Sacked Workers Sue Air Nigeria

By Chinedu Eze(Thisday)

Sacked workers of Air Nigeria have dragged the company’s chairman, Mr. Jimoh Ibrahim, and its Chief Executive Officer, Kinfe Kanssaye, before the National Industrial Court in Lagos over what they described as illegal and wrongful termination of their employments, non-payment of salaries and non-remittance of their 7.5 per cent pension scheme contributions.

In a suit filed by the workers’ solicitors; Muhmad Adesina and Ogunsany Ogunsanya against the company and two other defendants, the workers explained that they were employed by the Virgin Nigeria Airways Limited via their respective letters of employment but on December 31, 2010, Virgin Nigeria Airways Limited was changed to Air Nigeria Development Limited and all assets and liabilities of Virgin Nigeria Airways Limited were transferred to Air Nigeria.

The workers through their solicitors also asserted that the letters notifying them of the change was communicated to them by Ibrahim through the Chief Executive Officer of the airline, who signed the letters.

The workers contended that on September 5, 2012, Air Nigeria terminated their employment unilaterally and compulsorily retired them, adding that the termination was communicated to them in through media.

They said that the termination of their employment did not follow due process as contained in the employment hand book of the organisation, arguing that they did not withdraw their respective services to Air Nigeria Development Limited as they did not write any letter to the company.

The workers also explained that prior to the termination of their appointments by Air Nigeria Development Limited, the airline owed workers arrears of salaries; from May to August, 2012 and that some were paid for the month of May only, while others were not.

The workers also claimed that prior to the wrongful termination of their appointments, they had contributed 7.5 per cent of their salaries to the Pension Contributory Scheme, while the company contributed 7.5 per cent but despite deducting this amount from the salaries of the workers, the company had not been remitting same to the pension scheme as agreed upon by employer and employees.

The workers insisted that the money was deducted from their salaries under the Pay As You Earn (PAYE),but that up till moment of their wrongful sack ,there was no evidence of payment of this deductions to the appropriate authority.

Based on the arguments enumerated above, the workers asked the court to declare that the purported termination of their appointments by Air Nigeria Development Limited via the media “was wrong, unlawful, illegal and null and void and of no effect whatsoever.”

They also want the court to declare that the notice of dismissal on the face of newspaper is not valid and an order that the defendants pay their arrears of salaries from May to August, 2012.

They also asked the court to direct the defendants to remit forthwith all pension contributions amounting to 15 per cent of the workers emoluments that due and outstanding as agreed in the employment hand book.

Arik Air, Boeing Strengthen Partnership

Thisday Newspaper

Arik Air and the world’s largest aerospace company, the Boeing Company of the US, recently hosted Arik Air’s financial partners in Seattle to some planning courses designed to provide a deeper understanding of the aviation business and manufacturing process.
The exercise, the airline said, would greatly enhance the relationship between Boeing, Arik Air and the financial community in Nigeria.

Boeing invited Arik Air and its financial partners to an executive seminar September 12 – 13 at the aerospace company’s facility in Seattle, Washington. The executive seminar featured presentations on the airplane acquisition process, airplane contract process, the manufacturing process and an airline business overview.

“Arik Air is one of Africa’s largest airlines with an extremely high potential for continued growth,” said the vice president of Sales for Africa, Latin America, & Caribbean for Boeing Commercial Airplanes, Van Rex Gallard.

Arik Air Carries 10m Passengers

By Simon Ateba (PM News)

Arik Air said on Tuesday it has now carried 10 million passengers since 2006 when the airline began operation.
“The carriage of ten million passengers is an important milestone for an airline that has grown rapidly since it began operating in 2006. This year alone Arik has transported over 1.5 million passengers across its expanding network of 20 domestic, 10 regional and three long-haul destinations,” Arik said in a statement.
The airline said that Nigerian businessman Abdul Aziz Mustapha, director of RealNet Sandton Properties, became Arik Air’s 10 millionth guest, travelling on the airline’s Johannesburg to Lagos route, one of the airline’s key long-haul destinations.
“Mr Mustapha was greeted by Arik Air’s Vice President South Africa, Rodger Whittle, upon check-in at Johannesburg’s O.R. Tambo International Airport, presented with an Arik Air memento, an upgrade to business class for the flight and a pair of complimentary business class tickets for his next Arik Air flight,” Arik said.
Arik said that since it began carrying passengers on its first route in October 2006, it now employs over 1,500 staff worldwide, operates an average of 120 flights a day and is currently the leading carrier in Nigeria with 63% share of the market capacity.
“In addition to its regional destinations and Johannesburg schedule, Arik Air’s long-haul routes from Lagos to both London Heathrow and New York JFK have strengthened the airline’s international presence,” Arik said.
Dr Michael Arumemi-Ikhide, Group CEO/ President of Arik Air, was quoted to have said of the milestone: “Carrying ten million passengers in less than six years is a remarkable achievement for Arik Air that further underlines our status as Africa’s fastest growing airline. We are particularly proud to have achieved this milestone on one of our three long-haul routes, which remain an important focus for us in expanding our global network.”

Air Nigeria Passengers Abandoned in UK

Thisday.

Indications emerged Tuesday that Air Nigeria has allegedly abandoned many Nigerian passengers in the United Kingdom.
The abandoned passengers, now struggling to raise air fares in the UK to return home, had purchased return tickets beyond September 10, before Jimoh Ibrahim summarily sacked about 800 workers and grounded his airline Monday.
A correspondent with TheNews magazine and P.MNEWS, Mr. Funsho Arogundade, was among those abandoned.
He travelled on August 25, and was booked to return to Nigeria on September 16, but the airline stopped operating flights six days prior.
Arogundade spent N165,000 for a round trip via Air Nigeria, but the airline officials have vanished from the airport and have also stopped picking calls.
He said close to a thousand people might be affected by the sudden decision of Air Nigeria to stop flying.
He also added that many passengers had booked return flight tickets directly from Air Nigeria, and were scheduled to return in weeks or months but had not heard from Air Nigeria since it announced that it would stop flying.

Arogundade said that many Nigerians who approached the Nigerian High Commission in London were told that there was no help for them there, as officials were not aware of the details.
Narrating his ordeal, Arogundade said P.MNEWS: “I was booked to return to Lagos on 16 September but when I heard that Air Nigeria will stop flying from 10 September, I rushed to Gatwick Airport which is far away from Essex where I am now stranded,” Arogundade said.
“I could not easily locate the Air Nigeria desk when I got to the airport, since they had no office there. When I and other passengers eventually located the Air Nigeria stand, the only person there said he had no information for us and gave us two numbers (02074404800 and 02076286578) to call.
“We called the two numbers throughout that day, and it was busy. The following day, one of the numbers went through and it turned out to be one of Air Nigeria’s agents in London.
“After explaining my situation to the agent who had an Indian accent, he told me that the airline had gone bankrupt, and there was nothing they could do.
“He gave me another number (02074488400). Ever since, I have been calling the number but there has been no response.
“I did not return to Gatwick until September 7. While there, there was no Air Nigeria official around. While snooping around, I heard that another plane will be arriving the following day (Saturday). After seeing the huge crowd of other Air Nigeria passengers waiting to be airlifted with no concrete assurance that a plane will come, I opted to source for an alternative from my friends around.

“Already, the trip from the part of London where I stayed to Gatwick, through train, and bus cost me about £40 each for two different days that I went to the airport.
“Thus, I have resigned to fate and looked for an alternative. Already, I had to buy another Arik Air one-way ticket to Lagos for £410.” Arogundade said  those who have no money to buy tickets have been abandoned with no option to come back home and no information from Air Nigeria

Arik Air eyes capital market for funds .

By Wole Shadare (The Guardian)

IN the face of fund paucity in the aviation sector, which precipitated high rate of attrition of airlines in the aviation industry, Arik Air may soon approach the capital market to raise funds to up its ante.
Already, talks are on between the airline and the authorities of the capital market on modalities for a smooth transition to a quoted company that is expected to emerge from the airline current restructuring exercise.
To set the stage for going public, Delloite of United Kingdom (UK) is looking into the books of the airline.
A source in the aviation industry told The Guardian yesterday that “Arik Air will soon go public. Nigerians will have the opportunity to buy shares in the airline and have a say on how it is run. Delloite from the UK is looking at the books of the airline as part of preparations to go public.”
The Guardian learnt that the decision of the airline to go public might not be unconnected with fund paucity saga assailing the nation’s airline industry.
The planned listing of Arik on the stock market would make it the third airline after the defunct ADC and Albarka Airlines to go public.
ADC Airlines, which became operational on January 1, 1994, went public. Albarka Airline equally went to the stock market before its eventual demise in 2002.
The Assistant Secretary-General of Airline Operators of Nigeria (AON), Muhammed Tukur, yesterday lauded the move, saying it would help to strengthen the company’s financial base.
Stakeholders in the industry, who spoke with The Guardian on the development, attributed most of the problems faced by the airlines to managerial incompetence and policy inconsistency.
The Managing Director of Bristow Helicopters, Captain Akin Oni, attributed the tough terrain airlines in Nigeria had found themselves to high import duties on aircraft, helicopters, and spare-parts, adding that this only happens in Nigeria; a situation he disclosed has killed the growth in the industry.

Air Nigeria suspends operations, sacks workers

By Oyetunji Abioye(The Punch)


The management of Air Nigeria has announced the suspension of all its local, regional and international operations with effect from Monday, September 10, 2012.
A statement from the airline said the suspension was largely due to staff disloyalty and environmental tension, “which are not conducive for business in the aviation sector.”
The airline said it regretted any inconvenience the decision would cause its loyal passengers on all the routes and advised them to contact agents from whom they had purchased tickets for refunds.
The statement quoted the Chairman of the airline, Mr. Jimoh Ibrahim, as saying that it was difficult to continue further investment in the carrier with the high level of staff disloyalty and weak business environment.
“But we are strongly committed to ensuring that Air Nigeria survives,” he added.
Ibrahim said about 50 loyal members of staff from various departments of the airline had been selected with a mandate to recommence business within 12 months, while the others had been relieved of their employment effective from the last day of work on their various routes.
He thanked stakeholders for their “massive support” in the last two years of operation of Air Nigeria under the new management.
Ibrahim explained that the suspension of all the operations of Air Nigeria was not unusual.
He said, “Corporations are like individuals, who naturally will get sick, and the usual thing to do is to admit them to hospitals, either for corporate surgery or for treatment, as the case may be.
“During such period, it is not likely that they will work in full capacity, depending on the nature of the illness.”
The suspension of operations, he added, was not due to load factor, but largely to staff disloyalty and weak business environment.
Air Nigeria (formerly Virgin Nigeria), was established in 2004 when the Federal Government and Virgin Atlantic Airways signed a Memorandum of Mutual Understanding that gave birth to the airline. Air Nigeria, then trading as Virgin Nigeria Airways, started operating on June 28, 2005 with flights to London.
Air Nigeria had a few months ago suspended its local and regional flights after its pilots embarked on a nationwide strike.
The carrier later resumed operations after its aircraft were certified safe and secure by the Nigerian Civil Aviation Authority.
After operating for sometime, it announced that it was suspending its local and regional flights after the industry regulator, NCAA, accused it of being in financial distress.
The carrier’s international operation had, however, been operating until Tuesday’s decision to suspend all operations.

Arik Air, Lufthansa seal partnership deal .

.
Thursday, 06 September 2012 07:32 BusinessDay

Arik Air and Lufthansa Technik of Germany have sealed a new partnership deal that will ensure safe operations and support further growth of the Nigerian airline.
Lufthansa is West and Central Africa’s largest carrier and world renowned aircraft maintenance service provider. A statement issued by Arik airline’s spokesman Ola Adebanji on Wednesday said the agreement was sealed during a meeting held at Arik Air corporate head office in Lagos where the two organisations agreed to strengthen their partnership concluded about five years ago.
Under the new partnership, Lufthansa Technik and Lufthansa Cityline will continue to provide technical support to Arik Air in the areas of line maintenance, base maintenance, and materials and pool spare parts for the next five years. It said Lufthansa Technik would also assist Arik Air in the area of personnel training and the establishment of a Maintenance, Repair and Overhaul facility in Nigeria.
The leader of the Lufthansa team, who is also the Sales and Marketing Director, Mr Clemens Schrettl, said he was impressed with the outcome of the meeting, describing the deliberations as fruitful. ``Lufthansa is happy with the partnership we have had with Arik in the last five years and that is why we are here today to renew that cooperation and seek further areas of cooperation with the airline. We are looking at taking this partnership to the next level,” the statement quoted Schrettl as saying.
Mr Chris Ndulue , Arik Air Executive Vice President and Managing Director, who led the airline’s team to the meeting, thanked Lufthansa for its technical support over the years. ``Our association with Lufthansa Technik and Lufthansa Cityline has been of great advantage in the maintenance of our young aircraft fleet. It also underscores our commitment to ensuring safety of our passengers at all times.”
The statement added that both Technik and Cityline have a combined workforce of 50 engineers dedicated to Arik Air’s aircraft maintenance.
It also stated that all expendables and consumables had been certified by Lufthansa Technik and Cityline who maintain operations in the Arik Air hangar.
(NAN)

New investors for Nigeria’s aviation industry By LAWANI MIKAIRU & DANIEL ETEGHE(Vanguard)

The Nigeria aviation sector will soon witness new influx of investors as the Federal Ministry of Aviation is currently in talks with potential investors that have indicated interest in investing in the sector. Managing Director of the Nigerian Airspace Management Agency (NAMA), Engineer Mazi Nnamdi Udoh, who disclosed this to newsmen last week, said arrangements are in top gear to absorb newer airlines into the country.
Speaking at the Special General Meeting of National Association of Aeronautical Engineers (NAAE) held at the Nigerian Civil Aviation Authority’s (NCAA) Annex, Murtala Muhammed International Airport, Lagos, he said the interest being indicated by the investors was a fallout of the road show embarked upon by the Ministry of Aviation and top officials of the agencies in the sector to some countries abroad.
He said: “The issue is all about the management of those airlines, that is why in the spirit of transformation, we are now helping those airlines and new ones to come back to business and also provide them with an enabling environment so that those airlines will not go underground again.
And that is why we also embarked on a road show to various counties and the response has been enormous. We hope in the next one year, the issue of how many airlines we have in Nigeria will be a thing of the past. There are a lot of airlines that are coming, they are already asking for registration.”
Asked if the decline in domestic operators has impacted the revenue generation of the agencies in the sector, Udoh stated that the revenue generation of the agencies has improved despite the reduction in domestic operators. He said the passenger traffic in the airports have grown from what was obtainable last year, adding that the chunk of revenue generated by the agencies is from foreign carriers in the sector.
“Generally, the more the passengers carried by international flights, the more they pay. The revenue actually is foreign-driven for us and for FAAN. We are actually not feeling the impact of the reduction of domestic passengers. It all just means more frequencies for those that are operating.
But one thing you must notice also is the general growth in the charter service which we are also looking at to capture what is there. If you go round the country, you will see a lot of private jets. So the impact of that is not visible, that is why we have to capture it at this level and restore growth in domestic operation.”
http://www.vanguardngr.com/2012/09/new-investors-for-nigerias-aviation-industry

AIR NIGERIA again in trouble with IATA: Kicked out of BSP by Lateef Lawal

Air Nigeria  has been suspended from IATA's Billing Settlement Plan(BSP) around the world effective immediately,reports reaching  NigerianAviationNews early today has indicated. 
This is the second  time within the past twelve months that IATA has taken such action against the airline.
The Billing and Settlement Plans in each country allow travel agents to issue tickets of various carriers and paying for these tickets through IATA. 
Air Nigeria still continues to operate a four times weekly service between Lagos Murtala Muhammad (LOS) and London Gatwick (LGW) with an A330-200 wet-leased from EgyptAir (MS, Cairo International (CAI)). 
All of its other operations have now been grounded for over two months since June 21 when the Nigerian Civil Aviation Authority(NCAA) had suspended its air operator certificate due to "financial distress".
It had earlier laid off about 12 pilots for what it called illegal strike when they and their engineering  counterparts grounded the operations of the airline over late payment of salaries, non-remittance of tax deductions amongst other allegations.
It was in the wake of this that GE Capital repossessed the  3B737s it leased to the airline over default on lease rentals while the Federal Inland Revenue of Nigeria is presently in court with the management of Air Nigeria for non-remittance of several millions of Naira in personal tax deductions from staff and company tax to the coffers of government in the past two years.

http://nigerianaviationnews.blogspot.com/2012/09/air-nigeria-again-in-trouble-with-iata.html#!/2012/09/air-nigeria-again-in-trouble-with-iata.html