A former rector of the Nigerian College of Aviation Technology (NCAT), Zaria, Captain Samuel Caulcrick has identified factors militating against the survivability of the country’s aviation sector.
In his presentation at the annual conference put up by the League of Airports and Aviation Correspondents (LAAC) titled: ‘Aviation Survivability In A Challenging Macro-Economic Environment’, the former rector listed the undeniable facts endangering Aviation survivability in Nigeria to include: absence of corporate governance as regards the need to separate ownership from management, a situation which has been one of the major hinderance towards a formidable airline business in the country.
Also working against the survival of the sector according to Caulcrick is the low purchasing power attributed to weak naira and limited disposable income which has greatly reduced demand for air travel.
Inefficient infrastructure and inefficiency in government aviation agencies which has subsequently reduced inefficiency in the agencies’ service delivery has also been identified as one of the factors militating against the survival of the sector.
Of note is the debatable seeming misrepresentation of the role of aviation in the economy, a situation which questions the role of the sector either as the elitist or a catalyst for economic growth.
Other factors identified include: high forex requirement with the absence of an aircraft maintenance facility (MRO) and the domestication of trainings among others.
To enhance survivability, the former rector therefore challenged airline operators to consider among others efficiency as a tool to optimising operations, reducing costs and improving conditions.
He called for diversification which he said will enhance expansion of services positively impacting cargo, maintenance, and training just as he tasked the operators to embrace partnership through collaboration with other airlines’ businesses or government for the purpose of sharing resources and risks.
Other factors that may enhance survivability according to Caulcrick is in the area of cost reduction through renegotiated contracts, consolidated operations and implemented cost-saving measures.
Under regional expansion, the former rector advised the operators to explore opportunities in West Africa and the continent to increase revenue just as he spoke on the importance of customer engagement through focusing on service quality, loyalty programmes, and targeted marketing to maintain customer base.
Other areas he urged the operators to pay attention to is the area of innovation which will enable them to leverage on technology to improve services, reduce costs and enhance customer experience while scenario planning will help them develop strategies for potential future scenarios, including economic downturns or changes in government policies
The ability of the airline operators to adapt will help develop flexible business models to respond to changing market conditions while he called on stakeholders in the sector to form the habit of approaching the parent ministry for government support by advocating policies and incentives to reduce costs and increase access to low cost capital.
For the sector to enjoy survival, Caulcrick called for audit of the services rendered by the aviation government agencies as regards to undue costs incurred by air operators due to inefficiency in service deliveries while he made a case for the need to elongate the operating hours of some of the country’s airports.
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