LAAC 25th Annual Conference Produces 18-Point Demand For Industry Progress
A COMMUNIQUE ISSUED AT THE END OF 25TH ANNUAL CONFERENCE AND AWARDS CEREMONY OF THE LEAGUE OF AIRPORT AND AVIATION CORRESPONDENTS (LAAC) HELD ON JULY 28, 2021 AT THE SHERATON HOTELS, IKEJA LAGOS WITH THE THEME: ‘NIGERIA’S AVIATION INDUSTRY: MANAGEMENT, POLICY AND REGULATION.’*
Participants at the one-day conference and award ceremony of the League of Airport and Aviation Correspondents (LAAC) acknowledged that Management, Policy and Regulation play critical roles in the global aviation industry, including Nigeria.
The conference acknowledged that though, management, policy and regulation of airlines pre-dates the pandemic; its devastating effects have occasioned new developments in the travel value chain.
The Conference acknowledged that the Ministry in conjunction with the Aviation Agencies is working with the National Assembly to review/amend all the Aviation Agencies’ Acts to provide effective management of services and align with modern technological development in line with international best practices and development in International Civil Aviation.
Participants equally highlighted that Nigeria presently has Bilateral Air Services Agreement (BASA) arrangements with eighty-nine (89) countries, while 15 countries have indicated their preparedness to sign BASAs with Nigeria and 13 other countries are in the threshold of re-negotiation.
The Conference noted that Covid-19 has put the global economy to test, with air transport being undoubtedly the hardest hit by the pandemic. Participants say the industry experienced revenue loss of $994 million in 2020, 125,370 job losses, while the sector’s contribution to the Gross Domestic Product (GDP) was $885 million.
The Conference discourse drawn from comprehensive papers presented by conference participants including: Ministry of Aviation, Nigerian Civil Aviation Authority (NCAA), Nigeria College of Aviation Technology (NCAT), Federal Airports Authority of Nigeria (FAAN), Nigeria Meteorological Agency (NIMET), Lagos State Government (LASG), Airlines, Ground Handling and Aviation Fuel Company (Total Nig Plc), participants evolved lasting solutions that will drive effective policy, management and regulation of the sector.
RESOLUTIONS
1. Participants highlighted the need to overhaul the issuance if the Air Operators’ Certificate (AOC) and renewal procedures by the regulatory agency – the Nigerian Civil Aviation Authority (NCAA) to ease the process for prospective and current holders.
Participants also said personnel of the regulatory body required a change of attitude to drive a more proactive regulatory regime.
2. The Conference acknowledged that the Ministry of Aviation in conjunction with the Aviation Agencies are working with the National Assembly should ensure the review/amendment of all the Aviation Agencies’ Acts to provide effective management of services and align with modern technological development in line with international best practices and development in International Civil Aviation.
3. Participants equally highlighted that Nigeria presently has Bilateral Air Services Agreement (BASA) arrangements with 89 countries while15 countries have indicated their preparedness to sign BASAs with Nigeria and 13 other countries are in the threshold of re-negotiation.
4. The Conference noted that Covid-19 has put the global economy to the test, with air transport being undoubtedly the hardest hit by the pandemic. Participants said the industry suffered a revenue loss of $994 million in 2020, 125,370 job losses and projected that the sector lost $885 million as its contribution to GDP within the past year.
5. The participants also submitted that the Federal Airports Authority of Nigeria (FAAN) should offer fair levy for services rendered to operators and organisations in the country’s aviation industry.
6. The forum also advocated a review of the parking and landing fees imposed on indigenous airlines by FAAN. Participants submitted that this will create a more conducive atmosphere for airlines and others carrying out businesses at airports. Participants said since there is no local aviation, the government should emulate the United States, which doesn’t charge indigenous carriers landing and parking fees.
7. Participants also opined that the government should consider taking up the salaries and wages of non-technical personnel in the agencies, while the technical staff should be factored into the revenue generation of airlines.
8. Participants also advocated for consistent palliatives for airlines, ground handling companies and other major organizations in the sector in order to remain competitive and boost employment generation.
9. Participants said the entire sector needed a change in financial policies, while its policy and implementation must be taken seriously in line with the laid down Standard Operating Procedures (SOP) for the industry to evolve.
10. Also, the conference advocated for unity, collaboration and cooperation among all players in the sector, especially the airline and ground handling sub-sector. They said this will further grow the industry in the right direction.
11. Besides, participants advised airline operators to engage in healthy competition for industry growth and development.
12. Participants also in unison said that the Nigerian airspace and airlines remain safe and warned against sensational reporting from the media.
13. Participants observed that the current ground handling rates in Nigeria have been in place since 1999, therefore required a review
14. The Conference also agreed that it was high time ground handling fees in Nigeria is competitive and compare to other countries around the world, especially on the continent of Africa
15. Participants also in unison called for zero tariff for ground handling companies’ equipment procurement, just like the airline-sub-sector. They said financial resources saved from this could be diverted into improved training for personnel, acquisition of more state-of-the-art ground handling equipment, while safety and security will also be enhanced.
16. The forum also noted the need for proper regulations on conditions required to achieve non-contaminated Jet A1 fuel supply.
17. To drive quality in the aviation fuel supply chain, conference noted the need for standardization and efforts calibrated to eliminate sub-standard of products in line with global best practices.
18. Participants said the continuous importation of Jet A1 (aviation fuel), just like other petroleum products will continue increase rise in the demand for foreign currencies, while naira will continue to nosedive.
