Aviation

Aviation stakeholders seek enhancement of airline profitability

aviation

By Chukwuemeke Iwelunmo

Aviation stakeholders, who were in Lagos recently to address critical issues affecting the industry, have discussed potential solutions for enhancement of airline profitability.

The industry experts attended the 27th Annual Conference of the League of Airport and Aviation Correspondence (LAAC), which centered around the theme, “Aviation Industry: Changing Times, Changing Strategies.”

For instance, Chief Executive Officer, TopBrass Aviation, Mr Roland Iyayi, who delivered a keynote speech on “Enhancing Airline Profitability in Nigerian Airlines”, emphasized the need for proactive measures in the aviation sector.

He noted that that the industry should prioritize safety and take steps to clean up its internal operations.

During his speech, Iyayi raised concerns about the lack of progress despite previous efforts.

According to him, In 2005 and 2017, a Presidential task force on aviation was formed to develop a roadmap for the industry, but the desired changes have not been fully implemented.

The CEO, therefore, noted that many agencies within Nigerian civil aviation are overstaffed and not structured for profitability. “Excessive taxes, fees, and charges hinder the growth of airlines, and the focus should be on creating an enabling environment for the industry to thrive. Furthermore, credible data is essential for airlines to make informed decisions and operate efficiently.”

He said: “Only four airports in Nigeria, namely Lagos, Abuja, Kano, and Port Harcourt, account for a significant 82 per cent of major airline traffic.”

He argued that this concentration is not ideal and urged for a more balanced distribution of air traffic across the country’s airports.

Iyayi, also, called for a review of regulations by the Nigeria civil aviation authority, emphasizing the need for credible data for airlines to operate effectively.

He advocated for a shift in focus from a national carrier to developing a domestic air connectivity agenda. “There are numerous untapped markets that could lead to substantial growth in the industry”.

A key concern raised during the conference was the need for airlines to prioritize on-time performance.

Iyayi, therefore, suggested that airlines should maintain an on-time performance rate of not less than 90 per cent or consider charter options if they cannot meet this target.

Group Capt John Ojikutu (retd), highlighted another pressing issue, emphasizing the necessity for seamless connectivity between local and international airports.

He suggested the establishment of shuttle runners within the airport premises from international airport to local airport or from MMA1 to MMA2 without having to come out of the airport and take public transport as this will help to reduce stress and minimize flight delays caused by transit issues.

On his part, Travel and Aviation expert, Mr Ikechi Uko, shared his perspectives on restructuring airlines and airports.

He explained why passengers should be at the forefront of planning, as their satisfaction is crucial for the industry’s success citing personal experiences of flight cancellations and delays, underlining the significance of improving passenger services.

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“As much as we want to improve the efficiency and capacity of airlines, we should also focus on increasing the customer service of passengers”, he said.

Other experts at the event agreed that addressing issues such as agency efficiency, connectivity, data credibility, and passenger satisfaction are crucial for enhancing airline profitability and ensuring sustainable growth in the sector.

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Ihesiulo Grace

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