Page 62 - World Airnews Magazine July Edition 2020

NEWS DIGITAL

RECIPE FOR GROWTH, BY

EXPERTS

The health and survival of the aviation
sector is increasingly gaining the attention
of experts who want to rescue it from
imminent collapse. Nick Fadugba
If the industry must grow, the experts
say, and then the government needs to
think out of the box by embracing bold, yet
courageous, steps.
To achieve this, Chairman of African She advised that airlines should be the load capacity is another way of putting
Business Aviation Association (AfBAA), Mr reduced to not more than four, adding they them down, although they were striving to
get back on their feet post-covid-19.
Nick Fadugba has called for a review of should have between 10 and 20 aircraft
Nigeria’s Bilateral Air Services Agreement each. IATA regional director, advocacy and
(BASA) to create an enabling business She said that airlines should embrace strategic operations, Adefunke Adeyemi,
environment for the airlines. collaboration in the ways of doing business noted that the industry in Africa has
According to him, multiple entry points as mergers couldn’t be forced. experienced a revenue loss of about (US)
and the frequencies of foreign airlines have This, she said, would make the industry $6billion and that flights went down by 94
been more disadvantageous to the Nigerian stronger to compete on the domestic, per cent at the end of April.
airlines as opposed to the advantages the regional and international scenes. She said that despite the implementation
agreement was supposed to present. Group Executive Finance, Ghana Airport of significant relief measures by the
Fadugba made this known at the third company, John Okwesie Arthur, noted that government across the globe, more needs
webinar organised by AELEX Partners. airports need to start afresh by collaborat- to be done.
According to him, when the bilateral ing with each other and other stakeholders. In her words, IATA has advocated
agreement was made, the airlines were He said that African countries should financial support for Africa from various
relatively new. To ensure the growth of come together to share expertise to organisations like UNWTO, world travel and
the sector, there’s a need to review the make the industry viable and noted tourism council, Adefunke advised that to
agreement to incorporate the airlines, that countries should look at investing restart the sector, there’s a need to restore
adding that the agreements do not favour in non-aeronautical inclusions, such as public confidence in air travel, putting
the average Nigerian carrier. building malls at the airports. adequate health and safety measures in
place to prevent the spread of COVID-19.
Fadugba said the multiple entry points The principal managing partner, Avaero
In his contribution, Richard Gimblett,
have diluted the domestic market for the Capital Partners, Sindy Foster, said that a partner at Holamn Fenwick Willian, a
carriers. the country’s aviation industry had been in United Kingdom (UK)-based law firm,
He noted that there’s a need to overhaul crisis before Covid-19 pandemic. stated that governments across the world
airlines’ business plans with emphasis on According to her, the lack of capitalisation were devising measures to restart the
unit cost, load factor and yield. and the low propensity of Nigerians to fly sector and that the federal government
For the airlines to rise above the current are major issues which, more than ever, should not be left behind.
situation, they should co-operate through had become pertinent to address. He said that the government could pro-
training, MRO, spares pooling, operation, For her, also, there’s a need to look into vide direct financial support to passenger
interlining and code-sharing. the factors frustrating the airline business. and cargo carriers, ensure relief on fees,
Showing optimism, former secretary-gen- One of which is the ticket prices. Multiple charges and taxes, make forex available for
eral, African Civil Aviation Commission taxation should be scrapped, she said. technological innovations. Also, it should
(AFCAC), Iyabo Sosina, said that the future Also, she expressed disappointment that engage in leasing and financial community,
of air transport in Nigeria is bright despite the government jumped on the train of he added.
the challenges. social distancing during flights by reducing Moderator of the webinar, Theophilus
She advocated the need for the repo- load to between 50 per cent and 70 per Emuwa, who is also a managing partner,
sitioning the industry. According to her, cent. head of tax at AELEX said there was a need
there’s a need to focus on the Nigeria Civil According to her, the airlines were in a for transparency in the management of
Aviation Authority (NCAA) without political dire situation when they were operating funds for the industry to grow. Q
interference with the authority. at full capacity and asking them to reduce

World Airnews | July Extra 2020
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