Dr. Nwuba Mirrors Economic, Operational, Regulatory Obstacles in Aviation

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2nd Vice President of Aviation Safety Round Table Initiative (ASRTI), Dr. Alexander Nwuba, argues that economic threats to the aviation industry are significant. He stated this at the 28th Edition of the LAAC Annual Conference with the theme “Aviation Survivability amidst a Challenging Micro-Economic Environment.”

Economic challenges

Dr. Nwuba, who spoke on Infrastructural Impediments to Aviation Industry Growth at the July 26, 2024, event said the economy causes unstable travel demand and rising operational expenses. Furthermore, he explained that the economy is in hyperinflation and significant currency devaluation, affecting the aviation industry severely.

He noted that the aviation industry, including airlines and airports, faces substantial costs and what many consider unnecessary charges. Moreover, he posited that the aviation sector has little to no control over monetary or fiscal policies, which is evident from the handling of payments to foreign airlines and lack of solutions for domestic airlines.

“There are no exceptions to the challenges facing the aviation industry, not just airlines,” he said. “Service providers impose huge costs on airlines, and airports encounter what many deem, and agree, are unnecessary charges.”

In many climates, hedging provides some breather; here, the business environment provides no such opportunity. The industry has proposed importing their fuel, but this like many proposals represents a poorly thought-through demand that will fail to address the issue.”

Operational Pressures

Speaking to operational challenges, Dr. Nwuba highlighted delays, cancellations, overcrowded airspace, pilot shortages, maintenance issues, and supply chain disruptions, considered major impediments. Additionally, he also said the industry often looks to incorrect assumptions as the root causes of these challenges in the Nigerian context. Furthermore, he said issues like terminal capacity and check-in counters are not major problems, as flights are not missed due to insufficient counters. He said the real issue lies in time mismanagement and a cultural attitude of waiting for late arrivals.

He stated that one primary operational issue is the need for flight slots, particularly for peak times like 7 am departures to Abuja and Port Harcourt. However, he said, the slot system acts as a solution in search of a problem, failing to address the unique operational model and competition among Nigerian airlines. People question the necessity of slots since aircraft do not experience significant delays or long lines waiting to take off at peak times.

Regulatory Hurdles

He decried regulatory impediments, stating that the complex and ever-changing aviation regulations increase operational costs. Conversely, he commended the Nigerian Civil Aviation Authority alternative certification requirements initiatives. He said it would ease regulatory burdens, open up defunct and unviable airports, create jobs, and expand consumer offerings, addressing some regulatory impediments.

Nwuba said none of the challenges mentioned are independent but are interconnected; each amplifying the effects of others. According to him, the aviation industry is constantly adapting to overcome these impediments to ensure sustainable growth despite economic threats to the aviation industry.

 

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