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Tuesday, November 24, 2015

‘Multiple-entries for foreign airlines affect the growth of local airlines’ – Ore

Capt. Dele Ore (Rtd)
Capt. Dele Ore (Rtd)
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

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