17/01/24
PRESS RELEASE
DANIELS OG
The CEO of Vivajets, Chukwuerika Achum, has called on operators in Nigeria’s aviation industry to rapidly expand their capacity to reduce the cost of air travel for passengers.
The aviation expert said this whilst speaking with CNBC Africa on How policy reforms can transform Nigeria’s aviation sector in 2024.
According to the International Air Transport Association, the aviation industry supports an estimated 63 billion dollars of economic value in Africa. In Nigeria, the industry provides over $1.7 billion, representing 0.4 per cent contribution GDP and provides over 241,000 jobs. However, compared to South Africa’s aviation sector’s 3.5 per cent contribution to GDP with a gross value of about $12 billion, the Nigerian aviation industry is yet to live up to its potential, considering the country’s large population and economic vibrancy.
In 2023, we had a rise in demand. We also had a few airlines that went down, which reduces the capacity of the industry to meet demands and led to skyrocketing prices. There were also a number of macroeconomic issues including rising inflation and the devaluation of the naira.
To rise to these challenges, Achum calls for rapid expansion of capacity by the airlines.
“on the consumer satisfaction side, we are a bit worried because of lack of expansion of capacity by local players. With limited capacity, we will continue to have high ticket pricing.”
The aviation expert also addressed the issue of safety, acknowledging that a number of structural reforms have been made.
“For instance, new entrants in the domestic airline market space need to have a minimum of six airplanes in order to pursue the AOC certification process. We have also seen reforms in terms of capitalization requirements as well as adjustment of service fees by the NCAA to reflect the new inflationary environment.”
Remarking on the industry’s outlook for 2024, Achum said the in 2023, the industry continues to experience a rebound from the setbacks occasioned by COVID-19.
“2023 was an astronomical year for aviation in terms of numbers. We are seeing numbers far above pre-pandemic levels. But we now have a huge inflationary pressure. Nevertheless, forecast shows we will go higher in 2024.”
Chukwuerika Achum, a former pilot, is the CEO of Vivajets, a business aviation firm offering multiple services including aircraft charter and management services, fractional ownership opportunities, and aircraft sales and acquisition. Vivajets is one of the brands under Falcon Aerospace Group, alongside digital platforms, CharterXE and FlyPJX.
CHUKWUERIKA ACHUM, C
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