An aviation expert, Capt. Dele Ore
(Rtd), on Saturday said that allocation of multiple entries to foreign
airlines were adversely affecting the growth and survival of local
airline operators.
Ore, the former President of Aviation
Round Table (ART), told the News Agency of Nigeria (NAN) in Lagos that
the multiple entries of foreign airlines were hampering the operation of
domestic airlines.
He, however, urged the new minister of
state for Aviation, Capt. Hadi Sirika, to urgently review the trend in
line with the stoppage of payment of royalties by foreign airlines.
Ore advised local operators to form
alliances and cooperation in order to tap into the benefits of economics
of scale and scope which would accrue from such collaborations.
“There is need to review the
certification and operations of private jets as safety and security of
the nation is being threatened, while non-scheduled operators are being
short changed.
“There should be increased monitoring of
economic regulation on the airlines by the Nigerian Civil Aviation
Authority (NCAA) to ascertain their financial health. “This is as provided for in the Nigerian Civil Aviation Regulations 2012,’’ he said.
According to him, another challenge
facing the local airlines is the use of foreign registered aircraft with
foreign crew to deny Nigerians employment and has diluted the Nigerian
content provision. He said that the high cost of aviation fuel, JET A1, was affecting the profitability of the airlines. Ore said that bridging of supply of JET
A1 by fuel trucks and demurrage were part of the problems and should be
addressed by government and marketers.
“High net-worth entrepreneurs should be
encouraged to invest in the industry to facilitate the efficient funding
and management of local airlines.
“A regulatory fleet consolidation
process should be initiated by the NCAA with the backing of the National
Assembly as a way of strengthening the local operators,’’ he said.
Ore said that insurance premium paid by
the local operators is very high and worrisome, urging relevant
authorities in the sector to address the issue