AMCON confirms ownership of 60% stake in Aero by Oyetunji Abioye (Punch)

The Asset Management Corporation of Nigeria has confirmed the ownership of 60 per cent stake in

Aerocontractors airline, The PUNCH can authoritatively report.

Aerocontractors’ indebtedness to commercial banks, estimated to be over N32bn, which had been bought

over by AMCON during the banking sector reforms, had been converted to equity stake for the

corporation, it was learnt.

The Managing Director, AMCON, Mr. Mustafa Chike-Obi, in an exclusive interview with our

correspondent on Wednesday, confirmed that the corporation had acquired 60 per cent stake in the airline.

Aerocontractors had in a statement last week said AMCON held controlling stake in it but did not give the

specific shareholding of the corporation in the company.

However, Chike-Obi told our correspondent that AMCON owned 60 per cent in the company and would

be ready to sell the stake to a competent buyer.

He said, “AMCON owns 60 per cent stake in Aero. If somebody wants to buy our 60 per cent stake in

Aero tomorrow at a profit; absolutely, we will consider it. We are not emotional about it.

“I told you we want to make sure that we get our money back and also make sure that whoever runs Aero

runs it in a profitable and well-regulated manner. So, once those things are satisfied, we are happy to sell it.” 

Asked if AMCON was planning to merge Aero with other debtor airlines, Chike-Obi said, “There are two

major airlines in Nigeria today: Aerocontractors and Arik Airlines. Both of them have benefited from

AMCON intervention. There are many other smaller airlines that we have relationship with. We will recover

our money but we also want  to make sure that the Nigerian public continues to be served by well run, well

regulated and well maintained airlines. And that is our intention, be it Arik or Aero.

“Everything is on the table that will make the airline industry more efficient, more profitable and allow us to

get our money back. If a merger makes sense, we will consider it; if it does not make sense, then we will

not. Our objective is to make the airline industry safer and more profitable.”

Prior to the development, Aero was 100 per cent owned by the Ibru family, which acquired full stake in the

airline about three years ago after its Canadian partner, CHC, pulled out its equity.

Chike-Obi also vowed that the corporation would recover its N65bn from Capital Oil at all cost.

He, however, said the corporation would vacate Capital Oil’s facility in Lagos for the purpose of “public

interest.”

He said, “Capital Oil is particularly a difficult case. We have tried for two years to talk with the owner. He

has made a number of agreements and he has defaulted on every one of them. But we are a law abiding

institution. Even though legally we can still stay in the facility until the appeal is heard, we have decided to

withdraw from Capital Oil’s facility.

“There was a pipeline explosion yesterday (Monday). We don’t want to be associated in any way with

hardship of the Nigerian people during the holiday season. Even though we don’t believe that Capital Oil is

essential to supply us fuel in Nigeria, we will not stand in the way and we are withdrawing from the facility as

from tomorrow.”

“However, we will continue to pursue every step to make sure we recover our money. He owes us N65bn.

We will not stand by and let that money go to waste. We will collect our money; but we also are mindful of

public interest and so we will be leaving there as from tomorrow. We will collect that money from Capital

Oil, I can assure Nigerians of that,” Chike-Obi added.

http://www.punchng.com/business/business-economy/amcon-confirms-ownership-of-60-stake-in-aero/

Fire causes pandemonium at Lagos airport by Oyetunji Abioye (Punch)

                                                      

                                                              Fire at Lagos airport

Confusion hit  hundreds of intending  passengers at the international wing of the Murtala Muhammed

Airport, Lagos, on Thursday after a mid-day fire erupted at a section of the building.

The inferno, which caused a thick cloud of smoke to invade the terminal building, forced air travellers and

airport officials to scamper to safety around the 33-year-old airport.

Investigation revealed that the fire started from a piece of electric equipment at a section of the airport under

reconstruction.

When our correspondent visited the scene,   pallets of foam worth millions of Naira were seen to have been

consumed by the fire.

It was learnt that the fire would have burnt a major part of the main terminal building if not for the prompt

response of firefighters.

However, part of the airport’s air conditioning system panel and steel pillars at the construction site were

badly affected by the inferno.

Eyewitnesses said electricity was switched off during the fire incident and the six-storey terminal building

evacuated.

“People ran helter-skelter because of smoke in the building,” an airline worker said.

No officials of the construction company, Iron Products Industries, were available for comments.

But the General Manager, Corporate Affairs, Federal Airport Authority of Nigeria, Mr. Yakubu Dati, said

the fire incident, which started at about 11.30am was caused by welders working at the site.

He said, “The fire incident did not extend beyond 15 minutes. Men of the fire service department of FAAN

acted promptly and everything was brought under control. The response was unprecedented.”

He said there were no casualties and normal activities at the airport were not interrupted by the fire.

“Planes are taking off and landing without hitches.

“We remain committed to providing secure, safe and comfortable airport environment as enshrined in the

aviation master plan,” he added.

http://www.punchng.com/news/fire-causes-pandemonium-at-lagos-airport/

Dana: Reps want Demuren prosecuted for criminal negligence by John Ameh(Punch)

                                Director-General, Nigerian Civil Aviation Authority, Dr. Harold Demuren

The House of Representatives on Wednesday blamed the June 3, 2012 Dana Air crash in Lagos on negligence by the regulatory authorities and recommended the dismissal and prosecution of the Director-General, Nigerian Civil Aviation Authority, Dr. Harold Demuren.

The crash claimed the lives of all the 153 passengers on board the aircraft and 10 others on the ground.

The Senate/House of Representatives Joint Committee on Aviation had investigated the crash.

The House considered and adopted the report of the committee on Wednesday.

Briefing the House on the findings, the Chairman, House Committee on Aviation, Mrs. Nkiruka Onyejeocha, said several faults were reported on the ill-fated aircraft before the crash, but alleged that NCAA continued to clear it for flight operations.

She said, “The aircraft had five air returns before the crash; only one was due to bird strike. The others were caused by faults in the aircraft.

“The NCAA should have grounded the aircraft, but the agency did not care about the lives of Nigerians. Each time a fault was detected, the NCAA continued to clear the aircraft for flying.”

The report noted that there was no certified engineer for the MD83 aircraft in Nigeria, yet NCAA approved it for flight operations in the country.

For this regulatory failure, the committee also recommended the dismissal and prosecution of the NCAA inspector, Mr. Suleiman Akwuh, who inspected and cleared the plane.

Part of the report endorsed by the House reads, “The DG, (Demuren), who approved and deployed the officer, should also be dismissed from service and prosecuted for criminal negligence.

“The NCAA, under the current DG, Dr. Harold Demuren, brought in the MD83 to operate in Nigeria even when there is no licensed engineer rated on the aircraft.

“For the period under review, Dana operated 14 air returns caused by system failure, which is a sufficient indication of imminent danger.

“Up to the time of this report, NCAA is still without any licensed engineer type-rated on MD83, yet it is going ahead with technical audit on Dana operations with a view to restore its licence. This constitutes negligence.

“The tenure of the current DG of the NCAA had expired three months before the Dana crash occurred on June 3, 2012.”

The House directed that NCAA should be allowed to function as an autonomous agency without interference from the Ministry of Aviation.

“The staff strength of the NCAA should be totally overhauled with a view to injecting technically and professionally qualified personnel to enhance its regulatory role in accordance with international best practices,” the report added.

In addition, the House demanded the authorities to revisit the investigation report of Bellview Airlines and other accident investigation reports.

http://www.punchng.com/business/business-economy/dana-reps-want-demuren-prosecuted-for-criminal-negligence/

NATCA, NAMA trade words over lack of communication facilities in airports By Daniel Eteghe (Vanguard)

The disagreement between the Air Traffic Controllers under the aegis of the National Air Traffic Controllers

Association, NATCA, and Nigerian Airspace Management Agency, NAMA, Wednesday took a new twist

as both parties openly traded words over lack of communication facilities in the airspace, which could lead

to air disaster.

Speaking during an interactive session with newsmen, President of NATCA, Mr. Victor Eyaru, affirmed that

the communication problem with the radio had existed for three decades beyond this management and that

solution to the problem had overwhelmed all managements of NAMA till date.

Eyaru, however, called on the Federal Government to declare a state of emergency on aviation

communication facilities in the interest of Nigerians and to forestall any mid air collusion in the airspace.

The call according to the NATCA President, cannot be shrugged off as it is a wake up call for NAMA to

do all it takes to correct the anomaly.

Eyaru expressed sadness that NAMA expended over N400 million for the total VHF coverage project and

bought personalized headsets of over N400,000 each, stressing this was no solution to the problem.

He said:  “If all operational Air Traffic Controllers, who are members of NATCA, through their daily

loggings, are saying the communication equipment available to them should be improved upon to avert

impending air disaster are termed as alarmists and saboteurs, then, the system needs a curative measure fast.

Reacting to the accusation of NATCA, NAMA in a statement signed by the General Manager, Public

Affairs, Mr. Supo Atobatele, debunked the claim.

The statement read in part: “The management is affirmative that the seeming gloomy picture being painted by

this group does not exist as statistics shows more traffic across the nation ‘s airports, averaging 500, apart

from over 150 daily flights around the Port Harcourt airport axis  operated  by  the oil companies”.

”Apart from this, daily foreign flights into the country has been on the increase, just as the nation is being

inundated with more requests by the foreign airlines aspiring to explore Nigerian market.

”What else do you need to measure a safer sky?If there are no communication as being touted by the

controllers, one may then ask of their magic wand in handling these flights in question over decades as

suggested in their statement.
http://www.vanguardngr.com/2012/12/natca-nama-trade-words-over-lack-of-communication-facilities-in-airports

Bad Weather Forces Aero to Make Emergency Landing written by Chinedu Eze(Thisday)

                    
                               Muhammed International Airport


An Aero Contractors Airline flight destined for Enugu from Lagos on Tuesday made an emergency landing

and returned to the Murtala Muhammed International Airport due to engine failure.

Informed source disclosed that when the flight took off and gained cruising height, the pilot noticed that there

was a problem with the engine, but initially thought it was engine indication error, which means that the

indicator misread the actual condition of the engine, but when the pilot, who was said to be a female, noticed

that the engine had problem, she shut it off immediately, declared for emergency landing and landed with one

engine.

THISDAY gathered that the pilot declared for emergency landing at 11:54 a.m. and landed at 12: 20 p.m.

The source said the pilot was very professional that immediately she realised that there was engine problem,

she declared for emergency and returned to the airport.

But another source from the Nigeria Airspace Management Agency (NAMA) said the pilot made air return

back to Lagos when she learnt that the weather in Enugu was bad.

When THISDAY contacted the spokesperson of the airline, Simon Tumba, for the details of the incident he

did not explain what happened.

In the past few months, the airline had recorded many air returns due to technical issues and bad weather,

but the Nigeria Meteorological Agency (NIMET) had advised pilots and airlines to be abreast of the latest

weather report on the airport of destination before embarking on a flight.

Last week, NIMET issued a statement signed by the Director General of the agency, Dr Anthony

Anuforom, warning pilots about the coming harmattan weather, noting that the effect of dust particles in the

atmosphere in the southern parts of the country would include occurrence of early morning and late evening

mist/fog conditions which would reduce visibility significantly during the period and affect flight operations.

“Consequently, air, road and rail transportation will be affected by this impairment of surface horizontal

visibility. Road users, particularly motorists are therefore advised to be cautious and adhere strictly to road

traffic rules and regulations including putting on fog lights while driving,” the statement advised.

During the yuletide season, domestic airlines increased their flight frequencies especially to the airports in the

southern parts of the country and their otherwise smooth operations are hindered by the inclement weather

occasioned by the Harmattan.

In December last year many flights to Owerri, Enugu, Calabar, Warri and Port Harcourt airports were

cancelled by all the airlines that operated to those destinations due to bad weather.

THISDAY also learnt that besides bad weather, many of those airports do not have reliable airfield lighting

that could aid aircraft to land in foggy weather, as it is done in other parts of the world during winter and

other unfavourable weather situations.

http://www.thisdaylive.com/articles/bad-weather-forces-aero-to-make-emergency-landing/133995

ANOTHER NATIONAL CARRIER? PERISH THE IDEA!(Thisday Editorial)

Government is on the wrong route to salvaging the aviation industry

The Federal Government is toying with a new pet project - the floating of a new national carrier with at least 30 brand new aircraft that would be 'private sector-driven'. The Director of Operations, Federal Airports Authority of Nigeria (FAAN), Mr. Henry Omeogu, said the idea was to bring the aviation industry to 'world-class'  level. There were even reports of a meeting between a Federal Government delegation led by FAAN Managing Director, Mr. George Uriesi, and aircraft maker, Embraer of Brazil, on the acquisition of new aircraft for domestic airlines. As noble as government's intention may be, it is a wrong route towards salvaging the aviation industry from its present distress.

We stated clearly in a previous editorial that government need not own an airline to have a national carrier, and that one of the private airlines could do that as long as the environment was right and policies and support, adequate. Our position on the issue has not changed. Our position is premised on the fact that even in the days when government ownership of enterprises were in vogue, and with lots of idle funds to play around with, our government proved beyond reasonable doubts that it was incapable of running enterprises for profit and efficient service delivery. That explains why government continues to pursue, vigorously, the privatisation of state-owned enterpirses.

The pathetic state of our aviation industry is not because of the absence of brand new aircraft or national carrier, but a function of a combination of factors including weak and inefficient aviation regulatory bodies that condone sharp practices by operators, poor aviation infrastructure, inconsistent aviation policies, and lack of emphasis on quality service delivery. Not too long ago, a government-managed N300 billion aviation intervention fund  was disbursed to help domestic airlines reposition their operations with reports alleging diversion of those funds by some of the airline operators. But regrettably, nobody has been brought forward to account for the mismanagement of these funds. Rather, government has continued to lament the pathetic state of the aviation sector, as well as bemoan the failure of the intervention fund. 

It is a fact that domestic air travel in Nigeria is one of the most expensive in the world, with a one-hour, one-way flight going for as much as N32,000 (approximately $200). Yet, Nigeria is no doubt a huge aviation market going by its large population and the increasing demand for air travels because of poor road network and security challenges confronting ground transportation. That, ordinarily, should make our domestic routes a goldmine for local airlines. Sadly, that is not the case. Routes that are considered lucrative by foreign, but privately-owned airlines, are where Nigerian airline operators record their worst performance.

Government's concern should be how to probe why this is the case and how to correct the situation. It is not the work of government's bureaucrats to source for aircraft for privately-owned enterprises, or to float a national carrier that would then be private sector-driven. Such enterprises should come into being like any other private business and should be allowed to source for their own tools of operations and seek government guarantee, only where necessary, not the other way round.

In any case, world class service is not about new aircraft. It is about quality service delivery; keeping to flight schedules; ensuring safety of passengers and their luggage; providing competitive fares; complying with aviation regulations; providing  modern screening equipment that are travellers'-friendly and stress-free without compromising security. Other factors include the existence of conducive environment for air travels like modern terminals equipped with effective and efficient fire service, modern navigational aids, efficient and modern surface transport system, and well-trained aviation personnel. Most of these are within the confines of FAAN's responsibilities. That is what should be the priority of government and not floating a national carrier or sourcing for aircraft for privately-owned companies.

http://www.thisdaylive.com/articles/another-national-carrier-perish-the-idea-/134016

275 airlines make EU ban list(Daily Sun)

A total of 275 airlines worldwide have appeared on the dreaded list of airlines banned from flying into the European airspace. According to a data from the transport division of the European Union, the banned airlines have safety issues and as such will not be allowed to ‘contaminate’ the European Airspace.
Interestingly, no Nigerian airline is included but the inclusion of other African carriers is strongly being contended by the African Airlines Association (AFRAA) that has described the ban list as an economic weapon used to run African carriers out of business, to ensure European airlines’ domination of the continent’s airspace. According to the Secretary General and Chief Executive of AFRAA, Elijah Chingosho, the “ban list is a way of putting African airlines down and promoting European carriers.
“Most of the African carriers on the ban list do not even fly into Europe. They do domestic and regional operations and yet they are there. “So, how many passengers from Europe and other foreign destinations are aware of this. Will they check to know whether Kenya Airways, Ethiopian, South African Airways, Arik Air, Egypt Air and others are not on the list? Which passenger has such luxury of time? “Once they see African carriers dominating the list, they simply go for European carriers.
It’s an economic tool,” he told Daily Sun in a recent interview. Meanwhile, European Union Transport Commissioner, Siim Kallas, has announced that Eritrean air carriers are no longer certified to fly in the EU. The commission released an updated list of airlines subject to bans within the EU earlier in the week, with previously banned airlines from Mauritania now removed from the list.
According to the broadcaster, Kallas said: “Safety must always come first and we cannot accept any compromise in this area, hence the decision on Eritrea.” The airlines that had received their certification in Eritrea were subject to an operating ban because of “an outstanding safety concern notified by (International Civil Aviation Organisation) and to the absence of adequate mitigating measures taken by the competent authorities of Eritrea,” a commission statement said.
Meanwhile, the International Air Transport Association (IATA) called on the European Commission, EU member states and Europe’s Air Navigation Service Providers (ANSPs) to ensure that Functional Airspace Blocks (FABs) are delivering real results.

http://sunnewsonline.com/new/business/275-airlines-make-eu-ban-list/