Capt. Ibrahim Mshelia, the Chief Executive Officer of West Link Airlines, a charter operator, has shared his perspective on civil aviation regulations in Nigeria, emphasizing their dual nature of being both progressive and limiting.
In a conversation with our correspondent in Lagos, he discussed how these regulations, coupled with multiple charges imposed by the Federal Government, have adversely impacted the growth and sustainability of the Nigerian airline industry. Mshelia’s insights highlight the complex challenges faced by indigenous airlines and underscore the need for a more balanced and supportive regulatory environment.
Mshelia began by acknowledging that the regulatory framework in Nigeria is, in principle, a positive step forward for the aviation industry. It demonstrates the government’s commitment to ensuring safety, standardization, and adherence to established rules within the sector. However, he emphasized that the implementation of these regulations has become a stumbling block for airline operators and has contributed to the downfall of several indigenous carriers.
Boarding flight
A critical issue raised by Mshelia is the burden of excessive charges placed upon airlines. He noted that these charges have created substantial financial constraints, hindering the airlines’ potential for growth and expansion. Importantly, these costs are not solely borne by the airlines themselves. Some charges are transferred to passengers, resulting in higher airfare prices and a decline in passenger traffic. Others are directly imposed on the airlines, increasing their operational expenses and reducing their profitability.
Mshelia expressed his concerns by stating, “So, the regulation has been a great move, but it has been retrogressive for us as operators. It is very discouraging, and they blame the airlines for not surviving. It is the government that is killing the airlines.”
In the competitive world of aviation, where costs play a crucial role in shaping passenger demand, any added financial burden can negatively impact an airline’s ability to compete effectively. Mshelia’s example of the Nigerian College of Aviation Technology (NCAT) charging operators is particularly illustrative. NCAT is a government-owned institution providing services to the industry, but by burdening operators with its maintenance costs, the government indirectly transfers these expenses to passengers, making air travel less affordable. In the long run, such practices undermine the growth potential of the airline industry.
The issue of excessive charges extends to the country’s airports, which were recently rated by the International Air Transportation Association (IATA) as the most expensive to operate in the world in terms of levy and tax charges. Specifically, the Lagos and Abuja airports were identified as the culprits, each imposing a staggering 27 levies on foreign airlines. These charges have not only made Nigerian airports less attractive to international airlines but have also stifled the growth of domestic carriers.
Kamil Al Alwadi, the Vice President of IATA for Africa and the Middle East, criticized the Nigerian government’s approach to aviation, emphasizing that these charges deter airlines from operating in the country. He highlighted the need for a more conducive environment for airlines to thrive, pointing out the detrimental impact of excessive costs, including high fuel prices, on the financial viability of airlines.
“In recent research conducted, it was discovered that the most expensive airport in Africa is Abuja airport, followed by Lagos airport. With all these exorbitant charges, Nigerian airlines can’t compete with their foreign counterparts,” said Alwadi, echoing the sentiments of many industry experts.
As Mshelia and Alwadi have aptly highlighted, the current regulatory landscape and cost structure in the Nigerian aviation industry are detrimental to the survival and growth of domestic airlines. The burden of charges, whether passed on to passengers or directly borne by airlines, hinders the industry’s competitiveness and deters foreign carriers from operating in Nigeria. To address these issues and foster a sustainable aviation sector, it is imperative that the government reassess and recalibrate its approach, creating a more balanced and supportive environment that encourages growth and competition within the industry.
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