I prefer strong, competitive Nigerian flag carriers – Aviation expert

In this interview, Dr Gabriel Olowo, the president of Sabre West Africa, as well as the Aviation Roundtable and Safety Initiative, a think-tank group in the aviation sector, spoke on his expectations in the industry in 2022 and the plan by the federal government to establish a national carrier.  How would you assess the aviation […]

In this interview, Dr Gabriel Olowo, the president of Sabre West Africa, as well as the Aviation Roundtable and Safety Initiative, a think-tank group in the aviation sector, spoke on his expectations in the industry in 2022 and the plan by the federal government to establish a national carrier. 

How would you assess the aviation sector in 2021?

 In 2021, aviation started with fresh hopes as the devastating effect of COVID-19 (which hit the world economy between February and March 2020) began to show gradual decline and airports opened in phases.

Thanks to medical researchers, discoveries and advancement in medicine for vaccines, protocols and other remedies.  

Aviation business was beginning to crawl between 10 to 30 per cent, year-on-year in Q1 till mid Q2, 2021. Q3 was growing steadily to almost 75 per cent by 2020, when different variants of COVID-19, known as Delta and now Omicron, raised its ugly head. Discriminatory border closures, visa regimes and protocols disrupted growth once again.

Another big disincentive to travels began to nosedive once again. Sadly, performance returned to Q1 levels, especially this December Q4, and one only hopes the decline does not continue into 2022.

 What has improved; and what is left to be done?

I will imagine that nothing has been left undone as people world over yearn to have their life back but for the so-called global disaster called COVID.  Riots and protests have been witnessed in economies where you least expected them. Total closure of airports and borders is daily resisted as if people prefer to die rather than go hungry. There’s COVID fatigue everywhere. See football premiership in Europe for instance and the economics of full stadiums every other day there’s a game.

Do you think COVID-19 has affected the development and investment in the country’s airports? 

 Absolutely, yes.

 What are your expectations for 2022?

One should positively look forward to 2022 with great hopes that the Omicron variant would not metamorphose into another variant or any other plague that would impact life so negatively.

 How do you think government would attract investment in the aviation industry?

Government should continue to address issues of insecurity and its adverse effect on Nigeria’s risk assessment. The country’s risk speaks volume on economic index measurement, example, exchange rates, insurance premiums, pricing, inflation etc.

It should steer clear of “doing business” but provide a friendly environment and ease of doing business.  The language is on the lips, but experience shows that the situation is growing worse (home and abroad). Government agencies see business tasks as a disruption of their schedule rather than a fulfillment of it. How can one explain passport renewal taking forever, for instance? Aside from internal trade, businesses cannot thrive without inter-economy movement. This should, however, not be taken in isolation.

 Businesses hitherto under the “exclusive clause” should be opened to investors; anything short of this will continue to encourage illegal and sharp practices. 

Government should prioritise spending on security, and thereafter, welfare of citizens; that is spending on health care, infrastructure deficit, housing, roads and education. 

Recurrent expenditure spending should be cut and made lower than capital expenditure, which demands huge reduction in the size of governance.

Our media should make deliberate efforts to sell the destination Nigeria rather than its challenges, which is not uncommon in any economy. 

Do you think the government can achieve a national carrier by April 2022 as claimed?

I am not worried about the time of entry or exit of any carrier, my earnest desire is to see the emergence of strong, efficient, globally competitive Nigerian flag carriers. The weight thrown by the government on Air Peace/ Emirate commercial negotiations in the UAE disagreement is a confirmation that Nigeria already endorsed that flag carrier by throwing its weight behind it, a commendable Aero politics indeed. It was so with Arik Air before its demise.

I am trusting that the same steam will be deployed to sanitise all the routes which post negative trade balance to Nigeria, vis-a-vis BASAs, till date; no thanks to corruption. 

The government should go its full hug to all destinations served by all countries hitherto in preparation for additional 1 or 2 more Nigerian flag carriers. Forget the nomenclature, national or flag carrier. The experience of operators a the Nigeria Airways is history. To see Nigeria aviation flourish again remains my focus.