The League of Airport and Aviation Correspondents (LAAC) has released a 12-point communiqué following its 28th annual conference, themed “Aviation Survivability Amidst a Challenging Macro-Economic Environment,” held on July 26, 2024. The conference addressed pressing challenges in Nigeria’s aviation sector and featured insights from government officials, industry leaders, and experts.
The communiqué summarizes the critical resolutions and strategies proposed during the event:
1. Support for Ministry’s Agenda: Stakeholders underscored the importance of supporting the Ministry of Aviation and Aerospace Development’s five-point agenda, which focuses on safety, infrastructure enhancement, support for local operators, revenue generation optimization, and the establishment of Maintenance, Repair, and Overhaul (MRO) facilities.
2. Legislative Reforms: The necessity for laws reflecting the Cape Town Convention was highlighted to ensure transparency in aircraft leasing.
3. Insurance Policies: Given Nigeria’s high-risk status, a robust insurance policy was deemed essential.
4. Revenue Retention: Stakeholders urged the federal government to halt the policy requiring 50% of internally generated revenue from aviation agencies to be remitted to the federation account, allowing agencies like FAAN, NAMA, and NCAA to reinvest in infrastructure and development projects.
5. Infrastructure Balance: There was a call for a balance between investing in new airports and improving road networks to support overall transportation infrastructure.
6. Economic Challenges: Hyperinflation and economic difficulties were identified as significant obstacles to the aviation industry’s survival.
7. Operational and Regulatory Challenges: Inefficiencies and policy inconsistencies that hinder industry growth were highlighted, with a call for better time management and policy stability.
8. Central Data System: The need for a central data system to provide accurate and harmonized data for the aviation industry was emphasized.
9. Safety and Security Regulations: It was advocated that regulations should ensure safety and security without stifling airlines.
10. Corporate Governance: The importance of corporate governance, infrastructure improvement, and reducing reliance on foreign exchange was highlighted.
11. Service Delivery: There was a call for efficiency, affordability, collaboration, and the use of technology to enhance service delivery.
12. Regulatory Review: Reviewing aviation regulations to reflect emerging trends in the sector was recommended.
A panel session also underscored the importance of stakeholder forums to address industry challenges collectively and recommended annual agency/industry reports to track progress and ensure accountability.
Key Resolutions:
– Operational Efficiency and Cost Management: Streamlining processes, optimizing resource allocation, and embracing technology to enhance operational efficiency and manage costs effectively.
– Infrastructure Development: Investing in modern and robust airport infrastructure is crucial for industry survival and growth.
– Pricing and Affordability: Efficient pricing of products and services to enhance affordability, drive competition, and support infrastructure development.
– Innovation and Technology: Adopting innovative and technological approaches as key strategies for improving industry survivability.
– Collaborations and Partnerships: Fostering partnerships among airlines, air navigation service providers, airports, regulatory bodies, and other stakeholders to tackle industry challenges collaboratively.
– Anti-Competitive Practices: Addressing anti-competitive practices such as unfair pricing, delays without refund, poor service delivery, and inadequate redress mechanisms.
– Policy Stability: Ensuring policy consistency and avoiding policy reversals to sustain the industry.
– Government Role: Creating a favorable environment for business without government interference in the industry’s day-to-day affairs.
– Industry Networking: Building relationships with other sectors to boost networking and economic interconnectivity.
– Revenue Optimization: Optimizing revenue generation through code sharing, interlining, and addressing cost-inducing areas.
– Risk Reduction: Reducing industry risks by sharing expertise and acquiring market intelligence.
– Private Sector Engagement: Engaging the private sector more actively to equip the industry with necessary infrastructure, acknowledging that government funding alone is insufficient.
The 28th Annual Conference of the LAAC highlighted the need for concerted efforts and strategic collaboration to navigate Nigeria’s aviation industry through challenging macro-economic conditions. The resolutions and strategies in this communiqué aim to enhance operational efficiency, optimize resources, and ensure the industry’s long-term sustainability and growth.
