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ART VIEWS ON THE STATE OF THE AVIATION SECTOR

AVIATION ROUND TABLE
INTERACTIVE FORUM ON DOMESTIC AIRLINES
 
COMMUNIQUE
 
The Aviation Round Table, today 30th September, 2014 held an interactive forum on the domestic airlines at the Golfview Hotel and Suites, GRA, Ikeja. The interactive session discussed the challenges facing the local carriers and arrived at the followings;
 
1.    High net-worth Entrepreneurs should be encouraged to invest in the industry to facilitate the efficient funding and management of local airlines.
 
2.    A regulatory fleet consolidation process should be initiated by the Nigerian Civil Aviation Authority (NCAA) with the backing of the National Assembly as a way of strengthening the local operators.
 
3.    That in view of the high cost of aircraft, all service providers to the airlines (public and private) should maintain a comprehensive insurance portfolio to mitigate damages to airlines’ equipment as provided for in Part 18 of the NigCARs 2012.
 
4.    The insurance premium paid by the local operators is very high and worrisome and should be addressed by relevant authorities and organisations. We are of the opinion that certification of our airports and other proactive economic indices will help.
 
5.    The high cost of aviation fuel (JET A1) is affecting the profitability of the airlines. The bridging of supply by fuel trucks and demurrage are part of the problems and should be addressed by government and marketers.
 
6.    The multiple entries, frequencies and capacities allocated to foreign airlines are adversely affecting the growth and survival of local operators. Government should therefore urgently review this trend in line with the stoppage of payment of royalties by foreign airlines.
 
7.    There is a need to review the certification and operations of private jets as safety and security of the nation is being threatened while non-scheduled operators are being short changed.
 
8.    We call for increased monitoring of economic regulation on the airlines by the Nigerian Civil Aviation Authority to ascertain their financial health as provided for in the NigCARs 2012.
 
9.    That the forum encouraged local operators to form alliances/cooperation in order to tap into the benefits of economics of scale and scope which will accrue from such exercise.
 
10.                       The use of foreign registered aircraft with foreign crew denies Nigerians of employment and dilutes the Nigerian content provision.
 
       signed
Capt. Dele Ore
   President, ART

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