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Recently, domestic airlines operating in Nigeria have been facing several challenges ranging from the damage of their aircraft as a result of poor handling services, high cost of aviation fuel and multiple taxations, amongst others. In this interview with Ifeoma Okeke, Allen Onyema, Chairman, Air Peace speaks on some of these challenges and how government can create an enabling environment for airlines to survive. Excerpts.
How will you access the airline operations in Nigeria?
Commercial airlines are catalyst for economic development in any country and that is why every country supports its airlines. We are asking for an enabling environment to make the airlines work. Air Peace supports payment of tax to government but what we are asking for is for the taxes to be streamlined in such a way that will help us help government and the country. It is not very complementary that all the airlines are dying.
Let us find out why. Airlines pay about 37 charges in all and by the time we put all these together, the cost of flying in Nigeria becomes too huge and the economic purchasing power of the people cannot afford the ticket fare. This means if people do not fly, the airlines will run into problems of going out of existence. We also lack corporate governance structure in some of our airlines.
The way we run our affairs as owners also matters. Nigerians will borrow money and will not want to pay. Nigerians will lease aircraft and they do not want to pay. Some of these things make it difficult for others who want to lease aircraft to get lease outside the country. Some airlines who have fallen out of the way have leased before but they did not pay making it impossible for some of us who may want to lease.
We should also look within ourselves and do something that will alleviate our problems. Airlines in Nigeria also lack unity. A situation where you try to advice the government of the day for the good of the country and the industry, other competitors will look at it from the other way to say we are fighting them is also discouraging. Air Peace has come to stay and no amount to challenge will make the airline go under. This is God’s airline; God is only using me to manage it. This airline will not fall by the wayside.
What are some of the recent challenges you facing in your operations now?
Domestic airlines do not control the ground services and we are not allowed to have our own ground services. The Nigerian Aviation Handling Company Plc. (nahco aviance) hit my aircraft last month and rendered it unserviceable for over three weeks. This resulted to huge loss in revenue. We are not the only airline that has been hit. Azman was also hit in Kaduna and Arik has been hit several times. I am not fighting for Air Peace alone, I am fighting for Nigeria. I am calling on government to allow any airline that can afford it to provide their own ground services so that I will be able to train my staff and take my destiny in my own hands. The time is now. It is done anywhere in the world, if other airlines can do it, we should be allowed to do it. The monopoly should be broken. It is part of the things militating against our efficiency. Skyway Aviation Handling Company Limited (SAHCOL) also ran into our aircraft in Benin and the aircraft is grounded. I have three aircraft grounded in one day. When ground handling services fail to do what they are supposed to do, passengers take it out on us. Some steal from the luggage they handle. Sometimes passengers call that they have been waiting for their luggage since 15 minutes and it is true.
Are airlines now having access to fuel at affordable rates?
All over the world, fuel prices have gone down but in Nigeria, the price has continued to increase. We were buying at N265 to 250 for a litre, recently it has started reducing to N215, yet it is still very high. Fuel cost take 45percent of operating cost in other countries but in Nigeria it takes 75percent, so what is left there for the airline? Why won’t airline continue to fall by the wayside?
Are domestic airlines actually paying multiple taxes in Nigeria?
We want to support this government to succeed and the only way to support the government is to tell the truth and I am sure that if this government is properly advised, they will address the issues of the airlines. It is our duty as airlines to advice the government that if these taxes are not reduced, more airlines will crumble. No airline will survive this regime of taxes. It has been there even before Hadi Sirika left high school. We need to start talking to national assembly to help the executive arm of government to change some of these legislations. Let government bring a consulting firm to go round the country to find out why airlines have been dying in this country. Taxation is part of the reasons.
How does the cost of insurance affect the airline business in Nigeria?
The amount of money airlines all over the world pay for their equipment is nothing to write home about. In Nigeria, they tell us Nigeria is unsafe so we must pay very high amount of money to insure every aircraft. All over the world, they do not do the same. The law says that we must go through a Nigeria insurance company to insure our aircraft. All the insurance companies in Nigeria put together cannot insure one aircraft on their own without foreign intervention. The airlines are not allowed to source these foreign insurance companies by legislation themselves. So, we go through middleman insurance companies from Nigeria, so whatever we see, we take. We are paying so much on insurance. Government should look at this and see how they can cut down certain charges.
How will you evaluate Hadi Sirika, the present minister of State, Aviation?
The minister means well, all he needs is for people to channel proper advice for him. Any government that has preponderance of wrong advice will derail but if they have good advice it will succeed. It is our duty to advice the government well without playing to the gallery of sycophancy. I think the present regime of Hadi Sirika is doing right. What he did in Abuja was marvellous. I was one of the people who snapped the picture of the runway. The chief pilot complained to me that they were losing tyres and losing a lot. I complained to the minister that the airport is accident waiting to happen. He confirmed it and started showing me pictures. You could see his exuberance in trying to do the right thing and I was taken aback positively. I said for once I have seen someone who has passion for the sector. He promised me that the runway will be done and that he doesn’t want someone to die in his regime. That was why when he said the airport should be closed for proper work to be done, we supported. So, I congratulate the federal government seriously and furiously for seeing to it that they kept their word.
