How fleet and route expansion dominated aviation in 2021

Aviation in 2021 is a mixed bag of successes, accomplishments and failures. Reeling from the COVID-19 pandemic of 2020 and the attendant shutdown of the industry globally, the year 2021 was projected to be a year of recovery. Hopes were high and every player in the industry was optimistic of a better 2021 after the […]

Aviation in 2021 is a mixed bag of successes, accomplishments and failures. Reeling from the COVID-19 pandemic of 2020 and the attendant shutdown of the industry globally, the year 2021 was projected to be a year of recovery. Hopes were high and every player in the industry was optimistic of a better 2021 after the 2020 lockdown which they were not prepared for.

And the year 2021 actually started on a good note with the federal government distributing the palliative approval for operators in the sector. Airline operators, ground handling firms, car hire operators, among others benefitted from the N5bn palliative. Airlines got the largest chunk of the money, taking N4bn shared among some scheduled and non-scheduled operators.

While the N5bn may not be enough to tackle the numerous challenges facing the operators, it was a gesture and an impetus for the operators to carry on while anticipating a better business climate in the year ahead.

Despite an over three-month lockdown in 2020, the domestic airline industry rebounded as quickly as possible as more airlines came on board while existing airlines opened new routes, providing wider connectivity for air passengers.

First, it was Air Peace, Nigeria’s biggest airline that received the first of its 13 brand new E195-E2 Embraer Aircraft it ordered. Air Peace was the launch customer in Africa for the E2, the newest, most efficient, and most comfortable aircraft in the segment and so far five of the aircraft have been delivered to the airline.

This was why the Director-General of the Nigeria Civil Aviation (NCAA) described the acquisition of the brand new aircraft as a paradigm shift in the industry.

“Today is another milestone and a paradigm shift and this is something that I have not seen since my days at Nigerian Airways when they were purchasing the right aircraft for the right routes. Air Peace is not only buying aircraft but also buying the right-size aircraft for the Nigerian market.

“The Embraer aircraft is the right aircraft; it breaks even with low passenger figures; your maintenance cost is low; your operational cost is low. Another factor is that the new aircraft is absolutely great for the environment; it does less pollution. I am really proud that I am DG when this paradigm shift is happening.”

It was the same January that the airline launched a flight to Ilorin, Kwara State, providing a Lagos-Ilorin and Ilorin-Abuja, Abuja-Ilorin and Ilorin-Lagos turnaround on a daily basis while also resuming routes suspended due to the outbreak of COVID-19.

Of most significance in airline development, however, is the entry of new airlines into the domestic market. United Nigeria Airlines commenced operation, launching with an inaugural flight to Akanu Ibiam International Airport, Enugu.

Green Africa Airline also launched its flight operations in August 2020. The airline had planned to start operations on June 24 and had even sold tickets to many passengers but the scheduled commencement was deferred because the AOC from the NCAA was not ready.

After the AOC was presented to the airline by the regulatory authority, the airline immediately kick-started with “soft launch of flight schedule”

“This is a watershed moment in our journey to use the power of air travel to create a better future. Thanks to the NCAA, the team, our investors and other stakeholders, Green Africa is now set to start serving customers,” founder of the airline, Babawande Afolabi had said after receiving the certificate.

In terms of route expansion, Dana Air launched a flight to Asaba; Overland started Lagos-Warri, Abuja Warri flights while Air Peace also launched a flight to Ibadan, Oyo State; resumed flights to Freetown, Sierra Leone; Douala Cameroon, among others.

Also, the airlines in Nigeria took delivery of more aircraft in 2021 than ever before. More impressive was the investment into more fuel-efficient, narrow-bodied aircraft, which has increased the capacity of airlines in Nigeria amidst rising passengers’ demands.

For instance, Ibom Air took delivery of two Airbus A220s; Aero Contractors also acquired two Airbus 320s, and recently Air Peace also took delivery of two Airbus A330 aircraft in addition to the five brand new aircraft delivered as part of its firm order from Embraer.

One of Nigeria’s foremost airlines, Azman Air, also started the year on a promising note with the acquisition of its second Airbus A340-600 aircraft which has since been deployed for its Umrah services.

But for the Kano-based carrier, the suspension of its operation temporarily in 2021 was one of the major issues that headlined the aviation sector in 2021.

In March of the outgoing year, the NCAA grounded all Azman Airline’s Boeing 737 aircraft, which led to the suspension of its operation.

The NCAA said the suspension was to avoid a national disaster following recurring incidents involving Azman Air.

Spokesman of the NCAA, Mr. Sam Adurogboye stated that over a period of about six weeks, Azman Air Boeing 737 aircraft operating scheduled passenger flights were involved in three separate incidents, resulting in damage to the aircraft in each case.

He said during a routine ramp inspection on 10th February 2021, at Nnamdi Azikiwe International Airport, Abuja, NCAA inspectors found an Azman Air maintenance engineer carrying out replacement of the right-hand main landing gear wheel assembly (nos. 3 and 4) of their Boeing 737-500 aircraft with registration 5N-SYS, without referring to the manufacturer’s maintenance manual.

Another major pitfall of the year 2021 was the conflict generated by the different protocols introduced by various countries in the management of the COVID-19. This was the bone of contention between Nigeria and the UAE resulting in the cessation of flights between the two countries for nine months.

Stakeholders say the conflict was a major setback for air travel and impeded the rebound of the sector.

Away from the airline, aviation in 2021 was also characterised by the conflict over the move to set up NG Eagle from the relics of Arik Air, which pitched the industry unions against one another while the autonomy of the NCAA came under threat of interference by the legislature. Up till now, the NG Eagle, which is the brainchild of the Assets Management Corporation of Nigeria (AMCON) is yet to see the light of the day.

Arik Air, which used to be the largest carrier in West and Central Africa was taken over by the Assets Management Corporation of Nigeria (AMCON) in 2017 and it is still under its receivership as of today. But as part of its divestment policy, AMCON has concluded plans to float a new airline, Nigeria Eagle, using some of the equipment of Arik Air. At least, three aircraft of Arik Air have been converted to Nigeria Eagle.

It would be recalled that ‘Nigeria Eagle’ was incorporated as NG Eagle Limited RC: 1600277 on July 11, 2019, with a share capital of 1, 000, 000, 000. The shareholders are AMCON with 499, 999, 999, while Omokhide Kamilu Alaba has one unit of share.

It was learnt that the NCAA has concluded plans to issue the AOC to NG Eagle this month prior to the directive of the House of Representatives, which is now generating ripples in the sector with some stakeholders describing the directive as an interference in the work of the regulatory authority and a slap on the autonomy of the NCAA.

In the area of policy implementation, the move by the federal government to establish Aviation Leasing Company (ALC) and Maintenance, Repair and Overhaul (MRO) got a boost as preferred bidders were named for the projects early in the year.

But at the moment, stakeholders have expressed doubt over the model being adopted by the government. This is the same doubt that has trailed the planned concession of four airports despite that the project has reached a crescendo with the emergence of bidders.

There is also an increasing worry over the slow implementation of the aviation roadmap by the Minister of Aviation, Senator Hadi Sirika who is the longest-serving aviation minister in Nigeria. Despite his long stay in the ministry overseeing the sector, his failure to achieve even one out of the six projects under the aviation roadmap is a minus for him. The airport concession, the national carrier, the aviation leasing company, maintenance, repair and overhaul (MRO) facility are projects that have taken too long to accomplish, according to analysts and the year 2021 has virtually come to an end without any of the projects being achieved.

By and large, stakeholders commend the minister’s firmness in imposing a ban on the UAE carrier, Emirates, in retaliation for the denials of Air Peace the slots it requested for in the Middle East country.

This was the first time in recent history that Nigeria would deploy the principle of absolute reciprocity in the bilateral air services agreement (BASA) it signed with other countries.

Analysts say the industry has fared better with more airlines, more passenger demands despite the COVID-19 lockdown of the previous years while stakeholders look forward to a better and more vibrant 2022.

Group Capt. John Ojikutu, an aviation analyst also agreed that the outgoing year has been characterised by “Rows between nations not only on conflicts on the management of the COVID variants but more recently on the BASAs and attendant frequencies and the commercial agreements and slots allocation.”

He said, “The crisis generated from all these brought into fore the absence of a national airline and the designations of some domestic airlines as the nation’s flag carriers”.

Ojikutu added, “Vision 2020 projected 20m passengers for the year 2020; if COVID-19 prevented us from attaining that figure in 2020, it has prolonged it further in 2021 despite the increase in the number of airlines, airports and possibly aircraft. The passengers’ figures have been revolving around 14m and 16m between 2014 and 2019. No less than five domestic airlines went down and it was difficult to assess the new airlines in the years of COVID-19 and its variants.”

For many stakeholders, the industry still has a long way to go in tackling the challenges facing the operators, the service providers and the traveling public which has lamented ceaselessly over the skyrocketing airfares, flight delays and cancellations.