibility conditions. Therefore, 13 airports are equipped with Type 3 Instrument Landing System (ILS). Type 3 instrument landing system means you can land in zero visibility. This means that even if you are blindfolded, you can put down the plane. But you see, I have emphasized more in a meeting with the air traffic controller. This requires two people to go to Tango. We will provide equipment, but airlines must also train their pilots to use Category 3. In other words, first and second, they must also install corresponding equipment inside the aircraft that can interpret the signals sent by the aircraft. Our ground equipment installed on the ILS.

Therefore, operators, such as Max Air or Air Peace, must install instruments on their aircraft that can interpret the Class 3 device signals they receive. They must also train their pilots. So we provide equipment. Training pilots and putting equipment in the aircraft is still the airline. As a result, you can actually land in low visibility situations, with zero visibility in Nigeria.

Then, of course, you know that once you train a pilot, he also needs to conduct currency training, once every six months, to ensure that he is proficient in driving this type 3 ILS every time. But let me make this clear to you, as I said the other day. If you are an operator, you will be faced with choices. You will face economies of scale. One, you would say, well, the weather in Kano, Abuja, Katsina, Sokoto, Maiduguri, Yola and Jos has gotten so bad. These are the most notorious airports in Nigeria. It happened, and there may be only 10 days at most in 365 days.

So what I want to say is that operators will face economies of scale. He will see that visibility that may only be 10 to 14 days a year becomes so bad. Then he would say to himself, okay, I have 10 planes. If I had to equip these 10 aircraft with all the equipment, train pilots to fly Class 3 aircraft and keep them up-to-date and proficient, it would cost me X dollars. During these 14 days, how many times do I plan to try to enter Kano with low visibility during the day? Then some of them will choose to lose that 14-day market, because doing so will cost them more. I said it based on actual experience. We try to enforce them, you know there is no coercion; this is the style and choice of business. Therefore, it is important for the government to provide equipment, and if the operator feels so, he will install it on his equipment.

We cannot force him to put the equipment on his plane because it is not safety critical. Well, yes, if he doesn't fly in, that's not the point. But if he flies there, then we will insist that he put it on his plane. So you won’t say okay, well, I was flying Max Air the other day, and they postponed it until night because they wanted to use the runway lights because they couldn’t come in when the visibility was low. So it tells you that maybe Max Air doesn't have this kind of equipment on their planes, or they don't have competent pilots. But as long as you want to operate in bad weather conditions, in the case of reduced visibility; your pilot must have the ability to fly a Class 3 aircraft, and the aircraft must be equipped with these equipment.

Airline operators and industry interest groups do support the franchise plans of the country's major airports because they want the airports to have better infrastructure. Do they publicly support you? How would you rate their support?

Well, I would say that they have provided support. I want to say that they are also very happy, because the concession means that you will have new business, new way of doing business, better service, better airport environment and so on. Therefore, the convenience of doing business will be greatly improved, and this is exactly what entrepreneurs are looking for. All entrepreneurs around the airport are affected by government bureaucracy, which slows down their performance. So if we hand over the airport to the private sector driven by service quality, it will be better for everyone. We have seen it in the seaport, where efficiency has increased by more than 3,000%. So I think they have given maximum support, and I think they will continue to support us.

With your encouragement, Nigerian Airlines began to purchase brand new aircraft. What is your reaction to this?

Well, our job or my job as a minister is to continue to lead the industry and provide the necessary advice and support so that they can continue to provide the services we need and hire our employees. This is the main purpose of becoming a minister and leading the civil aviation policy. Having said that, I really believe that those who accept our advice will see the benefits, and those who do not accept the advice will see the consequences of ignoring the advice. So we are here to provide them with guidance.

We set the framework here. We are here to make policies to let them know and understand how to get the job done. As a result, they have improved their efficiency and service delivery. I know an airline initially when we insisted that they must carry a newer aircraft because it was more efficient for them. The direct operating costs of airlines will be much lower, maintenance will be much lower, and so on. They thought we were retaliating, but then when they accepted our advice, they wrote us a letter personally written to me, saying, Dear Pastor, we thought that when we came in, you didn't like us. But now we understand, and now we know that following your advice means that we are doing well. That airline is Peace Air, if I can mention it. They wrote us a private letter telling us that we did a good job, and they thought they would continue to follow our advice.

What do you think of the ever-increasing passenger flow? Do you think the industry is on a new track, or what is happening is just an accident caused by unsafe roads?

No, this is not true. Since 2015, we have been trying to implement all these policies in a moderate manner. In fact, before Buhari's arrival, the situation in Nigeria was even more insecure. There were bombings everywhere, churches, mosques, schools, public buildings, roads and so on. There are armed robbers and all jams along the road. So this is not a factor at all. The key is what the government has been doing to reposition civil aviation, formulate the right policies, ensure a level playing field, keep prices down, encourage people to come, increase the convenience of doing business, increase passenger confidence and show them that the industry can operate and is working. Provide this kind of service. Therefore, due to these policies, Nigeria’s flying proficiency has improved, and there are options and availability.

In the international aviation industry, what achievements has Nigeria achieved under your leadership as the Minister of Aviation?

They are too many to mention, but maybe I will understand bit by bit. Let me even start with the one that is most often forgotten. For example, under our supervision, the Nigeria Institute of Aeronautics and Technology has become a center of excellence for the International Civil Aviation Organization (ICAO).

They offer the largest number of ICAO courses. They are the world’s largest ICAO business, and they have the world’s most faculty members. This happens under our supervision. Two. For example, if you remove it, you will activate the Nigeria Meteorological Service (NIMET), the Nigeria Meteorological Service, which is providing MET services to Gambia, Liberia and many other countries in the subregion. They have also obtained ISO certification, ISO, as 9001, 2015 version, as the best MET service in Africa. In addition, when we came here during the last ICAO audit, we increased the safety score on their dashboard from 60% to 96.7%, which is close to 100%.

There are only three or four countries in the world that score higher than ours. They are the United Arab Emirates, the United States and another country. But our safety score is 96.7%. And our security has increased from only 50% to approximately 67%, and it continues. Today, for the first time in Nigeria’s history, since its merger in 1914, every government has failed to certify our airport. This is the first time Nigeria has certified Abuja and Lagos airports. We are certifying more products.

So we are scoring internationally, maybe I can line up for you in future interviews. Before I talk about this, in international space, we ensure the implementation of the Cape Town Convention in Nigeria. We have done it. We have proved this twice during our administration. What happened earlier was that people rented airplanes, brought them in, refused to fulfill their lease obligations, and then the owner wanted to come and fly, Nigerian entrepreneurs would go to court, and Nigerian courts would stop them. Since the Buhari government came to power, this situation has ended. We have ensured that if you breach the contract, you can take the plane. So far, three aircraft have been shipped out of Nigeria in accordance with the Cape Town Convention. This is also an international achievement, which has not been achieved so far.

If Nigerian Airlines utilizes the MRO and leasing company you are about to establish, do you predict how much they will save?

What will save is a lot of money, which is difficult to predict, but let me give you a scenario. If you say, a Boeing 777 aircraft operating in Nigeria, and you want to take it abroad for maintenance, then the cost of the ferry is $250,000. So, two ways are to have one million dollars. So if you have 10 airplanes of this type in Nigeria, the ferry cost alone will reach 5 million naira or more per year, plus the maintenance costs outside, plus the Nigerian company’s payment, the economy of others will be improved. Used for maintenance. Overseas maintenance means that when you take a plane to another country for maintenance, the work will be exported. But if you bring it in, you will create jobs, restore GDP, and increase your contribution. Maintenance work will also create employment opportunities. Therefore, it will be challenging to quantify the cost savings by going out and saving dollars and keeping them in Nigeria and spending them in Nigeria, but I can tell you this is huge.

Do you still describe Nigerian Airlines as being heavily indebted, or are they now paying off their debts?

Well, this is an unfair question for me to truly answer publicly, because I think I may not be able to expose their financial situation. But what I want to say is that we have economic regulation in the NCAA. We will ensure that these airlines are financially sound. If not, we will prevent them from flying because this is also a safety project. Therefore, everything we do is to ensure that through our own efforts, we apply economic regulatory tools to these airlines and will not let them go bankrupt. This is because we have seen what caused the impending collapse of Arik Air and Aero Contractors. Don't forget, we had a bad experience. When we came in, someone shut down Nigerian Airlines and refused to pay workers' wages. We came here many years later and found that their funds have reached approximately 75 billion naira.

During the economic recession in Nigeria, when the exchange rate rose, the price of crude oil fell from US$140 per barrel to around US$17 per barrel. During that difficult period, President Muhammadu Buhari issued 75 billion naira to pay the salaries of these airline employees. So we did it ourselves, and we showed that we are friendly to workers, and I think this shows the world how President Muhammad Buhari takes employment issues seriously and saves them, and ensures that we are doing the right things to develop the industry .

So far, what is your assessment of the security situation at the airport?

Well, I think we are safe so far. Then, President Mohammed Buhari signed and authorized armed aviation security for the first time. We are training and retraining them to further ensure the safety of the airport. We have prepared dogs, and we have ordered and purchased various scanners. We are introducing infrared and all these remote sensors to be able to monitor around our airport. We will use drones and so on. So a lot of things have happened in the security field, you can't see it, and it's not known to the public, but I think we are getting safer. Then, of course, I should be able to say more after the audit.

Finally, you completed a very important job on the runway of Abuja Airport and achieved the same success on the runway of Enugu Airport. You have taken over the international terminal under construction at Enugu Airport. When do you think the terminal will be completed?

CCECC is building 5 terminal buildings. Four of them were loans from China. One of Enugu is under the state budget. Those with loans from China, we make sure we follow them diligently and they are being completed. Enugu completed approximately 65% ​​to 67% because it happened within budget. We have applied for special funds from the government. And we also follow the budget. Last time I released N1billion to Enugu to continue working. I hope we can complete Enugu before the end of this administration.

We firmly believe that aviation is an alternative to African integration, African commerce, African trade and African tourism. This is because 90% of tourists arrive at their destination by plane. We do believe that if you compare air transportation with railways, roads or waterways, please consider how much money will be invested to connect all these countries through railways, roads, and how much money will be used to maintain these railway lines, coaches and roads. And compare it with aviation. Even if you do, think about how fast you take the train or road from Abuja to Nairobi, and

Then you do the math yourself. Therefore, we do believe that with the advent of SAATM (Single African Air Transport Market) as part of the African Union’s flagship and AU 2063 agenda, I think Nigeria will take advantage of this SAATM and develop civil aviation to a higher level.