The 2015 Domestic Aviation Industry - Phillips Consultingphillipsconsulting.net/images/files/phillips_aviation_survey... · Airline staff assessments: For the most part, ... The 2015

September, 2015 The 2015 Domestic Aviation Industry Customer Satisfaction Survey Report

The 2015 Domestic Aviation Industry

September 2015

Customer Satisfaction Survey Report


FOREWORD

There is a growing focus on the Nigerian aviation industry, following recent pronouncements by the government of its desire to introduce a new national carrier. This announcement may have spilt public opinion, but there can be no doubt that the decision has been driven by the desire to make Nigeria a more competitive player in the global aviation landscape.

In terms of industry growth, passenger traffic for inbound and outbound destinations peaked at over 15 million in 2014, surpassing the 2013 record by 5%. Furthermore, domestic traffic accounted for 69–77% of total air passenger traffic between 2011 and 2014. This growth puts pressure on the key industry players, due to a surge in the demand for their services. In addition to competition between airlines, there are challenges surrounding satisfying ever more discerning customers.

Add to this, the regrettably high number of accidents involving domestic carriers over the last decade, and the need to assess customer perception on the state of the industry has become even more compelling.

Our inaugural domestic aviation survey report explores the state of the industry, with a view to identifying the gaps in the provision of adequate services to customers.

The major findings include:

The primary drivers of consumer choice of airlines are, in order: Price, Safety and Quality of Service

Passengers are often willing to forgive sub-standard customer service if they can get a good bargain

Although low-cost tickets are the primary focus for passengers, many are prepared to pay more to fly with airlines that have good safety records

Airport facilities are generally inadequate, with many passengers complaining about a lack of flight information screens, Internet facilities and electrical outlets.

Please visit http://www.phillipsconsulting.net/survey-report to access this and all our other survey reports.

Bayo Adesanya Associate Partner

Business Advisory Services

2


Introduction 4

Summary of Survey Findings 5

Overview of the Aviation Industry 7

• Global Overview 7

• History of Nigerian Aviation 9

• Key Players 10

• Contribution to the Local Economy 17

• Challenges 18

• Proposed Solutions 19

Objectives of the Study 21

Survey Methodology 22

Survey Findings 24

• Part 1: General Trends 24

• Part 2: Airline Experience 28

• Part 3: Airport Experience 44

• Part 4: General Comments 62

Conclusion 65

Survey Demographics 69

List of Figures and Tables 71

TABLE OF CONTENTS

3


4

INTRODUCTION

The Nigerian domestic aviation industry has experienced growth in recent years, with regards to passenger traffic and number of industry players. However, in keeping with global trends, several challenges, such as safety concerns, high costs of aviation fuel, and high operation costs have had negative effects on the sector. This has consequently had an impact on the ability of service providers (airlines, airports and other essential services) to meet the needs of customers. A survey was carried out between May and August 2015, to gain a better understanding of the perceptions, expectations and experiences of domestic air travellers. A total of 5,712 responses were obtained. The results of the survey are presented in this report.


5

SUMMARY OF SURVEY FINDINGS

General Trends

Frequency of air travel: Most respondents (69%) have travelled domestically within the last year; of these, 58% have done so between 1 and 5 times.

Travel booking preferences: For the majority (76%), the general preference is for booking online via the website of the airline. However, challenges frequently experienced in doing so include unstable Internet connections (35%), inconsistent ticket pricing (27%) and online payment difficulties.

Class of travel: The vast majority of respondents (94%) fly Economy class, while the remainder are Business class travellers.

Check-in method: The airport counter emerged as the main check-in route for 81% of respondents, while the minority (19%) prefer to check in online.

Airline Experience

Preferred airlines: Aero Contractors (39%) and Arik Air (34%) were revealed as the preferred airlines, accounting for 73% of total airline preferences. These airlines are preferred mainly for their affordable pricing and high safety standards, respectively.

Least preferred airlines: Surprisingly, Arik Air (31%), Dana Air (23%) and Aero Contractors (20%) were also selected as the least preferred airlines, accounting for 74% of total selections. The reasons cited include the airlines’ high pricing, poor safety standards, and high rate of flight delays and cancellatons, respectively.

Drivers of preferences/criticism: Affordable pricing (23%), high safety standards (22%) and good quality of service (21%) emerged as the three most important factors that determine the choice of airlines for the majority of respondents. On the other hand, a high rate of flight delays and cancellations (21%), poor quality of service (20%) and low safety standards (17%) were revealed as the major reasons why many customers avoid certain airlines.


6

Travel experiences: Virtually all respondents (90%) have experienced an extended flight delay or cancelled flight, with 36% regarding it as a regular occurrence. Many (58%) have also experienced prolonged delays in retrieving their luggage on arrival at their destinations. On a positive note, 70% have never had their checked-in luggage misplaced by airline staff or baggage handlers during travel.

Airline staff assessments: For the most part, respondents were satisfied with the staff of their preferred airlines, based on their general appearance, attitude/conduct, quality of service and speed of service delivery. Respondents who prefer to fly with Dana expressed the highest levels of satisfaction.

In-flight amenities: Respondents were generally satisfied with the in-flight services, although many (22%) complained about the meals served during flights. Respondents who chose First Nation as their preferred airline were the most satisfied.

Airport Experience

Most frequented airports: Terminal 2 of Murtala Muhammed International Airport (MMA2), Lagos (42%), Nnamdi Azikiwe International Airport, Abuja (21%), General Aviation Terminal (GAT) of Murtala Muhammed International Airport, Lagos (14%) and Port Harcourt International Airport (10%) were the most frequented airports of departure for a combined 87% of respondents.

Accessibility: Most respondents were satisfied with the ease of access to, from and within airports. However, 31% were dissatisfied with the availability and costs of using luggage trolleys.

Check-in: Most respondents were satisfied with the efficiency of check-in staff (75%), although some (35%) criticised the waiting periods at the check-in counters.

Safety and Security: Although many expressed satisfaction with most of the security features, several (35%) indicated that their interactions with security personnel are often negative. 31% also rated the emergency response at airports poorly.

Navigation: The unavailability and/or ineffectiveness of flight information screens and escalators at airports are major areas for improvement, according to 45% and 38% of respondents, respectively. However, most (77%) experience no difficulties in finding their way around airports.

Facilities: According to respondents, airport facilities are in need of improvement. This is especially true for Internet facilities, electrical outlets and entertainment in waiting areas.


7

OVERVIEW OF THE AVIATION INDUSTRY Global Overview Aviation plays a vital role in facilitating economic growth, and offers numerous economic and social benefits. It provides the only rapid worldwide transportation network, effectively supporting global business and tourism1. It offers countries, especially developing ones, the opportunity to facilitate trade and enable linkages in the global supply chain.

1 ATAG, “The economic and social benefits of air transport”, 2005


8

The global aviation industry currently supports over 58 million jobs, and contributes US$2.4 trillion to the global economy2. With over 26,000 aircraft transporting a record 3.3 billion passengers (up by 170 million in 2013)3, a total profit of US$16.4 billion (up from $10.6 billion in 2013 and a fifth consecutive year of profitability), 2014 was clearly a strong year for the aviation industry. These growth statistics have mainly been attributed to improving economic conditions worldwide.

Everyday, there are…

8.6 million passengers4

99,700 flights4

US$17.5 billion worth of goods carried4

33.2%

26.3%

25.3%

7.7%

5.2% 2.3%

Distribution of 3.3bn global air passengers in 2014

Asia Pacific

Europe

North America

Latin America

Middle East

Africa

Figure 1 – Regional distribution of passenger traffic in 2014 Data derived from IATA – “Traffic capacity growth with international markets”

2 IATA Annual Review 2015

3 IATA Press Release No.: 5, Strong Demand for Air Travel Rises in 2014, Feb 2015 4 ATAG – Aviation: “Benefits beyond borders”, 2014

1,397 number of global

airlines4


airports4


aircraft4


9

5 Michael M. Ogbeidi, The Aviation Industry in Nigeria: A Historical Overview, 2006. 6 Federal Airports Authority of Nigeria: History. http://www.faannigeria.org/index.php/about-faan/history 7 Suleiman Iguda Ladan: An Analysis of Air Transportation in Nigeria: http://goo.gl/1MT1uA

A Nigeria Airways airplane on the runway

The origins of the Nigerian aviation industry can be traced back to 1920, when a Royal Air Force aircraft landed on a polo field (serving as a military air base) in Maiduguri5. By 1930, civil and military aircraft were transporting passengers across various destinations in Nigeria, such as Lagos, Kano and Sokoto.

In 1946, Nigeria and the Gold Coast (now Ghana) arranged a meeting to discuss an effective means of combating transportation problems within and outside Africa, and to form a joint company that would handle air transport, thereby replacing the Royal Air Force. As an outcome of this meeting, the West Africa Airways Corporation (WAAC) was established, responsible for handling and regulating flights within West Africa. WAAC took over major air routes operated by the Royal Air until 1956, when Ghana pulled out of the union due to its independence6.

HISTORY OF AVIATION IN NIGERIA

In May 1961, the Nigerian government acquired WAAC and renamed it Nigeria Airways. As the national carrier, Nigeria Airways carried out major flight operations locally and internationally, servicing destinations such as London and New York. In 1979, as a result of mismanagement of the airline, KLM (the official Dutch carrier) began managing the affairs of the national carrier, with a mandate to establish an appropriate system for operational procedures. However, this arrangement was met with mixed results. Although the airline was operating efficiently and effectively (with thousands of well-trained employees, fleet comprising of over 30 aircraft and a strong brand), its debt also increased significantly7.

http://www.faannigeria.org/index.php/about-faan/history



http://goo.gl/1MT1uA


Between the late 80s and early 90s, it became clear that there was an urgent need for deregulation in the industry. As Nigeria’s middle class grew gradually, the demand for air transport increased. However, the national carrier was unable to satisfy this demand, such that flight cancellations, prolonged flight delays and difficulties for passengers to secure seats became the norm. This was mainly attributed to mismanagement of the airline’s funds and the airline operating as a government parastatal, rather than as a business entity.

Once the government adopted the deregulation policy, a number of small, private airlines were established, with as many as 25 licenses for non-scheduled operations being issued. By 1995, the number of registered air carriers increased to 144. Though deregulation was a positive action by the government, it created a number of challenges. The numerous airlines were unable to meet the financial demands of maintaining their aircraft, and most performed below established safety standards. Consequently, most of these airlines were dissolved.

In recent times, the Federal Government has set a primary objective to ensure and maintain high safety standards in the industry. Airlines such as Aero Contractors, Arik Air and Med-View Airlines now operate both domestic and international flights. A number of airports have also been renovated, in order to improve the passenger experience.

10

KEY PLAYERS

The key industry players are:

I. Regulators

II. Airport Management

III. Airline Carriers/Operators

IV. Essential Service Providers

V. Air Travellers


I. Regulators In the aviation industry, regulatory bodies play a pivotal role not only in the development of the sector, but also to ensure standards and procedures are strictly adhered to. These standards and procedures range from air safety to the service quality of airports, airline operators and essential service providers, which are assessed both by professional bodies and regulators. Some of their roles and functions include: the creation of an enabling environment to encourage dynamic growth; enhancement of safety oversight through improved safety regulation; improved airport and aviation security management; manpower and infrastructural development; amongst several others.

The Nigerian aviation sector is regulated by the following bodies:

11

8 International Civil Authority Organisation: About ICAO. http://www.icao.int/about-icao/Pages/default.aspx . 9 International Air Travel Authority. IATA Annual Review 2015.

Table 1 – Regulators in the Nigerian aviation industry

As a ministry of the Federal Government of Nigeria, it is responsible for the regulation of air travel and aviation services.

It is responsible for overseeing air transportation, airport development, maintenance and provision of aviation infrastructural services, etc.

The NCAA is a regulatory body responsible for aviation safety in Nigeria.

The body oversees airports, airspace and meteorological services in the industry.

ICAO is a specialised agency of the United Nations, entrusted with developing international Standards and Recommended Practices (SARPs) which are included in the national civil aviation regulations of member states8.

IATA is the trade association for the world’s airlines. It currently represents about 250 major global airlines in

117 countries and controls 84% of total air traffic. It is responsible for improving member satisfaction through

benefits such as reduced taxes, charges and fuel fees9.

Federal Ministry of Aviation

Nigerian Civil Aviation Authority (NCAA)

International Civil Authority Organisation (ICAO)

International Air Travel Authority (IATA)

Regulator Description

1

2

3

4

No

http://www.icao.int/about-icao/Pages/default.aspx


II. Airport Management The supervision of airport operations is a crucial task for airport managers, and serves as the backbone for all other airport functions. The key players involved in airport management include:

12

10 Federal Airports Authority of Nigeria: What We Do. http://www.faannigeria.org/index.php/about-faan/what-we-do 11 Nigerian Airspace Management Agency: Corporate Profile. https://www.nama.gov.ng/load.php?pg=corporateprofile 12 Bi-Courtney Group Aviation Services Limited. About Us http://www.bicourtney.com/bc/index.php/menu-types/34-bi-courtney-group

Table 2 - Industry players in airport management

This body is responsible for the management of all commercial airports in Nigeria through the provision of services to passengers and airlines.

It is a parastatal of the government, under the supervision of the Federal Ministry of Aviation.

FAAN generates revenue for operations through aeronautical and non-aeronautical sources such as landing fees, parking fees, rents, concession fees and utilities fees.

One of its main functions is to develop, provide and maintain airports, necessary services and facilities for safe, orderly, expeditious and economic operation of air transport10.

Federal Airports Authority of Nigeria (FAAN)

Organisation Description

1

No

This organisation was created by the Federal Government to develop the Nigerian airspace to a level that meets international standards and requirements.

The agency is entrusted to comply with the requirements of ICAO’s SARPs.

Some of its other functions include11: to provide air traffic services i.e. air traffic control, visual and non-visual aids, aeronautical telecommunication services and electricity supplies; amongst others.

NIMET is a Federal Government agency, responsible for advising the government of all aspects of meteorology.

Its other major function is to issue weather forecasts to ensure safety in the operations of aircraft and ocean vessels.

In developed countries such as the United States of America, the United Kingdom and Australia, it is common for private companies to manage fully functional airports.

In Nigeria, Bi-Courtney Aviation Services Limited solely manages Terminal 2 of the Domestic Wing at Murtala Muhammed International Airport in Lagos. The company collaborated with the Federal Government in a Private Public Partnership (PPP) arrangement to build a modern and functional airport, with daily scheduled local flights 12.

Nigerian Airspace Management Agency (NAMA)

Nigerian Meteorological Agency (NIMET)

Private companies/ bodies

2

3

4

http://www.faannigeria.org/index.php/about-faan/what-we-do







https://www.nama.gov.ng/load.php?pg=corporateprofile

http://www.bicourtney.com/bc/index.php/menu-types/34-bi-courtney-group










III. Airline Carriers/Operators Airline carriers are issued the Air Operator Certificate (AOC) by the Civil Aviation Authority of the host country to carry out the transportation of passengers and cargo. The domestic airline carriers in Nigeria include:

13

No. Airline Domestic International Description

1 Aero Contractors Founded in 1959, Aero Contractors is the oldest Nigerian domestic airline, and operates both domestic and regional flights.

2 Air Peace

Air Peace is an indigenous airline that began operations in 2014, from Abuja, Lagos, Port Harcourt and Owerri, amongst other destinations.

3 Arik Air Arik Air was founded in 2002, and services domestic, regional (e.g. Accra) and international (e.g. New York) destinations.

4 Azman Air Based in the Kano airport, this airline was founded in 2010, and commenced flight operations in May, 2014.

5 Dana Air

Based in Lagos, Dana Air was founded in 2008. Following a fatal air crash in 2012, its license was revoked by the NCAA, but was cleared to resume operations in 2014.

6 Discovery Air

The airline began operations in 2014 with flights to major cities such as Lagos, Abuja and Owerri. Following a suspension by the NCAA in early 2015 and a subsequent lifting of the suspension, the airline is yet to resume operations.

7 First Nation Airways With its headquarters in Lagos, First Nation Airways was founded in 2011 by the former CEO of Bellview Airlines.

8 Med-View Airlines Established in 2007, Med-View services domestic (e.g. Lagos, Port Harcourt, Enugu) and regional (Accra) destinations.

9 Overland Airways

Set up in 1998, the airline commenced regular flights in 2003, covering major domestic destinations such as Lagos, Abuja, Calabar, Bauchi and Ibadan.

Table 3 – List of domestic airline operators

International airlines include British Airways, Emirates Airline, Virgin Atlantic and numerous others.


IV. Essential Service Providers Essential Service Providers engage in support activities/services in airports that involve station management and administration, passenger and airline services and ground handling services. These activities include:

14

Table 4 – Essential service providers in the aviation industry

No. Service Activities

1 Station Management and Administration

Flight operations assistance Irregularity operations support Liaising with various port authorities Load control Station control Station representation and supervision Weather briefing

2 Passenger and Airline Services

Airport ticketing sales desk Arrival and transfer services Check-in services Gate services Lost and found services Lounge services Special passenger and VIP services Catering services Security services Duty-free services Retail (shops, supermarkets, etc.) Financial services

3 Ground Handling Service and other support services

Aircraft loading/unloading Baggage sorting and transportation Cabin cleaning Crew transport De-icing/anti-icing Ground power unit (GPE), push-back Unit load device control Toilet and water services Fuelling Ramp handling

4 Engineering, Design and Maintenance Services

Aircraft construction Aircraft inspection Aircraft repair/servicing Aircraft modification


V. Air Travellers Air travellers are passengers who travel for business or leisure purposes, and are the final link in the aviation value chain. The principal objective of the other players within the aviation value chain is to ensure a smooth airport experience for these passengers. Passenger Traffic

15

In Nigeria, domestic passenger traffic has increased remarkably over the past decade. This has been achieved through the increase in the number of airline operators, increasing flight frequencies and the (re)construction of airports in various states, hence enabling flight route connectivity. According to the National Bureau of Statistics (NBS) the Lagos domestic airport has experienced the largest amount of passenger traffic, with an average of 4 million passengers annually between 2010 and 2013 (Figure 2). As the second busiest airport, the Abuja airport followed a similar trend, with annual passenger traffic of 3.5 million within the same period. The Port Harcourt airport handled more than a million travellers in 2013. The airport initially suffered setbacks due to the reconstruction of its terminals, making nearby airports such as Owerri and Enugu airports popular amongst travellers. Since the rehabilitation of the this airport, the Owerri airport has experienced a decline in passenger traffic by 44%, between 2010 and 2013. Other airports such as Kano, Benin, Osubi and Enugu experience similar levels of passenger traffic at an average of 300,000 passengers every year.

Figure 2: Domestic passenger traffic in Nigeria between 2010 and 2013 at major domestic airports. Data derived from National Bureau of Statistics

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

PORT HACOURT

LAGOS (MM

DOM)

ABUJA BENIN OSUBI OWERRI ENUGU MAIDUGURI KANO YOLA

2011

2013

2010

2012


In comparison to the other international airports, the Murtala Mohammed International Airport in Lagos remains the busiest airport, with passenger traffic increasing by more than 40% between 2010 and 2013 (Figure 3). This rise can be attributed to increased flight routes and the emergence of new airline operators. The Abuja International airport has also experienced an increase in passenger traffic by about 48%, ranking in second place after Lagos. Other airports such as Kano and Port Harcourt have lower passenger traffic, although these have also experienced significant increases in passenger traffic. In the Port Harcourt airport, passenger traffic grew from 13,148 to an astounding 125,577 between 2010 and 2013 (i.e. 855% total growth). International airlines such as Lufthansa and Air France have heavily contributed to this increase, by operating daily flights from Port Harcourt to various destinations (through connecting flights). However, although international passenger traffic has experienced growth over the years, the number of travellers at international airports remains considerably fewer than at domestic airports (Figure 4).

16

Figure 4: Domestic vs. International passenger traffic 2010 - 2014. Data derived from National Bureau of Statistics.

Figure 3: International passenger traffic in Nigeria from 2010 - 2013 at international airports. Data derived from National Bureau of Statistics.

13,148

561,440

2,409,087

146,845 90,345175,881

591,285

2,619,190

114,619155,183

774,733

3,232,462

125,377119,782

829,263

3,383,338

P.H. INT KANO INT MMIA INT ABUJA INT

2011

2012

2010

2013

4,440,930

10,753,725 11,303,216

4,567,240

14,889,958 15,349,234

10,681,402 10,074,528

4,667,832

9,675,860

2014 2010

3,586,742

14,641,768

3,227,952

2011 2013

13,981,677 14,116,790

2012

Domestic

International


Contribution to the Local Economy The aviation industry supports 254,500 jobs in Nigeria and contributes US$940 million (N184.7 billion) to national GDP13. Of this sum, 49% (i.e. US$462 million or N90.8 billion) is a direct output of the aviation sector (via airports, airlines and ground services), while the remainder is acquired indirectly (via the supply chain). An additional US$464 million (N91.2 billion) is derived from tourism, which raises the overall contribution to US$1.4 billion (N275.9 billion). In 2010, aviation contributed about 0.4% to overall GDP in Nigeria14. This is low in comparison to developed countries such as Spain, the UAE and Canada, and even other African countries such as South Africa and Kenya (Figure 5).

17

Figure 5: Comparison of the contribution of the aviation industry to the GDP of different countries. Source: PCL research

13 ATAG – Aviation Benefits Beyond Borders, 2014 14 Oxford Economics: Economic Benefits from Air Transport in Nigeria, 2012

254,500 number of jobs

supported by the aviation industry in

Nigeria

N185bn contribution to the Nigerian economy

3 number of

Nigerian airlines that operate

international/ regional flights

26 number of

domestic and international

airports (excluding airstrips)

10.7m number of domestic

passengers in 2014

0.4

1.1

2.1

2.6

2.8

3.5

5.0

5.2

Nigeria

Kenya

South Africa

Germany

Canada

UAE

United Kingdom

Spain

Contribution of Aviation to GDP (%)

4.7m number of

international passengers in 2014

Note The current CBN rate of US$1 to N196.5 was used for all currency conversions.


18

No. Challenge Description

1 High cost of operations

The cost of aviation fuel is the highest expenditure item for airline carriers. In 2008, based on a sample of 45 major global airlines, fuel represented 32.3% of the total operating costs15.

Nigerian airline carriers spend on average 40% of their expenditure on fuel, whereas global counterparts spend about 29% on average. In Africa, aviation fuel is about 20% more expensive, when compared with other continents16.

The high tariff costs for imported airline (e.g. aircraft spare parts) and airport (e.g. ramps, conveyor belts, x-rays, etc.) equipment are burdensome, especially for handling companies.

2 Safety and security issues

There have been a few too many plane crashes, emergency landings and near collisions in the Nigerian industry over the last 10 years.

These incidents were mainly due to safety-related issues, including inadequate infrastructure, human error, and poor emergency response guidelines, procedures and capabilities to combat air disasters.

3 Lack of adequate funding

The risky nature of the aviation business is often a major obstacle in the acquisition of funding and financing by airlines. High insurance premiums are also borne by operators due to the perceived risks associated with flight operations locally.

4 Inadequate airport infrastructure

Many airports in Nigeria are in a state of disrepair.

Basic infrastructure such as adequate runway capacities and terminal facilities are often lacking at major airports in the country.

5 Lack of an enabling regulatory framework

The existence of growth-hindering policies and regulations, such as multiple taxation and poor consumer protection laws, have been major challenges to the sector.

6 Inadequate manpower development

IATA has identified the lack of effective training and proficiency in the African aviation industry as a major cause of aviation mishaps17.

NCAA has stated that most Nigerian airlines prefer employing foreign pilots, to the detriment of local pilots who are often also well qualified.

Challenges in the Aviation Industry

15 IATA Economic Briefing (Airline Fuel and Labour Cost Share), February 2010 16 International Air Travel Authority: Annual Review 2015. 17 Airports and Air Transport: The Sky’s the Limit.


19

No. Challenge Description

7 Domination by foreign airlines

According to a 2014 report18, 92% of the total international passenger traffic in Nigeria is dominated by foreign airlines. Of the over 2.5 million seats that all airlines offer to the Nigerian international travel market annually, 2.3 million are from foreign airlines, while only 0.2 million are from indigenous carriers.

18 The Punch, January 2014, “Nigerian airlines lose more ground to foreign counterparts” 19 Nigerian airlines lose more ground to foreign Counterparts” by Udeme Ekwere-The Punch Newspaper. http://www.punchng.com/business/financial-punch/nigeria-loses-92-international-flights-to-foreign-airlines/ 20 BusinessDay Newspapers “Employ Nigerian pilots or lose air operator’s certificates”, FG tells airlines. Feb 4, 2015.

Table 5 – Challenges in the Nigerian aviation industry

No. Solution Description

1 Creation of a stable and supportive operating environment

It is imperative for the Federal Government, in collaboration with the Ministry of Aviation, to promote regulation that would aid expansion in the aviation industry, as existing policies and guidelines have generally not favoured local players so far. For example, the bi-lateral and multi-lateral agreements have limited the growth of local players. In 2014, only 21 bilateral agreements were fully utilised out of a total of about 78 such agreements19.

The government should therefore ensure that incentives are made available to local players in the industry, to create a favourable operating environment.

In addition, financial institutions should be ready to support local airlines by making loan facilities available to them.

Government support in the form of tax waivers and cuts would be beneficial to the growing aviation industry.

The Nigerian Stock Exchange (NSE) could encourage and facilitate capital raising for airline carriers, to inject equity into the market and consequently alleviate the debt burden accrued by high interest charges.

2 Skills acquisition and capacity building

Establishing aviation training institutes will boost the quality and quantity of manpower, as there are currently only two training intuitions in the country.

The Federal Government established a Local Content policy to encourage Nigerian participation in the economy. This initiative also applies to to the aviation sector, where, as from July 2015, it is now mandatory for airlines to employ a certain number of Nigerian pilots20.

Proposed Solutions to Challenges

http://www.punchng.com/business/financial-punch/nigeria-loses-92-international-flights-to-foreign-airlines/


20

No. Solution Description

3 Regular audits on airlines to ensure safety standards

Regular audits and accreditation by professional bodies such as IATA, ICAO and NCAA are crucial, to avoid aviation disasters.

In May 2015, Nigeria was given a pass mark by ICAO after a thorough audit screening. This decision was driven by the recent massive improvements in aviation safety and security standards.

4 Investment in airport infrastructure and development of Maintenance, Repair and Overhaul (MRO) facilities

In comparison to global standards, the general state of infrastructure in Nigeria is inadequate, mostly due to a poor maintenance culture.

Unfortunately, the 2015 budget contains a reduction in its budgetary allocation to the aviation sector, compared to 2014.

The availability of funds is necessary to ensure the repair, maintenance and upgrade of airport facilities, when necessary.

Although the private sector is active in the aviation industry (airline carriers, airport management, etc.), there are fields in which it cannot and likely will not participate (as players may not find it attractive or affordable to invest in such areas). The government should therefore focus mainly on these areas, such as the improvement of infrastructure (including landing systems, airport lighting and emergency systems).

5 Establishment of a national carrier

The Nigerian government has engaged in several unsuccessful attempts to revamp the national carrier over the last decade. However, it remains a priority under the upcoming Aviation Master Plan21.

A national carrier would potentially accelerate the socio-economic

and commercial development of the country, as well as generate numerous employment opportunities22. In addition, national carriers are powerful brand ambassadors for other African countries such as Kenya (Kenya Airways), Ethiopia (Ethiopian Airlines) and South Africa (South Africa Airways).

Table 6 – Solutions to challenges in the aviation industry

Conclusion Aviation provides essential socio-economic benefits and is vital for facilitating global business. The passenger is the final link in the aviation value chain, and the primary role of all other industry players is to deliver a positive experience to these customers. It is therefore important to obtain valuable insights into their travel experiences. The results of the survey into customer satisfaction in the Nigerian domestic aviation industry are presented in the following section.

21ThisDay Live - http://www.thisdaylive.com/articles/fg-renews-plan-to-establish-national-carrier/189396/ 22 Premium Times - http://www.premiumtimesng.com/news/top-news/189001-nigeria-inaugurates-committee-on-establishment-of-national-carrier.html

http://www.thisdaylive.com/articles/fg-renews-plan-to-establish-national-carrier/189396/

http://www.premiumtimesng.com/news/top-news/189001-nigeria-inaugurates-committee-on-establishment-of-national-carrier.html

http://www.premiumtimesng.com/news/top-news/189001-nigeria-inaugurates-committee-on-establishment-of-national-carrier.html


.

21

OBJECTIVES OF THE STUDY

Aim The Nigerian Aviation industry has experienced significant growth over the last decade, and air travel has become an increasingly popular choice for many in the country. There are however, several challenges which affect the ability of service providers in the industry to meet customer expectations. The main aim of our survey was therefore to obtain first hand information from customers about the state of domestic air travel, and their views on how to improve overall service delivery in the industry.

Objectives The survey was developed to achieve the following: 1. Identify current industry trends 2. Assess the quality of service rendered by the

various service providers 3. Highlight areas of strengths and weaknesses in

the value chain 4. Determine the overall levels of customer

satisfaction in the industry

The consensus view of respondents should potentially prove beneficial to regulators, operators, service providers, investors in the sector, as well as the general public.


22

SURVEY METHODOLOGY

A survey questionnaire was developed and administered to respondents through manual and electronic channels, from May to August, 2015.


23

Responses

A total of five thousand, seven hundred and twelve (5,712) combined responses were obtained from residents across all 36 Nigerian states, and the FCT Abuja.

Questionnaire

The questionnaire administered to air travellers covered the following areas:

I. General travel preferences: i. Frequency of air travel

ii. Preferred mode of making travel reservations and nature of challenges experienced

iii. Usual class of travel and preferred method of checking-in

II. Airline experiences: i. Preferred and least preferred airlines, and reasons behind selections

ii. Frequency of flight delays, delay in retrieving luggage, etc.

iii. In-flight amenities and services

III. Airport experiences: i. Most frequently used airports

ii. Airport ratings based on accessibility, check-in, security, navigation and facilities

IV. Socio-economic characteristics, comprising gender, age, occupation, and state of residence

Data Collection Methods I. Manually (on the field) – Questionnaires were administered to air travellers at three (3)

airport terminals: i. General Aviation Terminal (GAT) of Murtala Muhammed Airport, Lagos ii. Terminal 2 of Murtala Muhammed Airport (MMA2), Lagos iii. Nnamdi Azikiwe International Airport, Abuja

These airports were selected based on their volume of passenger traffic, and because they

serve as the main hubs for most domestic airlines in the country. Field Agents were deployed to conduct the field survey at each of the three terminals. The

agents administered the questionnaires to passengers waiting to depart from the airports. II. Electronically – An online version of the survey was administered for a period of 12

weeks.

Data Analysis The responses from both surveys were collated, and the resulting data was analysed using a simple statistical analysis tool.


24

Part 1: General Trends

SURVEY FINDINGS


Part 1: General Trends

25

11%

69%

15%

3%

2%

Never

Less than 1 year ago

1-4 years ago

5-8 years ago

More than 8 years ago

Q1. When was the last time you travelled by air within Nigeria?

The vast majority of respondents (69%) have travelled by air within the last year (Figure 6). This confirms that the experiences of the customers detailed in this report are mostly recent. The respondents who have never travelled by air (11%) were not eligible to participate in the survey, and were therefore excluded.

Figure 6 – Most recent domestic air journey

27%

31%

21%

11%

10%

1 -2

3 - 5

6 - 10

11 - 20

Over 20

Among the respondents who have travelled domestically within the last year, most (31%) have done so between 3 and 5 times (Figure 7). This is closely followed by those who have made only 1 or 2 trips within this period (27%). Only 10% have made over 20 air trips in the last year.

Q2. How many domestic trips have you made in the past 12 months?

Figure 7 – Number of domestic trips within the last year


76%

11%

8% 5%

Online (airline website) Travel agent Ticket office Airport counter

26

Q3. What is your preferred method of booking/making reservations?

Airline websites are the predominant booking channel for the majority (76%) of respondents (Figure 8). Other methods include the use of travel agents (11%) and ticket offices (8%). The least preferred method involves making travel arrangements at the airport counters (5%). These results are consistent with global trends, as over half of world travellers prefer to book flights directly from airline websites, with these numbers growing steadily every year23. As a benefit to booking online, customers are able to compare airfare and flight schedules on multiple websites, prior to purchasing their tickets.

23 IATA Global Passenger Survey 2014

Figure 8 – Preferred method for travel bookings

35%

27%

23%

7%

3% 3% 2%

Technical issues (unstable Internet) Inconsistent ticket pricing None Long queues Rowdiness Other Touts

As expected, IT-related issues (35%) and inconsistent ticket pricing (27%) are the principal challenges with preferred booking methods (Figure 9). Technical issues such as unstable Internet, are caused by structural frailties of ICT infrastructure. Regarding inconsistent ticket pricing, it is not uncommon for ticket prices to double during peak periods such as national holidays and festive seasons. On a positive note, several (23%) stated that they experience no challenges with their preferred booking method. However, other major challenges identified involve problems relating to payment issues. These problems include unauthorised debits without the issuance of airline tickets, card acceptability issues, multiple debits and poor refund procedures.

Q4. What challenges do you currently face with your preferred method of booking?

Figure 9 – Challenges associated with preferred booking method


Q5. What is your usual class of travel?

The vast majority of respondents (94%) usually fly in Economy class. Only 6% fly Business (Figure 10).

Figure 10 – Usual class of travel

Economy Class

Business Class

Q6. What is your usual check-in method?

Most (81%) prefer to check-in over the counter, as opposed to checking in online (19%) (Figure 11). This is expected, as online check-in portals are still fairly new options for domestic flights, and are currently offered by only a few airlines. In addition, all passengers must still physically check-in at the airport check-in counters.

Figure 11 – Preferred method of check-in

Check-in counter

Online check-in

27


.

28

Part 2: Airline Experience

SURVEY RESULTS


Q7. Which is your preferred airline?

Note: The zero response rate for Discovery Air is due to the fact that the airline has not been in operation since the Nigerian Civil Aviation Authority (“NCAA”) suspended the Air Operators Certificate (“AOC”) of the airline in January 2015. This suspension was lifted in April, although, the airline is yet to resume operations.

29

Aero Contractors emerged as the most preferred air service provider (39%) followed closely by Arik Air (34%) (Figure 12). Azman Air, Overland Airways and Discovery Air accounted for 1% or less.

Figure 12 – Preferred airlines

Part 2: Airline Experience

n = 4806


30

Q8. What is the reason for your preference?

Figure 13 – Drivers of airlines preferences

23% Affordable pricing

High safety standards / good safety practices

Good quality of service

Good record of timeliness for flight departures /arrivals

Effective communication of flight information

Large number of travel destinations

22%

21%

16%

8%

7%

3% Other

24 Chikwendu, Ejem and Ezenwa, Evaluation of service quality of Nigerian airline using servqual model, 2012

Note: Definition of “quality of service” Service quality is determined here, as the customer’s overall impression of relative inferiority/superiority of the airline and its services. Delivering high quality service is one of the most effective means of ensuring that the airline’s offerings are uniquely positioned in a market saturated with similar competitive offerings24. As a result, service quality is directly linked to customer satisfaction, which is determined by several factors, such as staff conduct and efficiency, issue resolution, quality of in-flight facilities and services, etc.


31

The top three reasons cited for airline preferences were: affordable pricing (23%), high safety standards (22%) and a good quality of service (21%) (Figure 13). These were followed closely by a “good record of timeliness for departures and arrivals” (16%). The effective communication of flight information and large number of travel destinations offered by the airlines ranked lowest (8% and 7% respectively). Passengers are becoming increasingly sensitive to price as a result the transparency brought about by the Internet and intense market competition. A review of the existing literature of previous studies on air travel price elasticities spanning a period of over 25 years, revealed that there was a significant demand response to changes in air travel prices25. Other drivers of airline preferences include a lack of viable alternatives, newer fleet of aircraft acquired by certain airlines, and the comfort of aircraft. Other reasons stated include airline branding, workplace preferences and the convenience of departure/arrival schedules for flights.

25 IATA Economics Briefing Number 9: http://www.iata.org/whatwedo/documents/economics/air_travel_demand.pdf

Cross-analysis of Q7 and Q8

22%

26%

25%

24%

8%

34%

14%

17%

12%

8%

32%

23%

22%

24%

26%

28%

25%

15%

1%

1%

1%

2%

16%

7%

32%

24%

29%

29%

12%

11%

10%

8%

7%

8%

7%

9%

Affordable pricing

High safety standards / good safety practices

Good quality of service

Large number of travel destinations

Good record of timeliness for flight departures/arrivals

Effective communication of information (on gate changes, flight delays and boarding status)

Figure 14 – Drivers of airlines preferences for the top six airlines

Note Due to number rounding up, percentages may not always add up to exactly 100%

http://www.iata.org/whatwedo/documents/economics/air_travel_demand.pdf


32

Aero Contractors: According to Figure 14, respondents are most likely to choose this airline for its affordable pricing (34%). In comparison to other airlines, Aero was the most popular in terms of this feature. The high safety standards of the airline was another prominent attraction (23%). Aero was ranked second, below Arik Air, on this feature. Arik Air: 32% of our respondents who chose Arik as their preferred airline, did so because they believe it is the safest domestic operator to travel with. It was ranked number 1 in the industry on this criteria. In 2013, Arik Air emerged the Best Security and Safety Conscious Airline in West and Central Africa for the third consecutive year, due to the airline’s commitment to security and safety standards26. It is also generally regarded as one of the nation’s safest airlines, due to the low ages of its many aircraft27. In comparison to the other airlines, it is also the most popular for its large number of travel destinations (16%). Arik currently flies to 18 domestic destinations28, the largest number for all domestic airlines nationwide. Dana Air: According to 29% and 28% of respondents, this airline has a good record for prompt flight departures and arrivals, and good quality of service, respectively. However, only 8% rate Dana as a safe airline, and 2% for its number of travel destinations. Med-View Airline: This airline is mostly appreciated for the prompt departures and arrivals of its flights (29%). It is the second most popular airline for this, along with Dana Air. Med-View is also preferred for its good quality of service (26%) and affordable pricing (25%). Air Peace: According to respondents that selected Air Peace as their preferred airline, affordable pricing (26%), good quality of service (24%) and timely flight departures and arrivals (24%) are its major selling points. First Nation: 32% of respondents who prefer First Nation, do so because of its prompt flight departures and arrivals. It is the highest ranked airline in this area. Although all the airlines were rated poorly on “communication of information”, First Nation received the highest score of 10%.

26 Nigerian Aviation Blog: http://nigeriaaviationwatch.blogspot.com/2013/11/arik-air-wins-best-security-and-safety.html 27 ThisDay Live: http://www.thisdaylive.com/articles/what-s-age-got-to-do-with-it-/117471/

28 Arik Air website - http://www.arikair.com/ng

http://www.thisdaylive.com/articles/what-s-age-got-to-do-with-it-/117471/

http://www.arikair.com/ng


Q9. Which is your least preferred airline?

33

The majority of respondents chose Arik Air (31%), Dana Air (23%) and Aero Contractors (20%) as their least preferred air service providers (Figure 15). These results appear to contradict the results of the most preferred air service providers. This is possibly as a result of brand awareness for the top three rated airlines, as well as non-frequent travellers with isolated negative experiences with the respective airlines. These selections were followed closely by Overland Airways, with the remaining 18% selecting Med-View Airline (5%), Azman Air (4%), First Nation (4%), Air Peace (3%) and Discovery Air (2%). Aero: 39% of respondents selected Aero as their preferred airline, while half this number (20%) chose it as their least preferred. Arik: 34% chose Arik as their preferred airline, while 31% indicated it was their least preferred. This is virtually an even split of opinions, and is a result that should be of concern to the airline.

Figure 15 – Least preferred airlines n = 4336


34

Q10. What is the reason for your choice of least preferred airline?

Figure 16 – Drivers of dissatisfaction with airlines

21% Poor record of timeliness for flight departures /arrivals

Poor quality of service 20%

Low safety standards / practices

17%

High pricing 13%

Poor communication of flight information

13%

Limited number of travel destinations

9%

7% Other

The major determinants of the dissatisfaction were identified as poor record of timeliness for flight departures/arrivals (21%), poor quality of service (20%), and low safety standards/practices (17%) (Figure 16). This is mostly consistent with the findings regarding the drivers of choice for the most preferred airlines. Other reasons behind dissatisfaction include: high pricing (13%), poor communication of flight information (13%) and limited number of travel destinations (9%).

Dana: 10% prefer Dana Airlines, while a more significant number (23%) chose it as their least preferred airline. The large disparity in these figures should be a major source of concern for the carrier. These findings are further decomposed by attribute for each of the respective airlines (see page 37), in order to isolate the drivers of the dissatisfaction ratings.


35

7%

6%

4%

6%

4%

28%

17%

16%

18%

11%

52%

5%

12%

26%

27%

25%

21%

21%

36%

27%

19%

4%

9%

1%

13%

14%

19%

34%

10%

29%

15%

11%

12%

19%

4%

17%

High pricing

Low safety standards/practices

Poor quality of service

Limited number of travel destinations

Poor record of timeliness for flight departures/arrivals

Poor communication of information (on gate changes, flight delays, and boarding status)

Figure 17 – Drivers of dissatisfaction for the top six airlines

The prevalent standard that applies to international air travel also applies to domestic air travel29. However, according to a report published in a local newspaper29, Nigerian passengers are often denied quality service and are not notified when their flights are rescheduled or cancelled. In addition, cabin crew are frequently discourteous to passengers, causing many travellers to complain about the poor quality of service received by their airlines (in this case, 20% of respondents). According to the same report (and supported by our survey data), another major reason for dissatisfaction is the uncertainty surrounding air operations. This is underlined by the fact that most airlines generally do not account for the actual cause(s) of flight delays or cancellations. Several respondents stated also that a history of air crashes and/or technical failures by particular airlines greatly influenced their opinions.

29ThisDay Live: http://www.thisdaylive.com/articles/poor-in-flight-services-by-airlines/214217/



http://www.thisdaylive.com/articles/poor-in-flight-services-by-airlines/214217/


36

Arik Air According to the majority of respondents, Arik was their least preferred airline. The reasons identified were: the airline’s frequently delayed flights (29%) and high pricing (28%) (Figure 17). Arik is by far, also the most expensive domestic airline to travel with. Dana Air Over half of respondents (52%) who chose Dana as their least preferred airline are wary of the airline’s perceived and/or experienced low safety standards. This is most likely driven by the incident of June 2012, in which Dana Air Flight 992 crashed in Lagos, killing all 152 passengers on board and 10 on the ground30. The crash was one of the deadliest recorded in Nigeria, and resulted in the suspension of Dana Air's operating license for several months. Aero Contractors Aero received the highest dissatisfaction rating for delayed flights (34%). The airline was also noted for its poor quality of service (25%) and poor communication of flight information (19%). Med-View Airline According to 27% of respondents who selected Med-View as their least preferred airline, the poor quality of service was the main reason behind this choice. It was the most selected airline for this criterion. First Nation 27% of respondents selected this airline because of its limited number of travel destinations. The airline currently serves only three destinations31: Abuja, Lagos and Port Harcourt, the lowest number of service destinations of all six airlines. Another 26% took exception to the airline’s poor quality of service. Air Peace Air Peace was selected as the least preferred airline by 3% of respondents because of its limited number of travel destinations (36%). Air Peace currently serves eight destinations within Nigeria32.

30 BBC News: http://www.bbc.com/news/world-africa-18330586 31 First Nation website - http://www.flyfirstnation.com/ 32 Air Peace website - http://www.flyairpeace.com/

http://www.bbc.com/news/world-africa-18330586





http://www.flyfirstnation.com/

http://www.flyairpeace.com/


37

According to respondents, delays and cancellation of flights are the most common setbacks to occur while travelling by air (Figure 18). Almost all (90%) have experienced a substantially delayed or cancelled flight, with 36% stating it as a regular occurrence (those who experience it “most times” and “all times”). Only 8% have never experienced a prolonged flight delay. These figures serve to underline the findings in Figure 16, where consumers rated a poor record of timeliness for flight arrivals and departures as the primary reason for dissatisfaction. Many have also experienced delays in retrieving their luggage on arrival at their destinations, with 19% citing it as a regular occurrence. However, the loss or misplacement of luggage by baggage handlers in airports and by airline staff is the least frequent setback to occur; only 15% of respondents have had their bags misplaced during travel.

Q11. How frequently do you experience the following?

Figure 18 – Frequency of air travel lapses



Q12. Please rate the staff of your preferred airline, based on their following attributes:

38

According to a previous report33, the major shortcomings of local airlines include: the poor appearance of airline staff, their poor interactions with passengers and poor in-flight services. However, respondents provided generally favourable feedback about the staff of their preferred airlines (Figure 19). The majority provided “good” ratings, with regards to the general appearance (44%), general attitude/conduct (42%), quality of service (40%) and speed of service delivery (37%) of the airline staff. The general appearance of the employees generated the highest number of positive responses (94% positive response rate). These results serve to highlight the importance consumers place on high quality service, and are consistent with the survey findings with regards to the drivers of the airline dissatisfaction rates.

33ThisDay Live: http://www.thisdaylive.com/articles/poor-in-flight-services-by-airlines/214217/

Figure 19 – Assessment of airline staff

http://www.thisdaylive.com/articles/poor-in-flight-services-by-airlines/214217/


39

Figure 20 – Assessment of airline staff for the top six preferred airlines

Respondents were asked to appraise the staff of only their preferred airline on a scale of 1 (poor) to 5 (excellent)*, along four service areas:

General appearance 73.66

General attitude/ conduct

78.60 78.43 75.05 72.67 69.86 69.84

Quality of service

78.25 76.63 75.05 71.49 69.43 68.06

Speed of service delivery

77.98 77.11 75.05 72.27 66.72 66.52

*Note: For the analysis of the results, the weighted average (i.e. weighted arithmetic mean) was determined. The scores of 1, 2, 3, 4, and 5 were assigned to the “poor”, “below expectations”, “satisfactory”, “good” and “excellent” ratings, respectively. The average scores were then converted into percentage figures, and presented in the figure above.

According to Figure 20, all six carriers were generally rated favourably with regards to the interactions between customers and airline staff.


80.96 79.10 75.25 75.05 74.34


40

Speed of service delivery The prompt delivery of quality services invariably leads to customer acquisition for airlines, and effectively leads to an enhanced air service experience for the passengers. By a small margin, respondents generally rated this area the lowest, in comparison to the other categories. However, First Nation (77.98%), Dana Air (77.11%) and Air Peace (75.05%) still recorded high customer scores. Aero and Arik Air staff received relatively low scores of 66.72% an 66.52% respectively.

General appearance It is important for employees of any organisation to appear professional, and this is especially the case for those who frequently interact with customers. The air service industry is a highly customer-focused environment, and the appearance of airline staff has a great effect on the brand and performance of the airline. All airlines received scores above 70%, signifying the high levels of satisfaction for this area. Respondents who prefer to use Dana Air and First Nation were the most pleased with the general appearance of the airlines’ employees, giving scores of 80.96% and 79.10% respectively.

General attitude/conduct Customers of any establishment often view the behaviour of its employees as indicative of the way in which the company is run. Airline employees with a positive attitude who display professional behaviour positively impact the growth of the airline, and lead to customer retention. Again, Dana Air (78.60%) and First Nation (78.43%) received high scores for this category.

Quality of service Providing high quality of service to customers contributes to the achievement of competitive advantage. Respondents who prefer to fly with Dana Air, First Nation and Air Peace rated their airlines highly (78.25%, 76.63% and 75.05% respectively) for this category.


41

The in-flight services of domestic airlines were rated favourably by most respondents (Figure 21). The top rated services were cabin cleanliness, seat comfort and cabin temperature, rated positively by 96%, 95% and 94% of respondents, respectively. However, the meals served by airlines received the largest number of negative ratings, with 16% stating that the meals are below expectations, and 6% rating them as poor.

Q13. Rate the quality of the in-flight services of your preferred airline.

Figure 21 – Assessment of in-flight services



42

Figure 22 – Assessment of in-flight services for the top six preferred airlines

Cabin cleanliness 81.21 80.74 80.23 78.80 78.51 77.08

Cabin temperature 81.48 79.81 77.67 77.01 75.82 75.41

Seat comfort 80.00 78.14 78.04 76.36 74.85 74.67

Restroom 75.43 74.64 73.44 73.06 72.45 71.28

Leg room 73.50 73.05 72.56 72.33 70.00 69.64

Meals 74.08 67.44 66.91 64.19 62.91 62.62



Respondents were asked to appraise the in-flight services of only their preferred airline on a scale of 1 (poor) to 5 (excellent)*, along six service areas:


43

All airlines performed reasonably well, and were well rated for their in-flight services (Figure 22). For five of the six categories, they each scored at least 70% in the categories. There is however room for improvement in the quality and/or quantity of in-flight meals.

Cabin cleanliness All airlines received high scores from their customers, ranging from 77% to as high as 81%.

Cabin temperature The cabin temperature of the airlines also received favourable scores from its customers. Customers of First Nation were especially pleased, rating the airline with a high positive score of 81.48%.

Seat comfort The comfort of airline seats was another positive feature, as very few customers provided negative scores here. Again, First Nation customers rated the airline above 80%.

Restroom According to our surveyed customers, the restrooms of their preferred airlines are generally satisfactory. All scores ranged between 71.28% and 75.43%

Leg room Only Med-View Airlines received a score below 70% for this category. However, the highest score was only slightly higher (First Nation: 73.5%).

Meals The quality of airline meals recorded the lowest scores overall, with five of the six airlines receiving scores below 70%. Customers of Dana Air expressed the highest levels of satisfaction with their meals (74.08%). Compared to the other airlines, Arik Air received the lowest score of 62.62%, indicating that this is an area in which the airline should improve its offering.


.

44

Part 3: Airport Experience

SURVEY RESULTS


45

Q14. Which airport is your most frequent point of departure?

Terminal 2 of Murtala Muhammed Airport (MMA2) in Lagos was selected by the majority of respondents (43%) as their most frequent point of departure (Figure 23). In combination with the General Aviation Terminal (GAT) numbers, Murtala Muhammed Airport was selected by 57% of respondents. This is expected, considering that Lagos is the most populous city in Nigeria, and also the major financial and economic hub of the country. In addition, the largest proportion of survey participants (38%) reside in Lagos.

Figure 23 – Most frequented airports of departure

Terminal 2, Murtala Muhammed International Airport (MMA2) (Lagos)

43%

Nnamdi Azikiwe International Airport (Abuja) 21%

General Aviation Terminal (GAT), Murtala Muhammed International Airport (Lagos)

14%

Port Harcourt International Airport (Rivers) 10%

Mallam Aminu Kano International Airport (Kano)

3%

Benin Airport (Edo) 2%

Others 7%

Domestic Wing, Murtala Muhammed Airport, Lagos

Nnamdi Azikiwe International Airport, Abuja (21%) and the GAT of Murtala Muhammed Airport, Lagos (14%) were selected as the second and third most frequent points of departure, respectively. Airports in the “others” category include Akanu Ibiam International Airport, Enugu (1%), Margaret Ekpo International Airport, Cross River (0.8%), Sam Mbakwe Airport, Imo (0.8%) Kaduna Airport, Kaduna (0.8%) Akwa Ibom Airport, Akwa Ibom (0.8%), Osubi Airstrip, Delta (0.7%) and several others.

Part 3: Airport Experience

n = 4244


46

Q15. How would you rate airport accessibility based on the availability of the following?

Customers appeared to be generally satisfied with airport accessibility, although there are a few areas that still require major improvements (Figure 24). For example, only 33% believe that existing parking facilities are above average (either “excellent” or “good”), while 31% rated this feature negatively. The majority of respondents (70%) also indicated that ground transportation to access and depart the airports is quite adequate, as well as the shuttle services to and from the aircraft (66%) and luggage trolleys (66%). However, only 5% of respondents rated each of these services as “excellent”. Many also complained about the costs associated with the use of trolleys at airports. A respondent stated: “The costs for using trolleys should be integrated into the flight tickets, and hence be free for usage”. A significant number of respondents (41%) selected the “not applicable” option for the availability and working condition of wheelchairs in airports, possibly indicating that this particular feature is not relevant to them. Of the remainder, 36% rated the quality and availability of wheelchairs positively, while 22% were dissatisfied.

Figure 24 – Assessment of airport accessibility

Airport Accessibility Accessibility is a critical feature of any airport, and it is important for adequate arrangements to be made to facilitate the movement of passengers to, from and within the airports.



47

Most airports recorded generally “satisfactory” performances for the five accessibility service areas (Figure 25). However, the availability of wheelchairs recorded the lowest overall scores.

Figure 25 – Assessment of airport accessibility for the six most frequented airports

Parking facilities 64.00 63.33 61.67 57.73 56.01 51.11

Ground transport

to/from airport 63.03 62.17 58.56 58.04 56.95 54.30

Shuttle services to/from aircraft

63.25 61.33 58.86 57.46 57.17 51.44

Baggage carts and trolleys

61.36 58.18 58.11 57.11 56.41

52.04

Wheelchairs 59.68 55.81 55.79 53.26 52.38 49.60

BEN MMA2 KAN PHC GAT ABJ



Respondents were asked to appraise the accessibility of their most frequented airport only, on a scale of 1 (poor) to 5 (excellent)*, along five service areas:


48

34 The Punch Newspaper: http://www.punchng.com/feature/construction-causes-traffic-at-abuja-airport/

Parking facilities Customers of Benin Airport (BEN) and MMA2 expressed the highest levels of satisfaction with their airports, rating their parking facilities with scores of 64.00% and 63.33% respectively. Nnamdi Azikiwe International Airport (ABJ) recorded a relatively low customer score (51.11%), which can most likely be attributed to the inconveniences caused by the construction work currently taking place at the airport34.

Ground transport to and from airport Ground transport refers to the availability and accessibility of public transports facilities (i.e. taxis, car rentals, shuttle services, etc.) to and from the airport. Based on this definition, frequent users of Benin Airport and MMA2 are the most satisfied, with scores of 63.03% and 62.17% respectively.

Shuttle services to/from aircraft In many airports, courtesy shuttle services are provided to assist travellers between the airport terminal and aircraft of departure/arrival. When asked to rate the availability and efficiency of the shuttle services to/from the aircraft in their most frequented airport, customers of Port Harcourt Airport (PHC) expressed the highest levels of dissatisfaction (51.44%).

Baggage carts and trolleys Baggage carts or luggage trolleys are used to transport passengers’ luggage, and are available either free of charge or for rental. Customers of the six airports provided lukewarm scores here, indicating that these trolleys are either not readily available to passengers or are in poor working condition at the airports. Only MMA2 received a score above 60%.

Wheelchairs Wheelchairs are needed to transport the elderly, physically challenged, pregnant, and so on, at airports. The availability of wheelchairs received the lowest scores across all six airports, and no airport received a score above 60%. This is clearly an area that all domestic airports must review.

http://www.punchng.com/feature/construction-causes-traffic-at-abuja-airport/


49

Q16. How would you rate airport check-in services based on the following?

Many respondents appeared to be satisfied with the check-in features at the airports (Figure 26). 31% consider the efficiency of check-in operations to be above expectations. However, the waiting period during these processes was rated less favourably, with 34% of responses being negative. As a suggestion, a respondent stated: “There is a need to deploy automated check-in systems at airports, for easy data capture and improved efficiency”. An example of this would be the self-service systems currently in place at MMA2, which allow passengers to self-check-in, thus limiting the need to interface with airline officials at check-in counters35. Unsurprisingly, the extra luggage costs incurred at the airports were rated negatively. 30% of respondents are dissatisfied with the costs associated with checking in extra luggage. A respondent stated: “There is no clear communication on the costs of extra luggage”, indicating these extra luggage costs are often inconsistent. 25% of respondents selected the “not applicable” option for the extra luggage costs, possibly indicating that these customers have had no reason to check-in extra luggage.

Check-in Services The check-in process is usually the first of several processes for an intended air passenger, and is a mandatory procedure prior to the departure of a flight. Due to the multiple activities associated with check-in (verification of travel documents, issuance of boarding passes, and admittance of passenger luggage), it is often one of the more lengthy and laborious procedures for air passengers. It is therefore necessary for airports and airlines to ensure that measures are put in place to expedite this process.

Figure 26 – Assessment of airport check-in services

35ThisDay Live: http://www.thisdaylive.com/articles/concession-as-panacea-for-airport-infrastructure-decay/209336/


http://www.thisdaylive.com/articles/concession-as-panacea-for-airport-infrastructure-decay/209336/


50

According to Figure 27, all six airports received average scores for their check-in processes. This suggests that improvements should be made regarding the waiting time at check-in and the costs associated with checking in extra luggage.

Figure 27 – Assessment of check-in services for the six most frequented airports

Courteousness and helpfulness of check-in staff

62.08 61.04 58.44 58.07 57.46 53.94

Efficiency of check-in staff 63.02 61.91 59.76 59.53 59.46 56.97

Waiting time at check-in 60.00 57.48 55.92 55.72 54.35 52.53

Extra luggage costs 54.88 53.69 52.83 51.31 46.32 53.40




Respondents were asked to appraise the check-in process at their most frequented airport only, on a scale of 1 (poor) to 5 (excellent)*, along four service areas:


51

Efficiency of check-in staff

This factor received the highest scores in this category. Customers of Kano Airport and MMA2 rated the efficiency of check-in staff above 60%.

Waiting time at check in counter

Customers of the various airports were generally dissatisfied with the time spent at the check-in counter. Five of the six airlines received scores below 60%.

Extra luggage costs

This feature received the lowest scores across all six airports, with none receiving a score above 55%. Frequent users of Benin Airport were especially dissatisfied, and rated it 46.32%. This is therefore is an area that requires urgent attention for this particular airport.

Courteousness and helpfulness of check-in staff

In terms of the support and courtesy that check-in staff extend to passengers, the airports received fairly average scores. Customers of Benin Airport rated it with a particularly low score of 53.94%.


52

Q17. How would you rate airport safety & security services based on the following?

Safety and Security Security of people and property is of critical importance at airports. According to the Federal Airports Authority of Nigeria (FAAN), the main responsibilities of Aviation Security (the police organ of FAAN) in airports are, among others, to36:

• Screen passengers and their carry-on baggage to forestall the introduction of dangerous devices aboard the aircraft;

• Control airport crowds by arresting and prosecuting touts; • Patrol aircraft perimeters to check criminal activities and unauthorised access; • Oversee emergency procedures in respect of bomb threats, hijack threats, terrorism and

sabotage.

Several respondents expressed dissatisfaction with the security features outlined (Figure 28). The thoroughness of the inspections and the wait time at security checkpoints received the highest number of positive ratings (67% and 68% respectively). However, the effectiveness of the security measures in place were rated the least favourably, with 36% of respondents expressing their dissatisfaction with this. Many respondents (35%) also indicated that their interactions with security personnel at airports are often unpleasant.

36 FAAN: http://www.faannigeria.org/index.php/about-faan/aviation-security

Figure 28 – Assessment of airport security


http://www.faannigeria.org/index.php/about-faan/aviation-security


53

Figure 29 – Assessment of airport security for the six most frequented airports

31% of our respondents rated the emergency response at airports negatively. In the words of one of them: “there is need for a complete attitude change by the relevant personnel, towards airline safety and operations.” A considerable number (27%) selected the “not applicable” option, possibly indicating that they have not experienced any kind of emergency at any airport.

Thoroughness of security

inspection

Effectiveness of security within

the airport 57.50 57.40 56.13 55.08 53.17 51.04

Response to emergencies 59.53 55.22 55.02 52.82 50.68 50.00

Courtesy and helpfulness of security staff

58.83 57.12 56.20 54.84 53.62 53.20

Waiting time at security

inspection

62.16 59.24 57.10 56.97 55.26 53.20


Note: For the analysis of the results, the weighted average (i.e. weighted arithmetic mean) was determined. The scores of 1, 2, 3, 4, and 5 were assigned to the “poor”, “below expectations”, “satisfactory”, “good” and “excellent” ratings, respectively. The average scores were then converted into percentage figures, and presented in the figure above.

Respondents were asked to appraise the safety and security services at only their most frequented airport on a scale of 1 (poor) to 5 (excellent)*, along five service areas:

59.32 58.27 57.23 56.27 55.39 52.29



54

Generally, the six airports recorded average performances, based on the ratings provided by their frequent customers. Only one airport scored above 60% (Figure 29).

Thoroughness of security inspection It is important for airports to implement effective and reliable ways of screening passengers and baggage, in order to easily identify threats and contraband. However, no airport scored up to 60% in this regard.

Effectiveness of security within the airport The six assessed airports received middling performance scores, ranging from 51.04% to 57.57%.

Response to emergencies An airport/airline emergency involves an incident or series of incidents that threaten the health and safety of people and property. The major aim of an emergency response is to protect public health by minimising the impact of the incident. When asked to rate the emergency response at their most frequented airport, all airports received scores below 60%, signifying that this is an area that should be improved across board.

Waiting time at security inspection Although it is imperative for the security inspection procedures at airports to be thorough, it is equally important for these processes to be efficient. This will help enhance the travel experience for passengers, and prevent flight delays. Customers of Mallam Aminu Kano Airport expressed the highest levels of satisfaction in this regard, providing an average score of 62.16%.

Courteousness and helpfulness of security staff While ensuring a secure airport environment, it is also important for security personnel to be both courteous and helpful to passengers and other airport personnel. However, all six airports scored between 53% and 58%, indicating that there is also room for improvement here.


55

Over half of respondents (58%) expressed a general level of satisfaction with the availability and effectiveness of conveyor transport devices (escalators and moving walkways) at domestic airports (Figure 30). Of these, 29% rated them as above expectations. However, 38% expressed dissatisfaction with these features, indicating that they are either not available at airports, or are in poor working condition. Many respondents find it easy to make their way around the airports, with 77% rating this attribute positively. However, the lack of functioning flight information screens is an area for major improvement. Almost half of respondents (45%) rated this feature negatively, while only 52% expressed satisfaction with these features. Airports must therefore look into making available these navigation aids, which serve to keep passengers informed of accurate and up-to-date flight information.

Q18. How would you rate the ease of airport navigation based on the following?

Navigation at Airports Airports should be easily navigable, with a clear layout and conspicuous signage. The layout and structural design of the buildings, and the presence of airport maps, information desks and service guides all help to ease the flow of movement of passengers and other airport users.

Figure 30 – Assessment of airport navigation



56

The airports received average scores here (Figure 31). Frequent users of the Abuja, Benin and Port Harcourt airports were especially dissatisfied with the availability of escalators and flight information screens.

Availability/effectiveness of escalators and moving walkways Escalators are found in most major airports worldwide, to aid the movement of passengers – often with heavy and/or multiple luggage. They are most often found in larger airports with many floors and long walking distances, and serve to improve customer experience. In terms of their availability and working condition, customers of Mallam Aminu Kano Airport and MMA2 appeared to be the most satisfied, rating them as 62.02% and 61.14% respectively. However, customers of the Benin and Port Harcourt airports rated them poorly.

Figure 31 – Assessment of airport navigation for the six most frequented airports

Availability and effectiveness of escalators and

moving walkways

62.02 61.14 51.33 51.05 48.81 48.10

Ease of finding your way around

the airport 65.09 64.15 61.22 60.78 60.18 59.40

Flight information screens

57.46 57.06 52.12 47.92 47.28 45.41



Respondents were asked to appraise the ease of navigation at only their most frequented airport on a scale of 1 (poor) to 5 (excellent)*, along three service areas:



57

Flight information screens

Flight information display systems provide valuable information to passengers, such as the status of a flight, gate assignments, estimated arrival/departure time and the city of origin/destination. They are essential for improving communications and keeping passengers constantly informed of their travel information. Most airports recorded low scores, with three of the six airports scoring below 50%.

Ease of finding your way around the airport

For this category, most airports received scores that were slightly above average, ranging from 59.49% to 65.09%.


58

Airport facilities were rated with varying levels of satisfaction and dissatisfaction by respondents (Figure 32). Access to banking facilities and dining options, in the form of cash machines and restaurants respectively, received the highest number of positive ratings, with 65% of respondents expressing satisfaction with each of these facilities. Although many facilities are in need of improvement, over half of respondents rated the shopping facilities and restrooms positively (58% each). However, poorly rated facilities include the air conditioning and availability of electrical outlets at airports, with 44% and 57% of dissatisfied ratings, respectively. Amongst the nine service areas, customers appeared to be least satisfied with Internet facilities (26%) and the entertainment in waiting areas (32%).

Q19. How would you rate airport facilities based on the following?

Airport Facilities Airport facilities offer comfort and convenience to travellers, and are essential for improving their customer experience. These facilities should be strategically placed in passenger waiting areas, both before and after the security control points.

Figure 32 – Assessment of airport facilities

Note: Other airport facilities not covered in the nine categories include medical centres, nurseries, prayer/meditation rooms, lost & found services, etc.



59

Figure 33 – Assessment of airport facilities for the six most frequented airports

Banks and ATM facilities

64.34 58.75 55.37 54.34 50.76 47.78

Air conditioning 58.97 55.72 50.74 48.95 45.69 42.44

Shopping 60.60 57.12 54.78 51.83 48.05 47.85

Restrooms and toilets 58.31 57.58 52.26 50.49 49.07 47.25

Restaurants 61.48 56.70 56.70 55.42 52.31 51.72

Executive lounge 59.06 58.10 54.96 54.52 52.50 47.55

Internet facilities (e.g. Wi-Fi) 42.27 41.89 39.65 38.03 35.47 35.29

Electrical outlets 49.77 48.12 43.99 43.48 41.97 40.00

Entertainment in waiting areas 48.72 44.72 42.13 40.00 39.08 36.09



Respondents were asked to appraise the facilities at only their most frequented airport on a scale of 1 (poor) to 5 (excellent)*, along nine service areas:



60

Banks and ATM facilities The availability of cash dispensers (ATMs) and other banking facilities is a key feature at airports. Customers of MMA2 expressed the highest levels of satisfaction in this regard, rating the airport as 64.34%. However, Benin Airport received a very low score (47.78%), indicating that more banking facilities are needed there.

Air conditioning It is imperative that airport buildings have strong air conditioning systems, in order to ensure the comfort of customers. This is especially crucial in Nigeria, a country with a tropical climate and often high temperatures. Benin (42.44%) and Port Harcourt (45.69%) were judged to have the most non-functional air conditioning facilities.

Shopping Customers of MMA2 indicated that the shopping facilities at this airport are adequate. However, respondents who often travel through the Benin and Port Harcourt airports indicate that their shopping options are poor or non-existent.

Restrooms and toilets Overall, all six airports received low scores for this category, signifying that there is room for a lot of improvement. Again, the Benin and Port Harcourt airports received particularly low scores of 47.25% and 49.07%.

Restaurants Cafés, bars and restaurants should ideally offer a wide range of eating and drinking experiences for airport customers. Although no airport scored below 50%, the highest score was only 61.48% (MMA2).

The facilities at many airports received scores below 50%, indicating very low levels of customer satisfaction (Figure 33).

Executive lounge The executive lounge of an airport generally offers eligible customers a quiet environment to work or relax, prior to their flight. These lounges offer selected customers comforts beyond those available in the general areas of the airport terminal, such as Internet access, complimentary snacks and drinks, access to magazines and newspapers, and enhanced customer service. All airports received low scores here, with Port Harcourt Airport receiving a particularly low score of 47.55%.


61

Internet facilities (e.g. Wi-Fi) Internet facilities at airports can be available in the form of either Wireless Internet access (Wi-Fi) or public access Internet desks, both of which can either be complimentary or pay-as-you-go. The Internet facilities across the six airports received the lowest scores across all nine categories, with no airport receiving a score up to 43%. Respondents who often make use of these airports are therefore extremely dissatisfied with this service.

Electrical outlets The availability of electrical outlets to customers at airports is a major convenience feature, especially with the increased use of laptops and smartphones. This feature was also rated poorly by respondents, with no airport receiving a score up to 50%.

Entertainment in waiting areas Entertainment in waiting areas in the form of complimentary newspapers and magazines, televisions at strategic locations, and other facilities, serve to make the pre-departure time for passengers as comfortable and enjoyable as possible. In this regard, all six airports fall well short of meeting customer expectations. Customers of Benin Airport were particularly displeased, rating it with a score of 36.09%.


62

Part 4: General Comments

SURVEY RESULTS


Part 4: Other comments Respondents were asked to provide additional comments that may not have been accommodated in the survey questionnaire. These are presented below:

General Experience

Safety Standards


Infrastructural Development and Maintenance Culture

Airline Expectations


65

Air transport is the core of most globalised economies, and as detailed in this report, the Nigerian aviation industry is experiencing a period of rapid growth. Annual passenger traffic reached an all-time high in 2014, several airport terminals have been constructed and/or refurbished nationwide37, and new airlines have been introduced into the market. However, many passengers are often left dissatisfied with their travel experiences.

CONCLUSION

37 Sun News: http://sunnewsonline.com/new/marketing-nigerias-aviation-sector-global-investors/


This survey highlighted areas of strengths (for optimisation) and weaknesses (for improvement) for the relevant players in the domestic aviation industry. The main trends and findings include:

Main drivers of airline preferences: According to our respondents, choice of airline is mainly driven by affordable pricing of airfare (23%), closely followed by high safety standards (22%) and good quality of service (21%). These factors were judged more important than the timeliness of flight departures and arrivals, prompt communication of relevant flight information to customers (such as incidences of flight delays and cancellations) and a wide variety of flight destinations by the airline.

Premium on pricing: Aero Contractors was selected as the preferred airline by the majority of respondents (39%), primarily because of its observed low costs for travel tickets. Corroborating these results, Arik Air was selected as the least preferred airline by 31% of respondents, majorly due to the airline’s high pricing for airfare. Aero was deemed the preferred airline, despite the fact that this airline received relatively low customer scores, when respondents were asked to evaluate their preferred airlines in terms of their staff and in-flight amenities. This highlights the priority of customers, as many are often willing to overlook convenience, comfort and other desirable customer service features, in favour of affordable ticket pricing. Based on these findings, it is possible that any policy actions that result in the increase of ticket prices for passengers may have a detrimental effect on ticket demand. Regulators must therefore work to ensure that airlines keep airfare prices affordable and consistent, to avoid any decline in industry growth (although it is acknowledged that this may prove challenging, due to the increasing local costs amounted by airlines, for maintaining aircraft with globally priced parts, components, international re-certifications and statutory aircraft checks). Alternatively, should airfare prices rise, consumers may be forced to seek alternative modes of transport (i.e. road travel), in which case, investments in road infrastructure and other modes of transport would be crucial.

• Safety is key: Although Arik Air was judged as the least preferred airline by 31% of respondents (mainly because of its high pricing and frequently delayed flights) it still emerged as the preferred airline for the second largest group of respondents (34%). The primary reason behind this preference was revealed to be the high safety standards and good safety practices of the airline. This indicates that passengers are often willing to pay more for ticket fare, as long as the airline has a good reputation for safety. Additionally, Dana Air appeared in second place in the list of least preferred airlines, largely due to its perceived poor safety standards. Despite the fact that the Dana Air crash of 2012 took place over three years ago, and the airline’s subsequent commitment to “adhere to globally recognised safety standards and consistently review its products and services to offer better solutions aimed at passengers’ comfort and safety”38, many are unwilling to overlook the incident. These results reveal that in addition to pricing, safety is one of the most important factors that determine the choice of airlines for many Nigerian air travellers.

66

38 Dana Air website - https://www.flydanaair.com/about-4/

https://www.flydanaair.com/about-4/


Rise of online portals: The large majority of respondents (76%) make air travel bookings online, in lieu of using travel agents, or making purchases at airline booking offices and airport counters. With almost half of the country’s population now connected to the World Wide Web39, this further serves to highlight the ever increasing use of the Internet and web-enabled portable devices (such as smartphones and laptops) in the country. In fact, 89% of Nigerian Internet users purchase goods and services online or expect to do so in the future, surpassing figures in South Africa (70%) and Kenya (60%)40. In addition to buying tickets on the airline websites, some (19%) also prefer to check-in online, as opposed to doing so at the check-in counter. This is noteworthy, considering that online check-in is still a fairly new concept for domestic air travel in Nigeria. However, based on these preferences for making travel arrangements online, technical IT issues are fairly common experiences for customers. Problems associated with online payments (including double debits for transactions and poor refund processes) are frequently encountered. Many respondents also complained about issues relating to the instability of Internet connections, the root cause of which is mainly attributed to weak ICT infrastructure. According to the GSM Association (GSMA), about N600bn worth of investment opportunities will be lost in broadband income by 2016, if infrastructural challenges are not addressed41. It is therefore imperative that investments be made into the telecommunications industry, in order to overcome these difficulties and subsequently boost the Nigerian economy.

• Airline services: The top six preferred airlines were assessed by their customers, based on the quality of their staff and in-flight services. Four of the six airlines received scores of at least 70% for all the staff service features. Arik and Aero were the only two airlines to receive scores below this threshold. However, the scoring differences between all six airlines were often marginal. Regarding the in-flight services, the scoring differences between the most and least satisfied customers for the six service areas were minimal. This demonstrates that these domestic carriers are on fairly equal ground, regarding the in-flight service delivery to their customers. In addition, all service features were rated favourably by respondents.

• Airport experiences: In addition to the airlines, other service providers in the value chain have key roles to play towards ensuring customer satisfaction. Towards this end, although many customers expressed satisfaction with their experiences at airports, several areas for improvement were revealed. Mallam Aminu Kano International Airport and MMA2 emerged as customer favourites, in terms of accessibility, check-in experiences, security, navigation and facilities. However, several airport facilities are either lacking or in poor working condition in all the Nigerian airports. Such include flight information screens, conveyor transport devices, Internet facilities, entertainment in waiting areas, and electrical outlets. In an increasingly digital world, computers and the Internet are crucial resources for the public to access important information and communication channels. Despite the proliferation of smartphones and tablets, millions of people in developing countries still depend on publicly accessed computers and Internet services. It is therefore important for airports to ensure that public Internet options are available to their customers, through Wi-Fi technology and/or Internet service desks. Furthermore

67

39 BusinessDay Newspapers (July 13th 2015): Number of internet users hit 88 million 40 Nigeria is Leading South Africa and Kenya in e-Commerce - http://goo.gl/yzih2P 41 BusinessDay Newspapers (7th July 2015): Nigeria N600bn broadband income entangled in structural frailties

http://goo.gl/yzih2P


Furthermore, airports should invest in providing entertainment in the waiting areas of the airports, through public televisions, newspapers, etc., to enhance the customer experience.

• Airport services: Some airports performed better than others in certain service areas. For example, with regards to the availability of banks and ATM facilities at airports, there is an almost 20% rating difference between the most satisfied (MMA2) and least satisfied (Benin) customers of these airports. On the other hand, the difference between Kano Airport (with the highest customer satisfaction score) and Benin (with the lowest customer satisfaction score) is less than 7% for the availability of Internet facilities. Airports with the “most satisfied” customers still recorded low scores for the following services: effectiveness of airport security (Kano; 57.50%), availability of flight information screens (MMA2; 57.46%), extra luggage costs (Kano; 54.88%), availability of electrical outlets (Kano; 49.77%) and availability of entertainment in waiting areas (Kano; 48.72%). Therefore, although these airports received the highest customer scores (in comparison to the other airports) for their stated categories, the service delivery for these highlighted areas still fall well short of customer expectations.

Based on the results of this survey, it is clear, as with most industries, that the quality of service rendered by the service providers is shaping the competitive landscape in the aviation industry. It is therefore critical for the various industry players to continuously strive to meet and exceed the needs of customers, by adopting strategies and business models that would provide them with an edge in this highly competitive market.

68

39Dana Air website - https://www.flydanaair.com/about-4/

https://www.flydanaair.com/about-4/


69

SURVEY DEMOGRAPHICS


DEMOGRAPHICS

70

States of Residence

Age

49%

29%

12%

7%

2% 1%

26 - 35 36 - 45

18 - 25 46 - 55

More than 55 Younger than 18

1%

7% 8% 52% 14% 18%

Retired Self-employed

Unemployed

Student

Public sectpr

Private sector

Employment Status

Gender


LIST OF FIGURES AND TABLES

Figures

Figure 1: Regional distribution of passenger traffic in 2014

Figure 2: Domestic passenger traffic in Nigeria between 2010 and 2013 at major domestic airports

Figure 3: International passenger traffic in Nigeria from 2010-2013 at international airports

Figure 4: Domestic vs. International passenger traffic 2011-2014

Figure 5: Comparison of the contribution of the aviation industry to the GDP of different countries

Figure 6: Most recent domestic air journey

Figure 7: Number of domestic trips within the last year

Figure 8: Preferred method for travel bookings

Figure 9: Challenges associated with preferred booking method

Figure 10: Usual class of travel

Figure 11: Preferred method of check-in

Figure 12: Preferred airlines

Figure 13: Drivers of airlines preferences

Figure 14: Drivers of airlines preferences for the top six airlines

Figure 15: Least preferred airlines

Figure 16: Drivers of dissatisfaction with airlines

Figure 17: Drivers of airlines dissatisfaction for the top six airlines

Figure 18: Frequency of air travel lapses

Figure 19: Assessment of airline staff

Figure 20: Assessment of airline staff for the top six preferred airlines

Figure 21: Assessment of in-flight services

Figure 22: Assessment of in-flight services for the top six preferred airlines

Figure 23: Most frequented airports of departure

Figure 24: Assessment of airport accessibility

Figure 25: Assessment of airport accessibility for the six most frequented airports

71


Figure 26: Assessment of airport check-in services

Figure 27: Assessment of airport check-in services for the six most frequented airports

Figure 28: Assessment of airport security

Figure 29: Assessment of airport security for the six most frequented airports

Figure 30: Assessment of airport navigation

Figure 31: Assessment of airport navigation for the six most frequented airports

Figure 32: Assessment of airport facilities

Figure 33: Assessment of airport facilities for the six most frequented airports

Tables

Table 1: Regulators in the Nigerian aviation industry

Table 2: Industry players in airport management

Table 3: List of domestic airline operators

Table 4: Essential service providers in the aviation industry

Table 5: Challenges in the aviation industry

Table 6: Solutions to challenges in the aviation industry

72

September, 2015 The 2015 Domestic Aviation Industry Customer Satisfaction Survey Report ACKNOWLEDGEMENTS

For surveys, contact: [email protected] or [email protected]

For detailed reports, visit: http://www.phillipsconsulting.net/survey-report

KEY CONTACTS

Bayo Adesanya [email protected] Faridah Abu [email protected]

Adepeluola Odutola [email protected]

Jamachi Chris-Asoluka [email protected]

Phillips Consulting would like to thank the following for their support during the data-gathering phase of the survey: 1. Bi-Courtney Aviation Services Limited

2. Federal Airports Authority of Nigeria (FAAN)

3. All respondents who participated in the survey, particularly those who cooperated with our field survey team.

“The use of surveys is an effective way of gaining valid and quantifiable information”. The Business Advisory Services division conducts quarterly surveys on topical economic and business issues in the country.

73

http://www.phillipsconsulting.net/survey-report


74

Disclaimer The information contained in this survey is for general information purposes only and represents only the views and opinions of respondents and not essentially that of Phillips Consulting Limited. In no event will Phillips Consulting Limited be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of or in connection with the use of the information contained in the survey. © 2015 PCL Business Advisory Services Division is focused on assisting investors in start-ups and project management, conducting diagnostic studies, applying scenario based planning, facilitating board retreats and business policy alignment, driving performance improvement initiatives, supervising business turnarounds and sustaining total quality management. Our work is practical, with a strong emphasis on implementation. The division's engagements are with major public and private organisations across various sectors of the economy.

Documents

The 2015 Domestic Aviation Industry - Phillips Consultingphillipsconsulting.net/images/files/phillips_aviation_survey... · Airline staff assessments: For the most part, ... The 2015