BEVERLY HILLS, April 11, (THEWILL) – As the cost of overseas aircraft maintenance for Nigerian airlines becomes increasingly expensive, mainly due to the devaluation of the Naira, some indigenous investors have initiated plans to set up Maintenance, Repair and Overhaul (MRO) facilities locally.
Nigeria’s aviation industry has suffered some setbacks arising from the absence of proper MRO facilities — a crucial infrastructure for achieving cost-intensity balance in the business. Aviation experts estimate that domestic airlines could save $1 billion (about N480 billion) annually if there are standard aircraft maintenance facilities to meet local demand.
It becomes even more difficult since there are only a few MROs in the whole of Africa. For instance, there are just two in Northern Africa, two in Eastern Africa and one in Southern Africa. The implication is that most Nigerian airlines had to take aircraft to other parts of Africa and beyond the shores of the continent for maintenance at great cost.
In addition to the cost implications, the experts also identify high cost of maintenance overseas as the major reason why Nigerian airlines go under after a short period of operation, which is now put at just 10 years. Recently, and even before COVID-19 outbreak, most Nigerian airlines have been operating with low capacity, occasioned by depleting fleet size.
THEWILL gathered that the shrinking of fleet among the airlines is because many aircraft have been ferried out for maintenance checks, most of which are done outside the country. Many a time, the aircraft are delayed overseas beyond their expected period of return to Nigeria, mainly due to the high cost incurred in the exercise. The amount, according to industry experts, is huge considering the low contribution of the aviation sector to Nigeria’s Gross Domestic Product (GDP). Records have shown that about $1 billion was spent in 2019 on maintenance alone and $1.3 billion on training and insurance, putting the operators under financial pressure.
However, at the global stage, growing aircraft fleets have propelled the commercial airline MRO sector into steady growth for the next decade.
Pre-COVID-19 estimates by industry analyst Oliver Wyman had estimated the MRO market for 2020 at USD $91.2 billion. Current MRO market for 2020 is $50.3 billion. It is expected however, that post-COVID-19 may record a brighter outlook.
To bridge the gap in aircraft maintenance in the country, the authorities and private sector investors are working out ways to see how MRO in the country could help save huge costs expended by the domestic airlines. As part of the collaboration, the Nigerian Civil Aviation Authority (NCAA) had already given Aero Contractors Airlines the nod to operate an MRO with capacity for aircraft C-checks and other comprehensive levels of maintenance.
The MRO facility which is now operating at the Murtala Mohammed Airport (MMA) office of the carrier, would save the country an estimated $90m annually.
Similarly, Leadstream Aviation Training Organization has been given the approval by NCAA to carry out type rating system courses (initial and refresher) on the Boeing 737 series, CRJ series, Challenger aircraft and Embraer, Hawker 125 series, ATR, Donier and DHCB.
The approval and certification confirm Leadstream’s capabilities to conduct training for engineers and technicians in almost all the types of aircraft flown in the country.
Speaking on the acquisition of the certificate, the Executive Director, Roland Ahmed Maikudi, expressed delight and commended the management of NCAA for doing a diligent job and promised to uphold high standards in line with global operational practices.
He noted that the journey so far has been both challenging and interesting, adding that the effort has been rewarding.
“The next line of action is to continue to do more, improve on what we have, seek for additional approvals until we get to the point that no engineer on technician would have a reason to travel out for training.”
Ahmed explained that the organisation will expand into pilot training (flight training), where they will be expected to take delivery of its B737CL full flight simulator.
Also, Onedot Aviation had in 2014 seen the gap in the maintenance sub-sector of the Aviation industry in Nigeria and took a giant step to cover this gap by establishing an Aircraft Maintenance Organization (AMO) in Lagos.
Since inception, six years ago, Onedot Aviation has taken a giant leap in developing the Nigerian Aviation industry by ranking the first MRO in Nigeria with capability to perform heavy checks on the B737 series thereby saving capital flights that occur by ferrying over 350 aircraft overseas for heavy checks.
Similarly, a new entrant into the nation’s aviation industry, Santos Aviation Limited. is set to create employment for Nigerian youth and reduce the incidence of capital flight that occur in overseas aircraft maintenance.
Chief Executive Officer, 7-Stars Global Hangar, Engr Isaac David Balami, said Santos aviation, an outfit specialised in aircraft interior furnishing, will solve the problem of Nigerian aircraft owners who go abroad to have their aircraft interiors refurbished.
According to Balami, the initiative will save huge money for the airlines as over $100,000 dollars will be saved annually by local airlines when carrying out interior refurbishing locally. He added that 7-Stars global will work together with Santos Aviation to give airlines value for their money with quality sourced materials overseas.
“It is a huge relief; it is going to create jobs, increase safety and boost the comfort of our passengers”, Balami noted. He also expressed optimism that 7-Stars Global Hangar working together with Santos Aviation will enjoy the patronage of other African countries.
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