Ibom Air COO makes case for forex availability to airlines
By Chukwuemeke Iwelunmo
The Chief Operating Officer of Ibom Air, Mr. George Uriesi has called on the Federal Government to give domestic airlines access to Forex at a reasonable rate as airlines are critical enablers and engines of the economy.
Uriesi, who spoke at the Aviation Breakfast Meeting with the theme, “Aviation in Nigeria: What Next? Held at the Eko Hotel and put together by Phillips Consulting Ltd said it was becoming increasingly difficult for airlines to operate
Ureisi said it was difficult for any airline in the country to have a sustainable operation with four, five, or six aircraft, adding that in terms of business plans, it would amount to getting stuck with five, six, or seven aircraft, explaining that no airline goes anywhere with such an amount of airplanes.
The former Managing Director of the Federal Airports Authority of Nigeria (FAAN) lamented that many airlines have come and gone never exceeding five airplanes in their fleet, DailyTimesNGR gathered.
According to him, “We already knew that in terms of our business plan, if you allow yourself to be stuck staying here with five, six, or seven airplanes, you are not going anywhere as an airline. We are aggressively growing. It is only in that growth that you are able to, first of all, generate the level of consistent revenue that allows you to be a successful airline business”.
READ ALSO: Tinubu afraid to face Nigerians -Atiku/Okowa Campaign
“When I look and I see many of our domestic airlines, many have come and gone, never exceeding five airplanes in their fleet. I understand why that happened. We are still in the experiment. We are trying to do everything right and learn from our mistakes as we go along and maybe as Ms. Iyabo Sosina (a former Secretary-General of the African Civil Aviation Commission (AFCAC) has said, another five, or six years down the line, all of us will know whether this thing worked or not. I think we are on the right track.”
He listed some of the problems bedeviling the nation’s aviation industry as lack of investments; struggle to meet critical forex obligations, and struggle to offer sustainable and reliable services, maintaining that the problems of Nigeria’s aviation are self-inflicted.
He noted that despite the tough operating environment, he urged the operators to deploy creative means of accessing capital necessary to help domestic airlines invest in modern equipment so that they can grow to compete favourably and achieve the economies of scale needed to make the transition, “wannabe’, “shaky”, scheduled carriers to successful and sustainable airlines”.
Surprisingly, Nigeria has not been able to harness this market for its benefit. The beneficiaries are foreign airlines. The country’s airlines had been tasked to work together, with many saying that the acquisition of 10, five, or fewer aircraft is nothing in the world of aviation.
The total aircraft fleet in the Nigerian aviation industry of about eight major airlines put together is less than 50; a situation that boldly advertises the precarious airline business in the country.
The country is in a situation today where there are too many airlines that are too small, and their market is fragmented. None of the airlines has a critical mass, in terms of fleet or route network to become effective and to make money.
Fleet depletion had seen a considerable reduction in the number of aircraft acquisitions by many of the operators. Aero Contractors, which had over five airplanes with many helicopters has ceased operations and is yet to bounce back.
