Good business plan, antidote for Nigerian airlines’ total collapse

AS Nigeria’s airlines prepare to resume partial operations on June 21, 2020 after almost three months of suspension of flights due to the outbreak of Coronavirus pandemic, many thoughts must definitely be running through the minds of the operators.

Such thoughts must definitely include: how to operate under the new safety measures put in place by the federal government, how to include the measures that are hitherto strange to passengers’ boarding on flights, sitting arrangements amongst others.

As expected, all the airline operators will need to have a rethink on the type of aircraft that is suitable for the domestic operations they are only allowed to begin with into five of the airports across the country.

Again, the airlines will not just want to resume operations for the fun of it, therefore, under the tough measures they are asked to recommence flights, the operators must obviously be putting on their thinking caps now on how to restore confidence to the flying public and still make little profit after all.

By now, most of the domestic operators must have realised that airline business is no longer business as usual. In other words, the business is no more for money bags but for those who really understand the intricacies of airline business.

Without doubt, any airline that wants to remain in good business after coronavirus pandemic will have to pay more attention to their business plans which prior to now had been said to lack the critical components that should position many of the airlines for profitability.

Top of such poor business plans include: the use of wrong equipment on wrong routes, diversion of airline funds to other areas and in some cases poor ownership structures which have greatly contributed to the abysmal performances and short life span of the airlines.

While all the previous calls to the domestic airlines to review their business plans had fallen on deaf ears, any of them that still want to continue in this line despite the effect of COVID-19 is surely on its way to self extinction in view of the tough times awaiting airline business due to the disaster wrought on global airline business by the pandemic.

As the resumption of flight activities bounce back in ten days’ time, more key players have started drawing the attention of the airline operators to the urgent need to revisit their business plans.

Joining in reminding the operators of the importance of a good business plan was  the Chairman of the African Business Aviation Association (AfBAA) cum President & Chief Executive Officer of African Aviation Services, Mr. Nick Fadugba who has recommended that the Nigerian airlines needed to revise their present business plans.

According to the international airline financing consultant, “the airlines should this time around focus on unit cost, load factor and yield citing the example of Ethiopian Airlines ‘Vision 2025 Strategies Road Map.”

Other priority areas Fadugba wanted the operators to look into include: the need to “raise more equity and working capital to strengthen their balance sheets; abide by aircraft finance and lease obligations or re-negotiate, rather than default, and seek professional advice on aircraft acquisitions.”

Fadugba, reminded the operators the importance of co-operation in key areas such as joint training, aircraft Maintenance, Repairs and Overhaul (MRO), spares pooling, joint operations, interlining, code-sharing, and win-win partnerships.

Before the outbreak of COVID-19, many key players had expressed their discomfort with the watery business plans of many of the domestic airline operators which contradicted the business mode plans adopted by airlines across the world which have been found to be responsible for their successes.

Not going too far, the case of a fellow African carrier, Ethiopian Airlines is a success story which has been made possible by the good business plans put on ground by its management. The success the airline had recorded has continued to make it the number one on the continent.

The survival and success of any Nigerian carrier after the COVID-19 pandemic shall definitely depend on its willingness to heed this clarion call of putting together a good business plan which is working for the profitable airlines like Ethiopian, Emirates, British Airways, Delta amongst others.



Buy and read digital replicas of your TRIBUNE titles by subscribing through E-VENDING

Nigeria’s COVID-19 Cases Hit 13,464 After 663 New Infections
The Nigeria Centre for Disease Control (NCDC) has confirmed 663 new cases of COVID-19 in the country, bringing the total number to 13,464… Read full story

Olu Jacobs Is Alive, Says Lala Akindoju
As anxiety over the rumoured death of veteran actor, Olu Jacobs, heightened in the last two hours, popular actress and a close member of the family, Lala Akindoju, has debunked the death rumour. Rumours of the demise of Jacobs were rife on social media platforms but Akindoju said the news should be disregarded as Jacobs was doing fine… Read full story

Edo 2020: APC Inaugurates Screening Committee
The All Progressives Congress (APC) National Working Committee, on Tuesday, inaugurated screening and appeal Committees ahead of June 22 governorship primary in Edo State. Professor Jonathan Ayuba will serve as Chairman of the Screening Committee, while Professor Abubakar Fari will lead the Appeals committee… Read full story

Senate To Investigate BPE Over Non-Performance Of Paper Mills
Senate Committee on Privatisation has been mandated by the Senate to investigate operations and non-performance of paper mills sold by Bureau of Public Enterprise (BPE) to private owners… Read full story

Reps Halt Sale Of NECO Buildings, TSB, International Trade Fair
The House of Representatives, on Tuesday, directed the supervisory Boards of Tafawa Balewa Square (TBS), International Trade Fair Complex, as well as management of National Examination Council (NECO) to halt the sale and concession of all properties within and outside the country, pending the conclusion of the… Read full story

CEO Tonimas Oil And Gas, Anthony Enukeme Is Dead
The Chief executive officer of Tonimas Oil and Gas, Chief Anthony Obiagboso Enukeme is dead. Chief Enukeme, who is also APGA board of trustee member passed on at the early hours of Monday… Read full story

Court Declares Aguma Rivers APC Acting Chair
A Rivers State High Court sitting in Port Harcourt has declared Hon Igo Aguma, the Acting Chairman of the All Progressives Congress in the state. The court also compelled the party to allow all members of the party loyal to Sen Magnus Abe, who purchased from for the congresses of the party in 2018 to take part in the process… Read full story

COVID-19: Gombe Taskforce Raises Alarm Over Upsurge In Positive Cases, Cry For Lack Of Funds To Operate
In his periodic update on the COVID-19 pandemic situation in the state, Chairman of the Gombe State COVID-19 Taskforce, Professor Idris Mohammed, has raised an alarm of community spread of the infection… Read full story

EDITORIAL: Bandits On The Prowl
LAST week, Katsina State governor, Honourable Aminu Bello Masari, vowed that he would no longer negotiate with bandits in the state. His grouse was that they had reneged on an agreement reached with the state government. According to him, they promised to repent and leave the North-West, but “they did not… Read full story

You might also like

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. AcceptRead More