Nigeria doesn’t need a new national carrier – Sanusi(DailySun)

                                                                                      Mallam Sanusi Lamido Sanusi



Governor of the Central Bank of Nigeria (CBN), Mallam Sanusi Lamido Sanusi, has warned the Federal Government against yielding to the temptation of floating another national airline, stressing that such a venture was bound to fail like in previous attempts.
Speaking at the recent Nigeria Economic Summit in Abuja, Sanusi noted that there was no sense in embarking on a capital intensive project like aviation at a time global market sentiments were all geared
Governor of the Central Bank of Nigeria (CBN), Mallam Sanusi Lamido Sanusi, has warned the Federal Government against yielding to the temptation of floating another national airline, stressing that such a venture was bound to fail like in previous attempts.
Speaking at the recent Nigeria Economic Summit in Abuja, Sanusi noted that there was no sense in embarking on a capital intensive project like aviation at a time global market sentiments were all geared towards a private sector led economic system. Commenting against the backdrop of recent proposal by the Minister of Aviation, Stella Oduah, urging the Jonathan administration to consider setting up a new national carrier albeit in partnership with the private sector, the CBN boss stated that as banker to the government, the Central Bank would not support the idea of floating a government owned national airline.
“We do not need a new airline for Nigeria at this moment of privatization, but what we at the CBN will continue to do is to advice the Minister of Aviation as well as other ministers in the Federal Executive Council but it is up to them to take our advise or not,” he said. He stated that part of the initiative was to intervent in the sectors occasionally through injection of refinancing facilities to enable private sector operators who are trapped with loan service obligation to be able to refinance them.
Sanusi also pointed out that the intervention funds from the CBN was not meant to acquire need aircraft but to help operators battling with loans service obligations to service the facilities and be able also to get some working capital capacity to conduct their day to day operations.
According to him, airline industry globally is a highly leveraged, high funding, thin margin industry with technically sophisticated operation which no serious government would want to contend with. Sanusi explained that the funding requirements of that sector may not be addressed by 5 year credit facilities but one that extends to as long as 25 to 30 years and enables them to run their business without much pressure from banks. He also pointed out that it would not be economically expedient for a government that is still battling to fix decayed infrastructure to cough out the staggering amount needed to set up a new national carrier.a private sector led economic system. Commenting against the backdrop of recent proposal by the Minister of Aviation, Stella Oduah, urging the Jonathan administration to consider setting up a new national carrier albeit in partnership with the private sector, the CBN boss stated that as banker to the government, the Central Bank would not support the idea of floating a government owned national airline.
“We do not need a new airline for Nigeria at this moment of privatization, but what we at the CBN will continue to do is to advice the Minister of Aviation as well as other ministers in the Federal Executive Council but it is up to them to take our advise or not,” he said. He stated that part of the initiative was to intervent in the sectors occasionally through injection of refinancing facilities to enable private sector operators who are trapped with loan service obligation to be able to refinance them.
Sanusi also pointed out that the intervention funds from the CBN was not meant to acquire need aircraft but to help operators battling with loans service obligations to service the facilities and be able also to get some working capital capacity to conduct their day to day operations.
According to him, airline industry globally is a highly leveraged, high funding, thin margin industry with technically sophisticated operation which no serious government would want to contend with. Sanusi explained that the funding requirements of that sector may not be addressed by 5 year credit facilities but one that extends to as long as 25 to 30 years and enables them to run their business without much pressure from banks. He also pointed out that it would not be economically expedient for a government that is still battling to fix decayed infrastructure to cough out the staggering amount needed to set up a new national carrier.
http://sunnewsonline.com/new/business/nigeria-doesnt-need-a-new-national-carrier-sanusi

Traffic on Nigeria’s Airspace Hits over 500 Daily written by Chinedu Eze(Thisday)

The Nigeria Airspace Management Agency (NAMA) has said that it guides over 500 aircraft through the nation’s airspace every day.
These, NAMA pointed out, excluded over fliers- that is, aircraft that pass Nigeria’s airspace to other destinations and helicopter operations which fly to the oil rig operations in the Niger Delta.

The Managing Director of the agency, Nnamdi Udoh, made this known when he explained the conditions of communication in the airspace.
Udoh said because of the heavy traffic that developed recently in the country, the agency was expanding the system for easy communication between the pilots and Air Traffic Controllers (ATC).

Reacting to the petition written by some controllers, who are the executive members of the National Air Traffic Controllers Association (NATCA), he said that if communications in Nigeria’s airspace was not working as the controllers claimed, no flight would take off or land in any of Nigeria’s airports, adding that any pilot who dared operate aircraft in such airspace would lose his licence.

The NAMA boss, who spoke to newsmen in Lagos explained: “For record purposes, NAMA wants to use this opportunity and this platform to reassure Nigerians and all our airspace users, pilots and other stakeholders that the airspace is safe and will always be safe"

He observed that if some of the controllers claim that the communication system in the airspace was not working, it means that they have not been working in the last three months because without communication there is nothing the controllers would be doing. Besides, he wondered how an aircraft could have been flying during the same period if the airspace was not safe as no pilot would venture into the airspace without communication.

"If the report quoted Air Traffic Controllers, it means that, that Air Traffic Controllers have done no work in the last three months and are not supposed to be paid and how do aeroplanes fly in the last three months without communications system?" he queried.

Udoh however pointed out that the only challenge that was confronting the agency at the moment was its long-range frequency, which it has just introduced, insisting that there was no control tower that had a single challenge in terms of communication in the country at the moment.

To cope with this challenge the NAMA said it had embarked on the sectorialisation of the frequency by dividing it into two frequencies so that one frequency would handle the western part of the Lagos centre while the other part would handle the eastern part so that each sector would have a frequency of its own. This, they believe, would reduce the congestion.

Confirming the explanation of Udoh, the Director of Operations, NAMA, Alhaji Mukaila Solola, who is in charge of the controllers, said that the claim by the air traffic controllers that there was no communication in the airspace was a campaign of calumny, noting that such moves to tarnish the image of the agency and create unnecessary panic amongst the Nigerian travelling public was an attempt to intimidate the agency.

He added that when some of them were not included in foreign trips for training they become desperate.

“We have taken the bold steps to nip in the bud this campaign of calumny because it impacts on the nation negatively and we would further use this moment to reassure all stakeholders that the situation is definitely not what is portrayed by mischief makers," Solola said.

http://www.thisdaylive.com/articles/traffic-on-nigeria-8217-s-airspace-hits-over-500-daily/133513/

AMCON restructures Aero, CEO resigns by Oyetunji Abioye (Punch)

               Managing Director, Aerocontractors Airlines, Captain Akin George

The Managing Director, Aerocontractors Airlines, Captain Akin George, has resigned following a

restructuring exercise initiated by the Asset Management Company of Nigeria, a company statement has said.

For some months now, AMCON has been involved in Aero after taking over some of its debts running into

billions of naira from the banks.

Aero, in the statement, said the Deputy Managing Director, Mr. Obaro Ibru, has been appointed Acting Managing Director.

The statement read, “Following the commencement of a restructuring exercise initiated by the AMCON with

the support of the board of Aero, the Managing Director of Aero, Capt. Akin George, has resigned. This is

the beginning of a restructuring exercise that will make the airline slimmer and stronger, with the aim of

making it more competitive.George has served Aero for 24 years in various capacities.”

The statement quoted the Chairman of the board, Mr. Funsho Kupolokun, as saying, “The board accepts

the resignation of Capt. George and appreciates the services he has rendered to this airline over the last two

decades. We wish him the best in his future endeavour”.

The statement also commented on the new helmsman, Ibru, who until now was the Deputy Managing

Director, has been appointed by the board as the Acting Managing Director. He comes with extensive

experience in banking and aviation industry, ranging from Aviation Project Management, Consumer

Banking, Product Development, Strategy, Internal Control and Compliance, and Business Process

Engineering, among others.”

Speculations have been rife in the last one week over the purpoted resignation of the former CEO. The

Managing Director of AMCON, Mr Mustapha Chike-Obi, had a few months ago said it was planning to

restructure the company.

Chike-Obi told the National Assembly recently at a public hearing that airlines owed AMCON N135bn. It

was learnt that the government agency might force some of the debtor airlines to partner with foreign airlines

for better management.

Nigerian domestic airlines are generally facing financial distress.

However, the Federal Government is planning to float an airline leasing firm to assist domestic airlines to

acquire aircraft.

http://www.punchng.com/business/business-economy/amcon-restructures-aero-ceo-resigns/

Aviation Minister Highlights Priorities of 2013 Budget by Chinedu Eze(Thisday)

The Minister of Aviation, Stella Oduah, has said the budget of the Federal Ministry of Aviation in 2013 aims to improve and consolidate the ongoing effort at infrastructural upgrade and the certification of all airports in the country in accordance with the International Civil Aviation Organisation (ICAO) standards.

She disclosed this during the defence of 2013 budget to the Senate and declared that it is unacceptable that none of the airports in the country was certified by the world regulatory body.
To achieve this the Minister said the current effort at reconstruction and remodelling of the airports would be consolidated and improved upon in the 2013 fiscal year, especially with regard to the provision of safety-critical infrastructure.

Areas that will receive priority attention include landing instruments, security and  communication infrastructure, water hydrants, fire fighting vehicles, airfield lighting and uninterrupted, 24-hour electricity supply.

Others include equipment for the control and prevention of bird strikes, conveyor belts, functional air-conditioning systems for the remodelled terminals, avio bridges, sufficient apron buses to halt the risky practice whereby passengers walk through the tarmacs to board aircraft, welfare buses for aviation workers to alleviate their hardship in terms of transportation to and from work, amongst others.

She stated that this infrastructure upgrade is beside the construction of five new international airport terminals and several perishable and cargo terminals across the nation's airport.
'”The aim of all these projects is to modernise our airports, gradually phase out all obsolete equipment and infrastructure and bring our airports to international standards and best practices. This is the only way we can get our airports to be certified”, Oduah declared.

A member of the committee, Senator Babalola Odunsi, commended the face-lift given to the airport terminals across the country, and expressed joy that the testimonies of air travellers about a new travelling experience is heart-warming.
Odunsi referred to a documentary in an electronic medium which not only show-cased the transformed terminals, but also the testimonies of ordinary air travellers, whom, he said were visibly elated at the new look the airports are now wearing.

''We congratulate and commend you for the work you are doing and for this publicity. We saw air travellers expressing happiness about the turn-around at the airports; this is what we all desire for our people and the sector'', he said.

Speaking in the same vein, Chairman, Senate Committee on Aviation, Senator Hope Uzodinma, said it is ''very sad that most of our airports are not certified in accordance with ICAO standards. We must therefore do everything possible to get them certified''.

The Chairman noted that other areas which deserve serious attention; and upon which government must find a way to fund in the 2013 budget is capacity building and training of professionals/experts by the Nigerian College of Aviation Technolgy (NCAT), airfield lighting as well the maintenance of the runways.

He emphasised that the Senate and the Ministry must collectively work together to ensure that the 2013 budget improves upon the achievements recorded in 2012 in order to be able to deliver on the expectations of Nigerians who not only expect functional facilities at the airports, but also to ensure that aviation plays a pivotal role in the economic development of the nation.
''Let me say that our watch-word for year 2013 budget is must be prudence; realistic, tenacious and accountable execution of capital projects'', Uzodimma added.

http://www.thisdaylive.com/articles/aviation-minister-highlights-priorities-of-2013-budget/132837/

A continental divide in air connectivity by WOLE SHADARE (The Guardian)

GIVEN Africa’s expansive geographic area, the need to interconnect various locations in a safe, fast and efficient manner becomes ever more paramount, writes WOLE SHADARE who witnessed Arik Air’s new service to Kinshasa.
AirLINES in Africa are not effectively serving the continent’s needs. This is in part due to poor safety infrastructure and security. In addition, poor operational efficiency leads to high costs and contributes to the relative lack of connections between African cities.
The lack of direct air connectivity among several African countries despite the endorsement of the Yamoussoukro Declaration and adoption by governments in the continent is one that has worked against the continent’s air transport growth.
Few strong hubs; about three of them and three major African carriers are said to dominate international and domestic markets, which are becoming increasingly concentrated. The truth is that intercontinental traffic in the region relies heavily on the three major hubs of Johannesburg, Nairobi, and Addis Ababa.
The uneven growth patterns in Sub-Saharan Africa were caused in part by the collapse of major carriers in the western portion of the continent, most notably Air Afrique, Air Gabon, Ghana Airways, and Nigerian Airways. While these old ups brought about a short-term drop in capacity, they have also spurred a much-needed consolidation of the industry in Sub-Saharan Africa.
Major carriers in the south and the east are gradually expanding into western markets. They are taking over some of the discontinued routes, and east-west traffic is slowly growing.
The sector is equally stagnating due to the collapse of perceived strong economies in West and Central Africa, particularly, Côte d’Ivoire and the demise of several regional airlines.
Again, air travel within Africa is considerably more expensive (per mile flown) than intercontinental travel, especially on routes of fewer than 4,000 kilometers. This is because intercontinental routes serve larger markets than international or domestic ones and thus have more competition among carriers.
Domestic fares are kept artificially low by subsidized or fixed pricing on some routes, and a recent study by Intervistas for the International Air Transport Association (IATA) concluded that the price elasticity of air transport within Africa is relatively high.
Throughout Africa, policies adopted by African states allow otherwise unviable state-owned operations to have a monopoly over domestic markets.
East Africa has a more developed air travel network than West and Central Africa, where only Nigeria has a significant number of connections, both intercontinentally and internationally.
The impact of the Yamoussoukro Decision (YD) of 1999, an effort to liberalize international air travel within Africa, is best measured by the amount of fifth freedom and beyond traffic within Africa.
With the collapse of many national and regional carriers recently, West and Central Africa have suffered an absolute decline in service.
All are not lost as Arik Air is connecting both West and Central Africa at a very fast rate and has the chance of reducing difficulty faced by travellers to the areas.
Arik Air, in less than six years of operations is now reputed to be the biggest and dominant airline in West and Central Africa by number of aircraft, traffic and deep pocket of the owner.
Within the short period, the carrier is now a major player on Accra, Monrovia, Freetown, Banjul, Luanda, Dakar, Douala, Kinshasa and Johannesburg, thereby making it very easy for flight connectivity and movement of passengers in Africa.
Just on Wednesday, the carrier began service to the Kinshasa, Democratic Republic of Congo, thereby making access to the area and other neighbouring countries in the zone less cumbersome.
Many travellers and stakeholders who had been starved of air connectivity between Nigeria and DRC expressed their joy to the airline and the governments of Nigeria and DRC for finally seeing to the fruition of a deal that had been on the table for more than two years.
The joy of the people of Congo was evident with the way the airline was received shortly after flying into Kinshasa Airport. Airport workers, the media and top government officials trooped out to receive the airline on its inaugural flight, which they said opens up vista of opportunities for both nations.
Speaking to the media at a jam-packed ceremony to welcome the carrier, First Secretary, Nigerian Embassy in Kinshasa, Alhaji Ibrahim Adamu Miringa said Nigeria’s relationship with DRC had been on for over 40 years, adding, “The Embassy has been eager to have a Nigerian airline in DRC for more than two years”.
He explained that with the collapsed of Nigeria Airways, it made Nigerian businesses in the country to be handicapped, adding that some of Nigerian businessmen had relocated their businesses elsewhere because of lack of flight connections and the difficulty of transiting from Nairobi, Dubai and Addis Ababa before coming to Nigeria make businesses unattractive in the area.
His words, ‘’with the coming of Arik, it will boost Nigeria’s economy and that of DRC better than what we had”.
Speaking in the same vein, the General Sales Agent (GSA) for Arik in Kinshasa and Chairman of Sion Airlines, Bevi Gaston Mbenga told The Guardian, said the governments of both Nigeria and DRC must sustain the support it had given to the airline to make sure, ‘’We make one link because the DRC and Nigeria have been together, working together since 1962; we have got a history together; we are going through the same challenges’’.
Arik’s Vice President, Route Development (West/Central Africa), Theodore Obi Chikelu stated that the airline, with the way it’s going should be able to take 50 per cent of the market in West and Central Africa, noting that it was obvious that, ‘’We are the third largest airline in West and Central Africa and indeed, we are the fastest growing airline in the continent with the youngest fleet’’.
‘’The promise we made to the Chairman of Arik is that if we are given a free hand to apply our knowledge, if we are allowed to do the connections that we have, we should be able to develop the West Coast within a short possible time’’.

Asked why the airline was too slow at interlining with major carriers as done in other climes, Chikelu said, ‘’Remember, we have passed IOSA audit several times. We became IATA member last year. I think bilateral alliances the bigger airlines have. To go to America, we have to be category one and we are the only airline in West Africa that is category one. When you look at BA, they are in direct competition. We are looking at Emirates, an airline in Ireland. We are actually talking to Ethiopian Airline, Etihad’’.
http://www.ngrguardiannews.com/index.php?option=com_content&view=article&id=106857:a-continental-divide-in-air-connectivity&catid=32:business-travel&Itemid=563

NCAA issues AOC to Dana , Sky Jet airlines .

By Chika Goodluck-Ogazi (The Guardian)

NIGERIAN Civil Aviation Authority (NCAA), Wednesday, presented Airlines Operators Certificate (AOC) to two airlines - Dana Air and Sky Jet.
Dana Air will however not start flight operations until it has completed compensation payments to the families of June 3 air crash of the airline.
Though, the management of Dana noted that it had paid 30 per cent of initial compensation payment and promised to pay the remaining 70 per cent as soon as possible, however NCAA insisted that all the payments must be completed before it can be allowed to fly.
Speaking at the presentation of the certificate to the airlines yesterday in Lagos, the Director-General of NCAA, Dr. Harold Demuren said that the two carriers have completed all the safety procedures required. He added that they also have successfully undergone the five phases, which was the final stage of signing the AOC.
“The airlines have well trained crews, good aircraft and good maintenance, and have followed the right process”, he said.
He noted that   the long procedure was to ensure safety of all flight operations in the country, to have zero accident record in aviation industry, in the country.
Demuren said that this would demonstrate to passengers and the pubic that both NCAA and the airlines are concerned about passengers’ protection.
The Managing Director, Dana Airline, Mr. Jackie Hathiramani, assured the NCAA that the airline would comply with its regulations. He said that the company would pay the victims full compensation before the end of this month.
“We have returned the letters of administrations from the five families to the probate registry of the Abuja High Court for verifications and the airline would pay the 70 per cent (70,000 US dollars) to each of them before the end of the month.
“The processing of fast tracking the verifications lies with the probate registry and Dana Management is awaiting the release of the letters, `` he said.
Demuren, who stated that the airlines must install the Automatic Flight Information Reporting System (AFIRS) in all their aircraft, explained that the system would assist to increase flight safety, especially when the aircraft is flying.
According to him, “ AFIRS would indicate when there is problem in an aircraft, why it happened. This would change the way we do aviation in Nigeria, so that the flying public would have confidence in the system”, he said.
Also speaking during the presentation, the Chairman of Sky Jet Airline, Alhaji Kashim Shettima said that the new airline would begin flight operations with five aircraft, stating that the airline would maintain a safety culture.
He commended the NCAA for issuing the AOC to his airline and assured full compliance with regulations to ensure safety of passengers and aircraft.
He urged the Federal Government to implement the zero tariff policy on commercial aircraft and spare parts importation as promised by President Goodluck Jonathan during his 2013 budget presentation.

Arik Air extends route network to Kinshasa .

By Sade Williams (BusinessDay)

Arik Air, West and Central Africa’s largest commercial carrier, is expanding its regional African network with the addition of new flight services from Lagos, Nigeria to Kinshasa in Democratic Republic of Congo (DRC).

The flight, which will operate twice weekly, Wednesday and Sunday, means Kinshasa has now become Arik Air’s third destination in Central Africa, following the inclusion of flights to Luanda, Angola in 2011 and Douala, Cameroon in August this year.

The new Lagos-Kinshasa service will operate via Douala, Cameroon with outbound flights departing from the Murtala  Muhammed International Airport, Lagos, at 11:10 am (local time) and arriving at Douala International Airport at 12:40 pm (local time).

Flights will then continue onto Kinshasa, departing from Douala at 1:25 pm (local time) and arriving at N’djili International Airport, Kinshasa at 3:25 pm (local time).

The return flights will leave Kinshasa at 4:10 pm (local time), arriving in Douala at 6:10 pm (local time) and will thereafter leave Douala at 6:55 pm (local time), arriving in Lagos at 8:25 pm (local time). The Lagos to Kinshasa route will be served with a Boeing 737-700 Next Generation aircraft. The 737-700 is a two class compartment and the configuration is 12 Business Class seats and 112 Economy Class. Business Class passengers will enjoy a 44” seat pitch with cradle style seats, while Economy Class passengers will have plenty of room on the flight with a generous seat pitch of 34”.

Arik Air’s Managing Director/Executive Vice President, Chris Ndulue said: “Kinshasa is our 12th African destination and this underscores the airline’s commitment to linking the African markets for proper integration of the continent.