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Business News of Friday, 4 August 2023

Source: www.nairametrics.com

DG NCAA explains rationale for minimum of six aircraft requirement in AOC acquisition

Capt. Musa Nuhu Capt. Musa Nuhu

The Director-General of Nigeria Civil Aviation Authority (NCAA) Capt. Musa Nuhu has shed more light on why the NCAA reviewed upward the minimum number of aircraft an impending airline would require before being issued an Air Operator’s Certificate (AOC).

Before the implementation of the new Act of the Nigeria Civil Aviation Regulations (Nig. CARs) 2022, a startup airline only required a minimum of two aircraft to acquire AOC from the apex regulatory body in the civil aviation industry in Nigeria, but the new Act upped the requirement to six.

This regulation of the NCAA has, however, drawn condemnation from major stakeholders in the industry, especially from the airline operators who alleged it was draconian and an attempt to discourage new entrants.

Why operators should be responsible in their operations
But, speaking with aviation correspondents via Zoom network on Thursday night, Nuhu, said that the plan by the NCAA was to ensure that the operators are more responsible in their operations to their clients.

Nuhu specifically said that most of the indigenous airlines lacked the financial muscles to operate properly as an airline, a situation, which he said had led to avoidable flight delays and cancellations over the years.

He explained that an airline with just one or two aircraft had the potential to disappoint passengers in case one of the airplanes developed a snag, but emphasised that with a minimum of six airplanes, such delays and cancellations would reduce.

Nuhu specifically said that Nigeria had a peculiar situation, which must be critically examined and monitored by the regulatory.

He also said that the new regulation was not restricted to new entrants alone, but also extends to existing airlines with AOCs.

He stated that the current scheduled operators have been given a timeline for them to comply with the new regime.

He also clarified that the minimum of six aircraft regulations is also dependent on the kind of operation an airline intends to operate.

He said: “The problem is that a lot of these airlines in Nigeria don’t even have the capacity to meet current financial obligations.

“If you have three aircraft for instance and you lose one out of them, it has become a problem to meet up with your operations.

“Then, you start to have issues with flight delays, cancellations and all that.
“The number of aircraft you will have will depend on the kind of operations you want to do. You can imagine somebody who comes in with just one or two aircraft and one of the aircraft goes out of business, and he sells tickets to the passengers, think of what will happen.

“For you to have six aircraft, it shows you have a very strong financial background in running an airline.

“It is not only for new entrants, but the old ones too have a period by which they have to comply. If everybody has one or two aircraft, we will keep having this recurrent problem. We have to avoid that.

“People will criticise, but every country is different. We have to look at our own peculiar history and try and come up with solutions.”

He, however, said that the regulation was susceptible to review, depending on the operating environment, but said for now, the law stands.

Nuhu’s reactions to the crashed Jabiru J430 aircraft in Lagos
On the crashed Jabiru J430 aircraft in Lagos on Thursday, Nuhu expressed disappointment with comments attributed to some of the professionals in the sector.

He pointed out that until the Nigerian Safety Investigation Bureau (NSIB) comes up with its safety report and recommendations on the crash, it was inappropriate for anyone to speculate on the cause of the accident.

What you should know

He also explained that Engr. Gbolahan Abatan, the current Director, of Airworthiness Standards, NCAA, resigned properly from the company he established in accordance with the civil service rules of engagement before joining the NCAA and wondered why some section of the public wanted to criminalise him for the crash.

He also expressed confidence in the investigation of NSIB to unravel the cause of the crash, saying this was based on the outcome of their previous reports and appealed to the players in the sector to refrain from further speculations, which he said may affect the acceptance of the investigation by NCAA.

He said: “I am disturbed by attempts by some to criminalise Engr. Abatan on the crash. Abatan is competent and had his own thriving business before joining us in May. He is an innocent person and since his appointment, he has done a great deal of jobs for the NCAA.

“This is a distraction, and it is unwarranted. He complied with all the civil service rules before he joined us. I also have confidence in the investigation by NSIB. They should be allowed to do their job.”