Nigerian Airways Management: Challenges and Prospects for the Transport Sector of the Nigerian Polity
By Ogiri John Ogiri
Abstract
This work examines the prospects and challenges of the defunct Nigeria Airways for the transport sector. The secondary method of data collection was utilized in collecting data for the research work. In other words, the researcher depended solely on documented materials on the subjects from available sources in the libraries and internets. The researcher discovered that the defunct Nigeria Airways harboured a huge collection of prospects for the transport sector while it existed. However, mismanagement among many other factors posed problems that eventually led its formal liquidation in 2003. It is therefore recommended in the work that these pitfalls, most important of which was gross mismanagement and leadership incompetence, be addressed by the government in its present quest for the revitalization and re-establishment of a new national carrier under a new nomenclature ‘NigerianAir’.
This work examines the prospects and challenges of the defunct Nigeria Airways for the transport sector. The secondary method of data collection was utilized in collecting data for the research work. In other words, the researcher depended solely on documented materials on the subjects from available sources in the libraries and internets. The researcher discovered that the defunct Nigeria Airways harboured a huge collection of prospects for the transport sector while it existed. However, mismanagement among many other factors posed problems that eventually led its formal liquidation in 2003. It is therefore recommended in the work that these pitfalls, most important of which was gross mismanagement and leadership incompetence, be addressed by the government in its present quest for the revitalization and re-establishment of a new national carrier under a new nomenclature ‘NigerianAir’.
Photo credit: BBC News.
Introduction
From the beginning of history, human sensitivity has revealed an urge for mobility leading to a measure of Society's progress. The history of this mobility or transport is the history of civilization. For any country to develop with right momentum, modern and efficient Transport as a basic infrastructure is a must. It has been seen throughout the history of any nation that a proper, extensive and efficient Road Transport has played a major role. ‘Transporters' perform one of the most important activities, at every stage of advanced civilization. (Shodhgangi,2013)
Transport can be viewed as a public utility which supplies essential goods and services, where essential means they cannot be cut off without danger of total or partial collapse of an economy (Bos, 2003). Along with power and communication, transport is one of the social overhead capitals which must be developed to a critical minimum level in order to facilitate the development of the other sectors of the economy. From the allocative point of view transport contributes to the infrastructure of the economy, while from the distributional point of view it contributes to providing consumers with the necessities of life (Ogwude, 2016). Therefore Transportation helps shape a nation’s economic health and quality of life. Not only does the transportation system provide for the mobility of people and goods, it also influences patterns of growth and economic activity by providing access to land. The performance of the system affects public policy concerns like air quality, environmental resource consumption, social equity, land use, urban growth, economic development, safety, and security. (Asuncion, 2014).
Transport management is a key component of the entire transport service. Asuncion (2014) stated that the management of transportation operations is comprised of all types and modes, including tracking and managing every aspect of vehicle maintenance, fuel costing, routing and mapping, warehousing, communications, EDI implementations, cargo handling, carrier selection and management, and even accounting.
The purpose of transportation is to move people, goods as well as information and services through space which is shaped by both cultural and physical constraints such as distance, time, political boundaries and topography. The basic necessities of life, namely, food, clothes and shelter are impossible to be achieved in any society without transportation; and without transport, life as it is today would be inconceivable. Transportation is particularly crucial for the existence of human settlements while the existence of such settlements creates greater demand for transport. Transportation routes are constructed for distributing resources between places where they are abundant and places where they are scarce. It is an indispensable component of the social, political and economic life of every society because it has a major role to play in the spatial relationship between different locations, globally, nationally and regionally. The importance of transportation can therefore be seen in the daily rural, urban and regional human activities on the surface of the earth. This explains why transportation is one of the most important human activities worldwide. (Onokala, 2015)
The transport sector in Nigeria has contributed immensely the nation’s economic growth over the years through significant employment generation, facilitating production by efficient distribution of goods and services as well as reasonable contribution to the nation’s Gross domestic Product. According to the recent statistics on the contribution of the transport sector to the nation’s released by the National Bureau of Statistics, GDP From Transport in Nigeria decreased to 216351.50 NGN Millions in the second quarter of 2018 from 241534.71 NGN Millions in the first quarter of 2018. GDP From Transport in Nigeria averaged 193019.02 NGN Millions from 2010 until 2018, reaching an all time high of 253325.52 NGN Millions in the fourth quarter of 2017 and a record low of 144848.60 NGN Millions in the first quarter of 2010. (NBS, 2018). Despite the gloomy picture presented by the figure above, it is worth stressing that transport sector in Nigeria has the potential to impact significantly on the nation’s economy if the right infrastructure and management are in place.
Against the foregoing background therefore, it is the aim of this paper to undertake an examination of the prospects and challenges of the management of the Nigerian Airways in the transport sector in Nigeria and to recommend the way forward towards efficient economic growth and development in Nigeria.
From the beginning of history, human sensitivity has revealed an urge for mobility leading to a measure of Society's progress. The history of this mobility or transport is the history of civilization. For any country to develop with right momentum, modern and efficient Transport as a basic infrastructure is a must. It has been seen throughout the history of any nation that a proper, extensive and efficient Road Transport has played a major role. ‘Transporters' perform one of the most important activities, at every stage of advanced civilization. (Shodhgangi,2013)
Transport can be viewed as a public utility which supplies essential goods and services, where essential means they cannot be cut off without danger of total or partial collapse of an economy (Bos, 2003). Along with power and communication, transport is one of the social overhead capitals which must be developed to a critical minimum level in order to facilitate the development of the other sectors of the economy. From the allocative point of view transport contributes to the infrastructure of the economy, while from the distributional point of view it contributes to providing consumers with the necessities of life (Ogwude, 2016). Therefore Transportation helps shape a nation’s economic health and quality of life. Not only does the transportation system provide for the mobility of people and goods, it also influences patterns of growth and economic activity by providing access to land. The performance of the system affects public policy concerns like air quality, environmental resource consumption, social equity, land use, urban growth, economic development, safety, and security. (Asuncion, 2014).
Transport management is a key component of the entire transport service. Asuncion (2014) stated that the management of transportation operations is comprised of all types and modes, including tracking and managing every aspect of vehicle maintenance, fuel costing, routing and mapping, warehousing, communications, EDI implementations, cargo handling, carrier selection and management, and even accounting.
The purpose of transportation is to move people, goods as well as information and services through space which is shaped by both cultural and physical constraints such as distance, time, political boundaries and topography. The basic necessities of life, namely, food, clothes and shelter are impossible to be achieved in any society without transportation; and without transport, life as it is today would be inconceivable. Transportation is particularly crucial for the existence of human settlements while the existence of such settlements creates greater demand for transport. Transportation routes are constructed for distributing resources between places where they are abundant and places where they are scarce. It is an indispensable component of the social, political and economic life of every society because it has a major role to play in the spatial relationship between different locations, globally, nationally and regionally. The importance of transportation can therefore be seen in the daily rural, urban and regional human activities on the surface of the earth. This explains why transportation is one of the most important human activities worldwide. (Onokala, 2015)
The transport sector in Nigeria has contributed immensely the nation’s economic growth over the years through significant employment generation, facilitating production by efficient distribution of goods and services as well as reasonable contribution to the nation’s Gross domestic Product. According to the recent statistics on the contribution of the transport sector to the nation’s released by the National Bureau of Statistics, GDP From Transport in Nigeria decreased to 216351.50 NGN Millions in the second quarter of 2018 from 241534.71 NGN Millions in the first quarter of 2018. GDP From Transport in Nigeria averaged 193019.02 NGN Millions from 2010 until 2018, reaching an all time high of 253325.52 NGN Millions in the fourth quarter of 2017 and a record low of 144848.60 NGN Millions in the first quarter of 2010. (NBS, 2018). Despite the gloomy picture presented by the figure above, it is worth stressing that transport sector in Nigeria has the potential to impact significantly on the nation’s economy if the right infrastructure and management are in place.
Against the foregoing background therefore, it is the aim of this paper to undertake an examination of the prospects and challenges of the management of the Nigerian Airways in the transport sector in Nigeria and to recommend the way forward towards efficient economic growth and development in Nigeria.
1.Air Transport in Nigeria
Air transportation in Nigeria like other African countries was a child of necessity during the British colonial rule as the need to reach out to other colonies including Nigeria by the British government became imperative. Nigeria just as other African countries created its government-owned national carrier to serve air transportation need of the country as well as that of other continental and intercontinental countries. ( Oghojafor & Alaneme, 2014)
Air Transportation is the transportation of passengers and cargo by aircraft and helicopters. It is a transport system that involves the movement or carriage by air of persons or goods using airplanes and helicopters (WIE, 2011).It has become the primary means of common carrier traveling. Greatest efficiency and value are obtained when long distances are involved and high value payloads are moved, although, the time and cost efficiencies obtained decreases as distances traveled is reduced, air transport is often worthwhile even for relatively short distances. It also provides a communication link, which is sometimes vital, between the different groups of people involved (WIE, 2011) Ladan (2012).
Nigeria is classified as an emerging market and is rapidly approaching middle income status with its abundant supply of resources; well endowed communication, financial sector and stock exchange (Wikipedia, 2011) in Ladan (2012). Such a country and its economy needs efficient air transportation.
Furthermore, the large size of the country coupled with geographically diverse regions, difficult terrain, water bodies etc necessitates the use of efficient air transportation. Efficient air transportation is a means of transport that conveys people and goods from one place to another safely,on time without delay or flight cancellation or any other problem. It also contributes to economic growth and development. However in Nigeria, it suffers from poor reputation for operational efficiency and safety (Ibid, 2012)
Air transportation in Nigeria like other African countries was a child of necessity during the British colonial rule as the need to reach out to other colonies including Nigeria by the British government became imperative. Nigeria just as other African countries created its government-owned national carrier to serve air transportation need of the country as well as that of other continental and intercontinental countries. ( Oghojafor & Alaneme, 2014)
Air Transportation is the transportation of passengers and cargo by aircraft and helicopters. It is a transport system that involves the movement or carriage by air of persons or goods using airplanes and helicopters (WIE, 2011).It has become the primary means of common carrier traveling. Greatest efficiency and value are obtained when long distances are involved and high value payloads are moved, although, the time and cost efficiencies obtained decreases as distances traveled is reduced, air transport is often worthwhile even for relatively short distances. It also provides a communication link, which is sometimes vital, between the different groups of people involved (WIE, 2011) Ladan (2012).
Nigeria is classified as an emerging market and is rapidly approaching middle income status with its abundant supply of resources; well endowed communication, financial sector and stock exchange (Wikipedia, 2011) in Ladan (2012). Such a country and its economy needs efficient air transportation.
Furthermore, the large size of the country coupled with geographically diverse regions, difficult terrain, water bodies etc necessitates the use of efficient air transportation. Efficient air transportation is a means of transport that conveys people and goods from one place to another safely,on time without delay or flight cancellation or any other problem. It also contributes to economic growth and development. However in Nigeria, it suffers from poor reputation for operational efficiency and safety (Ibid, 2012)
1.1.The Nigerian Airways
Photo Credit: The Nation.
The Nigerian Airways had had a chequered history before its eventual liquidation in 2003. The grace-to-grass experience of the defunct Nigerian Airways Limited is well documented. Oghojafor & Alaneme (2014) examined extensively the Grace-to-Grass experience of the Nigerian Airways Ltd. The Nigerian national carrier popularly called “Nigeria Airways” is a defunct national carrier founded on the 23rd August, 1958 with the name West African Airways Corporation Nigeria Limited (WAAC Nigeria). The nomenclature “WAAC” was upheld due to the prestige the company earned in the past as a joint effort between four British West African colonies. The carrier being a tripartite company had Nigeria as the major shareholder with 51%, while Elder Dempster Lines and BOAC owned the remaining 322/3 and 161/3 respectively
(Flight International, 1958a; 1960; 2003).
WAAC Nigeria inherited some aircrafts previously owned by WAAC and started operations on the 1st October, 1958 with a BOAC Stratocruiser VC 10 linking London with Lagos (Flight International, 1958b). A 15-year agreement with BOAC to charter Stratocruisers and Britannias for serving long-haul flights between Nigeria and the United Kingdom was signed the same day. The fleet of aircraft increased by April 1960 as it added one Dove, eight Herons and eight DC-3s. On the 25th March, 1961, Nigeria became the only owner of the company as both Elder Dempster and BOAC sold their shares to the Nigerian government (Guttery, 1998). The wholly owned Nigerian airline was renamed “Nigeria Airways” and show-cased the Nigerian flag and “elephant” signifying “sky power” as its emblem and served as the country’s flag carrier. This emblem was later changed on the 1st December, 1988 to an “eagle” (Aero Control Ltd, 1988).
In conjunction with Nigeria Airways, a BOAC Comet 4 inaugurated the jet services between Nigeria and London on 1st April, 1962. In order to replace the DC-3 aircrafts, five Fokker Friendship 200s were ordered toward the end of 1962. The Fokker F-27s joined the airline fleet between January and May, 1963 and were deployed to regional routes. A new agreement was signed with BOAC to operate Vickers VC-10 services on behalf of Nigeria Airways from April 1964 till October 1969 when it was able to acquire the type of aircraft from British state airline in October 1969 (Flight International, 1970). This aircraft crashed in November of the same year (Flight International, 1971).
In early October 1964, Nigeria launched its first air link with the United States called “Operation Fantastic”. The link from Lagos to New York was via Boeing 707s and DC-8s operated by PanAm following an agreement by both countries that Nigeria Airways sell limited number of seats on these flights (Flight International, 1964). The Boeing 707s was leased from Laker Airways and Ethiopian Airlines to fill the vacuum created by the crashed aircraft on the Lagos – London route (Flight International, 1971; 1970b). By March 1970, the staff strength was 2,191 and the fleet comprised one Aztec, one DC-3 and six Fokker F27s which worked on a domestic network and regional routes extending west up to Dakar and operated a pool agreement with Ghana Airways. The Nigerian Airways also operated some European destinations all served by VC10s chartered from BOAC; these destinations include Frankfurt, London, Madrid and Rome (Flight International, 1970a).
The “Nigeria Airways” became a limited liability company in 1971(Aero Control Ltd, 1988). Despite its new status, it was not spared of government interference and control (Oghojafor & Analeme, 2014). In 1972, two 737s and another 707s were ordered; and by October of the same year, under a lease agreement with Fokker, the Fokker Fellowship F28 entered the fleet, and the type was ordered later that year. A contract for management assistance was signed with Trans World Airlines (TWA), an American Carrier providing specialists in different managerial, technical, commercial and financial fields in the same year for five years (Flight International, 1972). The contract over, a similar agreement was signed in September, 1979 with KLM but this time for a period of two years (Flight International, 1980).
Between 1975 and 1980, the fleet of aircraft had increased greatly to 26 with Boeing 707s, Boeing 737s, different Fokkers (F27, F28), DC-10s, Aztec and the company became the 83rd customer for the Boeing 727s as it ordered two Boeing 727-200s (Flight International, 1976a; Wikipedia, 2014a). In 1981, Nigeria Airways became Airbus 40th customer when it placed an order for four Airbus A310-200s which joined the fleet late 1984 and early 1985 (Flight International, 1985a; 1981). A Boeing 747 was leased from Scanair in 1982, and the aircraft was deployed on services to the United Kingdom, so that the DC-10s can be used on new routes to Frankfurt, Paris, and Zurich (Flight International, 1982). In November 1983, there was an accident involving a Fokker F28 and the airline for this reason withdrew all F27s and F28s. This reduced the fleet to a 22-strong by March 1985, with two DC-10s, four Airbus A310s, three Boeing 707-320Cs, two Boeing 727-200s, ten Boeing 737-200s and one Boeing 737-200C. Financed by a Japanese leasing company and the Equator Bank, another two Boeing 737-200s were on order and delivered in 1989 (Flight International, 1985c; 1985b) . The carrier operated the last DC-10 ever built (Flight International, 1989).
The national carrier for more than two and half decades, single handedly performed the functions of passenger and freight movement on both domestic and international routes (Daramola, 2007). It had destinations in New York, London, Amsterdam, Libreville, Monrovia and many other African cities and maintained offices in the world's most important destinations. It acquired terminals in Europe and in the United States, and in fact was the first African airline to acquire a terminal in the United States particularly at the John F. Kennedy International Airport (Ejuka, 1987).
The airline was seemingly buoyant and enjoyed high passenger patronage and was highly competitive even when compared with international carriers at the time (Sotunde, 1983).
Ogbeidi (2006) opined that the airline served as the human resource pool from where the new airlines drew their staff when new airlines were permitted to operate within Nigeria's domestic airspace and had one of the best international safety records among African airlines. It did not suffer lack of funds, markets, well trained manpower, equipment or enabling environment (Olakunle, 2000). The airline had one of the best safety records in African aviation and its pilots were some of the best in the field, such that some of the airlines' pilots were used by the Nigerian Air Force during the Nigerian Civil War to fly through routes that were regarded as very precarious (Decker, 2002 in Ogbeidi, 2006).
1.1.1.Location
NAL had its head office at Airways house in Abuja having been moved from Murtala Muhammed Airport between 1999 and 2000. It had a major hub at the Murtala Muhammed International Airport, Lagos and secondary
hubs at the Mallam Aminu International Airport, Kano as well as Port Harcourt International Airport.
1.1.2.Mission and Objectives of the Nigeria Airways
The Nigeria Airways had a mission “To be the safest leading airline in Africa”. The following objectives were however specifically outlined;
1. To carry on business as an air transport undertaking and to do anything calculated to facilitate or is incidental or conducive to the same.
2. Establish, operate, manage and arrange for the operation of air transport services for the carriage of passengers, baggage, mail and freight to and from territories of West Africa or to and from or within any such territories to any other parts of the world as the company may think expedient.
3. Provide and operate such service at cost plus commission on an agreed basis on revenue collected
4. To offer support services in case of national emergency for transportation of goods and persons
5. Do business in the same manner as other companies to enhance profitability.
6. An outlet for employment of the teeming youth population
1.1.3. Slogans
“West African Hopper” (1973)
“Western gateway to fabulous Africa” (1990)
“Skypower throughout Africa”
“Nigerian Airways: the friendly way to fly” (1994)
1. To carry on business as an air transport undertaking and to do anything calculated to facilitate or is incidental or conducive to the same.
2. Establish, operate, manage and arrange for the operation of air transport services for the carriage of passengers, baggage, mail and freight to and from territories of West Africa or to and from or within any such territories to any other parts of the world as the company may think expedient.
3. Provide and operate such service at cost plus commission on an agreed basis on revenue collected
4. To offer support services in case of national emergency for transportation of goods and persons
5. Do business in the same manner as other companies to enhance profitability.
6. An outlet for employment of the teeming youth population
1.1.3. Slogans
“West African Hopper” (1973)
“Western gateway to fabulous Africa” (1990)
“Skypower throughout Africa”
“Nigerian Airways: the friendly way to fly” (1994)
1.1.4. Management/Control Mechanisms
Being a public sector organ and dominated by the public sector, it had its planning, development and management of the industry reflecting the characteristics of public enterprises management (Ehije & Nwosu, 1990). At the beginning, the airline was managed by a number of foreign companies, including British Airways, KLM and later code sharing with South African Airways (Adujie, 2004). It was assumed to have had its peak in the early 1980s during the KLM team two-year-management period (BBC News, 2002). Later on, the management responsibility fell on the laps of periodic boards constituted by the Federal Government with a Chairman, Chief Executive Officer/Managing Director and Executive members, all appointed by the Federal Government. These boards had between 5 and 7 members. The Company Secretary served both the Executive board and the Management board. The tenures of management and top officials of Nigeria airways were about two or less years as it recorded five(5) chief executives within thirteen years (Aero Control Ltd., 2000). The industry was regulated by the Ministry of Transport and Aviation.
1.1.5.Funding/Profit
The airline was largely funded by the Federal Government (FG) of Nigeria being the principal shareholder. Instances however abound when government ministries and parastatals used the services of the airline without paying for these services. These depleted the finances of the airline (Interview with Mr. Alabi, June 30, 2014; Flight International, 1987). A report of inquiry during the period 1961 – 1965 showed that before 1961-62 the airline was making profit, but afterwards it operated at a loss, which totaled more than £500,000 in 1963-64 and the officers of the airline were accused of lack of financial control, mismanagement and laxity in the recovery of debts (Flight International, 1969).
Nigeria Airways Limited (NAL) operated amidst other contemporary African countries that established national carriers about the same period with NAL. As enunciated by Guttery (1998) some of those airlines were the Tunis Air (1948); Ghana Airways (1958); Sierra Leone Airways (1958–87); Royal Air Burundi (1960–63); Air Senegal (1962); Botswana National Airlines (1966–69); Air Djibouti (1963–70); Air Congo–Brazzaville (1961–65); Air Burkina (1984); Air Tchad (1966); Air Congo, later Air Zaire (1961–95); LÃneas Aéreas de Guinea Ecuatorial (1969); Gambia Airways (1964); Air Guinée (1960); Air Bissau (1960); Lesotho Airways (1967–70); Libyan Arab Airlines (1964); Air Malawi (1964); Air Mali (1960); Air Mauritanie (1962); Air Mauritius (1967); Royal Air Maroc (1957); Air Namibia (1991); Air Niger (1966–93); Air Rwanda (1975–96); Somali Airlines (1964); Royal Swazi National Airways (1978); Uganda Airlines (1976–2001); Zambia Airways (1963–94); and Air Zimbabwe (1980); South African Airways (1934 to date); Ethiopian Airlines (1946 to date) and Egypt Air (1933); Kenya Airways (1977 to date).
Most of these airlines are extinct like NAL, while some still exist and doing greatly. For instance, the South African Airways is still South African’s national flag carrier to date; rated a 4-star airline and the first African airline to join the Star Alliance group in 2006. Also, the Ethiopian Airline rated as one of the most profitable and reliable airlines in the third world in 2010, is still the Ethiopia’s flag carrier wholly owned by the country’s government. While many African state owned airlines remain often poorly run with business decisions made on political basis and employment serving nepotistic purposes, Ethiopian Airlines remained professionally run and managed (Koch, 1988). The airline is a member of the International Air Transport Association since 1959 and a Star Alliance member since 2011. Kenyan Airways Limited though founded in 1977, is the flag carrier of Kenya wholly owned by the government of Kenya until 1996 when it was privatized (Buyck, 2010); and is considered one of the leading Sub-Saharan operators; ranked the 4th among the top ten that operate in Africa behind South Africa Airways, Ethiopian Airlines and Egypt Air. In like manner, there were foreign airlines flying the skies of Nigeria too. Nonetheless, when air operation was liberalized and deregulated, private operators established airlines and were licensed to operate as charter carriers and unscheduled flights. Some of the operators include Kabo Air, Harka Air Services, Okada Air, Harco Air Services, Bristow Helicopters, and Maina Air. According to Oghojafor & Analeme, (2014) “the licensed charter operators indirectly metamorphosed into scheduled carriers by manipulative operational modalities and were sharing the market with NAL. Government seemed unconcerned and paid no attention to their activities as it was rumored that most of the owners were highly placed people in government quarters. The activities of the foreign airlines also stifled the market for NAL especially during the era of deregulation of foreign exchange. The Nigerian currency was unexchangeable in Europe, and even in some African countries, and these made operations difficult outside the Nigerian shores. Again, the issue of the number of slots allocated to NAL for landing in most of its international flight was a challenge. The airline was restricted to land only in particular airports in those countries; while in Nigeria, the foreign airlines never had any restriction of which airport to land in. Passengers from Nigeria on international flights going beyond the approved airports found it difficult to fly Nigeria Airways and so preferred the foreign airlines which could take them directly to their destinations. Again, NAL attached so much importance to safety checks and security issues, as it was tagged at a time as the safest and most reliable airline in Africa. Due to this safety consciousness, flights were cancelled in situations where it discovered that there were safety issues, whereas other airlines damned the
consequence and continued with the flight. This earned NAL a tag of inefficiency since there was frequent flight rescheduling and cancellation so as to maintain safety”.
The airline operated the following equipment throughout its history (AeroTransport Data Bank, 2014). Airbus A310-200, Aztec, BAC One-Eleven 400, Boeing 707-320, Boeing 707-320B, Boeing 707-320C, Boeing 727-100, Boeing 727-200, Boeing 737-200, Boeing 737-200C, Boeing 747-100, Boeing 747-200, Boeing 747-200B, Boeing 747-200 Combi, Boeing 747-200F, Boeing 747-300, Boeing 767-200ER, Boeing 767-300ER, Britannia 100, Comet, Douglas C-47A, Douglas DC-3, Douglas DC-8-30, Douglas DC-8-50, Douglas DC-8-60, Dove, Fokker F27-200, Fokker F27-400, Fokker F27-600, Fokker F-28-100, Fokker F-28-200, Fokker F-28-400, Heron, McDonnell Douglas DC-10-10, McDonnell Douglas DC-10-30, Vickers VC-10, Vickers Viscount 810.
1.1.6.Crashes
The airline recorded some crashes whilst some aircrafts belonging to the airline were often abandoned at the hangars. Ore (2010) suggests that aircraft accidents could be traced to either the “airline” or “service providers”. Causes of accidents traceable to airlines reveal that Pilot error is 37%; Undetermined 33%; Mechanical 13%; Weather 7%; Sabotage 5%; other human errors 4%, while other cause is 1%. (Aviation Safety Networks on Wikipedia, 2014a). Sixteen crashes were against Nigeria Airways Limited and its chartered flights; eight of which were fatal. The list includes events that reported fatalities as well as hull-loss of the equipment concerned or both. The most fatal five are listed below.
- November 20, 1969: Nigeria Airways BAC VC10 crashed on landing from foreign flight killing 87 onboard.
- January 22, 1973: Nigeria Airways Boeing 707-320C (a chartered flight from Alia Royal Jordanian Airlines for Hajj) skidded off the runway and caught fire after one of the two main gears collapsed on landing at the Kano Airport killing 176 out of the 202 on board.
- March 1, 1978: Nigeria Airways F28-100 crashed in Kano killing 16 due to an Air Force plane ramming into it.
- November 28, 1983: Nigeria Airways F28-100 crashed while approaching Enugu killing 53 on board.
- July 11, 1991: Nigeria Airways DC-8-61 (a chartered flight for Muslim pilgrimage) crashed in Jeddah, Saudi Arabia from system failure killing 261 on board.
Being a public sector organ and dominated by the public sector, it had its planning, development and management of the industry reflecting the characteristics of public enterprises management (Ehije & Nwosu, 1990). At the beginning, the airline was managed by a number of foreign companies, including British Airways, KLM and later code sharing with South African Airways (Adujie, 2004). It was assumed to have had its peak in the early 1980s during the KLM team two-year-management period (BBC News, 2002). Later on, the management responsibility fell on the laps of periodic boards constituted by the Federal Government with a Chairman, Chief Executive Officer/Managing Director and Executive members, all appointed by the Federal Government. These boards had between 5 and 7 members. The Company Secretary served both the Executive board and the Management board. The tenures of management and top officials of Nigeria airways were about two or less years as it recorded five(5) chief executives within thirteen years (Aero Control Ltd., 2000). The industry was regulated by the Ministry of Transport and Aviation.
1.1.5.Funding/Profit
The airline was largely funded by the Federal Government (FG) of Nigeria being the principal shareholder. Instances however abound when government ministries and parastatals used the services of the airline without paying for these services. These depleted the finances of the airline (Interview with Mr. Alabi, June 30, 2014; Flight International, 1987). A report of inquiry during the period 1961 – 1965 showed that before 1961-62 the airline was making profit, but afterwards it operated at a loss, which totaled more than £500,000 in 1963-64 and the officers of the airline were accused of lack of financial control, mismanagement and laxity in the recovery of debts (Flight International, 1969).
Nigeria Airways Limited (NAL) operated amidst other contemporary African countries that established national carriers about the same period with NAL. As enunciated by Guttery (1998) some of those airlines were the Tunis Air (1948); Ghana Airways (1958); Sierra Leone Airways (1958–87); Royal Air Burundi (1960–63); Air Senegal (1962); Botswana National Airlines (1966–69); Air Djibouti (1963–70); Air Congo–Brazzaville (1961–65); Air Burkina (1984); Air Tchad (1966); Air Congo, later Air Zaire (1961–95); LÃneas Aéreas de Guinea Ecuatorial (1969); Gambia Airways (1964); Air Guinée (1960); Air Bissau (1960); Lesotho Airways (1967–70); Libyan Arab Airlines (1964); Air Malawi (1964); Air Mali (1960); Air Mauritanie (1962); Air Mauritius (1967); Royal Air Maroc (1957); Air Namibia (1991); Air Niger (1966–93); Air Rwanda (1975–96); Somali Airlines (1964); Royal Swazi National Airways (1978); Uganda Airlines (1976–2001); Zambia Airways (1963–94); and Air Zimbabwe (1980); South African Airways (1934 to date); Ethiopian Airlines (1946 to date) and Egypt Air (1933); Kenya Airways (1977 to date).
Most of these airlines are extinct like NAL, while some still exist and doing greatly. For instance, the South African Airways is still South African’s national flag carrier to date; rated a 4-star airline and the first African airline to join the Star Alliance group in 2006. Also, the Ethiopian Airline rated as one of the most profitable and reliable airlines in the third world in 2010, is still the Ethiopia’s flag carrier wholly owned by the country’s government. While many African state owned airlines remain often poorly run with business decisions made on political basis and employment serving nepotistic purposes, Ethiopian Airlines remained professionally run and managed (Koch, 1988). The airline is a member of the International Air Transport Association since 1959 and a Star Alliance member since 2011. Kenyan Airways Limited though founded in 1977, is the flag carrier of Kenya wholly owned by the government of Kenya until 1996 when it was privatized (Buyck, 2010); and is considered one of the leading Sub-Saharan operators; ranked the 4th among the top ten that operate in Africa behind South Africa Airways, Ethiopian Airlines and Egypt Air. In like manner, there were foreign airlines flying the skies of Nigeria too. Nonetheless, when air operation was liberalized and deregulated, private operators established airlines and were licensed to operate as charter carriers and unscheduled flights. Some of the operators include Kabo Air, Harka Air Services, Okada Air, Harco Air Services, Bristow Helicopters, and Maina Air. According to Oghojafor & Analeme, (2014) “the licensed charter operators indirectly metamorphosed into scheduled carriers by manipulative operational modalities and were sharing the market with NAL. Government seemed unconcerned and paid no attention to their activities as it was rumored that most of the owners were highly placed people in government quarters. The activities of the foreign airlines also stifled the market for NAL especially during the era of deregulation of foreign exchange. The Nigerian currency was unexchangeable in Europe, and even in some African countries, and these made operations difficult outside the Nigerian shores. Again, the issue of the number of slots allocated to NAL for landing in most of its international flight was a challenge. The airline was restricted to land only in particular airports in those countries; while in Nigeria, the foreign airlines never had any restriction of which airport to land in. Passengers from Nigeria on international flights going beyond the approved airports found it difficult to fly Nigeria Airways and so preferred the foreign airlines which could take them directly to their destinations. Again, NAL attached so much importance to safety checks and security issues, as it was tagged at a time as the safest and most reliable airline in Africa. Due to this safety consciousness, flights were cancelled in situations where it discovered that there were safety issues, whereas other airlines damned the
consequence and continued with the flight. This earned NAL a tag of inefficiency since there was frequent flight rescheduling and cancellation so as to maintain safety”.
The airline operated the following equipment throughout its history (AeroTransport Data Bank, 2014). Airbus A310-200, Aztec, BAC One-Eleven 400, Boeing 707-320, Boeing 707-320B, Boeing 707-320C, Boeing 727-100, Boeing 727-200, Boeing 737-200, Boeing 737-200C, Boeing 747-100, Boeing 747-200, Boeing 747-200B, Boeing 747-200 Combi, Boeing 747-200F, Boeing 747-300, Boeing 767-200ER, Boeing 767-300ER, Britannia 100, Comet, Douglas C-47A, Douglas DC-3, Douglas DC-8-30, Douglas DC-8-50, Douglas DC-8-60, Dove, Fokker F27-200, Fokker F27-400, Fokker F27-600, Fokker F-28-100, Fokker F-28-200, Fokker F-28-400, Heron, McDonnell Douglas DC-10-10, McDonnell Douglas DC-10-30, Vickers VC-10, Vickers Viscount 810.
1.1.6.Crashes
The airline recorded some crashes whilst some aircrafts belonging to the airline were often abandoned at the hangars. Ore (2010) suggests that aircraft accidents could be traced to either the “airline” or “service providers”. Causes of accidents traceable to airlines reveal that Pilot error is 37%; Undetermined 33%; Mechanical 13%; Weather 7%; Sabotage 5%; other human errors 4%, while other cause is 1%. (Aviation Safety Networks on Wikipedia, 2014a). Sixteen crashes were against Nigeria Airways Limited and its chartered flights; eight of which were fatal. The list includes events that reported fatalities as well as hull-loss of the equipment concerned or both. The most fatal five are listed below.
- November 20, 1969: Nigeria Airways BAC VC10 crashed on landing from foreign flight killing 87 onboard.
- January 22, 1973: Nigeria Airways Boeing 707-320C (a chartered flight from Alia Royal Jordanian Airlines for Hajj) skidded off the runway and caught fire after one of the two main gears collapsed on landing at the Kano Airport killing 176 out of the 202 on board.
- March 1, 1978: Nigeria Airways F28-100 crashed in Kano killing 16 due to an Air Force plane ramming into it.
- November 28, 1983: Nigeria Airways F28-100 crashed while approaching Enugu killing 53 on board.
- July 11, 1991: Nigeria Airways DC-8-61 (a chartered flight for Muslim pilgrimage) crashed in Jeddah, Saudi Arabia from system failure killing 261 on board.
1.2.The Nigerian Airways: Prospect for the Transport Sector in Nigeria
The history of air transportation development in Nigeria started from the period after World War II in 1945 when flights were operated by the British Royal Air Force (RAF), West African Airways Corporation (WAAC), between Britain and her colonies in West Africa (Nigeria, Gold Coast, Sierra Lone and Gambia).
As soon as Nigeria became independent in 1960, the Federal government of Nigeria established the Nigerian Airways Limited as the national carrier, 100 per cent owned by the Nigerian government. Over the years government made huge capital investments in the development of air transportation in the country by introducing improved modern aircrafts (DC-3, F27, F28 and later Dc-8, Dc-10, Boeing 707, Boeing 737 and Boeing 474). The Nigerian Airways operated international flights to East and West Africa, parts of Europe, North America and Asia. It also enjoyed the monopoly of providing domestic air services in the country until the 1980’s when increase in demand for air transport and public complaints about the shortcomings of the Nigerian Airways forced the government to permit the participation of private airlines in domestic aviation.
Onokala (2002) noted that the civil aviation sector in Nigeria has shifted from a purely public sector of the 1970’s and 1980’s to a liberalized sector with private sector participation in airline business, in line with the global trend. Since the establishment of air transport services in Nigeria, there has been tremendous increase in air traffic in the country and this has been very well documented (Filani, 1975, Bardi, 1987 and Akpoghomeh, 1995). In fact, the last two decades in Nigeria has witnessed an enormous expansion in both domestic and international traffic but domestic traffic predominates and jumped from 5.2 million to 8.4 million between 2001 and 2007.
The situation in Nigeria is similar to what is reported at the global level where the International Air transport Association (IATA) reported world total domestic air passenger traffic of 1,249,000,000 in 2007 indicating 8 percent growth over the number for 2006 (IATA, 2008).
The National Civil Aviation Policy (NCAP) of 2001 formalized the deregulation and privatization of the aviation sector in Nigeria. After this, the Nigerian Airways was formally liquidated in 2003 and private airlines have not only taken over both domestic and international air transportation but are also expanding their domestic and international services. The private airlines operating in Nigeria include Arik Airlines, Aero Contractors, Bellview Airlines, Associated Airlines, Capital Airlines, Overland Airlines and Chanchangi Airlines among others. The international airports are at Abuja, Lagos, Port Harcourt and Kano. Kaduna, Ilorin, Sokoto and Enugu airports are of lower standards but are gradually being upgraded to international standards. In fact, most state capitals have airports. The development of airways infrastructure, which started in the postcolonial phase of transport development in Nigeria, is still going on, with such projects for the modernization of airports as the upgrading of Enugu airport and others to the status of international airports as well as new airports construction. Over the years the number of airports in Nigeria, which are owned by the government, has steadily increased. Presently, Nigeria has 22 airports and many of them have been upgraded recently to international airports that can handle modern aircrafts. Due to its inherent advantage of speed in a situation where large spatial disparities occur in resource endowment and production as in Nigeria, the important and inevitable role of air transportation in the movement of people across the country has contributed a lot to the Nigeria’s economic development.
Onokala (2012) noted that due to improved economic conditions, Nigerians are willing to travel and ship goods by air more than ever before. The air transportation mode is growing at an alarming rate and has huge potential for the development of tourism in Nigeria. Therefore, the airways transportation in Nigeria has a lot of room for expansion.
The history of air transportation development in Nigeria started from the period after World War II in 1945 when flights were operated by the British Royal Air Force (RAF), West African Airways Corporation (WAAC), between Britain and her colonies in West Africa (Nigeria, Gold Coast, Sierra Lone and Gambia).
As soon as Nigeria became independent in 1960, the Federal government of Nigeria established the Nigerian Airways Limited as the national carrier, 100 per cent owned by the Nigerian government. Over the years government made huge capital investments in the development of air transportation in the country by introducing improved modern aircrafts (DC-3, F27, F28 and later Dc-8, Dc-10, Boeing 707, Boeing 737 and Boeing 474). The Nigerian Airways operated international flights to East and West Africa, parts of Europe, North America and Asia. It also enjoyed the monopoly of providing domestic air services in the country until the 1980’s when increase in demand for air transport and public complaints about the shortcomings of the Nigerian Airways forced the government to permit the participation of private airlines in domestic aviation.
Onokala (2002) noted that the civil aviation sector in Nigeria has shifted from a purely public sector of the 1970’s and 1980’s to a liberalized sector with private sector participation in airline business, in line with the global trend. Since the establishment of air transport services in Nigeria, there has been tremendous increase in air traffic in the country and this has been very well documented (Filani, 1975, Bardi, 1987 and Akpoghomeh, 1995). In fact, the last two decades in Nigeria has witnessed an enormous expansion in both domestic and international traffic but domestic traffic predominates and jumped from 5.2 million to 8.4 million between 2001 and 2007.
The situation in Nigeria is similar to what is reported at the global level where the International Air transport Association (IATA) reported world total domestic air passenger traffic of 1,249,000,000 in 2007 indicating 8 percent growth over the number for 2006 (IATA, 2008).
The National Civil Aviation Policy (NCAP) of 2001 formalized the deregulation and privatization of the aviation sector in Nigeria. After this, the Nigerian Airways was formally liquidated in 2003 and private airlines have not only taken over both domestic and international air transportation but are also expanding their domestic and international services. The private airlines operating in Nigeria include Arik Airlines, Aero Contractors, Bellview Airlines, Associated Airlines, Capital Airlines, Overland Airlines and Chanchangi Airlines among others. The international airports are at Abuja, Lagos, Port Harcourt and Kano. Kaduna, Ilorin, Sokoto and Enugu airports are of lower standards but are gradually being upgraded to international standards. In fact, most state capitals have airports. The development of airways infrastructure, which started in the postcolonial phase of transport development in Nigeria, is still going on, with such projects for the modernization of airports as the upgrading of Enugu airport and others to the status of international airports as well as new airports construction. Over the years the number of airports in Nigeria, which are owned by the government, has steadily increased. Presently, Nigeria has 22 airports and many of them have been upgraded recently to international airports that can handle modern aircrafts. Due to its inherent advantage of speed in a situation where large spatial disparities occur in resource endowment and production as in Nigeria, the important and inevitable role of air transportation in the movement of people across the country has contributed a lot to the Nigeria’s economic development.
Onokala (2012) noted that due to improved economic conditions, Nigerians are willing to travel and ship goods by air more than ever before. The air transportation mode is growing at an alarming rate and has huge potential for the development of tourism in Nigeria. Therefore, the airways transportation in Nigeria has a lot of room for expansion.
1.3.Problems of the Nigerian Airways
The services of NAL began to fall short of users’ expectations as the disadvantages of stagnation and diminished initiatives for customer satisfaction often associated with monopolies became apparent (Akpoghomeh, 1989).
There were incessant increases of flight fares, flight cancellations, delays, poor-onboard services, poor customer relations, missing luggages, huge staff outlay (serving the purpose of its inception) and poor equipment maintenance and breakdowns (Ehije and Nwosu, 1990; Daramola, 2007). These shortcomings, Ehije and Nwosu (1990) averred, were universal air transport problems; only that Nigeria’s own was endemic.
Wikipedia (2014a) reported that the carrier had accumulated significant debts that outstripped its revenues virtually from the mid-1980s; and an over-bloated workforce, plied some routes thought to be unprofitable because it wanted its presence felt there. The lack of concern over the type of air craft and the quality of the leasing company constituted some challenges to the free operation of Nigeria Airways in some locations. The airline was accused of being plagued by mismanagement, corruption, and overstaffing (Brooke, 1987).
The airline was indebted to the tune of about $250 million and some cost cutting measures were introduced in order to generate more funds to service the debts (Flight International1987; 1988). These measures included raising of the local airfare by about 100 per cent and international airfare by 20 per cent. This did not yield the required result as patronage dropped. The Airline earned $5 million monthly but spends about $5.175 million. Salaries account for about $1.1 million; Servicing debts to the International Merchant Bank $500,000; Nigerian Airport Authority Fees $375,000; International Air Transport Association (IATA) $1.1million, while $2.1million goes for fuel. IATA suspended NAL for non-payment of debts in January 1987 and the federal government was accused of allowing the airline operate under the Second tier Foreign Exchange Market (SFEM) instead of under Central Bank of Nigeria (CBN) as is practiced successfully by some other African countries (Flight, 1987).
As part of the cost cutting measures, government instructed a further reduction in the number of staff which stood at 8,500 (a staff-aircraft ratio of 500:1) at that time, though 1000 jobs were cut late 1986 (Flight International, 1986). Unprofitable routes were also either to be reduced or discontinued (Flight International, 1987). In 1988 flights to Cotonou, Dakar, Douala, Kinshasa, Monrovia and Nairobi were discontinued as part of the measures though flights were resumed a year later to some of the destinations.
In 1997 the UK Civil Aviation Authority had banned the airline from operating within its territory citing safety concerns; the Nigerian government replied by banning British Airways operations (Flight International, 1998).
By April 2000 the staff strength was 4,516, accompanied by a depletion of fleet which served a route network that included Abuja, Calabar, Douala, Dubai, Jeddah, Jos, Kaduna, /Kano, Kinshasa, Libreville, London, Maiduguri, Malabo, Port Harcourt, Sokoto and Yola (Wikipedia, 2014a). The airline witnessed mass exodus of its experts –pilots, professional crewmen and engineers (Aero Control Ltd., 2000); and was accounting for as little as three per cent of total air travel across Nigeria in 2000 (CBN, 2001).
The same year, the International Finance Corporation (IFC) was commissioned by the Nigerian Government to assist in the process of restructuring and privatization of the airline (Tumba, 2000). They were left with the option of either making the airline partner with a large European airline – Air France, Lufthansa and Swissair or liquidate the carrier given that a fleet comprising about 26 aircraft in 1984 were gradually depleted to a three-strong at that time.
In 2001 the UK cited safety concerns again when it refused to allow Nigeria Airways to operate the Lagos-London route due to the Boeing 747 that was leased from Air Djibouti to fly the route (People’s Daily, August 11). The IFC withdrew from its advisory position in 2001 stating the unwillingness of both the company and the government to carry out the necessary measures that would make the airline attractive to potential investors. There were also various allegations that the airline’s failure was accelerated by former Nigerian rulers who looted and mismanaged the company (BBC News, 2002).
In 2002, President Olusegun Obasanjo irritated by the performance of the national carrier now left with only two functional airplanes from a fleet of about 26 airworthy aircrafts in the early 1980s, ordered an investigation into the management of the organization. An excerpt of the Justice Nwazota led commission of inquiry as reported in the investigation of Ibekwe (2013a & 2013b) stated that the four-volume report submitted by the commission revealed mind-boggling fraud, misappropriations and wanton recklessness running into billions of naira involving several officials of the airline, administrators, travel agencies, financial institutions local and foreign companies, as well as a prominent development organization.
The Federal Executive Council (FEC), the country’s highest decision making body, met and approved a draft White Paper on the commission’s report and directed the Ministry of Justice and the police to prosecute and recover the stolen funds. It also directed the office of Secretary to the government to gazette the recommendations of the White Paper (Ibekwe, 2013a). Those indicted by the commission of enquiry could not be compelled to account for the loot. Government forced the airline to voluntarily liquidate (Interview with Mr. Enah in Oghojafor & Alaneme, 2014). The carrier ceased operations in 2004.
The services of NAL began to fall short of users’ expectations as the disadvantages of stagnation and diminished initiatives for customer satisfaction often associated with monopolies became apparent (Akpoghomeh, 1989).
There were incessant increases of flight fares, flight cancellations, delays, poor-onboard services, poor customer relations, missing luggages, huge staff outlay (serving the purpose of its inception) and poor equipment maintenance and breakdowns (Ehije and Nwosu, 1990; Daramola, 2007). These shortcomings, Ehije and Nwosu (1990) averred, were universal air transport problems; only that Nigeria’s own was endemic.
Wikipedia (2014a) reported that the carrier had accumulated significant debts that outstripped its revenues virtually from the mid-1980s; and an over-bloated workforce, plied some routes thought to be unprofitable because it wanted its presence felt there. The lack of concern over the type of air craft and the quality of the leasing company constituted some challenges to the free operation of Nigeria Airways in some locations. The airline was accused of being plagued by mismanagement, corruption, and overstaffing (Brooke, 1987).
The airline was indebted to the tune of about $250 million and some cost cutting measures were introduced in order to generate more funds to service the debts (Flight International1987; 1988). These measures included raising of the local airfare by about 100 per cent and international airfare by 20 per cent. This did not yield the required result as patronage dropped. The Airline earned $5 million monthly but spends about $5.175 million. Salaries account for about $1.1 million; Servicing debts to the International Merchant Bank $500,000; Nigerian Airport Authority Fees $375,000; International Air Transport Association (IATA) $1.1million, while $2.1million goes for fuel. IATA suspended NAL for non-payment of debts in January 1987 and the federal government was accused of allowing the airline operate under the Second tier Foreign Exchange Market (SFEM) instead of under Central Bank of Nigeria (CBN) as is practiced successfully by some other African countries (Flight, 1987).
As part of the cost cutting measures, government instructed a further reduction in the number of staff which stood at 8,500 (a staff-aircraft ratio of 500:1) at that time, though 1000 jobs were cut late 1986 (Flight International, 1986). Unprofitable routes were also either to be reduced or discontinued (Flight International, 1987). In 1988 flights to Cotonou, Dakar, Douala, Kinshasa, Monrovia and Nairobi were discontinued as part of the measures though flights were resumed a year later to some of the destinations.
In 1997 the UK Civil Aviation Authority had banned the airline from operating within its territory citing safety concerns; the Nigerian government replied by banning British Airways operations (Flight International, 1998).
By April 2000 the staff strength was 4,516, accompanied by a depletion of fleet which served a route network that included Abuja, Calabar, Douala, Dubai, Jeddah, Jos, Kaduna, /Kano, Kinshasa, Libreville, London, Maiduguri, Malabo, Port Harcourt, Sokoto and Yola (Wikipedia, 2014a). The airline witnessed mass exodus of its experts –pilots, professional crewmen and engineers (Aero Control Ltd., 2000); and was accounting for as little as three per cent of total air travel across Nigeria in 2000 (CBN, 2001).
The same year, the International Finance Corporation (IFC) was commissioned by the Nigerian Government to assist in the process of restructuring and privatization of the airline (Tumba, 2000). They were left with the option of either making the airline partner with a large European airline – Air France, Lufthansa and Swissair or liquidate the carrier given that a fleet comprising about 26 aircraft in 1984 were gradually depleted to a three-strong at that time.
In 2001 the UK cited safety concerns again when it refused to allow Nigeria Airways to operate the Lagos-London route due to the Boeing 747 that was leased from Air Djibouti to fly the route (People’s Daily, August 11). The IFC withdrew from its advisory position in 2001 stating the unwillingness of both the company and the government to carry out the necessary measures that would make the airline attractive to potential investors. There were also various allegations that the airline’s failure was accelerated by former Nigerian rulers who looted and mismanaged the company (BBC News, 2002).
In 2002, President Olusegun Obasanjo irritated by the performance of the national carrier now left with only two functional airplanes from a fleet of about 26 airworthy aircrafts in the early 1980s, ordered an investigation into the management of the organization. An excerpt of the Justice Nwazota led commission of inquiry as reported in the investigation of Ibekwe (2013a & 2013b) stated that the four-volume report submitted by the commission revealed mind-boggling fraud, misappropriations and wanton recklessness running into billions of naira involving several officials of the airline, administrators, travel agencies, financial institutions local and foreign companies, as well as a prominent development organization.
The Federal Executive Council (FEC), the country’s highest decision making body, met and approved a draft White Paper on the commission’s report and directed the Ministry of Justice and the police to prosecute and recover the stolen funds. It also directed the office of Secretary to the government to gazette the recommendations of the White Paper (Ibekwe, 2013a). Those indicted by the commission of enquiry could not be compelled to account for the loot. Government forced the airline to voluntarily liquidate (Interview with Mr. Enah in Oghojafor & Alaneme, 2014). The carrier ceased operations in 2004.
1.4.Conclusion
In the discourse above, it is evident that the defunct Nigerian Airways held huge prospects for the development of the Nigeria’s transport sector particularly air transport. This has been attested to by the initial successes recorded by the airline. However, these successes was outlived by the failure that followed eventually culminating in its liquidation in 2003. One critical factor evident in the many factors responsible for the failure and extinction of the Nigeria Airways was management factor. As is common with the Nigerian public services, the lacklustre attitude of public servants in the management of public enterprise, (seemed to have been reinforced by the unfortunate philosophy of ‘when government owns, nobody owns and so when nobody owns, nobody cares’) remains a huge threat to the effectiveness and efficiency of those enterprises.
Effective management remains a fundamental factor in the success of an enterprise. As Nwachukwu( 2006) argued, of the many factors that are necessary for economic take-off, none is to be stressed more often than management. Unfortunately, in the Nigeria’s public service, most organizations do not operate in an efficient and smooth manner since government has never faired well as a good business manager leading to the failure of many public enterprises in the past. Some of these organizations include the Nigeria Airways, NEPA, NITEL etc.
It is therefore imperative for the government to correct this anomaly by continuing to partner with the private sector. The Public-Private Partnership initiative of the government is a step in the right direction and should be sustained. More so, the current effort of the present administration to revitalize, re-launch and re-establish a new national airline under a new nomenclature “The NigerianAir” under the public-private sector arrangement, with the private sector holding the largest share, is commendable as it has brightened the future of air transport development in Nigeria.
It is thus hoped that, in the event that the new national carrier eventually takes off, the pitfalls that characterized the defunct Nigeria Airways leading to its eventual liquidation will be avoided by the government and the management of the NigerianAir.
In the discourse above, it is evident that the defunct Nigerian Airways held huge prospects for the development of the Nigeria’s transport sector particularly air transport. This has been attested to by the initial successes recorded by the airline. However, these successes was outlived by the failure that followed eventually culminating in its liquidation in 2003. One critical factor evident in the many factors responsible for the failure and extinction of the Nigeria Airways was management factor. As is common with the Nigerian public services, the lacklustre attitude of public servants in the management of public enterprise, (seemed to have been reinforced by the unfortunate philosophy of ‘when government owns, nobody owns and so when nobody owns, nobody cares’) remains a huge threat to the effectiveness and efficiency of those enterprises.
Effective management remains a fundamental factor in the success of an enterprise. As Nwachukwu( 2006) argued, of the many factors that are necessary for economic take-off, none is to be stressed more often than management. Unfortunately, in the Nigeria’s public service, most organizations do not operate in an efficient and smooth manner since government has never faired well as a good business manager leading to the failure of many public enterprises in the past. Some of these organizations include the Nigeria Airways, NEPA, NITEL etc.
It is therefore imperative for the government to correct this anomaly by continuing to partner with the private sector. The Public-Private Partnership initiative of the government is a step in the right direction and should be sustained. More so, the current effort of the present administration to revitalize, re-launch and re-establish a new national airline under a new nomenclature “The NigerianAir” under the public-private sector arrangement, with the private sector holding the largest share, is commendable as it has brightened the future of air transport development in Nigeria.
It is thus hoped that, in the event that the new national carrier eventually takes off, the pitfalls that characterized the defunct Nigeria Airways leading to its eventual liquidation will be avoided by the government and the management of the NigerianAir.
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