Theme: Aviation Survivability Amidst a Challenging Macro-Economic Environment
Venue: Providence Hotel, GRA, Ikeja, Lagos, Nigeria
Date: Friday, July 26, 2024
Preamble: The Conference was convened with the aim of addressing the pressing challenges faced by the aviation sector in Nigeria. It featured presentations and discussions from key stakeholders, including government officials, industry leaders, and experts. This communiqué encapsulates the critical resolutions, views, and strategies proposed during the conference.
Key Presentations and Resolutions:
1. Stakeholders at the Conference:
o Emphasised the need for support towards a five-point agenda of the Ministry of Aviation and Aerospace Development, which includes safety, infrastructure enhancement, support for local operators, optimisation of revenue generation, and establishing of Maintenance, Repair, and Overhaul (MRO) facilities.
o Highlighted the necessity of drafting laws that reflect the Cape Town Convention to ensure transparency in aircraft leasing.
o Stressed the importance of a strong insurance policy given Nigeria’s high-risk status.
o Urged the federal government to discontinue the policy requiring 50 per cent of internally generated revenue from aviation agencies to be remitted to the federation account. This would allow agencies like the Federal Airports Authority of Nigeria (FAAN), Nigeria Airspace Management Agency (NAMA), and Nigeria Civil Aviation Authority (NCAA) to reinvest in infrastructure and developmental projects.
o Called for a balance between investing in new airports and improving road networks to support overall transportation infrastructure.
o Identified hyperinflation and economic difficulties as major impediments to the aviation industry’s survival.
o Highlighted operational and regulatory challenges, including inefficiencies and policy flip-flops that hinder industry growth.
o Stressed the need for better time management and policy consistency.
o Emphasised the need for a central data system to provide accurate and harmonised data for the aviation industry.
o Advocated for regulations that ensure safety and security without strangling the airlines.
o Highlighted the importance of corporate governance, infrastructure improvement, and reducing dependence on foreign exchange.
o Called for efficiency, affordability, collaboration, and the use of technology to enhance service delivery.
o Recommended reviewing aviation regulations to reflect emerging trends in the sector.
2. Panel Session:
o Highlighted the need for stakeholders’ fora with the presence of all relevant parties to address industry challenges collectively.
o Recommended annual agency/industry reports to track progress and ensure accountability.
Critical Resolutions:
1. Operational Efficiency and Cost Management:
o Prioritise streamlining processes, optimising resource allocation, and embracing technology to enhance operational efficiency and manage costs effectively.
2. Infrastructure Development:
o Invest in modern and robust airport infrastructure as a crucial tool for industry survival and growth.
3. Pricing and Affordability:
o Implement efficient pricing of products and services to enhance affordability, drive competition, and support infrastructure development.
4. Innovation and Technology:
o Adopt innovative and technological approaches as key strategies for improving industry survivability.
5. Collaborations and Partnerships:
o Foster partnerships among airlines, air navigation service providers, airports, regulatory bodies, and other stakeholders to tackle industry challenges collaboratively.
6. Anti-Competitive Practices:
o Address anti-competitive practices such as unfair pricing, delays without refund, poor service delivery, and inadequate redress mechanisms.
7. Policy Stability:
o Ensure policy consistency and avoid policy somersaults to sustain the industry.
8. Government Role:
o The government should create a favourable environment for business without interfering in the day-to-day affairs of the industry.
9. Industry Networking:
o Encourage the aviation industry to build relationships with other sectors to boost networking and economic interconnectivity.
10. Revenue Optimisation:
o Optimise revenue generation through code sharing, interlining, and dealing with cost-inducing areas.
11. Risk Reduction:
o Reduce industry risks by sharing expertise and acquiring market intelligence.
12. Private Sector Engagement:
o Engage the private sector more actively to equip the industry with necessary infrastructure, acknowledging that government funding alone is insufficient.
Conclusion: The Annual Conference underscored the critical need for concerted efforts and strategic collaboration to navigate the challenging macro-economic environment facing Nigeria’s aviation industry.
The resolutions and strategies outlined in this communiqué aim to enhance operational efficiency, optimise resources, and ensure the industry’s long-term sustainability and growth.