STAKEHOLDERS in the global aviation converged on Milan, Italy recently to address critical issues tugging at the heart of the world economy. The platform on which the experts and aviators ventilated the agenda for the industry was the 14th Ground Handling International.

Expectedly, it was a forum that bustled with new ideas on how the aviation industry could lead the world to a new era of prosperity, having been buffeted by bad policies of political and economic leaderships.

The Nigerian Aviation Handling Company Plc (NAHCO Aviance) led the corps of the African delegation in terms of presence, sponsorship and contributions.

An analysis by KPMG showed that while other sectors were slowing down, the aviation ground handling had a huge potential for growth, most especially because flight volumes are still increasing. In its session that bordered on industry status check, Merger and Acquisition and future opportunities, the global advisory firm said the overall ground handling market is still growing while consolidation is accelerating, but expressed grave concerns on pricing pressures, cost of expansion and input costs.

The postulations for 2013 and beyond were that growth would still be focused on emerging markets (including Nigeria)

There would be new regulatory frameworks for airport improvement. Airlines and smaller operators would be looking to exit. There would be further liberalisation in the emerging markets.

The admonition for aviation ground handlers, therefore, are exposure to Asia, Latin America, Middle East

equipment efficiency. Being open for niche opportunities, merger and acquisition.

One significance of this conference was its agenda, which lay in sync with the objective of the Nigerian Aviation Roadmap: Rebuilding airport infrastructure and entrenching creativity in processes and procedures.

The conference agreed there is no better time to lift up the industry than now, having experienced a tumultuous year. There are administrative demands and operational pressures from both the airlines and ground handlers, but the conference Chairman, Bob Gurr was more poignant in his address: “Delivering what the airline wants at a price they can afford is indeed a tough balancing act.”

In the coming years, the aviation industry will witness more mergers and acquisitions, more demand from the regulatory authorities and the travelling public. The customer will want to be at the centre of every major initiative, hence the need to develop soft customer insights (that is, ‘living’ in a customer world to be able to provide product/service best suited for him). More importantly mutually beneficial synergies and innovations will determine the survival of the industry.

UK-based Easyjet Airline, in its “Smart Partnering” initiative, demanded from Mallaghan, a Ground Support Equipment manufacturer, to “build a low-cost, simple flexible belt loader that will deliver safety and operational/cost efficiency benefits.”  It must also be compatible with its aircraft series A319, A320, B757 and B737.

By the time the equipment, named Bendi-Belt, was launched, it had manpower efficiencies, low-cost design, lower maintenance/servicing costs, reduction in manual handling, operator-friendly and many more. The initiative was meant to make travel easy and affordable. The same airline also went into a synergy for de-icing whereby aircraft would be de-iced in a shortest possible time using fewer gallons of water and chemicals in an environmentally-friendly manner.

Nigeria will not be an island to this global momentum. The airport remodeling and infrastructural renewal being embarked upon by the Aviation ministry will address some of the concerns expressed by delegates at the Ground Handling Conference, who looked towards Africa because of its potential for growth.

The Nigerian Aviation Handling Company Plc (NAHCO Aviance) has made several efforts to draw the Nigerian aviation onto the global space. The company’s strategic global alliances through membership of Aviance (international alliance of 10 reputable airport service providers operating from 112 stations in 17 countries) and others like The International Air Cargo Association (TIACA), provide a window to this critical global audience.

With sponsorship and presence in several aviation forums across Africa, America, Europe and Asia, the company’s award of ISAGO (IATA Safety Audit for Ground Operations), one of the few such certification, augments the country’s Category 1 status for international market access.

Discussions at the Milan conference also dwelled on regional cargo hubs for efficiency and service delivery.

The size, strategic location and economy of Nigeria make the country a natural candidate, but conference delegates believe this can only be realised if initiatives are private-sector driven and if service delivery is raised above average.

The support from NAHCO Aviance, a private sector player, in Nigeria’s aviation is well documented. But beyond that is the company’s N2 billion multi-purpose warehouse, which confers a regional cargo hub status on Nigeria. Recent threats of airlines to review business with Nigeria in the wake of the global security challenge was addressed earlier in the year with nahco aviance’s installation of cargo screening and anti-bomb machines, as well as, provision of security patrol vans.

The company has also given the industry an image boost with “Be an Ambassador Initiative” which has led to operatives displaying acts of integrity. One of such is an operative who, during a cleaning exercise on a foreign airline, found and returned $25,000 and 5,000 Euro to the admiration of airlines.

It is believed that Nigeria will assume its role of regional hub in the near-future if all hands are on deck. Some landmark events are already pointing in this direction, this year’s inaugural flights of Cargolux B747 – 8E and Ethiopian Airline’s B787 which were handled by nahco aviance. Aviation experts believed that the flights signify that Nigeria is a potentially viable market in global aviation.

If the ongoing efforts in the Nigerian aviation are sustained, the expectations of the Milan Conference would be met, and the attainment of the nation’s economic development will just be a short distance away.

• Onayoade is Public Communication manager, NAHCO Plc

THE International Air Transport Association (IATA) has announced that traffic results for November 2012, which showed an improvement in both passenger and air freight demand stated that air travel was 4.6 per cent higher compared to November 2011, up on the October result of 2.9 per cent.

According to IATA, airfreight volumes edged up to 1.6 per cent over the same period after declining 2.6 per cent in October, year to year.

It added that passenger capacity rose 3.2 per cent and load factor improved one percentage point to 77.3 per cent compared to the year-ago period.

The Director General and Chief Executive Officer, Tony Tyler said, “November brought some positive signs for air transport demand particularly for air cargo. It is premature to consider this a turning point for air cargo markets in terms of bouncing back and regaining lost ground.

“But, when coupled with positive economic developments in the U.S and an improvement in business confidence in recent months, the conditions are aligning to see a return to growth in 2013. In 2013 we expect that cargo volumes will grow 1.4 per cent and passenger traffic will increase by 4.5 per cent worldwide.

“Passenger markets have held up better than cargo in the face of adverse economic conditions. But the current level of air travel is just 2 per cent higher than at the start of 2012. This is considerably weaker than the long-term average growth rate,” he added.

Compared to October, IATA noted that November passenger traffic grew 0.6 per cent. It also stated that the majority of growth came from domestic markets, particularly China.

The body said that November airfreight volumes increased 2.4 per cent on October, stressing that this reflected a shift in seasonal shopping to online retailers, which depend heavily on air cargo.

It also showed improved consumer confidence in the U.S. Seasonally-adjusted air freight volumes have now risen back to the levels of mid-2012, after declines in the third quarter.

IATA further noted that African airlines saw demand expands 5.0 per cent year-on-year but capacity growth was held in check, at 4.4 per cent. While load factor rose 0.4 percentage points to 64.7 per cent but remains the lowest of any region, compared to October, African traffic was up just 0.1 per cent.

ONE issue that has dominated discourse in the past one week is the new intervention or bail out for Nigerian airlines.

Nigerian airlines are in serious dire straits but the way and manner of rescuing them has pitched friends against friends, just as it has deepened the seeming misunderstanding between the Ministry and respected aviation experts over alleged lack of feasibility study before coming with pronouncement of acquiring 30 aircraft for Nigerian airlines.

How did the Minister arrive at the number of airplanes that would be required by the carriers? Did the Ministry and the Federal Airports Authority of Nigeria (FAAN) consult the airlines to know their pressing needs? How are we sure this fresh intervention for airlines won’t go the way of previous ones that were not judiciously applied? What about repayment plans and on what condition would the aircraft be shared among the operators? Has the Ministry sat down to know what type of aircraft Airline B need to boost its operations?

These are some of the issues that were not tackled before allowing FAAN to go to the public to make policy statement on how to ‘dash’ airlines aircraft.

Such pronouncement on the acquisition of 30 airplanes according to experts should not reside with FAAN.  No wonder some airline owners expressed shock over the development, maintaining that they were not carried along. The operators who spoke under strict condition of anonymity because they do not want to appear as embarrassing Stella Oduah-Ogiewonyi, said they heard of the plan in the media, asking, ‘’Na so dem dey do am’’. You can’t shave peoples head in their absence.

Most of the minister’s policies had come under scathing criticisms because of her knack to shroud every good intention as top secret and for engaging bad people as advisers for most of the things she engages in.

Not a few are of the view that the fresh intervention would help go the way of others. The N300 billion funds given two years ago were wrongly applied because there was no need to give individuals or companies public funds. Predictably, this fund ended up in the coffers of some people. How are we sure that this fresh scheme would not end up the same way?

The airlines never used the money to develop their operations; they were accused of using it to live large and their airline collapsed before their very eyes while some of the big ones are wobbling.

In summary, the intervention procedure of buying aircraft for domestic airlines is not clear. Aircraft acquisition is a product of fleet expansion, upgrade, or additions based on specific airlines need.

Again, the operational module has not been identified; research, of availability of passengers and cargo identified.

The Managing Director of Capital Airlines, Amos Akpan captured it very,  well noting, ‘’the frequency and capacity required must be determined. This then determines the size and type of aircraft. The safety envelope of categories of airports and the facilities they offer must be critical inputs too. We should not jump into lopsided amelioration again’’.

He advised that no person or institution should be given money to buy aircraft, adding that when the operator identifies the aircraft that suites its operation, the operator should get the Nigerian Civil Aviation Authority to inspect and approve.

‘’The government should pay through its bank and retain the title of ownership while the airline is only the operator’’.  In my opinion; in the history of Nigerian aviation, the current NCAA management has handled safety oversight in the best professional method so far’’.

Record shows that lack of proper planning has made airline business not to be profitable in Nigeria. If you are not profitable with a small fleet, there is no way you will be profitable when the sector is over flooded with aircraft without corresponding increase in passenger traffic.

The implication of influx of aircraft is that the airlines will provide excess capacity on most of the routes in specific times; the more reason most of the carriers are not taking the Minister and FAAN seriously with this curious bail out.

For instance, if six airlines provide 750 seats on the Abuja-Lagos route between 6.30am and 10am to carry 400 passengers amongst themselves, the tendency is for the airlines to go empty afterwards; a situation that makes them unprofitable.

Will the airlines merge or interline? The chance is very narrow as ego, rather than economic reason will perpetually leave them where they belong.

Again, the Minister and not FAAN should come up with a clear cut policy of helping the airlines and not what they presently plans that may end up like the previous one.

FROM the far-flung to the unsung, British Airways has compiled its top 13 destinations to visit in 2013. If 2012 was about East London, then 2013 is about the Far East - as holidaymakers seek the natural unspoilt beauty, charm and good-value that Asia has to offer.

Richard Tams, British Airways head of UK & I sales, said, “undoubtedly consumers will continue to be driven by value-for-money next year, with routes such as Dubai, Cape Town and Bangkok already proving popular. We’re also experiencing a real growth in Asia right now and responding to demand with a number of new routes, including Seoul and Sri Lanka.”

In a recent poll on the airline’s Facebook page, over 2,660 users nominated the overseas destinations they most want to visit next year. New York topped the list (22 per cent), followed by Australia (eight per cent), Hong Kong (seven per cent), Rio de Janeiro (five per cent) and Dubai (three per cent).

Compiled by a panel of experts and using company data, British Airways’ top 13 for 2013 features new destinations and popular favourites, as follows:

• Sri Lanka

The ‘Pearl of the Indian Ocean,’ the tropical island of Sri Lanka has seen a recent boost to tourism, becoming the must-visit destination for intrepid travellers.

Ash van Wensveen, British Airways’ destination manager, said, “there’s a real buzz about Sri Lanka right now. For a small island it offers a lot, from endless beaches, to elephant treks and several Unesco world heritage sites to visit - it’s hard to think what Sri Lanka doesn’t offer.”

The airline launches flights to Colombo in April 2013, starting from £721 return.

• Rio de Janeiro, Brazil

If the afterglow of the London 2012 Games has left you longing for more, then its next host Rio is the place to visit, as it gears up to 2016 Games, the 2014 Brazil World Cup, and FIFA Confederations Cup next year. With its famous sun-kissed beaches to enjoy by day and fun parties at night, there’s a lot to love about one of the most vibrant cities in the world.

• Seoul, Korea

Gangnam style may have awakened our senses to Korea, but there’s a lot more to Seoul than ‘K-pop music! Mike Rock, British Airways commercial manager Seoul, said, “there’s a lot happening in Korea right now, business is thriving and it’s a tourist destination on the up. The mega metropolis is home to some 10 million people, and is attracting a fresh new audience.”

The jewel of the Adriatic ocean, Dubrovnik continues to appeal to holidaymakers from far and wide, including many high profile celebrities. 2013 will be a big year for Croatia, as the country joins the EU in July. One-way flights to Dubrovnik start at £59.

• Vietnam

Vietnam has become one of the most talked about destinations in recent years. Its capital Hanoi is rapidly attracting a crowd of adventurous travellers, looking to soak up the local culture of which there’s plenty. Not mainstream enough to be a tourist trap, many compare it to Thailand twenty years ago – making now the perfect time to visit.

• Punta Cana, Dominican Republic

Nestled in the Spanish Caribbean Punta Cana is earning itself a reputation as a great value destination for family holidays.

Ash van Wensveen, British Airways’ destination manager, said: “People are really waking up to Punta Cana. There’s a real buzz from holidaymakers creating word of mouth on its affordability, fabulous hotels and beaches that dip into the Caribbean Sea.”

• Derry, Northern Ireland

Voted as the City of Culture for 2013, there’s never been a better time to visit Derry. Just over an hour from Belfast, it’s a great destination for a city break, especially to enjoy the many celebrations and cultural events taking place there next year.”

Flights to Belfast start at £81 one-way.

• Las Vegas, U.S.A

The classics never go out of fashion, and with more services to Sin City than ever before, tourists hoping to party like Prince Harry need look no further! Top-end hotels, theatrical shows, exquisite restaurants and all-night entertainment continue to draw the crowds.

• Tbilisi, Georgia

Georgia’s capital has enjoyed a makeover, with a number of new restaurants and hotels opening.

British Airways’ head of UK and I sales, Richard Tams, said, “with its scenic walks, charming town, vineyards and local wine and cognac to enjoy, Tbilisi is perfect for a cultural weekend away and is already attracting couples and grown up stag nights!” Flights to Tbilisi, from £399 return.

• San Diego, U.S.A

In the year that San Diego’s Ron Burgundy returns to the big screen with Anchorman 2, the city reminds us why it’s still classy. Great for golf, excellent for eating, brilliant for barhopping, California’s best kept secret is a great place to visit any time of year. Flights to San Diego, from £677 return.

• Cape Town, South Africa

Cape Town is a highlight of any trip to Southern Africa. The natural beauty of Cape Town makes it one of the most attractive cities in the world. Cape Town boasts beautiful beaches, as well as, the impressive Table Mountain right in the heart of the city. The restaurants are world class, and so are the wines. Cape Town is also one of the most culturally diverse cities in Africa and has reputation for social tolerance.

• Alicante

The Spanish do fiesta like no one else and Alicante is a great city for those who prefer to fiesta than siesta! The Old Town offers dozens of bars and restaurants for after dark, and is also host to a growing number of festivals. During the day the local markets are buzzing, and sandy beaches welcoming.

• Dubai

Ever-popular Dubai continues to attract travellers with its Middle Eastern charm. It recently launched a ‘Hello Kitty’ spa, and boasts its own indoor ski slope.

Ash van Wensveen, British Airways destination manager, said, “Dubai has become more affordable over the past few years, yet still offers super high-end hotels and unrivalled luxury.”

THE Central Bank of Nigeria (CBN) has granted licence to Kano State government to establish 37 micro-finance banks in the state.

The Governor of CBN, Sanusi Lamido Sanusi made this known during the inauguration of the 37 banks in Kano on Tuesday.

``Kano State has made history as the first state in the country to benefit from the CBN’s gesture of being granted licence for the establishment of 37 micro-finance banks at a stretch,’’ he said.

Sanusi explained that the CBN decided to relax the guidelines for the establishment of micro-finance banks for Kano State because of the government efforts to empower women and youths in the state.

He advised the people of the state to take advantage of the Micro-Finance banks to establish their small and medium scale businesses.

In his remarks, Governor Rabi’u Kwankwaso said the banks were established in collaboration with the local governments to give rural dwellers the opportunity to boost economic activities.

He said that 10 local government areas in the state did not have commercial banks.

Kwankwaso commended the CBN for granting the licence and thanked all those, who contributed to make the dream of establishing the banks a reality.

He said that the establishment of the banks would provide employment opportunities to no fewer than 700 Kano indigenes. The governor said his administration would do everything possible to sustain the 37 micro-finance banks.