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The CEO of United Nigeria Airways, Dr. Obiora Okonkwo, in a current media session with Aviation Correspondents, stated the excessive value of flight operations had made it tough for airways to function profitably in Nigeria, noting that top value of aviation gasoline and overseas trade has turn into very difficult for Nigerian carriers.
Inaugural flight
If you happen to recall, February twelfth, once we made our first flight out of Lagos to Abuja and Enugu, most individuals have been shocked, as a result of it was simply lower than 24 hours we had our closing AOC (Air Operator Certificates) processed and we simply took to the air. I may recall that it was about 6:00 pm on a day earlier than once we had the ultimate documentation and we sat down and stated we should fly the subsequent day. I do not know if such has occurred within the aviation historical past earlier than however by 7:00 O’clock the subsequent day we have been already boarding our flight.
We opened our portal that evening, we didn’t thoughts whether or not we offered any ticket or not however to our amazement, we virtually had a full flight. And ever since then by the particular grace of God, there has by no means been at some point we aren’t flying. So by twelfth of February we’d have flown 12 months of the 12 months. That’s superb. We’ve got not achieved that with out nice mercy and beauty, favour from God, but additionally with efforts of members of our workforce, who typically have to remain by the evening to verify we overcome no matter problem for us to be on air the subsequent day. So we’re grateful to this our great workforce, those that are with us right now and an entire lot of these you do not even see or it’s possible you’ll not see however are very useful to the place we’re right now.
Inside this one 12 months we had Embraer ERJ 145 for a begin, however we commenced our operation with two within the first occasion, not lengthy after, we got here into full operation with the 4 plane. They’ve been everywhere in the locations doing what they know to do. As a way to meet the demand of our passengers, we had launched one other plane, Airbus A320. Our workers power has grown from power to power and we’ve been in keeping with our coverage to have sure share of skilled workforce, which is about 30 to 40 per cent after which 60 to 70 per cent of recent arms, as our method of including worth to the business; that’s human capital improvement.
That is evident in our engineering division once we introduced in some brisker who’ve been totally groomed beneath the watchful eyes of our erudite and veteran director of upkeep and I’m proud to say {that a} good variety of these younger women and men have been licensed right now; that of their totally different departments, they will now log out plane. We’re very pleased with that. It has to take our inside coaching, our exterior coaching and their help, which was executed totally by our personal sources. That additionally may be seen with our cockpit crew. Inside our cockpit crew, we’ve introduced in sure variety of pilots who could have completed coaching a few years earlier than we got here into being, however have by no means had the chance to fly past their simulator coaching. We’ve got taken a superb variety of these pilots, a few of them we’ve given them kind ranking on our explicit kind of plane. We’ve got introduced them into coaching, we’ve seen a few of them transfer from Flight Officers (FOs) to Senior Flight Officers (SFOs). We’ve got additionally taken some SFOs giving them the required coaching they require to turn into even commanders. That’s for me, a really, essential facet of our being within the business. A great variety of them didn’t have that chance to have line coaching; they didn’t have that area in different airways to be commanders. So on this space of human improvement, I believe we’ll proceed to contribute our quota.
Flight operations
On the passenger relationship, remembering that our mantra is “Flying To Unite”, we’ve been capable of unite between 250,000 to 300,000 inside this era. And to the glory of God, that they had all taken up and landed safely. After which on different areas, we’ve additionally grown our operation from area to area, from metropolis to metropolis. Right this moment we’re masking South West of Nigeria, we’re masking South East, we’re masking South-South, after which the capital metropolis. This has occurred inside one 12 months. As a result of proper now we’re in Lagos, Abuja, and Port Harcourt; we’re in Osubi which is Warri, we’re in Asaba, we’re in Bayelsa; the primary airline to fly to Bayelsa on scheduled service. We’re in Anambra, Enugu, Owerri. I could not know the way it has been up to now, however a few of the colleagues and mates within the business have been saying that is fairly commendable. I do not understand how you’ll consider that. However we aren’t dwelling on what we’ve been capable of obtain, we’ve our eyes on the place we’re going. And the place we’re going is that by this time subsequent 12 months once we come right here, we’d have been telling you we’ve lined all the six senatorial zones of Nigeria. And for that to occur, we’d be rising our fleet and on the identical time increasing our workforce.
When that’s executed, it is necessary so that you can know that we’ve all of the blessings and all of the capacities to do past the territories of Nigeria. So we’ve set an enormous activity for ourselves that inside the subsequent couple of months, that we’d have began our regional flight. Once we say regional we’re speaking about West Africa. And hopefully, if we work more durable on it, every little thing being equal by this time subsequent 12 months, we’d haven’t solely been discussing with you solely about regional flight or zonal protection, it’s possible you’ll even know that we’re already flying in another nations in Africa past the sub-region. This can be a Herculean activity particularly when that is being deliberate inside this tough operational setting. Sure, the operational setting is tough within the sense that the business has witnessed an entire lot of inconsistency in sure happenings.
Excessive value of operation
The primary ever flight we operated, we paid for the primary litre of aviation gasoline (Jet A1) at N190 per litre. Inside this one 12 months interval as at right now (February 9, 2022), aviation gasoline is N400 per litre. The primary ticket we offered, the bottom worth, was N23, 000 when aviation gasoline was N190 per litre. The primary overseas trade transaction we had one 12 months in the past on the official charge was N340 per greenback. Right this moment whether it is accessible, it’s N450 per greenback, when it isn’t accessible; the choice market charge is N570 per greenback. This time final 12 months once we operated different market was about N370 per greenback, the official market was N340.
Nevertheless it would possibly shock you to know that whereas over a 12 months in the past at this charge of overseas trade, right now due to the market scenario you continue to can however your ticket at N20, 000 to N21, 000 as base fare. So what it means is that so long as all of the airways are shopping for gasoline from the identical market, they’re shopping for overseas trade from the identical situation, any ticket at this charge is being sponsored by the airline. Why do I say so? Aviation gasoline relying on how it’s utilized and the kind of plane may simply turn into 30 to 40 per cent of the price element of your operation. And as you understand, for each ticket you promote, you will have 5 per cent deduction of ticket gross sales cost to NCAA. You could have different deductions to NAMA (the Nigerian Airspace Administration Company), FAAN (the Federal airports Authority of Nigeria) after which airport homeowners.
So, as a matter of reality, by the point you take away all these deductions from this 20,000 that we’re speaking about, it’s important to use your cash to complete a few of them after which additionally deal with different operational wants. You could possibly recall additionally that in 2000, you could have purchased a ticket at N2000 however should you solid your thoughts again to that 12 months; that 2000 was $100 based mostly on the trade charge. And it’s important that we discuss with this trade charge in all these discussions as a result of 99 per cent of aviation element is overseas trade denominated; even the explanation for the rise in gasoline is due to overseas trade as a result of the product is imported. However from that 2000 up until now, the price of plane has not diminished, salaries to workers are on the rise, all the opposite value are on the rise, the airports are rising their prices, touchdown prices are rising however but, this merchandise we’re speaking about continues to be the identical. So it’s a very crucial half on this business and the aviation operators are actually wanting into that and are making all of the efforts to discover a resolution to it as a result of security could be very crucial in aviation enterprise.
However you can’t take care of security in isolation from environment friendly operation, which has to come back with correct financing of your operation. As a result of it is just if you end up correctly financed that it is possible for you to to have the sources for spare elements, upkeep as at when due. And the one factor now that covers that facet is just gross sales of tickets. And the way a lot these tickets are offered could be very, essential. And also you see, aviation is a series, there are an entire lot of gamers in that chain enterprise. However the cashiers in that entire chain are the operators.
Passengers’ hostility to airways
A great variety of clients inside the flying inhabitants do not have a lot info on what it takes to function a secure flight. It isn’t their enterprise to know all the main points, however at the least you could have observed an entire lot of hostilities from the purchasers on the airport. And this stuff do include response on possibly flight delay, flight cancellation and so forth. And surprisingly most of the time, folks will sit again and inform you in London, it will not have occurred. In America it will not have occurred. I do not know if that is the London or America we’ve all lived in and we go to. As a result of I’ve been in these nations, I’ve seen delayed flights. I’ve seen cancelled flights. I’ve been delayed in American airport for over 10 hours and I had solely a bottle of water. We aren’t utilizing that one as a typical however what it means is that this stuff may occur and for any airline to not be on air as at when due, there have to be causes past their management.
As a result of it solely is smart, if anyone you employed, from the engineers, to the cockpit, cabin crew, you utilize them to be sure that your plane is in air, on time. So when that does not occur there’s have to have an understanding. After which when it does occur in these nations that they’re referring to, no one even raises an alarm. If you’re flying you’ll simply go and see a display screen, this flight going to this place delayed for six hours. What do you do? You simply discover a place and make your self snug. However right here what occurs? They search for the supervisor and jack him up. We’ve got seen folks going to interrupt amenities on the airport as a result of they’ve a flight to catch to the US; however when it occurs in these nations they’re going again to they will not even go to the airline officers.
So I see that the safety and security of those that are working on the airport are very, very, crucial. You could have a task to play to enchantment to the folks. There are a lot of issues that may delay a flight that might not be because of the operator. It might be climate and for a few of our travellers so long as they see an plane leaving from the airport of its location, it does not matter to her or him the place the vacation spot is, even when it will Lagos. Once we say we can not go to Asaba, they are going to say, what about this one which simply left? We’ve got seen scenario the place you will have an plane scheduled to go to Owerri however there’s a flight delay to Asaba due to climate. The Asabapassengers won’t enable you board Owerri passengers as a result of they have been there earlier than Owerri. Why do you suppose that’s taking place? It’s a problem all of us need to take up on ourselves as a result of it isn’t good for the business.
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