|
Getting your Trinity Audio player ready...
|
As Air Peace celebrates its fifth anniversary October 24, OLUWATOYIN OLAJIDE, Chief Operating Officer, Air Peace Limited, in this interview with GBEMI FAMINU, says over more than 800 flights of Air Peace depart
to our various destinations per week, but it has not been an easy ride as determination to succeed against all odds has played a great role in the airline’s success story. Excerpt:
As Air Peace marks its 5th anniversary, how would you describe the Journey so far?
On October 24, 2014, Air Peace commenced her schedule d commercial flight operations with a fleet of 7 aircraft (4 Boeing 737- 300/500 and 3 Do 328 jets). On that day, history was made. We operated 13 flights to five destinations within the country. Our goal then and even now was providing quality service and seamless flight connections for our esteemed customers. And in the last five years since taking those first steps onto the domestic travel scene, we have evolved into an International airline; the biggest African carrier in Nigeria and West Africa.
With a fleet of more than 25 aircraft excluding the 10 brand new Boeing 737 MAX 8 and 30 Embraer 195-E2 aircraft it recently ordered, we currently fly to over 22 destinations in seven countries. Over more than 800 flights of Air Peace depart to our various destinations per week.
We thank God Almighty for the heights we have attained so far. It has not been an easy ride but determination to succeed against all odds has played a great role in our success story.
These past 5 years can be defined as a kaleidoscope of happy memories. Over the last five years, we have undergone massive growth/expansion but our company has become stronger and more efficient than ever before. We aim to create the best customer experience for our customers through offering an excellent product, excellent operational performance and by taking care of their needs.
Accomplishing this mission has been increasingly challenging because we operate in an extremely complex environment.
We are a multi-country airline in a highly regulated industry with each country and passenger having different needs. We are managing a tough business and our aim is to create seamless experience with Air Peace in all interactions with our esteemed passengers. We recognize that we serve pragmatic, empowered digital customers that want superior service. We are continuously striving to give them the great experience they deserve. This is our promise.
It is a matter of great pride to see our company growing, embracing good value system and achieving more than what we have ever thought of within the shortest possible time. We keep surpassing our short term goals and we have God, Nigerians who have shown us so much support and our loyal employees to thank for that.
The journey so far has been rewarding, this is because one of the motives behind the establishment of Air Peace is to provide jobs for teeming Nigerians and it is so rewarding to see that the Company has grown so much and employs
thousands of Nigerians, thus providing a means of livelihood for them and their dependents. Air Peace has created thousands of direct and indirect jobs for Nigerians and expatriates without any form of discrimination. We are doing a lot in unifying Nigeria through air transport, and the airline has positively contributed to the economy of Nigeria, and those of her regional and international counterparts.
What informed the choice of the theme of this anniversary, “Growth Sustained by Commitment?”
Our greatest asset is our integrity and our greatest goal is safety coupled with on-time departure.
These have greatly contributed to our growth in the aviation sector making us a force to be reckoned with in Nigeria and West-Africa. The choice of this theme at this time reflects our commitment to the need of our esteemed customers and the determination to succeed in this industry despite the challenging operating environment.
This is further embodied in our vision statement which is to be dependable through the creation of seamless connections and network options for our domestic, regional and international markets and our mission statement which is to expand our locations both domestic and beyond, as the largest and most profitable airline to achieve safe, efficient and affordable short and long haul flight services.
Our vision and mission is centred on growth and being able to provide superior quality services to our customers. We are determined and committed to achieving this goal. It is non-negotiable for us.
We prize feedbacks from our customers as we realise that we are in business because of them and we ensure that no stone is left unturned in our dealings with them.
Air Peace has grown in leaps and bounds as a result of the commitment of the management and employees and we have been able to sustain this growth by always putting the customer first because at Air Peace, CUSTOMER IS KING.
The airline has experienced a rapid growth in the aviation industry, how are you tackling these challenges?
The aviation industry in Nigeria is very challenging and difficult to operate in. Air Peace has had to deal with a lot of challenges, a lot of which are crippling. One of such is the hostile operating environment and inadequate/poor airport infrastructure. Most of the airports in Nigeria don’t have facilities for night flights and are shut by 6pm instead of at least 12 midnight.
This ultimately limits the number of hours the airplane can fly in a day, thereby affecting the airline’s productivity causing huge revenue loss for the airline.
There is also the issue of multiple taxation and charges. These multiple charges on the ticket sold reduce the percentage that goes to the airline to less than 40% of the ticket value. How then do one expect the airlines to pay her bills, fulfil all her obligations and ensure the airplanes go for scheduled maintenance as at when due? This is a huge burden on the airlines and government need to look into these multiple charges and taxation issues to avoid crippling the airlines and enable them find their feet and start being profitable
The profit margin in airline operation is very slim. Airlines creating jobs for people that otherwise would have been jobless is already a huge contribution to the economy and therefore should be supported by the government by
giving them a chance to find their feet in the first few years before they are slammed with all these multiple charges and taxation.
A cursory look at the regulatory agencies will reveal that most of the taxes collected by each of the bodies are essentially the same.
There is also the challenge of high import duties on spare parts even though there is a government waiver on import duties on aircraft parts. Some aircraft parts are still classified as dutiable with custom duties as high as 20% to be paid by the airline. These duties are crippling and they contribute in making the operating environment harsh and largely unprofitable.
High cost of fuel is also a major challenge faced by airline operators in Nigeria. The airlines suffer for the high cost of importing the aviation fuel. Two-thirds of the costs of flying an airplane are fixed, so changes in fuel costs can swing
a flight from profit to loss depending on how many people are on the flight.
Lack of maintenance facility in Nigeria is gradually crippling the finances of the airline operators because several millions of dollars are spent abroad in foreign maintenance repair organization (MROs) to maintenance these airplanes during heavy maintenance input. These are funds that can be retained in the economy if the government provide the enabling environment for private investors to build an MRO in Nigeria. This will also create employment opportunities for Nigerians, thereby boosting economic growth and development.
Finance is also another major challenge faced by Nigerian airlines. Although Air Peace is not facing this difficulty because we have the huge support of our bank it is not the same success story for most airlines in Nigeria. Air Peace has however demonstrated and shown a lot of integrity in our financial management and discharge of our obligations to our lenders.
We understand that aviation is a turbulent sector, what should the government and other regulatory bodies should start doing differently?
The aviation sector is unlike other sectors, it is highly regulated and sometimes this causes bottle necks. As earlier mentioned, the government should encourage indigenous airlines to enable them succeed. A good way to do this is to create an enabling environment. The onus is on government to put in place facilities and equipment as well as good infrastructure to ensure smooth conduct of air travel services.
The airlines should be given some incentives and reduce all these multiple charges and taxation. Government needs
to stop multiple designations to foreign carriers. Foreign carriers should not be allowed to conduct domestic operations within Nigeria. This is suicidal and injurious to the survival of domestic operators in Nigeria. Government should withhold permits from foreign carrier in any route that an indigenous carrier is ready to commence flight operations or already operating on.
The government and regulatory bodies should see airlines as being their partners in progress. Once this is done, conducting business will be significantly easier and it will go a long way in developing the sector.
We have a whole lot of improvement that still needs to happen in the industry that would help airlines to survive. And once we can have all that in place in the areas of airport infrastructure, right landing haze, right operating environment, then this country will have a very viable aviation sector. It is possible and doable because this is one industry that generates huge revenue for the economy of this country. It is one industry that the government needs to pay attention to. We don’t want to destroy it.
What exactly do you mean by enabling environment?
It is a whole lot; the airports are not up to the desirable standards. We need to have an airport with the right infrastructure, landing haze, conducive environment of operating and this issue of multiple taxation, which will not
help the airlines. The airlines must compete favourably with their international counterparts. Enabling
environment is key to the industry; it is needed to achieve the best.
Has government attention be drawn to these challenges?
Yes of course, they are aware. But I must tell you that the government has actually tried. Give it to our Minister. The government is doing the very best to give the industry a much conducive environment for the operators. We have the issue of the zero waivers on aircraft space, which the Minister had made happen; that is a huge relief on the operators; the issue of the VAT which is being removed from transport, these are things they are doing to make life easier for the operators. But then, there are still other areas to look into. Not many of our airports are open 24hours
in Nigeria. If you have airports in the country that you cannot fly to after 5-6:00pm, how do you break even? When you have issues with the weather in the morning hours and have delays in the departures, as a result, flights are being pushed to later in the day, by the time it is 6:00pm and you cannot accommodate some of these flights anymore, it results to cancellation of flights and that is a huge loss in the process. Planes are not supposed to sit on the ground, they should be flying. You cannot possibly have just one screening point at the airport to facilitate over 2000 passengers within three hours. How possible is that? Passengers do not understand all these challenges.
If these things are looked into, the industry will be a more favourable place for all.
Your customers usually complain of delays associated with your flights; what factors do you think are responsible for this and what are you doing to reduce this?
Air Peace prides itself on safe and on-time departures but sometimes circumstances arise that makes it impossible for on-time departures due to force majeure i.é circumstances we have no control over such as poor airport infrastructure, bad weather which is very dangerous, especially during the raining season and harmattan season or
other operational reasons.
Passengers always blame the airline for flight delays, what they do not know is that so many factors can cause delays. Safety is our watchword and therefore when any circumstance arises where a 100% safety cannot be guaranteed, we prefer to delay the flight until the issue is resolved. Delaying a flight is even more detrimental to us as it makes us lose revenue as fees and charges would have been paid already but we prefer to lose revenue than to compromise the safety of our customers. The airline is not the only reason flights are delayed at the airport. Poor Infrastructure, inadequacy or gaps can lead to avoidable delays.
Lack of night landing lights on the runways and navigational equipment at most of our airports restrict flight operations to day time. Any disruption in flight schedule due inclement weather conditions or airport closure most
times lead to flight delays and eventual cancellation. This is a huge financial loss to the airline as it’s unacceptable and impossible to operate in such adverse weather conditions or even fly into the airfield after sunset.
Our airports need to be well equipped with adequate and functional ground navigational equipment/landing aids. This is not the responsibility of the airline but that of the government.
Air Peace has risen to an enviable position in the industry and the expectations of the flying public and other stakeholders have also heightened. How do you intend to sustain this tempo and meet these high expectations?
At Air Peace, we understand that in order to sustain the momentum, we must continuously improve on
our flight operations and customer service. Also very important to us is improving our operational efficiency. We are sensitive to the needs of our customers. We value the feedback from our customers, because they are the reason we
have attained this enviable position. One of our core values is dependability.
We continuously aim to create the best customer experience for our customers through offering an excellent service, a first class flying experience that is safe, on time and cost effective. We are overwhelmed with the love and goodwill Nigerians keep bringing our way and we do not take it for granted as we daily strive to be better and improve our services.
The flying public should expect more from us as we are working on improving our services. Already we have made firm orders for 30 brand new airplanes and we shall be taking their delivery in less than 7 months from now. All this is geared towards giving our customers an unforgettable flight experience.
In July, you commenced flight operations to Dubai via Sharjah, what other international routes are you looking at?
We thank God for the successful launch of the Dubai-Sharjah route.
We are definitely commencing flight operations on other international routes soon. We have gotten the necessary permits and very soon we shall be unveiling some new international routes.
Nigerians are well travelled and can be found all over the globe and at Air Peace we are poised to making sure that our customers have us at their beck and call to all their destinations.
What is your message to the flying public as Air Peace turns 5?
We sincerely want to appreciate Nigerian for their support over the past five years. We thank Nigerians for choosing Air Peace. They have supported us from our maiden flight and have continued to be supportive. We appreciate this kind gesture and we will never take for granted. They should expect improved flight operations that are on- time, cost effective and safe.
They should also expect more destinations as we are going to launch new routes very soon. We want to assure them that we are committed to providing Nigerians with superior quality services and getting them to their destinations safe.
After five years, what does it mean to be the very first female COO of an airline?
I feel humbled and very grateful to God. It is quite exciting and at the same time it is a whole lot of responsibilities because you have a whole lot of people looking up to you who could not be let down. It is challenging actually but at the same time, you know a lot of people are looking up to you, you want to continue to give it your very best, especially for the young females out there, You want them to know that nothing can stop anyone. If you set your mind to achieve something, it is possible and doable. If I can be the COO of this airline today, anybody, any woman, any female, any lady or any young girl out there can also be a COO of any airline or industry in the world; it is achievable with a lot of determination and God on one’s side. That I believe strongly.
However, the flying public should know that Air Peace is not shaken by any existing airline or new ones coming up because we have our standard. We have our target. Air Peace is a focused airline. We know our vision. We try as much as possible to put policies, processes and procedure in place and to have the right team around us that would help drive the vision. We are a multi-country airline, that has experienced five years of steady progress, and our vision of creating seamless connections and network options for the domestic, regional and international markets, is being achieved. However, let me use this opportunity to thank every stakeholder that has supported the airline since inception. We recognise that our customers are the reason for our existence. In fact, that without them, there will be no Air Peace. Our passengers are a key part of our success story, and must be celebrated. We could not have achieved all the feats we have to our name without the consistent support of our valued customers. I urge the flying public to continue to fly Air Peace, because we are committed to giving them best-in-class flight experience. We assure the flying public of better days ahead, as we also promise to continue improving our delivery of safe and comfortable flights.
