The Managing Director, Flights & Logistics Solution Limited, Amos Akpan, in an interview with OLUSEGUN KOIKI, speaks on the wrangling between the ground-handling companies and domestic airlines, the recent reconciliation between the Federal Government and Bi-Courtney Aviation Services Limited (BASL) over Murtala Muhammed Airport Two (MMA), among other issues in the air transport sector.

What do you think about the resolution of the age-long concession crisis between the Federal Government and Bi-Courtney Aviation Services Limited?

The concession arrangement between Bi-Courtney and the Federal Government has been reviewed by various governments over the years. We have witnessed disagreements and court cases. If this government can resolve the points of disagreement so that the partnership achieves the intended results, it will bring credit to the government and Bi-Courtney. The aviation industry will have this to cite as an example of a successful Public-Private Partnership (PPP).

What precedent will this resolution set for future PPP arrangements in the aviation sector?

The aviation sector can now tell potential investors that we have finally addressed the setbacks and created a conducive environment for investment, using the PPP between the Federal Government and Bi-Courtney as our showcase. That shows that we now know how to navigate the differences that will occur during implementation.

Do you think this resolution is policy-driven or politically motivated? Do you see a final settlement of the matter?

First, what matters is the result that we should allow this partnership to work, irrespective of politics. And until we read through the resolutions in this revised agreement, we cannot emphatically conclude that this is the final settlement of this matter.

What lessons can be learned from this crisis?

What the crisis has taught us is the courage for our government to initiate development programmes with the private sector as partners. Also, the commitment to making the partnership work despite disagreements during implementation.

What is your view on the call by handling companies, through their association, for incentives to help the airline
operators remain in business?

Every business operator in the aviation industry would appreciate a more enabling environment in which to conduct their operations. Considering the role of air transport in moving goods and persons within a national economy, we need to redesign the framework so that the structures are in place to enable the industry to serve as a launchpad for economic development in the country.

We cannot continue to apply piecemeal palliative measures as solutions to recurrent problems. How many short-term emergency solutions would we apply? And for how long would we keep doing so? Airlines are affected, handling companies are affected, cargo and travel agencies are affected, maintenance companies are affected, training organisations are affected, aeronautical services providers are affected, airport estates and commercial services are affected, fuel suppliers and financial service providers are affected, and the monitoring and regulatory agencies are also affected.

What affects them? The policy framework and the implementation of policies do not enhance their survival; they do not flow into or fit into the country’s national economic development programme. The Central Bank of Nigeria (CBN) formulates financial policies, but we later discovered the policy would not enable the acquisition of aircraft for airline operations. Aviation as a catalyst for business flow should be considered during national policy formulation.
Today, we are discussing financial assistance for aircraft and flight ground-handling companies because domestic airlines are unable to pay their N9 billion debts. A month earlier, the presidency intervened on the issue of airlines and fuel cost by offering a cut of 30 per cent from debts the airlines owe the aviation agencies like the Federal Airports Authority of Nigeria (FAAN), the Nigeria Civil Aviation Authority (NCAA) and the Nigerian Airspace Management Agency (NAMA).

The Minister of Aviation and Aerospace Development, Festus Keyamo is establishing an aircraft acquisition company to ease the problem of aircraft accessibility by domestic airlines. My point is that we should not be doing piecemeal application of solutions after the harm is done. After the acquisition of the aircraft holding company, we will face a lack of Maintenance, Repairs and Overhaul (MRO) facilities. There is a problem with the logistics of fuel supply to airports. What about positioning our airlines to compete globally? What about airports not designed with transit facilities installed, which limit our airlines to point-A-to-point-B operations?

Now, we are refurbishing existing old infrastructure to make room for transit facilities. Other countries are building new airports with futuristic designs to attract and grow traffic. This is the way to go. Akwa Ibom State has designed what should develop into a regional hub in this initial stage. Akwa Ibom State has also built a framework for MRO facilities. Next should be an independent power plant for the airport, cargo terminal, and fuel depot.

That is the thinking pattern to adopt, but broaden it at the national level such that aviation becomes an integral part of the national economic plan. This way, our ‘fire brigade approach’ to the sector’s problems will only be useful during the implementation of the national strategy.

For example, the training curriculum of the Nigerian College of Aviation Technology (NCAT), Zaria, should be tailored to the manpower needs of the operators in the aviation sector. This implies there is research into which skills are needed by the various units in the sector’s regulatory bodies, service providers, and airlines.

How can the government factor aviation into the national economic policies?

Typical examples of aviation policies grafted to fit into the overall national economic development are found in Ethiopia and the United Arab Emirates – they are deliberately designed and implemented through Ethiopian and Emirates airlines.

We have to be intentional about this so that investors in the aviation sector are properly guided. Presently, investors are even looking for reliable data to base their business decisions on. Meanwhile, our aviation industry has huge untapped investment potential considering our geopolitical location and population.

However, the current Minister has shown passion for developing the sector. He is working very closely with industry stakeholders and encourages Nigerian investors in the sector to partner with foreign investors. He is reviewing and reconstructing policies to secure investors’ confidence. Stakeholders in the aviation industry should take advantage of this minister’s zeal and passion to push for a reset of the policies at their foundations.

We should not be encouraging cosmetic short-term measures such as bailouts and grants for airlines, handling companies, and other operators in the sub-sector during temporary crises. It hasn’t solved the industry’s foundation problems. It gives a reprieve, but it doesn’t guarantee sustainability. We have identified the causes, the symptoms and their effects in several fora – seminars, symposia, conferences, committees and stakeholders’ meetings.

What is required is to articulate them and make them into policies that drive the business activities in the industry. Let us encourage the very basics, like the capacity to repair and overhaul aircraft spare parts – at least the rotables, the capacity to train and engage skilled manpower within the sector. The drive to attract investors to form an aircraft acquisition company (as an asset holding corporation) is a very strategic step in the right direction. It’s an example of the stakeholders guiding the minister in the right direction.

The aviation industry’s environment must show clear indicators that investments can be cultivated to yield returns on investment, encourage business sustainability, and make businesses globally competitive.