by Shadrach Swanteh Kambai
Corruption is a form of dishonesty or a criminal offense that is undertaken by a person or an organization that is entrusted in a position of authority, in order to acquire illicit benefits or abuse power for one’s personal gain or is the abuse of entrusted power for private gain (Transparency International, 2023). Corruption is a serious impediment to the rule of law and sustainable development (Rashid, n.d.).
With the recent Nigerian aviation industry developments, such as the forex crisis, increasing Jet A1 costs, high maintenance costs, the capital-intensive nature of the business, regulatory demands, and slim profit margins, all corrupt practices, both internally and externally, should be avoided by all means if any airline wants to remain profitable.
Complete transparency is one of the simplest ways for airline owners to reduce corrupt practices in their system. This is all about knowing who, why, what, how, and how much. It means shedding light on formal and informal rules, plans, processes, and actions. This article aims to suggest some strategies airlines can use to prevent or reduce revenue losses through corrupt practices in their system.
Also, read this STEP-BY-STEP GUIDE TO DISPATCH A FLIGHT IN NIGERIA
- Digitize all financial and payment processes: this is very important because it will make auditing easy and effective in tackling corrupt practices, the quality of an audit report depends on the quality of the data made available or gathered.
- Regular auditing of financial and payment processes: management must ensure all finances and payments are audited on a regular basis by both internal and external auditors until it becomes a culture in the system.
- Identify areas where money is leaking: Here, I strongly advised management to make an effort to identify and remedy revenue leaks.
- Review all Operational processes regularly: It is no longer enough to have a successful current strategy; you must continually evaluate all processes to guarantee efficiency, safety, and profitability. From the unit to the departmental level, this should be a system-wide culture.
- Restructure your business model: Management should reassess their company strategy in order to match current industry and economic realities in terms of employee welfare. Profitability is Possible: Regardless of Business Environment
- Adopt a central payment system: adopting this system will make it easy to trace transactions in minutes
- Outsource services that they are unable to manage properly, safely, or profitably on their own to competent companies that can make a difference.
- Airlines should make upfront payments for fuel and other services to avoid frequent payments that expose the financial system to fraudulent practices.
- The airline recruitment process and strategies must go beyond feelings, competency, and capacity to assess employees’ character, integrity, and behaviors, among other things.
- For specific analysis and advice in areas where the airline is facing difficulty, contact cliqjets consulting at www.cliqjets.com. We believe that if a problem can be discovered, it can be solved at cliqjets consulting.
An airline’s profitability is vital to its performance, and owing to the thin profit margin and the financial needs of the firm, no amount of seriousness is too great in limiting loss. We think that if the aforementioned measures, as well as many others, are taken, the loss of money due to corrupt activities will be greatly minimized.
Rashid, N. M. (n.d.). Corruption. United Nations and the Rule of Law. https://www.un.org/ruleoflaw/thematic-areas/governance/corruption/Transparency International. (2023). What Is Corruption? Transparency International. https://www.transparency.org/en/what-is-corruption
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