SLAMEN President Says Addressing Exchange Rate Challenge Will Help Airlines, Cost Reduction

The President of Society of Licensed Aircraft Maintenance Engineers of Nigeria (SLAMEN), Engr. Haladu Muhammad has said that “one of the main issues that airlines have been facing in Nigeria is the exchange rate. If the exchange rate issue can be addressed, the airlines will be able to breathe and perform efficiently.”

Speaking in an interview, Muhammad said the exchange rate of the naira to a dollar which was once N400 has reached N1,500, citing aviation fuel cost which is based on the dollar to naira exchange rate. “The price you pay in Lagos is different from what you pay in Maiduguri or Sokoto. So, it depends on where you take the fuel,’ he said, adding that the value of each litre of fuel has been calibrated into dollar for some years now.

He however, commended the emergence of Dangote Refinery which he says has influenced a drop in the price of PMS and may gradually reduce the price of aviation fuel. “If Dangote Refinery can supply adequate fuel to the airlines, it will cut down cost,” he said.

Muhammad said the exchange rate is a key factor in determining aircraft maintenance cost reduction. He also said if an airline is able to partner with other equipment manufacturers and aircraft on-time-performance is high, the company will be able to make more money and “these will help to improve the industry and the economy.”

Muhammad, who is also the Director of Continuing Airworthiness at Max Air, called for prioritization of training and reduction of training cost to attract more people to the industry, stating that “training is very expensive. This is why a lot of people in the past, did not join the industry. The cost of training one Aircraft Maintenance Engineer in an Aircraft Training Organization is high.”

Assessing the journey of Nigeria’s aviation industry within the last 100 years, Muhammad said 100 years of aviation is worth celebrating considering the industry’s key role in economic development over the years.

“If you look at the percentage of people flying 30 years ago and compare with the percentage flying now, there is a significant increase,” he said, adding that in terms of movement of people and security of travelers, the industry has improved.

In economic terms, aviation has participated fully in reorganizing the economy. Aviation has given employment to young people. Before now, not many came into the industry. Also, government policy of study loan has been helpful. People can now take loans, get education join the industry. There is a lot to celebrate,” he said.

He also said the improved safety record in the last 100 years needs to be celebrated, noting however, that there is room for improvement. He said there is need to study why the life cycle of airlines in Nigeria has been short over the years. “The government, private sector and other stakeholders need to sit down and study to see what have been the causes of regular collapse of airlines. Most of it has been due to the economy; because you have to buy aircraft at high price. Training cost is high. You buy fuel at high dollar rates. But in all, it (100 years of aviation) is worth celebrating,” he said.

He said the focus of SLAMEN members is professionalism and operating in compliance with the required standards.