Thursday, October 15, 2015

Kenyan Airways Staff arrested with 3.1kg Substance at Lagos Airport


Officials of National Drug Law Enforcement Agency(NDLEA) have arrested a clearing agent working with Kenyan Airways as a profiler at the Murtala Muhammed Airport (MMIA) Lagos over unlawful exportation of  3.1kilogrammes of Cannabis to Dubai , United Arab Emirates.

 The official said they detected the suspected dried weeds that tested positive for cannabis packed as gift items in a consignment of foodstuff meant for export as cargo shipment.

 Ahmadu Garba, NDLEA airport commander said the discovery was made when suspect Sumaila Enanche brought the consignment for pre-shipment examination.

 According to him “the suspect was arrested during screening of cargoes at the airport. We found three parcels of cannabis beautifully packed as gift items weighing 3.1kg inside a consignment he brought for export to Dubai through Kenyan flight”
 
Source: Businessday

Tuesday, October 6, 2015

Angst over NCAA’s N150m boardroom refurbishment

 
  • Purchases 150 units of office chairs at N10m
In a bid to come out of its financial crisis, The Nigeria Civil Aviation Authority (NCAA) has put in place system to block leakages at the agency. The aviation regulatory body had been in financial crisis leading to its inability to train workers and send inspectors to oversight aircraft.
In the last three years until now, the NCAA had struggled to pay salaries. The issue came to a head during the scandal over the purchase of two bullet proof cars at a whooping N255 million which saw to the sack of a former Minister of Aviation and some chief executive officers of NCAA, the Federal Airports Authority of Nigeria (FAAN), the Nigerian Airspace Management Agency (NAMA) and the Nigerian College of Aviation Technology (NCAT), Zaria.
This is coming amid revelation of huge financial misappropriation that took place in the agency between 2013 and 2014. A source close to the Ministry of Aviation told journalists under strict condition of anonymity that the agency under one of its Acting Directors-General (names withheld), refurbished the agency’s boardroom with the sum of N150 million The amount, the ministry source said, was enough to build the agency’s headquarters and wondered why the same amount could be used to refurbish “just a boardroom.”
The source disclosed that the Permanent Secretary, Ministry of Aviation, Hajia Binta Bello, had been informed about the ‘fraud’ and currently carrying out investigations to unravel what occurred in the agency in the last two years. The source hinted that when the current Director-General, NCAA, Capt. Muhtar Usman, assumed office about a year ago; he refused to use the office and equally declined to approve the sum for the contractor.
It was not clear who approved the amount. Apart from this, the source disclosed that a portakabin, which was initially taken to Abuja Airport from Lagos was allegedly returned to Lagos at N12 million with due approval from a former acting Director-General. The source alleged that in an attempt to return the portakabin to Lagos, it got damaged and like the previous one, Usman refused to append his signature on the N12 million demanded by the contractor, stressing that acquisition of new portakabin won’t cost the agency a quarter of the contractual amount.
Besides, it was disclosed that the sum of N10 million was equally approved for the purchase of 150 units of office chairs by the former management between 2013 and 2014. In a bid to block all the loopholes, the ministry source told our correspondent that Usman suspended acceptance of Industrial Trainees, ITs, in the regulatory agency, purporting that some of the management staff were using that avenue to siphon money from the system.
The source said: “The intake of ITs was stopped by Usman immediately he resumed in office about a year ago because it was discovered that we have several ghost IT students in the system who have finished their programme, but some people in the system were still using their names to draw out money from the agency.
“This money ran into several millions of naira monthly, which could have collapsed NCAA if it was not suspended. Those still doing IT with us now are those who have been in the system before he resumed. “On resumption also, Usman stopped illegitimate drawings from the Duty-Tour-Allowance, DTA, and now allowed for only mandatory inspectors to embark on trips or inspection outside the country.
All these have helped the system to stabilise.” The source reiterated that within a year, Usman had increased revenue profile of the agency while the regulatory authority was gradually coming back on track. Spokesman NCAA, Mr. Sam Adurogobye, declined to comment.
Culled from NewTelegraph

Friday, October 2, 2015

Arik Air is a Very Healthy Airline not Bankrupt


Arik Air has condemned reports published recently by a site alleging that the airline is in financial trouble and may be going bankrupt.  
 
According to a statement released by the airline"This false and malicious publication is the handiwork of fly-by-night social media sites trying to ride on the popularity and huge followership of Arik Air, to attract attention or relevance to their sites.  These harbingers of bad news in their senseless sensationalism and quack journalism would stop at nothing including pulling down national institutions, and icons, in order to achieve their narrow pecuniary interests and those of their desperate sponsors.  Arik Air is not deterred by this smear campaign.  The airline has been steadily operating over one hundred flights on a daily basis which are being increased to one hundred and ten from the on-set of the winter season".

The statement continues"We have already launched expansion into cities such as Abidjan, Monrovia, Cotonou and Douala which are being further increased to weekly frequencies from this week onwards and therefore find it ridiculous for anyone to suggest that the airline is going bankrupt. Our long haul international flights to London and Johannesburg continue to be operated on a daily basis without any issues along with New York JFK which is flown three times per week.

Reports of mass resignations of pilots and cabin crew are also totally inaccurate. We have gathered that certain elements of society who are envious of what we have accomplished since our commencement of operations, want to discredit us to strengthen our competitors".

The statement revealed that the airline has recently concluded a new deal with Lufthansa Technik who will be maintaining their fleet of 28 airplanes uptill 2019. It also states that Arik Air is  taking delivery of 2 brand new Bombardier Dash 8 Q400 aircraft this winter season to further expand their domestic services and launch new services within Africa to cities such as Libreville.

"We are Nigeria’s and West Africa’s largest carrier in terms of aircraft fleet, revenue generation,passenger numbers, as well as offering the highest number of weekly flights out of Lagos, Abuja, and Accra airports. Thus we are also contributing to the economic growth of Nigeria, and our neighboring countries like Ghana, Senegal, Gambia, Cameroon, Benin, and other West African Countries.

Arik Air is the only airline facilitating direct links between Ghana and Senegal by operating three weekly nonstop services between Dakar and Accra using a Boeing 737NG alongside three weekly flights to Monrovia from Accra.

We would like to once again state that the airline is not under any abnormal financial or operational difficulties and wish to assure passengers of the high level of safety and customer service that we have been providing since inception in 2006".

'Aero Contractors' Assets Were Overpriced'

The Asset Management Corporation of Nigeria (AMCON) may have lost about N25 billion for taking over the debts of Aero Contractors, one of Nigeria’s major airlines, according to sources familiar with the deal, who said the assets worth less than N4 billion, but were overpriced.

According to Thisday, investigations revealed that AMCON after paying the huge amount of money controlled only 40 per cent stakes while the Ibru family retained controlling share of 60 per cent until AMCON re-evaluated the sale and took over 90 per cent stakes.

Initially AMCON was asked to pay N35 billion for the assets including what the source described as the company’s goodwill, which was outrageously put at billions. It was gathered that the government agency paid N29 billion, but industry sources said at the time of the transaction, the total assets of Aero was about N4 billion.

“What are the criteria for buying over a debt that cannot be substantiated in assets and at the same time give the Ibru’s 60 per cent of the stakes? But now, it has been taken up to 90 per cent controlling shares and that was why they wanted to make the airline a national carrier after it was re-evaluated by AMCON,” an industry source told THISDAY.

According to the source, AMCON’s decision to pay so much to take over the airline was not a good one, given that the money could have been enough to start five new airlines.

“The money AMCON paid was enough to float at least five new airlines with each one operating not less than five Boeing 737 aircraft on lease. But now that the organisation has taken over the majority shares of the airline, it has set up new set of people to run the airline. The account manager is now taking decisions and there is an effort to turn the airline around,” the source added.

THISDAY also learnt that Aero is yet to get out of its financial quagmire. Out of about 10 aircraft in its fleet, only five are operational while the others need maintenance.

Aero is the oldest airline in Nigeria that is still in operation and it really commands goodwill and royal customers. Aviation experts have expressed the hope that with the new management in place, the airline would be “built into a strong airline that would take back about 29 per cent of its market share in due time.”

But the airline, THISDAY gathered may over time make a positive turnaround but the new management is said to be unwilling to accept more credit from AMCON, which has expressed intention to inject more funds into the airline.

“I am not sure that the aircraft on ground have engine problems but they all need maintenance and the airline needs money, but I learnt the management is not willing to take money from AMCON and banks are no more willing to lend money to airlines these days. Perhaps, the management thinks that it can soldier along with the aircraft they already have and as they generate revenue they carry out repairs until they are able to bring all the aircraft into service,” the source said.
Culled from Thisdaylive.com

Wednesday, September 30, 2015

Arik Air set to resume flight services to Monrovia October 5


Arik Air, Nigeria and West Africa’s largest carrier, is resuming flight services to Monrovia, Liberia
from October 5, 2015.
According to a statement from the airline, flights to Monrovia were suspended in July 2014 in the

wake of the outbreak of Ebola virus disease in some West African countries. 

Arik Air said it will be operating three weekly flights from Lagos to Monrovia via Accra, Ghana on

Mondays, Wednesdays and Fridays. Outbound flights will depart the Murtala Muhammed

International Airport, Lagos at 7:20 am (local time) and arrive in Accra at 7:20 am (local time).

The flight leaves Accra at 8:05 am (local time) and arrives in Monrovia at 10:05 am (local time).

The statement continued that Inbound flights will leave Monrovia at 10:50 am (local time) to arrive
in Accra at 12:50 pm (local time).
The flight thereafter departs Accra at 1:35 pm (local time) to arrive in Lagos at 3:35 pm (local time).
The route will be serviced with a Boeing 737-700 Next Generation (NG) aircraft configured to seat

12 passengers in Business Class and 112 passengers in Economy Class.

Arik Air’s Deputy Managing Director/Senior Vice President Operations, Captain Ado Sanusi
commented:“We are pleased to welcome back our passengers on the Lagos-Monrovia route and want to assure them that their safety and security is always our top priority.”

Aviation can boost Nigeria's GDP with favourable policies -- Experts


Aviation experts said on Tuesday that the industry was capable of boosting Nigeria's Gross Domestic Product (GDP), if the government could formulate favourable policies.
In separate interviews with the News Agency of Nigeria (NAN) in Lagos, the experts who reviewed the performance of the sector ahead of the country's 55th Independence anniversary on Oct. 1, said that the aviation industry had not made much progress.
They attributed the situation to undue interference in the activities of the regulatory agency and lopsided air services agreements.
Capt. Nogie Meggison, President, Airline Operators of Nigeria (AON), said the industry was still at infancy stage and does not have a clear direction of its vision.
"Since after Independence, we have not made much progress. We are hoping that this administration would look at aviation and wake up the sleeping giant.
"The aviation industry can contribute to our GDP and create employment but the government has just put it in a comatose position, where it is not adding value to the country."
According to him, the bulk of the money generated in the industry is taken out of the country by foreign airline operators.
He expressed optimism that the administration of President Muhammadu Buhari would bring about the desired change in the industry by appointing an aviator to head the aviation ministry.
Similarly, retired Capt. Dele Ore, a former President of the Aviation Round Table (ART), said Nigeria should review its Bilateral Air Services Agreements.
"Everything is now in the hands of the government to make the industry favourable for our domestic airlines so that they can compete.
"The policies on ground are hampering their operations, especially the issue of multiple entry points. The domestic carriers have a low revenue base because of that.
"I believe that they should be in a position to be part of some global alliances which is missing now."
Ore also called for full autonomy for the Nigerian Civil Aviation Authority (NCAA), to enable the regulatory agency to perform its statutory duties more efficiently.
culled: nannewsnigeria.com

Friday, September 18, 2015

Key players caution govt against owning national carrier

Key players across the aviation sector have unanimously agreed that the Federal Government should not own, but help midwife a national carrier for the Nigerian air travellers.
This was contained in a communique issued at the end of a breakfast meeting organised by the Aviation Round Table (ART) in Lagos on ‘Ownership, Funding & Sustainability of Nigeria Airlines - A Perennial Challenge’ held in Lagos.
Among other decisions embraced at the gathering include: the advise for Nigeria to have two to three national airlines, while two must revolve around the existing carriers, and that the government should not only support, back and protect all flag carriers, but should also provide a level playing field for all carriers.
It was also agreed that the government should create an enabling environment for airline industry to thrive, while key players at the event called on government to stop the usual Value Added Tax (VAT) on airline tickets as is the case in all forms of transportation.
While calling on government to have a measurable short, medium and long term policy that will advance and guide the sector, the key players declared: “We must strive to improve the aviation contribution to the GDP through improved and revised policies that will inculcate tourism.
“Government should consider the consolidation of the airlines through regulations. Government should set in motion the process of reviewing the Bilateral Air Services Agreements (BASA) in place which is lopsided and detrimental to Nigerian carriers.”
It was also agreed that there was the need for urgent modalities for having a requisite hangar to reduce maintenance cost of the Nigerian airlines just as the Nigerian carriers were advised to improve the customer experience and services which is not encouraging while efforts should be geared at implementing a Fly Nigeria Act in future to sup- port our flag carriers.
Culled from tribuneonlineng.com
 

BASA: FG Loses N50.4 Billion to Foreign Airlines

 


 

IATA-logo.jpg - IATA-logo.jpg

International Air Transport Association

 
The decision of the Ministry of Aviation to scrap the payments of royalties from Bilateral Air Service Agreement (BASA) in response to the request of the International Air Transport Association (IATA), has cost the federal government about N50.4 billion between 2014 and now.
BASA funds are paid by airlines that operate into countries that do not have corresponding airlines that fly the same number of frequencies to the home of the other operators. And an offshoot of Bilateral Agreement is commercial agreement which in many other nations is negotiated by the national airline with the Civil Aviation Authority (CAA).
THISDAY learnt that European carriers championed the campaign for the abrogation of payment of royalties through IATA. However, while other countries were still studying the request, Nigeria hastily adopted the policy. Consequently, over 30 foreign carriers that operate into Nigeria do not pay royalties to government.
According to authoritative source from the Ministry of Aviation, the ministry which quickly spearheaded the scrapping of BASA funds did not introduce slot allocation as an alternative and which would have yielded more revenues to government. The source added that while Nigeria had since scrapped the payment of royalties, other countries still collect same from airlines that operate to their cities.
The source said that the decision was self-serving and was never done in the interest of the country, saying that rather some airlines might influenced selfish interests of officials in the Ministry of Aviation to quickly adopt the policy which deadline had not been given.
“Since the scrapping of payment of royalties there has not been any directive about what to do next. This will be handled by the Ministry of Aviation because it was the ministry that removed the payments, although in other countries it is the Civil Aviation Authority that negotiates BASA and frequencies with representatives of other countries. It is a peculiar situation in Nigeria that the Ministry has to do all these things,” the source said.
The source noted that since the scrapping of BASA funds there has been funding gaps because “we do not go to their countries,they come. We don’t have the capacity to operate international destinations, but the decision was taken too quickly by the Ministry of Aviation. Overseas, you deal with CAAs. It is even our officials that fly to those countries and negotiate when we do not have our airlines to benefit from it. They should have come here to negotiate with us, which is the way it is done elsewhere.”

The Executive Chairman of Airline Operators of Nigeria (AON), Captain Nogie Meggison had attributed the decision to scrap the BASA payment by the Ministry of Aviation to the many bad policies that had held the aviation industry down

“Till you correct that policy you cannot continue to chase the wrong end of the stick, you have to treat the fire and not the smoke. So capital flight is not our issue, foreign carriers coming to dominate our markets and weakening the local players is not the issue. The issue really should be the policy that is on ground. That is why I want the present government, and I encourage them to look at the policy governing aviation today. To start with, the BASA that governs our policy should be reviewed. Yes it is being signed by the external affairs but BASA is a trade treaty that should be taken seriously,” Meggison said.
 
Culled from Thisdaylive.com
 
 

Monday, September 14, 2015

Int’l Air Passenger Traffic Declined by 27.93% in Q2

Total international air passenger traffic dropped by 27.93 per cent or as much as 406,369 passengers in the second quarter of the year (Q2 2015) compared to the preceding quarter, according to the National Bureau of Statistics (NBS).

It said a total of 1,048,598 passengers were involved in international air travel in the quarter under review.

Domestic air passenger traffic, on the other hand, showed a marginal rise quarter-on-quarter by 16,752 passengers or 0.71 per cent more passengers who travelled in the second quarter than in the first quarter of 2015.


Total domestic bound air passengers for the period stood at 2,374,479 passengers, representing 69.37 per cent of the total number of passengers, up by 7.53 per cent from the preceding quarter but down by 1.35 per cent from the corresponding quarter of 2014.


According to NBS, the lower number of air passenger travellers in Q2 largely resulted in the overall decline in air passenger traffic which stood at 3,423,077 passengers in Q2 compared to 3,710,618 passengers in the previous quarter.


According to the Nigerian Aviation Sector Summary Report for Q2 2015 released by the statistical agency, the Murtala Muhammed Airport in Lagos continued to dominate domestic passenger travel in the quarter, accounting for 936,029 passengers or 39.42 per cent in the second quarter.


“Despite still recording passenger numbers lower than in Q2 of 2014, with year-on-year growth of 70,758 passengers or 7.03 per cent, quarterly numbers were up with a rise of 39,505 passengers or 4.41 per cent from the preceding quarter,” it added.


The Abuja airport had the second largest portion of Q2 domestic passenger traffic at 787,067 passengers or 33.15 per cent of the total, representing a decline of 58,176 passengers or 6.88 per cent year-on-year and a rise of 22,698 passengers or 2.97 per cent from the preceding quarter.


It noted that the airports to record positive year-on-year growth were Katsina, increasing by 668 passengers or 319.62 per cent; Owerri, which increased by 9,243 passengers or 11.12 per cent; and Yola, which increased by 1,121 passengers or 3.09 per cent.


The greatest quarterly passenger growth was recorded for Ibadan airport, in which an additional 10,249 or 222.08 per cent more passengers travelled in Q2 compared to Q1, increasing the total from 4,615 passengers to 14,864 passengers.


Also, aircraft movement was down in Q2 by 5,350 flights or 8.64 per cent from the preceding quarter, and by 7,746 flights or 12.04 per cent from the same quarter of 2014.


“The 56,599 aircraft that arrived and departed to and from Nigeria’s airports consist of 45,452 domestically bound flights, making up 80.31 per cent of the total, whilst the remaining 11,147 flights or 19.69 per cent were internationally bound,” it stated.
culled from Thisdaylive.com
 

NCAA Set to Register Aviation Fuel Marketers

The Nigerian Civil Aviation Authority (NCAA) has announced plans to  commence full registration of all the aviation fuel marketers in order to profile, identify and monitor the activities of each company to ensure quality that the quality of jet A1 supplied to airlines is not compromised.
A statement from the agency said the Director General of the authority, Captain Muhtar Usman, had signed all the modalities and prerequisite in readiness for the exercise.

According to the statement, all existing aviation fuel suppliers would be required to register and regularise their operations with the NCAA while new entrants would be required file fresh application with the same requirements.

This action is obviously connected with the recent controversies raised by one of the oil marketers concerning the quality of Jet A1 supplied to airline operators.
The director general has charged the relevant departments and officials of the authority to quickly hold a meeting with the marketers and all the stakeholders to sensitise them on the guidelines and requirements for registration prior to the exercise.

Friday, September 4, 2015

Arik Air offers to sponsor Larry Ekundayo’s fight in Nigeria


Coach Daniel Adekunle (left), Olusegun Ajose, Chairman Arik Air, Sir Joseph Arumemi-Ikhide, Larry Ekundayo and Deputy Managing Director of Arik Air, Captain Ado Sanusi, during the visit of the London-based Nigerian Boxers, Larry the Natural Ekundayo and Olusegun Ajose to Arik Air in Lagos… yesterday.
Coach Daniel Adekunle (left), Olusegun Ajose, Chairman Arik Air, Sir Joseph Arumemi-Ikhide, Larry Ekundayo and Deputy Managing Director of Arik Air, Captain Ado Sanusi, during the visit of the London-based Nigerian Boxers, Larry the Natural Ekundayo and Olusegun Ajose to Arik Air in Lagos… yesterday.
West Africa’s largest carrier, Arik Air, has offered to sponsor one of the fights of London-based boxer, Larry ‘The Natural’ Ekundayo, in Nigeria.
Speaking when the welterweight boxer – who is on the sponsorship bill of Arik Air – paid a courtesy visit to the airline’s head office in Ikeja, Lagos,
Chairman of the airline, Sir Joseph Arumemi-Ikhide, said his organisation would be willing to pick up the bill for the fight in Nigeria.
He expressed his happiness with Larry’s progress in professional boxing and promised to be present at the ringside when he fights for the African Boxing Union (ABU) crown in London this October.
The Arik Air Chairman disclosed that his interest in boxing and sports generally was influenced by his late father, who was a boxing enthusiast.
Source: The Guardian

Thursday, September 3, 2015

Arik Air to divest ownership, goes public May 2016

Arik Air's management said on Wednesday that it would go public by May 2016, in order to free the airline of a single ownership structure.
Johnson Arumemi-Ikhide, chairman of the airline, who disclosed this at a breakfast meeting with the topic: Ownership, funding and sustainability of Nigeria airlines,’ organised by Aviation Round Table, a non-governmental organisation, in Lagos, said the airline had invested a lot in Nigeria and its management was proud of the company.
He also called for a Fly Nigeria Act, as obtainable in the US, where all government functionaries’ travel itineraries were channelled through the country’s airlines.
This will go a long way in assisting Nigerian carriers develop their capacity and compete with their foreign counterparts to a certain extent, he said.
Arumemi-Ikhide lamented that a lot obstacles stood in the ways of domestic carriers in Nigeria, ranging from high interest rate, hostility from the financial sector, lack of necessary protection from the Federal Government, high cost of aviation fuel and lack of Maintenance, Repair and Overhaul (MRO) facilities, among others.
According to him, domestic carriers are fighting a battle with the Ministry of Aviation; there is nothing we apply for that will not dragged on for a long time, whereas, foreign carriers are being granted frequencies at will.
“I can remember that sometimes ago, we applied for an MRO land, after some talks here and there, the land was divided between Arik Air and Nestor Oil. Eventually, the land became too small for us.
We were ready to invest $450 million on the facility but the Nigerian Civil Aviation Authority (NCAA) and the Ministry refused to grant us smooth facilitation to its existence, that’s one of the problems we are faced with.
“It is cheaper to buy aviation fuel in Accra and Dubai than to buy in Nigeria, because of the cost. The banking industry is not friendly, during the volcanic ash cloud, British Airways and Virgin Atlantic got compensated, and Kenya Airways was compensated with 4500 million over the crisis in that country.
“Nigerian government has not really stood its ground to help the airlines here, we need an intervention funds set aside for the sector, this should be monitored by the Airline Operators of Nigeria and the NCAA, in order to ameliorate some of the problems,” he said.
Source:businessdayonline.com

National carrier: Civil servants out to relish their pockets -stakeholders

Some aviation stakeholders on Wednesday alleged that the pressure mounted on the Presidency to re-establish another national carrier was borne out of selfish interest rather than national interest.
They say the first national carrier, the Nigeria Airways Limited (NAL), failed because government officials, especially, from the Ministry of Aviation, ran the airline aground out of selfish interest.
Mohammed Joji, former managing director of NAL and chairman of Aircraft Owners Association, who spoke on Ownership and Sustainability of Nigerian airlines at a breakfast meeting organised by Aviation Round Table in Lagos, said, “those compelling government to set up another national carrier are out to kill the airline.”
He said the indebtedness of NAL alone to foreign countries and aircraft manufacturers, before the airline was liquidated, was enough to send signals that “government can’t manage an airline successfully.”
“There is need to let government know how not to run an airline, but the attitude of Ministry officials is to bring back another national carrier for what purpose?
“For instance, when I took over as MD of NAL, I inherited $400 million, another N4 billion debt in separate places, this is different from some debts owed aircraft manufactures in aircraft purchase. Our debt is historical, there is need to let the running of airline business goes into the private hands, else, we will find ourselves in another problems,” he said.
Also speaking, Noggie Meggison, chairman, Airline Operators of Nigeria, said currently, the country lacked necessary maintenance facility that could cater to the needs of domestic carriers, adding that there would be more problems on maintenance when a national carrier was formed.
He said the establishment of national maintenance facility would go a long way in saving money back for the sector and create jobs, saying that “since NAL stopped operations, there is no third party maintenance in the country; it is difficult for airlines to survive without maintenance facility, so where will the national carrier maintain its aircraft?”
While alleging that because of the scarcity of aviation fuel in Nigeria, oil marketers were selling kerosene to them, he said the airlines had to pay for government inefficiencies as aircraft engines knock down at will.
Stephane Timpano, managing partner, Brain and Company, said there were few good examples of successful national carriers, adding that, “most of them have been failing because corruption is easy in purchasing aircraft for the airlines, there is also bad decision by government.”
Bismarck Rewane, managing director, Financial Derivatives Company, said though, national carrier was a thing of national pride but there could be several flag carriers.
There is need for government to study the economies of having a national carrier before venturing into it, he said, saying, “most countries have flag carriers but the less government ownership, the more profitable.”
Johnson Arumemi-Ikhide, managing director of Arik Airline, said it was the same civil servants who were clamouring for another national carrier that destroyed the first one.
Source: businessdayonline.com

Arik Air rated 3-star by Skytrax


Arik Air has received a 3-star ratings alongside 119 other airlines in the world emerging as the only rated Nigerian airline.
This was contained by Skytrax in its latest edition of annual world airline star ratings; ranking

airlines by the quality of their front-line products and service standards.

According to Skytrax website, “The 3-Star Airline Rating is awarded to airlines delivering a fair q
uality performance that conforms to an industry “average” of acceptable product and service standards.
The 3-Star Airline rating signifies a satisfactory standard of core Product for most travel
categories (ie. cabin of travel), but it also reflects some inconsistency amongst either standards of front-line Staff Service or Product delivery for the Cabin Service and their home-base Airport environments.”

Source: DailyTrust

Tuesday, July 28, 2015

Multiple Levies At The Aviation Industry


Airline operators in the country have been lamenting over charges they consider unfriendly to not only their business interests but also the industry’s development. Aviation is a vital sector for general economic growth and development. A transportation system that is low in performance is to say the least a poster exhibit for a failed economy or an ailing one. Either way, the message that goes out to investors, or would-be investors, is a grim one. This observation covers the entire transportation industry which has been anything but effective. The railway sub-sector is not faring as well as it should and this is a system that is supposedly a very important strategic tool for development.
The aviation industry players claim that most of their members are unable to take care of their employees’ welfare because they are operating in an environment that is not conducive enough and which, therefore, poses barriers to their survival.
According to the operators, they are forced to contend with different charges by the different agencies that supervise the industry. And while they also have to contend with the rising cost of aviation fuel (Jet-A1), there is the issue of access to finance. The banks in Nigeria are apparently not interested in long-term loans with less than double-digit interest rates. Nigerian banks are more comfortable with short-term loans; even at that, the interest is exorbitant, ranging between 22 and 24 per cent. The aviation industry cannot survive on such high cost. Added to all these is the state of infrastructure, especially night infrastructure, with about 97per cent of the airports deficient. To further dampen the situation is the low cost of flights and the almost one directional passenger movement.
However, some of the agencies have denied the allegations, claiming that the airline operators are the ones that accumulated debt over the years, are reluctant to pay and now want to whip up sympathy. But we are of the opinion that if these multiple charges and taxes do really exist – even if for perceived genuine reasons, it is time for government to step in and review them in order to ensure harmony in the industry. A situation whereby operators fail to pay their dues timeously is not particularly healthy and here the blame rests squarely on the authorities for allowing such situation that could prove detrimental to both parties in the long run. Another point is that if operators who are major stakeholders in the industry are complaining about these charges, then surely they never bought in on them in the first place and this simply implies a lack of harmony of interests for the general good.
source: leadership.ng/opinions

Monday, July 27, 2015

Nigerian arrested for smoking on Arik Air London-Lagos flight

The Lagos Airport Police Command has arrested a Nigerian passenger, Lawal Oluwabusola, for smoking cigarette in an Arik Air flight on London to Lagos route.

In a statement on Sunday by Mr Livinus Chukwuma, the Police Public Relations Officer (PPRO), Airport Command in Lagos, said that Olubusola was arrested on Sunday upon landing in Nigeria.
He was apprehended at the international wing of the Murtala Muhammed International Airport (MMIA), Lagos.
The PPRO said the suspect’s action was not in consonance with the in-flight safety procedures.
“The suspect was smoking electronic cigarette in the lavatory which triggered off emergency alarm system in the aircraft causing confusion among passengers,” he said.
In 1992, the International Civil Aviation Organisation had passed a resolution mandating its 152-member countries to go on smoke-free by July 1, 1996.
Chukwuma said that cigarettes smoking, or anything else that produces smoke or flame, is prohibited during flight especially in commercial aircraft.
He said that the suspect has been arraigned in court on a two count charge in accordance with Section 2(1) of the Federal Airports Authority of Nigeria (FAAN) Bye law 2005, and Section 166(1) (d) of the Criminal Law of Lagos State.
In a related development, the command said it had also apprehended a man for stealing the sum of $1,400 belonging to an Air France bound passenger at MMIA.
Chukwuma said the passenger was taking some rest on a couch in Gabfol lounge at MMIA waiting to board the flight and forgot her purse containing the money.
Meanwhile, the Commissioner of Police, Airport command, CP Frederick Lakanu, urged airport users to conform to the rules and regulations guiding the airports and aviation industry.
He said that ignorance is not an excuse.
Source: thenewsnigeria.com.ng

Arik Air increases flight services on Abuja-Port Harcourt-Abuja route

Arik Air management said on Sunday it had increased flight frequency on the Abuja-Port Harcourt-Abuja route from two to three daily flights.
The new schedule, according to Ola Banji, the airline’s spokesman, provides guests with options of flying in the morning, mid-day or evening as the first flight from Abuja to Port Harcourt departs at 07:00am and arrives Port Harcourt at 08:00am, while the second flight departs at 11:00am and arrives at 12:00pm. The third flight leaves Abuja at 4:30pm and arrives Port Harcourt at 5:30 pm.
Arik Air’s Port Harcourt to Abuja service equally operates three times daily with the first flight departing at 08:40am to arrive at 09:40m, the second flight departs at 12:40pm to arrive Abuja at 1:40pm, while the third departs Port Harcourt at 6:10pm to arrive Abuja at 7:10pm.
This new schedule is inclusive of Saturdays and Sundays.
Commenting on the introduction of additional flight on the Abuja-Port Harcourt route, Chris Ndulue, Arik Air’s executive vice president/managing director, said “the decision to provide three daily flight services on the Abuja-Port Harcourt-Abuja route was taken in response to the yearning of our numerous guests who have always longed to have flexible travel times on that route.”
Arik Air is Nigeria and West Africa’s largest airline and operates mainly from two hubs at Murtala Mohammed Airport Lagos and Nnamdi Azikiwe International Airport Abuja.
It operates a fleet of 28 state-of-the-art regional, medium haul and long haul aircraft including two Airbus A340-500, making the airline the first operator of the wide bodied aircraft in Africa.
Source: businessdayonline.com

Friday, July 24, 2015

Clamour for Scrapping of Aviation Ministry Intensifies

Aviation industry stakeholders have increased their clamouring for the scrapping of the Ministry of Aviation, alleging that it is responsible for the many problems and retrogression that has bedeviled the sector.
They argued that if aviation agencies are empowered and full autonomy granted the Nigerian Civil Aviation Authority (NCAA), they would do perform than when they are operating under a ministry that breathes hard on their necks and does not have the vision to propel the industry forward.

Industry operators said they are irked by arbitrary designation of foreign airlines to different airports to the country, lack of regimen for training and lack of plans to develop the industry despite the fact that the ministry unveils and enforces the policy for industry growth. They are also concerned that the Ministry has taken away the autonomy of NCAA, which ideally should be free to regulate the sector in line with the International Civil Aviation Organisation rules.

A former Director of Ground Operation in Nigeria Airways, Captain Prokeme Porbeni alleged that the Ministry of Aviation has abused the open sky policy Nigeria signed with other countries like the US to open doors for foreign airlines to have multiple entry points in Nigeria.

“Foreign airlines have taken advantage of open skies and aided and abetted by the Ministry officials. They do the Bilateral Air Service Agreement to favour these foreign airlines at the detriment of the country. So we now open our airspace to everybody thinking we are being liberal. It is the opposite; we are killing our business.”

He said that there should be measure of restriction in order to save local carriers and create employment for the skilled indigenous manpower.

“Let me give you one example, many years ago we had flight arrangement between Lagos-Calabar- Douala-Calabar- Lagos. Only the Nigeria Airways could land in Calabar as an international airport. Our competitors like Cameroun Air, Air Gabon would only come from Douala to Lagos. What was the advantage? That was protectionism. We had targeted our Igbo brothers who were selling electronics from the Far East into Nigeria. Rather than bringing electronics before moving them to Aba by road, we gave them that short cut and therefore our flights were always full.

“But Cameroon Airline would come to Lagos, so, naturally the targeted passengers did not patronise Cameroon Airlines. That was our prerogative but immediately that regime passed, we opened the skies so everybody can land everywhere. Ideally foreign airline should not have access to more than one or two entry points, but we are still smiling; we are happy about it. So the liberalism must stop where our interest starts. Our interest in this case is to empower our local industry operators to become strong enough, but the way it is going it will never, ever be strong enough. As long as you play by their rules they will always defeat you,” Porbeni said.

Also industry analyst, Chris Aligbe said the Ministry of Aviation has contributed nothing to the development of the aviation industry.

“I tell you the truth, looking at the Ministry of Aviation over the years; I asked myself what substantially has the Ministry contributed in the development of aviation? If you look at it in the last ten years or since the democratic dispensation, what fundamentally has the Ministry contributed to the growth of aviation? It is not the Ministry that developed the Nigerian Civil Aviation (NCAA) Act.
When the country saw red with the air crashes and then the country experienced tremendous disaster from the crashes that came, the industry rose up to make sure that there was a formidable NCAA with great autonomy in the area of safety regulation and in all other areas where they should function. But the Ministry has contributed nothing and therefore it should be scrapped,” Aligbe posited.

Averting Apron Incidents

 

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A fortnight ago Emirates flight due to leave the Murtala Muhammed International Airport, Lagos to Dubai clipped its wing with the wing of Hak Air aircraft as it taxied to the runway.
 It was laden with over 300 passengers.
As a result of incident, the flight was aborted and the airline made frantic efforts to move the passengers to hotels. The bags checked into the cargo haul of the aircraft had to be moved and the whole process of flight to Dubai had to be terminated.
The passengers that had to connect their flights to other destinations had to defer their schedule, those going to buy goods and had made arrangement for delivery had to alert their business partners to make adjustments. Indeed, many of the passengers would lose money; lose contacts and undergo series of discomfort, including those who had perishable goods .
This incident happened because the marshaller that directed the aircraft might have misinformed the pilot; it might also be because of the poor illumination of the airport or that the Hak Air aircraft was not properly parked. It might also be because the Emirates pilot did not follow the directive of the marshaller. For that flight cancellation both the passengers and the airline would lose money and operational time.
Similar incident happened last Friday when two First Nation Airways flight clipped wings at the domestic terminal of the same Lagos airport. The Marshaller was blamed. The passengers had to disembark and the flight terminated. Some got refund of their money; others deferred their flight, but all were inconvenienced. The airline lost money carrying out repairs.
Few years ago Arik aircraft faced similar incident at the Jos airport, the flight was aborted and the passengers had to wait for another flight to airlift them. They waited for few hours but that was because the airline had more aircraft in its fleet; otherwise the flight would have been cancelled.
There have been similar incidents where vehicles of food suppliers, baggage handlers and even fuel bowsers damaged aircraft fully boarded with passengers and ready to take off. The flight had to be aborted and the airline would spend several millions of Naira carrying out repairs.
It was the record of such many incidents that gave rise few years ago to mandatory training and re-training of operators who drive at the ramp and other ground staff at the airports. But the training seems to have been discontinued, although the handling companies may be carrying out the training of their staff as ground handling is one of their major jobs.
Angered by the incident at MMA2, the management of First Nation Airways called the Federal Airports Authority of Nigeria (FAAN) to subject the officials who direct aircraft and other ground staff, including vehicles drivers who operate at the ramp for more training.
In a statement the airline said the incident was avoidable if FAAN marshallers “had been diligent to avoid marshalling the aircraft wrongly.”
“We urge the Federal Airport Authority of Nigeria (FAAN) to retrain the marshallers as we understand that the marshallers at MMA2 are deployed by FAAN under an MOU with Bi-Courtney Aviation Services Limited, the operator of MMA2, Ikeja. It is important to emphasise that at no time was the safety of passengers at risk.
“The regulatory authorities will also need to enhance oversight of the marshallers and their authorisation to arrest the growing incidents of aircraft damage on ground in Nigeria which is embarrassing. Besides the huge losses that Firstnation and other airlines suffer as a result of avoidable ground incidents. You will recall that a similar incident involving Emirate aircraft occurred only a couple of days ago,” the airline said.
The Deputy Managing Director of Arik Air, Captain Ado Sanusi said the root cause of the problem may be attributed to bad marking of the apron, adding that the marking could mislead the marshallers to make mistakes.
“I don’t blame the marshallers; I blame the system. What you should ask is who drew the aerolines?”
Sanusi also pointed out that the marshaller could make mistakes by the confusion brought about by the adding of winglets to old aircraft, known as classics, as if they are Next Generation (NG) aircraft. He noted that while classics have different wing-span a winglet disorientates its expanse and a marshaller may misunderstand it as NG which has different engine size and different wing-span.
He also said that where they put ground equipment should be clearly marked at the apron and this should be in the right place.
Frowning on the frequent incidents at the apron, the former Commandant of the Murtala Muhammed International Airport and the President of Aviation Round Table (ART), Group Captain John Ojikutu (retd) said: “Less than two weeks after the collision between emirates and Hak Air, another collision between First Nation has just been reported. Who is in charge of safety at the apron control in the terminals of the airport? What is the approval capacity (in terms of aircraft that could be parked) in each apron? Who is responsible or the appropriate authority for aircraft marshalling on these aprons?”
Many people blamed FAAN for lack of adequate training of the marshallers and others that work at the apron.
On the fate of passengers when aircraft is damaged and flights have to be aborted, the Manager, Communication and Corporate Services of Nigerian Aviation Handling Plc (nahco aviance), Tayo Ajakaiye said the handling company has no commitment with the passengers but the airlines does, so the airline takes care of the passengers.
He also said if the damage of the aircraft was caused by ground handling operations the airline would discuss with the company on how to foot cost of repairs.
But if such incidents are avoided the passengers would not face the trauma of flight cancelation after they have meet all the condition to travel.

Thursday, July 23, 2015

Heavy maintenance fees stifle domestic airlines

The dearth of aircraft repair facilities in Nigeria is biting harder as domestic airlines which typically spend about 40 percent of their operational funds on airplane maintenance abroad are hard pressed, with the naira’s sharp depreciation against the US dollar in recent months.
This follows the marked decline in the global price of crude oil, Nigeria’s main export, from over $100 to about $50 per barrel, on account of a glut in the market.
Following this development, domestic airlines expenditure on maintenance is shooting even higher.
Aviation experts and operators had called for the establishment of functional aircraft Maintenance, Repair and Overhaul (MRO) facilities, otherwise known as ‘hangars’ over the years, to cut down on the cost and time of airplane repairs.
Experts say other operational costs are stifling the country’s domestic airlines, such that they can ill-afford to acquire hangars on their own .
“Unfortunately, only Arik and Aero have maintenance hangars in their bases in Nigeria. That is not to say they are in anyway different from others, because Arik Air is in partnership with Lufthansa, where they pay heavily. Also, Aero can’t go beyond C checks.
“Other airlines can only carry out ‘line checks’ at the airsides. Even though airlines are no longer required to pay duty on parts imported into Nigeria, the manufacturers directives on aircraft maintenance have to be strictly adhered to.airline-maintenance
“This is because international safety standards have to be met, but Nigerian airlines find it very expensive”, an operator said.
Experts say that maintenance of airplanes here in the Nigeria would cost the airlines less than half of the present sums of ferrying them abroad for repairs in Europe, the United States, Asia, Ethiopia, Kenya, Egypt and South Africa, which are the usual repair destinations.
Some are also advocating for a Public Private Partnership on the project.
The Akwa Ibom State Government is on the verge of completing an aircraft maintenance facility at the Uyo Airport, but the Federal Government is yet to adopt or certify it.
Sheri Kyari, managing director of Finum Aviation, had at the Second Memorial Lecture in honour of Zakari Haruna, the pioneer director-general of the Nigerian Civil Aviation Authority (NCAA) disclosed that private investors would have undertaken to build aircraft maintenance hangars in the country, but for the fear of policy inconsistency, which had made them hold back.
Kyari urged government to provide guarantee and assurances to investors, either by getting involved or providing a conducive environment for them.
Apart from linking various deadly crashes in the country to lack of adequate maintenance, aircraft engineers say the country may have lost over $170 billion in the last ten years to capital flight, as they say about ten domestic airlines could be losing N50 billion annually.
The carriers are groaning under the weight of industry charges ranging from 5 percent ticket sales; landing and parking fees; navigational charges; port charges and fuel surcharge among others.
They also pay heavily to source for Aviation fuel which is sometimes not readily available because local refineries are not working.
“They have in the last few years been burdened by debt of over N130 billion with a bail-out of over N200 billion from government, a greater part of their funds are expended on maintenance, then fuel.
“One eventually finds the airlines moving around the same spot and then going comatose after sometime because major issues are left unresolved.
“A deliberate plan by government in this direction to save the sector by establishing a national hangar that will comprise compartments where various aircraft types can be checked will go a long way in stabilising the sector”, Dave Adedoja, a travel analyst said.
Maintenance checks on aircraft range from A, B, C and D Checks, which are done periodically.
An aircraft is subject to C check every 15 to 18 months. This type of aircraft maintenance is a comprehensive inspection that covers hidden parts so that any damage or cracks in the internal parts of the aircraft can be detected.
The most detailed inspection is the D Check. This inspection is generally an overhaul.
Experts say it could cost between $1 million to $2 million to carry out a C-check on an aircraft, depending on the type.
They say comprehensive (C) Check on B737 classic and maintenance in Europe, the United States or in Egypt or Ethiopia, costs $1m.
At present, Nigerian airlines carry out C and D Checks abroad in millions of dollars, periodically.
Source:businessdayonline.com