MANAGING AVIATION DISPUTES IN NIGERIA by YUSSUF FUNMILAYO

The Nigerian aviation industry has been struggling to get back on a positive note within the domestic and international air transport industry. Moreover the economic recession undergoing the country is setting a down turn. The issues arising from scarcity of aviation fuel leading to delay of passengers’ flight, foreign exchange rate and trade union disputes. This kind of dispute can sometimes be seen as disputes beyond the act of man and likewise avoidable. In business the sole aim is to maximize profit with fewer factors of losses and any obstacle that hinder the process of business. There ways being conducted to avoid disputes to reduce colossal loss and distrust amongst the business community. Force Majeure As the economic recession began in the first quarter of 2015 quite a number of businesses began to wind up or enter into liquidation. A contract entered between parties are binding, however one of the vitiating elements in a contract when it is frustrated beyond the control of man is a Force Majeure. This Equitable principle has protects a party to contract; moreover it has limitations where the law has listed some of the things categorized as a force majeure. In the case of Arik airlines, AERO Contractors and other domestic aviation services who have taken loans from financial institutions growing with interest rates and Which is worsened by a time frame stipulated in the contract, the breach in it puts them in default. The financial institutions interpretation of business is money and when debtors are unable to pay they go for their collaterals which are fixed assets. This has grounded operations to these domestic airlines. In situations like this an ADR clause is highly recommended to be inserted in the terms of agreement. The major feature of an ADR clause is for easier continuation of business to generate funds in servicing the loans collected. In addition it gives vacuum for renegotiation of contract between the debtor and creditor note with a realistic terms that are suitable for parties. Government policies In issues of government, every smart business enterprise doesn’t want to get in their bad sides because when they swing into actions the stiff penalties is at a disadvantage. They are policies provided with the aid of legislation and regulations to protect the interest of consumers. The Nigerian government has formulated aviation policies through the ministry of Aviation and administrative regulatory agencies such as Nigerian Aviation Civil aviation authority; Part 19 of Consumer Protection Regulations protects the passengers that have been maltreated by airlines operators with fine to be paid when violated. An international airline known as Turkish airline was forced to compensate their passengers and paid a fine to the regulatory agency, likewise Arik airlines fined with 6 million naira for delay of flight passengers. All this could have been avoided by a proper dispute resolution system .A proactive conflict management is critically useful in reducing and averting government intervention for instance, Turkish airlines would have controlled the situation by involving the passengers directly by using mediation to identify the fundamental issues and proffering solution. The study of cultural behavior is essential in settling of disputes an average Nigerian is not patient and doesn’t like to be taken for granted .The Arik airline fine could have been avoided this if they understand cultural behavior. Let’s go Far East in Asia some time ago in Japan in their railway industry one of the trains had an issue resulting to a delay. The railway corporation apologized and gave each passenger a letter to take to their workplace explaining to the passengers employers of been at fault and their employees. The Japanese value time and knew the consequences they managed the crisis through procedures that prevented escalation of the lapses. Trade union Trade unionism has had long history in the Nigerian workforce, the result of good productivity is through the workers and unfortunately they can ruin your business. A major factor in trade union disputes is welfare of the workers, when the salary Is not Paid on time or any form of reduction as the economy has affectS their standard of living. Then this is when the business establishment to hold off the situation before destroying the image of the company. In issues of dispute parties usually hold negotiating a session with the management and labour representatives if they are unable to broker a deal Several actions like industrial actions occur. However the Trade Dispute Acts provides for the companies to apply for to the ministry of labor and productivity. Section 4 in summary is the procedure before the dispute is report, in Section 6 reporting if the dispute is amicably settled Section 8 appointment of Conciliator Section 9 reference to dispute for arbitration These processes under the Trade Dispute Act stalls the workers in engaging in arbitrarily going on industrial action and reduce the tension of hard demands that may be unrealistic. In 2015 the Nigerian aviation industry contributed 139 .7 billion to the Nigerian gross domestic product. The year 2016 was a downturn with international airline operators losing hundreds of millions of dollars due to the scarcity of foreign exchange. The domestic operators were not out left with the scarcity of aviation of fuel. At these various challenges disputes, have arisen leading to airline operators suspending operations and not managing the situation with dispute resolution methods in salvaging the situation. Dispute resolution methods go into the root of the conflict with the aim of maintaining that particular business transaction. Yussuf Funmilayo

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