A former Executive Director, Bellview Airlines and President of Sabre Network Nigeria, Mr. Gabriel Olowo, says government must hand over the running of the nation‘s airports to the private sector in order to bring about competition and improve standards. He spoke to OYETUNJI ABIOYE Experts have said that one of the major causes of setback in the industry is the failure of local airline operators to embrace technology. What is your view on this?
Some of these operators think that there is a cheaper way to do things. For instance, they think if they deploy their own tools, perhaps the business may become cheaper. They are already deploying tools that are not popular, not tested and lacking interconnectivity. We have international global distribution network. You have a network that already has 400 airlines and you want to be a global player. If you deploy your own tool, will it synchronise with all those international players that you want to partner? If it does not synchronise, it means you are still limiting yourself. Some of them are running away because of the cost of deployment.
So, they need to search and discover the beauty of tapping into the global distribution system, rather than developing their own tools, which may be more expensive and not even stand the test of time. That is why we are agitating that they should cooperate and come together.
If they come together, they can negotiate the cost of distribution, software for engineering and software for revenue. All these can be negotiated, even maintenance. Without it, you can‘t do anything. Our airlines need to come together. Even now, when you put all of them together, they are still very weak. If they are doing things individually, the cost of operation will be very expensive.
What is the immediate solution to the crisis in industry?
I am happy that the airline operators have realised that they have problems. When you realise that you have a problem, you are on the path to solving the problem. The ultimate solution to our airlines‘ problems is merger. They have to merge by pulling their resources together. That is the only answer; individually, they cannot do it. They will be too weak to handle any element of cost. Element of cost is uncontrollable. If the aviation charge is the problem, how will you survive it if you don‘t come together to reduce your losses? You cannot fly the aircraft to Abuja with 50 passengers. But if three of you now come together, you will minimise your losses. That is the only way out.
A few weeks ago, Israel placed a ban on flights coming to Nigeria. Don‘t you think this will affect our travel business negatively?
I don‘t think we have serious security issues. Yes, we have some challenges, yet they are not enough to call for a red alert. As regards the ban by Israel, are they flying to Nigeria? Which Nigerian airline is flying to Israel? I do not know of any regular Israeli operator flying into Nigeria. I don‘t agree that Nigeria has any serious security issue. The security operatives are in charge of security. They are doing their best. When we want to talk about security and safety, we will want to talk in relative terms. You will never discuss the issue in absolute terms. It is only in heaven, in celestial city, that there is a perfect security system. When you talk about the volume of instances in Israel vis-a-vis Nigeria, you will know that there is nothing happening here. So, I don‘t consider it a serious issue. So, we should not blow it out of proportion.
Our airports are not looking good. They are in a shambles. What can be done?
We don‘t have airports; you know I have been very critical about the issue of airports. They are just below the standard and the solution is that government should just make up its mind and sell them. Government should remove its hands from running the airports. Our government should do that just like it did with telecommunications.
If we have four international airports in this nation, we will have competing airports. Our airlines will have better range and the standard will improve. There is no urge to improve standard. If nobody is competing with you in your business, then you are a monopoly. You either take it or leave it. Nobody is measuring standard for them. But suppose they don‘t meet the standard, what will happen? You shut down the airports? We don‘t have to wait for Vision 2020. Sell the airports. We already have MMA2; it is a private terminal. That is running. The guy has a challenge to grow. He has the challenge of providing quality service. But we are still a mere monopoly and that is why rates are very high.
Airport is one of the uncontrollable markets in this country. The facilities are not there. Attention is not there and there is no growth plan. This is because it is still a government monopoly. We must do away with this.
In England, for instance, you can choose to go to Heathrow or any other airport at your own convenience.
In the United States, those small carriers go to the airports that are not utilised. They developed the airports, they started their own services; their cost were cheaper.
Source:http://www.punchng.com/Articl.aspx?theartic=Art20101120110515
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