FG’s aircraft purchase fails to address industry concerns written by Sade Williams (Businessday)

The Federal Government’s plan to buy 30 aircraft for domestic airlines, as intervention to shield the sector from further decline or failure, has again come under criticism.

Some airline operators and industry experts say the project cannot work because the necessary infrastructure and manpower to support it are not in place.

Some other industry watchers also doubt government’s sincerity in making the proposal.

Analysts who spoke to BusinessDay, pointed out that manpower and maintenance hangars to support the operations of the aircraft are currently in short supply, or lacking altogether, adding that the sector’s woes may be compounded when that number of aircraft ( 30 ) are delivered without maintenance facilities or operational fleets.

This, they said, would lead the airlines to incur huge bills in foreign exchange, to service their aircraft abroad, while  the inability to do so, could cause the ventures to fail.

The experts advised that government should rather invest in training of personnel and  building of maintenance hangars, where operators could carry out all checks (A-D) on aircraft, instead of taking them abroad.

For instance, to carry out a ‘C-Check’ on a Boeing 737 aircraft abroad, analysts said, costs between $500,000 and $1.5m, depending on the level of C-Check.

John Ojikutu, a retired airport commandant said:  “If government must float a national carrier, in addition to deploying 30 aircraft to the industry, the airlines would need at least 100 captains and co-pilots.

“Where would the new airlines get these, when the present ratio of Nigerian pilots to foreign pilots flying for most domestic airlines is 1:4?

“Where would the aircraft engineers and technicians come from, and where will the airlines use as hangars for base maintenance?”

Ojikutu explained that it would take the Nigerian College of Aviation Technology (NCAT) Zaria, the neglected government-owned aviation school, at least three years to produce a licensed pilot and another three or four years, to get him mature enough to fly medium-sized passenger aircraft, only as a co-pilot.

Ojikutu said statistics showed that Nigeria had been relegated in the marketplace of airline pilots and engineers, by government’s poor attitude to training.

“This explains why most airlines have a greater number of foreign pilots. For instance, Dana

Airlines, at the public hearing, gave a figure of 16 pilots (11 foreigners and 5 Nigerians), 14 Co-pilots (13 foreigners and 1 Nigerian). The story is not different from other airlines”.

Dele Ore,a former director in the defunct Nigeria Airways, also said that the minimum and maximum age limits of 60 years and 65 years, set for flight crew, by the International Civil Aviation Authority (ICAO) was being strictly implemented.

He added however, that the training aspect was not being implemented, as the ageing pilots and engineers and those deficient in current technologies or methods, were not being planned for.

Ore said that for instance, many Nigerian engineers had training requirements for aircraft like the Boeing 727-200 and 737 which are already being phased out, due to high cost of maintenance, but government has no plans for their training on the newer aircraft  which are now dominating the fleet of Nigerian carriers.

“The result of lack of training is that you hear of flight cancellations all the time. Of course, they will not give you the reason, they will say due to operational reasons, but if they cannot raise and train the crew, the airplanes can’t fly themselves.

“Remotely, there is a shortage of crew, and the problem is going to be more acute as the years progress, because more and more crew would be approaching the age of retirement, and if replacements are not readily available, it means that the shortage would get progressively worse, as the years roll by”.

Also speaking, Amos Akpan, managing director of Capital Airlines, said government needs to consider so many variations such as ‘insurance premium, cost of maintenance and cost of manpower training’ before deploying the aircraft, in order to avoid bigger problems in the  industry.

“The concept that government supplying new aircraft (30) to Nigerian airlines will force the airfares down is faulty.

“The effect of newer aircraft on airlines operating cost, manifests in savings, through lesser fuel burn (fuel efficiency); and less frequent repairs (low cost of maintenance in terms of frequency of repairs). But the money an airline saves from newer aircraft (one to five years) in fuel efficiency and less frequent repairs, is spent on cost of purchase or lease of newer aircraft, cost of manpower training and insurance.

“One to five-year old aircraft are 40 percent costlier to purchase or lease, than  six to ten-year old aircraft. Certified personnel rated on that type of aircraft need to be trained in class and on-line in the field, and the higher the value of the aircraft, the higher the insurance premium.

“Since the aircraft will not be given free to domestic airlines, the lease rate will be high. Our reason for newer aircraft must be clear, so that we don’t lose focus on priorities like maintenance culture”, he said.

Joe Obi, special adviser on media, to the minister of Aviation, had confirmed that government was getting the aircraft directly from the manufacturer’s, with funds from the Aviation Intervention Fund, in conjunction with the Central Bank of Nigeria (CBN) and the Bank of Industry (BoI).

Obi said one of the modalities to accessing the aircraft, would be bank guarantee, adding that any airline that has no guarantee would not benefit from it.

“Government is not happy with the way the first intervention fund was disbursed and used ,hence there is need to be more prudent and save the industry”, he had said.

Second-hand  Boeing 737s such as the B737-200 etc  can cost as little as $3 million. The newer B737s can cost from $50 million to $80 million.

Already, government is in talks with Boeing, Bombardier and other aircraft manufacturers, to shop for aircraft for the airlines.

http://www.businessdayonline.com/NG/index.php/news/76-hot-topic/50879-fgs-aircraft-purchase-fails-to-address-industry-concerns

Arik introduces new payment option (vanguard)

Arik Air has introduced a new payment option that allows customers to book a ticket online at its website

and pay later using a number of different payment platforms.

The airline said weekend that the new Book-on-Hold service, available only to passengers in Nigeria, was

part of a raft of changes being rolled out to enhance its online offering and customer experience.

Arik Air’s Managing Director/Executive Vice President, Mr. Chris Ndulue, described the new payment

option as a flexible strategy to provide more convenient services to passengers.

He said:  “We believe this Book-on-Hold option offers greater flexibility and control, especially for guests

on the move. This is part of Arik Air’s strategy of providing more convenient services to our esteem guests.”

According to him, the special booking process has been developed for customers buying tickets in the

Nigerian market for flights originating in the country.

“It allows flight tickets to be booked on the website and held in the system, whilst giving travellers the

convenience and flexibility of paying for the ticket later,” he said.
http://www.vanguardngr.com/2013/01/arik-introduces-new-payment-option/

MedView Airline makes emergency landing after take-off written by DANIEL ETEGHE(Vanguard)

ONE  of the newest entries to the domestic airline operation in Nigeria, MedView Airlines Sunday, made an air return on one of its flights from Lagos to Abuja with 74 passengers onboard around 2:40pm at the domestic wing of the Murtala Muhammed Airport Two, MMA2, Lagos.
Vanguard gathered that the pilot had to make an air return back to base at the domestic wing of the Murtala Muhammed Airport, Lagos fifteen minutes after take-off.
Investigation revealed that the air return was taken by the pilot as the best precautionary measure to  averting any air disaster .
At the time of this report, Vanguard could not ascertain the reason behind the air return.
Unconfirmed report claimed there was a massive bang in one of the two engines of the aircraft mid air.
When contacted, Head of Flight Operations, MedView Airlines, Captain Henry Olawole Oke, affirmed that there was an incident on one of the airline’s aircraft en-route Lagos-Abuja, stressing that the pilot did not feel comfortable with the noise that he was hearing onboard the aircraft shortly after take-off, hence he had to make an air return.
According to Mr. Oke”I cannot specifically tell you what happened because I was not on the flight but I learnt that the captain was not comfortable with the noise that he was hearing from the aircraft, so he had to make an air return”
When asked if the noise or bang emanated from one of the two engines, Captain Oke said, ‘’there are several noises that can emanate from an aircraft and for now, we are not sure yet. You know, it could be from pressuration, it could be from the engines, it could be from the air condition, the hydrolic but we can’t say this was where the noise was coming from”
He added that there was no time the aircraft was in danger, saying the pilot flew the aircraft back safely and that they had not even gone up to Ibadan before the incident occurred and they had to come back to base.
Meanwhile, the General Manager, Med-View Airline, Mr. David Babatunde who also confirmed the incident pointed out that air return was normal in global aviation industry adding that the pilot took the best precautionary safety measures by returning to base.
Babatunde stated that the engineers were still looking at the cause of the incident and would submit their findings to the management and the regulatory authority (NCAA).
“On take-off, about 15 minutes in-flight, we had a bang on one of the two engines, an upsurge. So, the captain took a safety precautionary measure and decided to shut down the engine and return to base. The aircraft was heading to Abuja with 74 passengers.
http://www.vanguardngr.com/2013/01/medview-airline-makes-emergency-landing-after-take-off/

Gombe, Arik Air Collaborate For Daily Flights (Leadership)

Gombe State Government and Arik Air Ltd. will partner to ensure daily flights from Abuja to Gombe, the
Commissioner of Works and Infrastructure, Alhaji Hadi Shehu, has said.
Shehu disclosed this to the News Agency of Nigeria (NAN) in Gombe on Friday.
He said that Gov. Ibrahim Dankwambo had granted the approval for the Memorandum of Understanding (MoU) which would boost air traffic in the state through the Gombe Airport.

``The ministries of finance; commerce and industries; and justice are already reviewing a lot of proposals we have received from the directives of the governor to see whether we can actualise some of the MoUs we want to enter with people who want to provide ground handling services.
``We are already looking at the possibility of entering into an arrangement; we just got the approval of his Excellency.

``We are going into an arrangement with Arik Air, the only airline now operating in Gombe, to see that we sustain their operations on daily basis.
``They can bring their aircraft, the last flight from Abuja and first flight in the morning.
``An average Gombe resident can go to Abuja and do his business and come back the same day.

On the technical staff at the airport, the commissioner said that there were no adequately trained personnel but that the ministry was thinking of entering into some kind of concessionary arrangement.
According to him, the arrangement is aimed at ensuring that there are available flights in the state.
``As it is now, we are more or less operating like a social service, we need to link with Abuja or other areas in the country and then we need to come back to Gombe.’’
On the state of facilities at the airport, Shehu said that there was a provision in the 2013 budget to upgrade the facilities.

``What we have is a landing stream, you have a place where you can receive visitors, but to say that we have real terminal which depicts an airport, we are yet to go there.
``So what we want to do now is to upgrade the present so-called international terminal to really have an international outfit,” he said.

The commissioner said that the government was thinking of establishing either a board or an agency to coordinate the activities of the airport to boost revenue generation.
He said that the vision of the ministry was to develop the airport into a regional airport where states in the North-East could use it.
``The thinking is based on the fact that Gombe state is a hub of economic activities in the region, hence the need to boost its air travel system.

http://www.leadership.ng/nga/articles/46114/2013/01/26/gombe_arik_air_collaborate_daily_flights.html

Private jet flights, fastest growing in aviation – FAAN written by Oyetunji Abioye (The Punch)

The Managing Director, Federal Airports Authority of Nigeria, Mr. George Uriesi, has said private jet flights are the fastest growing in the aviation industry.

Uriesi, who spoke at the opening of the General Aviation Terminal (Private and chartered aircraft terminal) at the Nnamdi Azikiwe Airport, Abuja, on Monday, said the agency had concluded plans to build five additional private jet terminals across the country.

This, he said, would be sited in Kaduna, Port Harcourt, Enugu and Yola.

The managing director, in a speech presented at the opening, a copy of which was obtained by our correspondent on Tuesday, said the new GAT in Abuja would help the agency to process scheduled (private and chartered jet travellers) and non-scheduled passengers (commercial aircraft travellers) at separate terminals.

He said, “Private jet flights experienced the largest growth in the two years. All over the world, they give private jet operators their own terminals because they are commercially important people. These are people who want to make a better use of their time by going on private jets instead of experiencing delays associated with boarding the regular commercial flight.

“The Abuja GAT is part of the vision to create a one-stop shop for our private jet customers. They will be transported by Limo from the terminal to the foot of the aircraft. We will charge them moderate fees.”

Uriesi said the Abuja GAT marked the commencement of general aviation services at the Nnamdi Azikiwe International Airport since its inception in the early 1980s, even though it is the second busiest airport in the country, after the Murtala Muhammed Airport, Lagos.

According to him, the Abuja airport has had to contend with decaying infrastructure and obsolete facilities that belie its position as the second busiest in the country, apart from being situated in the nation’s capital city.

He said, “What was then the airport’s domestic terminal operated both scheduled and non-scheduled flights using the same tarmac and terminal facilities. The resultant congestion did not augur well for efficient service, hence the need to separate the services into two terminals. Domestic flight operations were transferred to a wing of the international while the old domestic terminal was to be remodelled to serve as the General Aviation Terminal, for more efficient service delivery.”

The FAAN MD explained that the new arrangement was made possible by the advent of airport remodelling project initiated by President Goodluck Jonathan.

He said, “Work on the remodelling of this new General Aviation Terminal started in October, 2010 and was completed early this month. The project entailed the expansion of the old domestic terminal and its conversion to a general aviation terminal for non-scheduled flights. The new terminal has a full complement of modern terminal facilities including check-in counters, shops, offices, duty rooms, conference centre, dining room, kitchen, security screening machines and lounges, including a separate lounge for pilots.”

He said, “By today’s opening, scheduled and non-scheduled flights at the Abuja Airport will take place at two different terminals, creating opportunities for huge improvement in service delivery by FAAN and other service providers in the aviation industry.

“It is our hope that the completion of the first and second phases of the airport remodelling project will transform Nigerian airports into a haven for viable private investments. We hereby invite all well meaning investors to join hands with government to hasten the fulfilment of this dream.”

http://www.punchng.com/business/transport/private-jet-flights-fastest-growing-in-aviation-faan/

Price War among Domestic Airlines May Impair Safety wriitten by Chinedu Eze(Thisday)

Since the resumption of flights by Dana Air and the earlier joining of scheduled passenger service by Med View Airlines, air fares have crashed on the local routes.

Obviously this should be a delight to passengers but industry experts point to the safety implications of introducing low fares that cannot even offset operational costs.

This may lead to the demise of the airlines over time. But the immediate consequence is that the airlines will begin to cut corners on maintenance as there will be no available fund to pay for major aircraft maintenance.
Another factor is that it will affect replacement of aircraft parts as airlines would be tempted to recycle aircraft parts and the consequence is another cycle of air crashes and deaths that outlines the history of air transport in Nigeria.

THISDAY learnt that the lowest fares in the domestic transport market is the one charged by Dana Air, which is N9,000; Med View low fare is N14,000, while Aero is forced to bring down its fare to N16,000 and Arik is considering crashing its own fares as it is now losing passengers to the other airlines.

Industry expert and seasoned pilot admitted that hitherto, the domestic carriers overpriced themselves, but present reality indicate that such high prices must have to come down, “but not to the ridiculous level that you cannot offset your operational cost.”

The pilot recommended that ideal fare for one hour flight should be N20, 00 so that the airlines would be able to offset operational cost and have funds to effectively maintain their aircraft and pay their workers.
But this amount is still considered high by the passengers who believe that well-organised domestic market should have fares as low as N15, 000, if government is able to bring down the cost of aviation fuel and also waive some of the charges levelled on domestic operation.

The pilot blamed the low pricing to lack of economic oversight and said that if the Nigeria Civil Aviation Authority (NCAA) is monitoring the pricing of the airlines, it would ensure that fares were not brought as low as it would affect the operations of the airlines and threaten safety standards.

NCAA told THISDAY on Wednesday that it would investigate the prices and to know whether to stop the airlines from charging such fares or not.

The regulatory body also noted that it approved the promo fares that some airlines have adopted, noting that the online low fares are offset by the high fares sold at the counter; but presently it is only Aero that is on that promo.

The pilot, who considered N20, 000 as safe fares said that fares are calculated by six per nautical mile, which is a term also used by international airlines and this is multiplied with the number of seats in an aircraft and the price of one seat is determined.

“Then you add navigational charges, passenger service charge, five per cent ticket sales charge and cost of fuel. When you add all these you know that N20, 000 should be a fair fare for both the airlines and the passengers because the airline has to exist first and operate safely for it to airlift passengers. Passengers anywhere in the world will always go for low fares, however,” the pilot said.

http://www.thisdaylive.com/articles/price-war-among-domestic-airlines-may-impair-safety/136726/

Affected families lobby passengers to boycott Dana Air over safety written by RITA OBODOECHINA(Vanguard)

Forty families of  dead victims in the Dana plane that  crashed on June 3rd, 2012 have called for a boycott of the airline by air travellers, following irregularities recorded in the compensation of the victims’ families.
Speaking through M.O. Awoyemi & Co. the law firm representing their  interests, the  families said, “If you love your life, boycott Dana Airline. You owe it to yourself and your family. We want to call on all well meaning Nigerians to condemn the resumption of Dana Airlines and we  call on the House of Representatives to summon the Aviation Minister, Mrs. stella Oduah on this issue and ensure that Dana Airline operating license is withdrawn in line with the resolution of the House of Representatives.”

Mr. Bunmi Awoyemi, Managing Partner of the law firm  fingered Prestige Assurance Plc and its re-insurer of 70 per cent of the risk, Pritchard Insurance Limited/Lloyd’s of London in the irregularities associated with the compensation, blaming them for instructing their solicitors to pay only $30,000 per family, irrespective of whether the families lost more than one person in the crash.
According to him, only 13 of the 40 victims have been paid $30,000 per victim, while only 80 victims’ family members have been paid any form of compensation.

“Many of the 80 include families which lost multiple members of their families to the crash. For such families most of them were paid $30,000 per family instead of the mandatory $30,000 per victim in order to discourage them from suing in the United States.
“They deliberately want to postpone the remainder to be included with the balance of $70,000 they are offering in order to make victims family members sign off their rights to a law suit. They are doing this despite the fact that the Civil Aviation Act makes the payment of $30,000 per victim mandatory and payable within 30 days of any fatal air crash.

“This action is being perpetrated by Prestige Assurance Plc and its Re-insurer of 70 per cent of the risk, Pritchard Insurance Limited/Lloyd’s of London, who have instructed their solicitors to pay only $30,000 per family which explains why the Oyosoro’s and Ibe’s were each paid $30,000 each instead of $60,000 despite the fact that they each lost two family members each. As of today only one more of our remaining clients have been paid.”
http://www.vanguardngr.com/2013/01/affected-families-lobby-passengers-to-boycott-dana-air-over-safety/

IATA announces growth in air passenger, freight business written by Chika Goodluck-Ogazi (The Guardian)

THE International Air Transport Association (IATA) has announced that traffic results for November 2012, which showed an improvement in both passenger and air freight demand stated that air travel was 4.6 per cent higher compared to November 2011, up on the October result of 2.9 per cent.
According to IATA, airfreight volumes edged up to 1.6 per cent over the same period after declining 2.6 per cent in October, year to year.

It added that passenger capacity rose 3.2 per cent and load factor improved one percentage point to 77.3 per cent compared to the year-ago period.
The Director General and Chief Executive Officer, Tony Tyler said, “November brought some positive signs for air transport demand particularly for air cargo. It is premature to consider this a turning point for air cargo markets in terms of bouncing back and regaining lost ground.

“But, when coupled with positive economic developments in the U.S and an improvement in business confidence in recent months, the conditions are aligning to see a return to growth in 2013. In 2013 we expect that cargo volumes will grow 1.4 per cent and passenger traffic will increase by 4.5 per cent worldwide.

“Passenger markets have held up better than cargo in the face of adverse economic conditions. But the current level of air travel is just 2 per cent higher than at the start of 2012. This is considerably weaker than the long-term average growth rate,” he added.

Compared to October, IATA noted that November passenger traffic grew 0.6 per cent. It also stated that the majority of growth came from domestic markets, particularly China.

The body said that November airfreight volumes increased 2.4 per cent on October, stressing that this reflected a shift in seasonal shopping to online retailers, which depend heavily on air cargo.
It also showed improved consumer confidence in the U.S. Seasonally-adjusted air freight volumes have now risen back to the levels of mid-2012, after declines in the third quarter.

IATA further noted that African airlines saw demand expands 5.0 per cent year-on-year but capacity growth was held in check, at 4.4 per cent. While load factor rose 0.4 percentage points to 64.7 per cent but remains the lowest of any region, compared to October, African traffic was up just 0.1 per cent.
http://www.ngrguardiannews.com/index.php?option=com_content&view=article&id=110057:iata-announces-growth-in-air-passenger-freight-business

Govt is Frustrating Nigerian Airlines, Says Arik Chairman written by Chinedu Eze (Thisday)

The Chairman of Arik Air, Joseph Arumemi-Ikhide, has said it is wrong to describe Nigerian airlines as 

weak, when  the government is frustrating them.

Arumemi-Ikhide stated this on Wednesday at Arik Air headquarters in Lagos, at a meeting between the

airline and the government of Cote D’Ivoire, which planned to partner the Nigerian carrier to expand its

operations in Africa.

He said there were things government must do to enhance the operations of the local operators and it was

expected that government should carry out these responsibilities to reposition the airlines to operate

profitably and successfully.

The Arik Air chairman gave an example of  the waiver on imported aircraft and spares, which government

announced recently saying that it was yet to be enforced and urged the Nigerian Customs Service to enforce

the new policy.

Arumemi-Ikhide also noted that the aircraft in the airline’s fleet was underutilised because in many airports in

the country there is no airfield lighting; so airlines are forced to terminate their operations by 6.00 pm even

when passengers are yearning to be taken to these destinations.

Arumemi Ikhide described the visit of officials of Cote d ' Ivoire as positive, which confirms the stride the

airline is making in the continent, adding that the airline is a good model for other African carriers to emulate

and called on government to continue to support local operators.

Speaking at the event, the officials of Air Cote D ' Ivoire , the new carrier in the French speaking West

African country, said they visited Arik Air to seek ways of exploring mutual partnership between the two

carriers to resolve the problem intra Africa connections.

The officials led by General Coulibaly Abdoulaye, who is chairman of the Air Cote D’Ivoire explained that

the visit to Arik Air has afforded them the opportunity to learn how to run a service driven airline, which

would become a model in Africa.

He explained that the partnership would also equip the carrier with the strategy of achieving how to build a

hub for the southern part of Central Africa, remarking that since the former regional carrier, Air Afrique

collapsed, there had been no direct air link between Nigeria and Cote D’Ivoire.

He further explained that the best model for building stronger airlines in Africa was  through partnership

among carriers, insisting that the visit to Arik Air has afforded the officials the window to obtain first-hand

experience of running a service oriented airline.

He explained that after the visit, both Arik Air and Air Cote D’ Ivoire would work out a template for mutual

cooperation, which he said was key to running a solid carrier.

“We are pleased with what we have seen today at the airlines premises, it is a positive surprise. We are

pleased to meet an airline that is serious, well-managed, and cost-effective as the basis for future business in

Africa."

The Director-General of Air Cote D’Ivoire, Rene Decurey, who was highly impressed by the operations of

the airline and its modern, state-of-the-art facilities said that Arik Air would assist the new airline to open

market in English-speaking parts of the African continent.

“We want to know how Arik can help us develop the market in English speaking areas of Africa. Nobody is

exploiting the routes between Nigeria and Cote d’Ivoire. After (the defunct) Air Afrique our airline wants to

retain its routes.”

http://www.thisdaylive.com/articles/govt-is-frustrating-nigerian-airlines-says-arik-chairman/135982/

Bail-out: Airlines seek involvement in aircraft acquisition written by Oyetunji Abioye(Punch)

Domestic airlines in the country have canvassed their full involvement in the plan by the Federal Government

to acquire 30 aircraft for local operators.

The Ministry of Aviation had said the government was ready to bail out the aviation industry by acquiring 30

new aircraft for domestic airlines to enable them re-fleet.

The Assistant General Secretary, Airline Operators of Nigeria, Alhaji Muhammed Tukur, said at a press

briefing in Lagos on Wednesday that the plan was laudable, but there was the need for the ministry to

involve the airline operators in the project since they would become the ultimate users of the aircraft.

Tukur said, “We are the ones who are going to use the aircraft. We know the type of aircraft we want. The

government needs to involve us fully in the entire process. We have had several meetings with the

government on this matter, but I think we deserve to be involved more in the entire process more than they

way they are currently doing it.

“The idea is good but the minister needs to repackage it in a better way that the intended purpose will be

achieved. The ministry should sit down and re-organise the programme. Is government trying to set up a

leasing company for the proposed aircraft or not? This is one of the things we need to know. And then, the

Nigerian Civil Aviation Authority needs to be fully involved.”

The AON also said the ministry should always come out to inform the public of any policy it had for the

sector, especially as regards the airlines, and not through the Federal Airports Authority of Nigeria, as being

currently done.

Tukur also gave an assurance that airfares would soon come down in the country, adding that the return of

some airlines, including Dana Air, had set the pace for healthy competition among operators.

He, however, said some unscrupulous airline operators were not happy with the return of the airlines,

alleging that they had engaged in “unhealthy practices to sabotage the flight operations of other operators.”

The development, he said, informed the by AON on the Federal Government to beef up security around

airlines and aircraft in the country.

http://www.punchng.com/business/business-economy/bail-out-airlines-seek-involvement-in-aircraft-acquisition/

Nigeria’s airports record 13 million passenger traffic in 2012 written by Chika Goodluck-Ogazi(The Guardian)

DEMAND for air transport services has continued to increase by the year, going by the latest record of air

travellers in the country, as released Wednesday by the Federal Airports Authority of Nigeria (FAAN).

The authority said it recorded about 13. 4 million passengers that travelled through the country ‘s airports

last year, against 11 million people that used the gateways in 2011, representing an increase of 2.4 million.

The traffic report for 2012, as released yesterday, was jointly signed by FAAN’s officials- Mrs. Abiola

Alaka and Mr. Lawal Abdulahi.

The breakdown of the figure showed that arrival and departure recorded 6.9 million and 6.5 million

passengers respectively. It also added that the authority was maintaining ``an international standard of

security’’ in all its airports to increase the number of passengers, as well as making the airports safe and

comfortable for passengers.

It noted that the management recorded high patronage in April, May, June, July and December 2012, and

had put in place measures to ensure high record of passengers in 2013.

According to the report, “Yuletide period was the peak period that the management recorded high

patronage as travellers came into the country for holidays”.

It added that FAAN had been working closely with security agencies, including the Police, Customs,

Immigration, National Drug Law Enforcement Agency (NDLEA) and the armed forces, to ensure adequate

security of all passengers

Speaking in Lagos recently, the General Manager, Corporate Communications, FAAN, Yakubu Dati said:

“At present, the authority is focused on the reconstruction of 22 airports across the country as initiated by

the Minister of Aviation, Stella Oduah-Egiewonyi. The Lagos terminal 1, popularly known as GAT has since

been commissioned while the remaining airports are at different stages of completion. Work on the remaining

11 airports in the 2nd phase will soon begin”.

According to him, the modalities are being fine-tuned, to checkmate the abuse of the aviation intervention

fund.

“This strategy will plug the loophole that allows fortune seekers free access to these funds.

“Some airports have been designated as agro-allied and cargo terminals to promote investment and make

them self-sustaining.

“In the area of safety and security, modern security equipment have been procured following a

comprehensive security threat and vulnerability assessment.

“The year 2013 will witness the construction of brand new airport terminals in Abuja, Lagos, Kano and Port

Harcourt, and the commencement of the Aerotropolis project; a concept that involves building cities around

airports, and thus connecting businesses, suppliers, executives and goods to the aviation global world”, he

added.
http://www.ngrguardiannews.com/index.php?option=com_content&view=article&id=110002:nigerias-airports-record-13-million-passenger-traffic-in-2012

Airlines to Earn N4 Trillion from Nigeria in 2013 written by Chinedu Eze(ThisDay)

                                                                  Arik  Airline

With the coming of more airlines, both on the domestic and international routes, passenger movement increase to over 18 million and a boost to cargo services with the designation of new cargo airports, the aviation industry is projected to generate about N4 trillion in 2013.

If the Federal Government approves, British Airways may increase its frequency to Lagos this year and Emirates will add another aircraft to its operations, the same with Ethiopian Airlines. This is in addition to new foreign airlines that have applied to operate into the country.

Also, Arik Air, which has deepened its operation in Central Africa and expanded its services in West Africa, is expected to bring in more passengers from these regions to Lagos to connect to international destinations.

Available figures indicate that the total amount of revenue generated by foreign and domestic airlines, charter services and cargo operations in Nigeria is over N3.5 trillion or $25 billion annually.

This is expected to increase this year after the slur in market witnessed last year because of the tragic crash of Dana Air flight and the suspension of operations by Air Nigeria, Chanchangi and First Nation Airways, which hiked fares and literally chased many potential air travellers out of the airports.

The N4 trillion would come from passenger tickets, cargo freight charges, payment for charter services and revenues generated by government operators or service providers.

The government operators or service providers include Federal Airports Authority of Nigeria (FAAN),  Nigeria Civil Aviation Authority (NCAA) and  Nigeria Airspace Management Agency (NAMA) that earn about N300 billion or $2 billion annually in the previous years, from passenger service charge, landing and parking, navigational charges and others. These agencies’ revenues are expected to increase by 15 per cent.
By end of December last year, passenger movement on international routes rose to six million and that was the highest increase recorded in the nation’s air transport history, but this may increase to eight million this year.

In 2011, FAAN recorded over 12 million passenger movement and 234,235 aircraft movement and out of the over 12 million passengers, only four million were international passengers, which increased to six million by 2012.

Also, last year, passenger movement in the domestic routes was less than what was obtained in 2011 because of the slump immediately after the crash of Dana Air flight 0992, which killed 163 people, but it picked up from October, reaching its peak in December at almost the same figure with that of 2011.

Besides, foreign airlines operating into Nigeria repatriated over N164 billion to their various countries in 2010; earned over N250 billion in 2011 and it is projected that the figure may have doubled in 2012 because of increase in passenger movement, higher load factor and smooth operations from January to December.

FAAN said that with the installation of new carousel, the expansion and modernisation of airport facilities, there is ease in passenger facilitation.
Also, it is expected that more international airlines will start operation at the Mallam Aminu Kano International Airport, Kano, which will also boost the total revenue available to the industry.

http://www.thisdaylive.com/articles/airlines-to-earn-n4-trillion-from-nigeria-in-2013/135311/

Govt to acquire planes for domestic operators written by Alemma-Ozioruva Aliu(The Guardian)

TO boost domestic flights and cushion the effects of high airfares in the country, the Federal Government said it would soon acquire 30 aircraft, just as plans have reached advanced stage to remove abandoned aircraft in the country’s airports.
The General Manager, Corporate Communications, Federal Airports Authority of Nigeria (FAAN), Dati Yakubu, revealed this Wednesday in Benin- City, stating that the Federal Government would purchase the aircraft through the aviation fund being managed by the Central Bank of Nigeria (CBN) and the Bank of Industry (BoI).
He said direct disbursement of funds was being abused hence the Federal Government decided to acquire the aircraft and hand them over to local airline operators. According to Yakubu, “the issue of assisting domestic carriers is important and that is why the Federal Government removed tariffs and taxes on aviation spare parts.
“This is to help domestic airlines operate profitably and make it attractive for investors because spare parts are a major cost component in the aviation industry.”
He reiterated government’s commitment to making the country’s aviation industry a hub in the African continent. On abandoned planes across airports in the country, he said: “We have given the ultimatum for the owners of abandoned aircraft to remove them because they constitute menace to our airspace and airports.
“They are dangers to the flying publics because they may be places where these birds could hide. We have also discovered that some of the aircraft have litigation issues around them, some of them were used as collateral for loans.
“Such things are being handled by our legal department and as soon as those issues are resolved, the planes will be moved. We also try to advise owners that there are several creative ways in which they can use them. We are in the age of recycling and they are built with plastics and metals and that can be done profitably.
“But definitely, when the period we give elapses, FAAN will take action to ensure that we clear our spaces of abandoned aircraft because it does not fit into the aviation master-plan.”
http://www.ngrguardiannews.com/index.php?option=com_content&view=article&id=109375:govt-to-acquire-planes-for-domestic-operators