Francis Ogwo
With the impact of the COVID-19 pandemic dwindling the fortunes of many businesses across the globe,the Nigeria Civil Aviation Authority (NCAA),has recorded its own share of the misfortune with 90 percent drop in revenue between January and May.
This report according to DailyTrust sources was disclosed on Friday, May 15, by Captain Musa Nuhu, the Director-General of the apex authority in Nigeria’s Aviation.
According to Nuhu, he feared that many holders of Air Operator Certificate (AOC) in Nigeria may go off business owing to the flight restriction order to contain the spread of COVID-19.
Speaking at a webinar on “The impact of COVID-19 on the Aviation Sector: The Way forward”, Nuhu noted that many global carriers are on the verge of collapse with many of them laying off their staff. He said Nigerian airlines are not exempted from the crisis.
He further stressed that IATA’s projected $900million loss for Nigerian airlines may be seven times higher.
Nuhu also added that the revenue loss by Nigerian airlines from flight suspension has put some pressure on the regulatory agency, being a safety issue.
“Under the Civil Aviation Regulations, one of our duties is economic regulations of the airlines, to help the airlines survive, but the COVID-19 has really set us back greatly,” Nuhu added.
He emphasized that the Ticket Sale Charge and Cargo Sale Charge (TSC/CSC) generate about 80 percent of the NCAA’s revenue, adding that between January to date (May 15), the revenue suffered greatly.
Nuhu further disclosed that the Federal Government is already making plans towards helping the airlines recover, while revealing that the Minister of Aviation, Senator Hadi Sirika, had mandated NCAA to devise measures of support for the airlines.
“It is a huge problem for us as a regulatory body but we can get out of this, working together. The regulator, service providers, must work together because if we don’t do that, it will be a total disaster.”
Notable experts in Nigeria’s Avaition sector were at the webinar. They included Chief Executive Officer of Aero Contractors, Capt. Ado Sanusi; Executive Chairman of Phillips Consulting, Mr. Folusho Phillips; President of Sabre Travel Network, Dr. Gbenga Olowo; Managing Director of Business Travel Limited, Lola Adefope; Country Manager of Qatar Airways, Mr. Kennedy Chirchir and the moderator, Bankole Bernard, the immediate past President of the National Association of Nigerian Travel Agencies (NANTA).
In their remarks, the speakers stressed the need for airlines to restore travellers confidence after COVID-19.
The CEO of Aero Contractors, Captain Addo Sanusi, said one factor that would help the sector survive despite the projected length of time is that it is still the safest mode of transportation especially in Nigeria.
Sanusi however, frowned at the workability of physical distancing in aircrafts, saying, “We only need to make the passengers comfortable.”
In his own remark, Dr. Olowo of Sabre Travel Network said the COVID-19 crisis was a wakeup call for airlines to overhaul their business model and diversify, while reminiscing that airlines in the 70s and 80s made extra revenue from hospitality businesses, cargo business, and had farms that produced all the food items needed on board.
He lamented that since the COVID-19 pandemic started and the travel restrictions, the number of bookings by travel agencies dropped by 353,000 in March as against March 2019.
“In April, it collapsed by another 17 percent. How do we continue with these negative losses? We need to revisit our business model,” Olowo added.
The only female speaker on the panel and the MD of Business Travel Management, Lola Adefope said:
“We need to work together both as airline and travel agencies to rebuild travel confidence. We may not see the rate of volume of business travel into city hubs where, for instance, you hold a meeting in London, have dinner in Paris and so on.
“People will be more circumspect about where they travel to and whether it is necessary.” She added.
So many efforts have been made by various stakeholders affected by the COVID-19 pandemic towards setting up recovery strategies. This effort by the NCAA, many would agree, would put Nigeria’s airlines on the recovery track, while optimists would pray it does not end as theory and brilliant speeches.
