The Aviation sector is indeed, one that cannot be overlooked when discussing the world’s economy and events surrounding the metamorphosis of some issues that shaped the world’s history.
Positively, the sector witnessed a boom in passenger and cargo traffic as the International Air Transport Association (IATA), continue to post higher passenger traffic monthly throughout 2014.
Although, the association is yet to release figures for November and December 2014, growth in international air passengers according to it, rose 3.6 percent in October compared to a year ago. This is in line with growth year-to-date, and stronger than the September rise of 2.3 percent.
“Growth so far this year in premium and economy class air travel has equalized. As a result, several markets showed improvement in October compared to a year ago and there has been no further increase in premium’s share of total traffic, which could suppress growth in premiumyields and revenues”.
And on the back of lowered oil prices and stronger worldwide Gross Domestic Product (GDP) growth, the airline industry profit is set to rise to $25 billion in 2015.
The Airlines are also expected to post a collective global net profit of some $19.9 billion in 2014 (up from the $18.0 billion projected in June).
However, the sector was slightly impacted between July and September when the Ebola virus broke out in some countries, leading to flight cancellations and sometimes, airport closure.
And in Nigeria, from the three epileptic airlines, apart from Arik Air then, the sector can now boast of 10 airlines, offering Nigerians the hope that when they get to the airport, they will get to their destinations.
The domestic scene of the nation’s air transport sector is now witnessing a boom as more airlines join the sector with low fares.
With increased seat capacity, new entrants such as Azman Air, Discovery Air and Air Peace have crashed the fares to as low as N9,000 (one way) as more travellers throng their counters.
“In the new year, we should expect more from the airlines, and the regulatory authority to ensure safety from the critical safety service providers”, John Ojikutu, a former airport commandant said.
As the boom continues, analysts are asking the Nigerian Civil Aviation Authority (NCAA) to shun complacency and selective grounding of airlines, adding that the authority must exercise its autonomy, give airlines close monitoring if safety of passengers must be guaranteed further in 2015.
“The NCAA needs to do more on its oversight to ensure airlines compliance with economic regulations to ascertain their financial health. Government should have the political will to deny some airlines that are known to be getting relief or concessions on debt at the expense of safety. The airlines must therefore, pay their debts to ensure they get the desired safety service from service providers too”, Ojikutu added.
Another area of concern in the sector under review is the skyrocketing prices of aviation fuel (Jet-A1). Although, analysts are saying that with lowered oil prices, aviation fuel might be affected in the long run.
Jet A-1 accounts for over 35 percent of operational cost of airlines while many of them sometimes travel as far as Ghana to get the commodity when it is scare in Nigeria.
“The high cost of aviation fuel is affecting the profitability of the airlines. The bridging of supply by fuel trucks and demurrage are part of the problems and should be addressed by government and marketers”,
Dele Ore, president of Aviation Round Table, a non governmental organization said in a communique.
The commodity is sold for as high as N190 per litre in Nigeria compared to other countries where oil is not being produced.
Analysts are also calling for the repairs of refineries in order to eliminate landing cost of fuel from the price of the commodity.
In was also a safe year for Nigerians but globally, the Air transport industry in 2014 was the deadliest year in a decade as AirAsia crash brought global death toll to 1,212 in 2014 as expert still say air transport remains the safest.
Including Air Asia plane, 1,212 people were killed in air crashes in 2014 Incidents involving Malaysia-based airlines led to total of 699 fatalities. In 2013 just 265 people were killed worldwide as a result ofplane crashes.
Two incidents involving Malaysia Airlines planes – one over eastern Ukraine and the other in the Indian Ocean – led to the deaths of 537 people, while an Air Algerie crash in Mali killed 116 and TransAsia Airways crash in Taiwan killed a further 49 people.
The remaining 456 fatalities were largely in incidents involving small commercial planes or private aircraft operating on behalf of companies, governments or organisations.
Despite 2014 having the highest number of fatalities so far this decade, the total number of crashes was in fact the lowest since the first commercial jet airliner took off in 1949 – totalling just 111 across the whole world over the past 12 months.
SADE WILLIAMS
