Growing need for airline consolidation in Nigeria - Aviation Experts

Aviation Nigeria

Akwa Ibom International Airport

Aviation experts have called for the consolidation of airline operators in the country. This they asserted will improve healthy competition and improve airline services in the country.

Aviation expert and President of Sabre Network West Africa, a United States-based airlines and global distribution system company, Mr. Gbenga Olowo, made this assertion while speaking in an interview on Channels television, early Friday morning. He also added that the position of current operators is that they are either stressed, insolvent, or outright distressed. This he insists indicate that in another 5 to 10 years, these airlines may not be there.

Gbenga Olowo pointed out that if Air France and KLM a French and Dutch airline can come together, and pitch in United Continental their aircraft fleet will go to about 1,700 airplanes. He also said that a small airline like the Uruguan Air has almost 200 airplanes, far greater than a pool of 6 airlines in Nigeria which had below 60 planes in total.

Olowo speaking on meeting the IATA proposal for aviation operators world wide and tagged 'A dozen airlines in 2050', said airline agencies will also have to introduce technologies which aid sales such as a Global Distribution System which enables increased commercial traffic internationally.

He commended the efforts of the Aviation minister Princess Stella Oduah for the on-going infrastructural developments and added that there would be further need for investment in aviation technology.

Also contributing in the interview, Vice President to Wizie Technology a USA based agency Vikaz Kannan said: "Smaller players don't get eliminated in healthy competition, they get stronger because the consolidations create an arena for multiple opportunities"

Kannan also urged Nigerian airlines to explore the advantages in synergies and work together voluntarily to achieve the sectors development. " It is often difficult in Nigeria for business people to voluntarily come together" He said.

Both experts agreed there was a need to consolidate aviation services as well as boost technological infrastructure at airports nationwide.

Nigeria will continue to play key roles in African aviation - FAAN

Aviation Nigeria

The Nigeria aviation industry will continue to play key roles in aviation development in the continent as demonstrated by its massive infrastructural investment in airport developments.

This was stated by the Managing Director of Federal Airport Authority of Nigeria, FAAN, Mr. George Uriesi while speaking to newsmen at the meeting of the Airports Council International, African region, holding in Morocco.

According to a statement by the FAAN General Manager, Corporate Communications Yakubu Datti, “Mr. Uriesi who spoke passionately on the remodeling project going on in Nigeria said aviation holds the key to enormous opportunities for massive economic growth and development in the region.

He elaborated on the designation of airports as regional hubs to maximize their potentials and that the development of cargo ports is aimed at opening up the country to benefit from its full potential as an Agro-allied economy.

According to the MD, “the obstacle removing leadership provided by the Nigerian Minister of Aviation, Princess Stella Oduah has re-positioned the country as a serious global player ready to occupy its pride of place”.

He said the conference falls within the framework of the initiative launched by ICAO and ACI to promote safety and has allowed stakeholders to contribute proactively to the requirements of a safe and secure air transportation system. Furthermore, the conference is meant to sensitize participants on the importance of runway safety and the importance of collaboration among all stakeholders in the air transport chain.

The statement also noted that 2 directors from FAAN, Capt Henry Omeogu and Hajia Salamatu Eluma, in their presentations gave useful insights to progress made in FAAN and Nigeria in general. Mr Peter Onyeri while delivering a paper on runway safety, enumerated on the efforts and strategies for a sustainable safety in the African sub region.

The ACI Africa which is referred to as the voice of African airports leads represents and serves the African airport community, has membership of 50 African countries in the sub region.

The conference was supported by major industry players namely, the International Air Transport Association (IATA), the International Federation of Air Traffic Controllers’ association (IFATCA), the Civic Air Navigation Services Organisation (CANSO), the Flight Safety Foundation (FSF) and other organizations of the air transport industry.

Air Passenger Growth in Africa hit 7.5% in 2012 - IATA

Aviation Nigeria

The International Air Transport Association (IITA) has said that the air transport market recorded a solid growth during 2012.

Globally, air passenger traffic rose 5.3% as cargo demand fell during last year and this helped airlines deliver an estimated $6.7 billion profit in 2012 despite high fuel prices.

According to the association, African airlines had a solid year of passenger growth up 7.5% in 2012 with capacity expansion of 7.1% traffic growth and an improved load factor of 67.1%.

IITA an international trade association represents over 240 airlines comprising 84% of scheduled international air traffic and has pointed at Africa's economic expansion being responsible for the air transport growth.

“African airlines had a solid year of growth, up 7.5%, as the continent’s economic expansion drove traffic demand, said IATA when it announced the global air passenger traffic for 2012 on January 31, 2013.

Africa’s freight capacity also grew 9.2%, outstripping demand. The freight load factor fell to just 24.7%, the lowest of any region by a significant margin, IATA said.

“Passenger demand grew strongly in 2012 despite the economic bad news that dominated much of the last twelve months. This demonstrates just how integral global air travel is for today’s connected world. At the same time, near-record load factors illustrate the extreme care with which airlines manage capacity. Growth and high aircraft utilization combined to help airlines deliver an estimated $6.7 billion profit in 2012 despite high fuel prices. But with a net profit margin of just 1.0% the industry is only just keeping its head above water,” said Tony Tyler, IATA’s Director General and CEO.

In its December 2013 outlook, IATA has projected a 4.5% growth in passenger markets and 1.4% growth for cargo demand saying “that will contribute to an improvement in profitability from $6.7 billion (1.0% net profit margin) in 2012 to $8.4 billion (1.3% net profit margin) in 2013.”

IATA was formed in April 1945 and has about 243 members from more than 126 countries of the world. The association made the 2013 projections based on the fact that business confidence was up, the stability of the Eurozone situation and the avoidance of the US fiscal cliff. IATA believes business confidence will help cargo markets to recover the lost ground from 2012.

Africa’s economic expansion has driven the air transport market to record a solid growth during the year 2012, the International Air Transport Association (IATA) has said.