Plays by investors to deliver over 29 new carriers in the country’s air transport sector may have run into stormy weather.
New entrants such as Green Africa Airways, Jet West Airways, United Nigeria Airlines, Value Jets and Rahma Air Nigeria, which have reached advanced stages of certification, have been forced to put their preparations on hold following the outbreak of the OVID-19.
Besides the five carriers listed as front runners, 25 others, namely: Jet Support Services, Air First, Air Taraba, Air Jupiter, Continental Aerospace, Jet Leasing Support,Mayatta Enginerring Services, Toucan Airlines, New Okada Air, Fye Air Shuttle, Xejet, Revillo, Glory Airlines, Dominion Air Limited, Mounthill Aviation Resources Limited, Air Stream Aviation, Baltic Airlines, Millenium Travels and Tours, Onedot Aviation, Oriental Airlines, Prime Air Services , 1060 Airways, Private Airline Services and Trebet Aviation Aerospace Nigeria Limited, have applications undergoing processing at the Nigerian Civil Aviation Authority (NCAA).
Officials of the regulatory authority confirmed that the processing of either air transport licence (ATL) or air operators’certificate (AOC) were ongoing at various stages.
But, they were not categorical on which carrier has moved from either the exploratory, active or approval stages.
Experts familiar with the matter said the investors whose certification has reached advanced stages at the NCAA are applying the breaks before they flag off operations to enable them tweak their proposed business/operational manuals to align with new regulations rolled out for post-COVID-19 flight operations.
Besides, the ravaging effects of the COVID-19 pandemic, which have forced prospective airlines to return to the drawing board, it was gathered that many investors intending to set up airlines are reviewing market trends/dynamics, including low returns on investment (RoI), low passenger traffic, high operational/aircraft maintenance costs, poor airports infrastructure and lack of incentives to new entrants as well as absence of airlines’ cooperation before they plunge.
Though Green Africa Airways had concluded plans to begin operations following the signing of Memorandum of Understanding (MoU) with aircraft manufacturing giant – Airbus for 50 airplanes valued at $81million, it is yet to unveil its start up plans for a myriad of factors
Its founder and Chief Executive Officer, Babawande Afolabi, who promised to use the airline to create better future for air travel, is yet to give reasons why the airplanes have not hit the skies.
But, one of the entrants and Chief Executive Officer of Jet West Airways, Dikko Nwachukwu, said airlines using the appropriate business models could survive, if they triggered low fare revolution operating as low cost carriers.
Investigations reveal that United Nigeria Airlines, which had already acquired aircraft and recruited crew from its base in Enugu, is watching developments in the sector before take-off.
Jet Airways, which has secured an office and personnel at the Lagos Airport is yet to announce its launch date.
Value Jets, investigations revealed, has started wet leasing of aircraft to other carriers ahead of securing certification as a full-fledged scheduled carrier.
A source close to the airline said its crew and aircraft already has operational agreement with Arik Air.
Experts are, however, worried how new entrants will cope in the tough airline environment where existing carriers, such as Aero Contractors, Arik Air, Air Peace, Dana Air, Overland Airways, AZMAN Air and Max Air are grappling with low passenger traffic, higher cost of aircraft maintenance and oscillating cost of aviation fuel otherwise known as Jet A1.
In an interview, Executive Chairman of Airline Operators of Nigeria (AON), Capt Nogie Meggison said operators would need government’s intervention to keep their business afloat post COVID-19.
Already, 18 airlines, it was learnt, have submitted application for funds to Central Bank of Nigeria (CBN).
AON which is the umbrella body of all the carriers is facilitating the submission of the documents for the application to the CBN .
Airlines that submitted their documents for CBN restart funds include Dornier Airlines, Max Air, OAS Helicopters, Omniblu Aviation, Quorum, Allied Air, Top Brass, TAL, ANAP Jets, West Link, Jed Air, Executive Jets, Kings Airlines and First Nation Airways.
Others are Dana Air, Max Air Limited, Skyjet Aviation Services Limited, and Skypower Express Airways.
A study by integrated transport consultant, Mr Tunde Fagbemi revealed that traffic patterns show a few commercially viable routes – Lagos, Abuja and Port Harcourt in a network of 20 cities.
In the study entitled: ‘Air Travel & Airline Operations in Nigeria: Market Potential and Challenges‘, Fagbemi said demand for air travel and improved air transport operations in Nigeria needs to be engineered for reasons on highly favourable demographics and geography.
He said the potential for air travel remains constrained as the existing route network by scheduled carriers emphasised on nodal routes, which he listed to include Lagos Abuja/Port Harcourt axis.
Passenger volume on these routes, he said, is triggered by pervious rites of the cities as business and financial hub, seat of political power and the base for oil and gas activities.
Fagbemi said: “While the demographics and geography are highly favourable for air travel, the prohibitive costs exclude several potential consumers of the service.
“The high cost of air travel is traced to supply side costs of operations, maintenance, taxes and other regulatory charges.
“These supply side costs can be reduced if the government consider tax holidays as incentives to new entrants.
“There is also the issue of absence of cooperation among airlines, the need for the establishment of a local aircraft maintenance and repair organisations to conserve foreign exchange spending by airlines and provision of alternative renewable power to cut cost of airport operations.
