Regulator upsets airlines with fleet requirement
Attempt by the apex regulator – Nigerian Civil Aviation Authority (NCAA) – to peg the minimum number of aircraft airlines should have in their fleet has triggered debate among operators, industry players and watchers.
How to improve civil aviation regulations for airlines, ground handling firms and other players in the air travel space is engaging the attention of many countries, including Nigeria, which is sparing no efforts to implement the revised standards and recommended practices of the global umpire – the International Civil Aviation Organisation (ICAO).
ICAO, the International Air Transport Association (IATA), Flight Safety International (FSI) and other bodies continue to review safety rules, regulations and other requirements to make air travel attractive and safe.
To play in the sector, operators are required to meet the minimum requirements spelt out by global and local regulators on the number and size of equipment – aircraft – they should have to carry out flight/cargo operations.
Across the globe, experts say there are no cut-and-fit templates on the number of aircraft an airline requires to start commercial operations. Regulators require airlines applying for certification to have at least one aircraft, either purchased outrightly or leased.
Experts say the minimum number of aeroplanes required to establish an airline in any country varies, depending on the size of the flights.
In the last few years in Nigeria, airline operators were required to have at least three airworthy aircraft before commencing operation. Such an arrangement is no longer tenable, as the regulator has unveiled a fresh template pushing the minimum number of aircraft to six.
Effective this month, the Nigerian Civil Aviation Authority (NCAA) expects existing and new operators in scheduled operations to have atleast six aircraft in their fleet.
Its Director-General, Captain Musa Nuhu, said airlines must have strong financial capacity and a minimum of six aircraft to be allowed to operate in the country.
He said the major problems facing domestic airline operation was lack of capacity to overcome challenges.
Nuhu said: “The problem is that a lot of the airlines don’t even have the capacity to meet current financial obligations.
“If you have three aircraft, for instance, and you lose one out of it, it has become a problem to meet up with your operations.Then, you start to have issues of flight delays, cancellations and all that.
“The number of aircraft you will have will depend on the kind of operations you want to do. You can imagine somebody who comes in with just one or two aircraft and one of the aircraft goes out of business, and sells tickets to the passengers, thinking of what will happen.
“For you to have six aircraft, it shows you have a very strong financial background for running an airline.
“It is not only for new entrants, but the old ones too have a period by which they have to comply. If everybody has one or two aircraft, we will keep having this recurring problem. We have to avoid that.
“People will criticise, but every country is different. We have to look at our own peculiar history and try To come up with solutionS , but regulations are not cast in stone.
“If the situation changes, the regulation would be reviewed accordingly. Whenever it is necessary, we don’t have to wait for five years before we make amendments.”
Nuhu further said Nigeria had many airlines but only a few were operating with insufficient number of aircraft. He said with such capacity, it would not go under after a few years, while still having its name in the NCAA registry.
“There are more aircraft in Nigeria’s registry than the entire West Africa. The number of airlines, air operator certificate (AOC), airports and co. they have, are not as much as we have in Nigeria. It is very huge, complex, and there are huge demands to cope with in the industry,” Nuhu said.
“From records, about 12 years ago, we had only 16 AOCs; right now, we have 32, out of which 12 are scheduled operators.
“We cannot keep operating the way we are doing. Changes have to come in and we have started the process.
“We are acquiring a regulatory software and in the next one or two weeks, we are going to be ready with the software and training of our staff is going to start on their use.
“We are going to make sure that 80 per cent to 90 per cent of NCAA’s processes are automated and also third parties are going to be automated,” Nuhu said.
But, the National Association of Aircraft Pilots and Engineers (NAAPE) has criticised NCAA’s planned regulation of a minimum of six aircraft for start-up airlines, describing it as anti-business.
Its President, Abednego Galadima said there was no distinction for commercial airlines and General Aviation with the new regulation, calling on the NCAA to reverse the policy for the good of the industry.
“The take-off point for six aircraft is huge and prohibitive.The NCAA should maintain the three minimum aircraft for operators. Nobody starts big and even life itself, one starts small. The NCAA should still sustain the three minimum aircraft for operators,” he said.
Also, Managing Director, 7-Star Hangar, Roland Ahmed, decried the new requirement.
He said the policy was not well-thought-out and warned that it might hurt the industry.
He said while the policy was successful in the banking industry, it might fail in the sector, urging the government to look inward to address the situation.
He added: “The International Civil Aviation Organisation (ICAO) will not give you the minimum aircraft you have to start with, but individual aviation country would look at its economy, purchasing power, strength and its Gross Domestic Products (GDPs) before coming out with any law or policy for operators.
“In our circumstance, the feasibility is difficult. We are testing the regulations. Let’s see where it will take us, but I think we may have a rethink at some point and see how we could go about it.”
Ahmed added that investors were reluctant to do business in the aviation sector because of its negative ratings. He said many airlines were weak and struggling financially, hence, the new regulation of six aircraft to be allowed to operate in the country, was not feasible.
He said: “The NCAA says new and old airlines must have a minimum of six aircraft, if that is allowed to stand, it means it is only Air Peace that would operate. We would see how to go around it, but I tell you that it is very difficult. We need to strengthen the airlines, but I tell you that this new act is a killer. I have sat in the management for NG Eagle and it has been over six months that we have been looking for aircraft engines.
“I have sent over six lease requests for engines, but no one wants to do business with Nigeria. Our rating is negative and the lessors will tell you that if you would not buy it out rightly, you should leave it. One aircraft engine costs $5 million. Who wants to give you that? And they are saying you should get six aircraft. When you include the airfare, it will cost you $2 million, which is $12 million today. We are buying pounds for N1,200 and dollars at over N900. So, I do not see how the airlines are going to survive this. You might have $12 million for a Boeing 737, but that amount will buy you four classics fresh from C-check, 22 years or less than 25 years old, so why should I go and buy an engine?” Ahmed asked.
Experts say there is a correlation between the number of aircraft an airline has in its fleet and its capacity to address flight delays and cancellations.
They say an airline with more aircraft could deploy them on routes rather than waiting for airplane delayed on any rotation.
Data from the NCAA indicate that, over half of the domestic flights, between January and March, 2023 were delayed. Of the 18,288 domestic flights within the period, 10,128 were delayed, representing 55 per cent.
According to the data, Overland Airlines recorded 84 per cent for delaying flights. Azman Airlines and United Airlines trailed Overland, delaying 73 per cent of their flights. Dana Air was behind with 67 per cent while Max Air had 65 per cent of delayed flights.
Air Peace followed, delaying 58 per cent of its flights; Arik Air 57 per cent; and Aero Contractors 56 per cent. Ibom Air and Green Africa each had 35 per cent of delayed flights during the period under review.
Value Jet recorded the least percentage of delayed flights at 22 per cent. As flying remains less than dependable, some passengers say it is important to add some buffer time into your travel schedule to accommodate delays and cancellations.
In terms of volume, Air Peace delayed 3,754 flights, the highest number of delayed flights in the first three months of the year. The airline also operated 6,521 flights during the period under review, the highest number by domestic airliner.
NCAA data shows that Max Airline operated 1,565 flights, of which 1,013 flights were delayed, making it the second domestic airline with the highest number of delayed flights in the first quarter of the year.
Arik Airlines followed with 926 delayed flights out of 1,619 flights it operated while United Airlines delayed at least 910 flights out of its 1,243. Of the 2,312 flights it operated between January and March, state-owned Ibom Air delayed 746 flights.
Aero Contractors delayed 624 flights out of a total of 1,123. Meanwhile, Overland Airline delayed 605 flights out of 719; Dana Air had 474 delayed flights out of 711 while Green Africa delayed 443 out of its total 1,182. Azman Airline operated 527 flights and delayed 385 during the first quarter of the year. Value Jet had a total of 766 flights. It delayed 248 of that number. The NCAA report also stated that 2,791,591 passengers passed through the nation’s domestic airports in the first quarter of the year, data shows.
It indicates that of the 2,791,591 passengers, 1,391,560 were inbound and 1,400,031 outbound. The NCAA’s latest data shows that schedule changes and marathon delays are wreaking havoc on passengers’ plans and stress levels, and yet they show no signs of stopping.
The Nigeria Civil Aviation Regulations (Nig.CARs) 2015, which is being amended, guarantees that passengers get refunds when their flights are delayed or cancelled.
“Every passenger shall, before purchasing any ticket for a contract of carriage by the air carrier or its agents, be entitled to the full, fair, and clear disclosure of all the terms and conditions of the carriage about to be purchased.
“The disclosure shall include, among others, documents required to be presented at check-in, provisions on check-in deadlines, refund and rebooking policies, and procedures and responsibility for delayed and/or cancelled flights,” the regulations said
