By Wole Shadare(The Guardian)
Associated to spend $30m on four aircraft
EVEN as the fact that the age of an aircraft may not matter in aviation safety, Nigerian airlines have commenced moves to invest on fuel efficient and younger fleet.
Already, Associated Airline has expended $30 million for the acquisition of four regional jets, Embraer ERJ 145 aircraft that are expected in the country before October this year.
Air Nigeria, one of the carriers designated on international routes is equally in the process of acquiring younger fleet to boost its operations both on the domestic, regional and long haul routes. One other airline was also said to be mapping out strategy to acquire new aircraft.
Despite a chequered early development history, the 50 seats ERJ-145 has become a runaway sales success.
The Managing Director of the Associated Airline, Cordelia Ekwueme said the carrier was currently evaluating its fleet, adding that at present, two of these aircraft are awaiting inspections from the with the Nigeria Civil Aviation Authority (NCAA) at the United States Federal Aviation Administration (FAA) approved maintenance facilities.
The airline chief however said the decision by the airline to re-fleet was not really due to the age of their fleet but based on passengers’ comfort.
“We fly the turbo props and we introduced news jets 18 months ago. We found out that passengers were very acceptable and receptable about it. But we are still phasing the turbo props out as the jets appear to be more preferred by the passengers, based on our survey”, she said.
”We want to correct the impression that age is synonymous with safety. I was talking to a friend that if you are a 30-year old man and you have a heart transplant, and they give you the heart of a five year old, how old is your heart? That is how aircraft are. When you go for a C-Check, they tear the aircraft apart, and replace every single thing. So, when the aircraft comes back, it has a new lease of life. A five year old aircraft that is not well maintained is worse than a 30 year old aircraft that is maintained”.
Ekwueme enjoined all the airlines to cooperate to ensure that they achieve economy of scale, adding that the cost of building maintenance facilities was enormous but achievable.
She added that given the huge amount spent on maintenance of aircraft abroad, it was very necessary to have the Maintenance Repair Overhaul (MRO) facility in Nigeria.
She lamented that taking aircraft abroad for maintenance amounts to capital flight, disclosing that it costs as high as $1 million for a C-Check to be carried out on an aircraft.
A C-Check is performed approximately every 15 to 21 months or a specific amount of actual Flight Hours (FH) as defined by the manufacturer. This maintenance check is much more extensive than a B Check, as pretty much the whole aircraft is inspected.
This check puts the aircraft out of service and until it is completed, the aircraft must not leave the maintenance site.
It also requires more space than A and B Checks - usually a hangar at a maintenance base. The schedule of occurrence has many factors and components as has been described, and thus varies by aircraft category and type.
http://www.ngrguardiannews.com/index.php?option=com_content&view=article&id=90648:nigerian-airlines-plan-to-renew-fleet-&catid=31:business&Itemid=562
Thursday, June 28, 2012
Airlines’ N800b debt stirs fear of more aviation crises
By Wole Shadare (The Guardian)
WITH a debt profile of about $5 billion (N800 billion) hanging over the aviation sector, the fear of more crises stalks the industry. This indebtedness has rendered current efforts to salvage the industry from crises such as crashes as only half-hearted measures.
The financial crisis of the industry is reflected in the point being canvassed in some quarters that none of the nation’s airlines would scale an economic audit by the Nigerian Civil Aviation Authority of Nigeria (NCAA). Many of the airlines are heavily indebted to banks, service providers, aircraft lessors and aviation fuel marketers. A big airline alone was hugely indebted to the Asset Management Company (AMCOM) to the tune of N85 billion as at May this year.
Their debts are staggering. Even the over N87 billion out of the N300 billion total package of bail-out fund given to the carriers by the Federal Government through the Central Bank of Nigeria has put them more in crisis rather than assist them.
The government made the cash available following complaints by the major airlines that the global economic recession was having adverse effects on their operations as they were being bogged down by debts. Also, there were high interest rates, low working capital, absence of medium/long-term funding, high custom duties, VAT, other taxes and high cost of maintenance.
The carriers are usually confronted with huge challenges each time their aircraft are due for comprehensive checks like the D and A checks. The C-Check is performed approximately every 15 to 21 months or a specific amount of actual Flight Hours (FH) as defined by the manufacturer.
This maintenance check is much more extensive than a B Check, as pretty much the whole aircraft is inspected. This check puts the aircraft out of service and until it is completed, the aircraft must not leave the maintenance site and it costs about $1 million for a B737 and more than $1.5 million on B767, B777, A330 and A340 aircraft types.
The D-Check is - by far - the most comprehensive and demanding check for an airplane. It is also known as a Heavy Maintenance Visit (HMV). This check occurs approximately every 5 to 6 years. It is a check that, more or less, takes the entire airplane apart for inspection and overhaul. Also, if required, the paint may need to be completely removed for further inspection on the fuselage metal skin. Such a check will usually demand around 40,000 man-hours and it can generally take up to two months to complete, depending on the aircraft and the number of technicians involved. The cost of this check ranges between $2 million and $2.5 million according to aircraft maintenance engineers.
Experts have argued that the insolvency of the airlines has led to insinuations of corner-cutting in the maintenance of their aircraft.
Sources said that the NCAA as constituted, after the 2005 and 2006 crashes involving Bellview, Sosoliso and ADC Airlines made the regulatory authorities to focus on safety without necessarily regulating the financial health of the operators.
Just last week, Air Nigeria was grounded for alleged bankruptcy after the outcome of the financial audit carried out on the carrier by the aviation regulator. More airlines are expected to receive the same pill following disclosure from a source in NCAA that, “many of the airlines are in a financial bad shape.’’
“The result of the audit revealed that Air Nigeria and many other airlines are indebted to aviation agencies and marketers. We cannot overlook the result of the audit because what we discovered showed that Air Nigeria is insolvent. There are many others like that. We don’t want the airline to start cutting corners and endanger the safety of passengers,” the source said.
President, Sabre Network, West Africa, a United States (U.S.)-based airline global distribution system, Gbenga Olowo, said not a single Nigerian airline was liquid, stressing that working capital was permanently inadequate.
He disclosed that they had advocated intervention funds, but that the response to this came so belatedly and the funds were absolutely wrongly applied.
According to him: “Indebtedness to banks was addressed rather than continued healthy operations of the airlines that will conveniently service rescheduled debts. We also advocated debt forgiveness on some user charges and single digit interest rate. No action as we speak along this direction.”
On factors that have made the carriers insolvent, Olowo listed uncontrollable high fuel cost (up to 30 per cent) of earnings, too high user charges including Ticket Sales Charge (TSC), Passenger Service Charge (PSC), landing, parking, rent, over-flight charges and Value Added Tax (VAT), which he stated, was up to about 20 per cent of gross earnings.
“There is no VAT in other means of transport except domestic aviation. Simply put, airlines are revenue collectors and a cash cow without pay,” he said.
He carpeted the carriers for simply doing the same things by operating to wrong routes with wrong equipment and charging uneconomic tariffs.
On the way forward, the former Executive Director of Bellview Airlines advocated merger so that the operators could put resources together, harmonize schedules, deploy scientific revenue management tools, global distribution, modern reservation technique, interlining and global alliance, joint fuel negotiation and hedging.
“Nigeria does not need more than four flag carriers (private or otherwise). Membership of IATA must be voluntarily compulsory. IATA airlines are self- regulated and operate above minimum equipment list required by any Civil Aviation Authority (CAA). Policy in this direction remains the necessary and sufficient condition for strong Nigeria airlines.”
In the same vein, aviation analyst, Olumide Ohunayo, said the NCAA had been a bit flexible with the economic auditing considering the malaise that cut across almost all the carriers.
“The solution is not a one-shop thing. It borders on capital injection which could be external or internal, to galvanise this capital. There must be some sort of protection in the industry.
“AERO’s unblemished safety record, Arik’s young fleet and Air Nigeria IOASA certification and the International Air Transport Association (IATA) membership were not enough for the government to use to negotiate with foreign airlines,” he said.
http://www.ngrguardiannews.com/index.php?option=com_content&view=article&id=90661:airlines-n800b-debt-stirs-fear-of-more-aviation-crises-&catid=1:national&Itemid=559
WITH a debt profile of about $5 billion (N800 billion) hanging over the aviation sector, the fear of more crises stalks the industry. This indebtedness has rendered current efforts to salvage the industry from crises such as crashes as only half-hearted measures.
The financial crisis of the industry is reflected in the point being canvassed in some quarters that none of the nation’s airlines would scale an economic audit by the Nigerian Civil Aviation Authority of Nigeria (NCAA). Many of the airlines are heavily indebted to banks, service providers, aircraft lessors and aviation fuel marketers. A big airline alone was hugely indebted to the Asset Management Company (AMCOM) to the tune of N85 billion as at May this year.
Their debts are staggering. Even the over N87 billion out of the N300 billion total package of bail-out fund given to the carriers by the Federal Government through the Central Bank of Nigeria has put them more in crisis rather than assist them.
The government made the cash available following complaints by the major airlines that the global economic recession was having adverse effects on their operations as they were being bogged down by debts. Also, there were high interest rates, low working capital, absence of medium/long-term funding, high custom duties, VAT, other taxes and high cost of maintenance.
The carriers are usually confronted with huge challenges each time their aircraft are due for comprehensive checks like the D and A checks. The C-Check is performed approximately every 15 to 21 months or a specific amount of actual Flight Hours (FH) as defined by the manufacturer.
This maintenance check is much more extensive than a B Check, as pretty much the whole aircraft is inspected. This check puts the aircraft out of service and until it is completed, the aircraft must not leave the maintenance site and it costs about $1 million for a B737 and more than $1.5 million on B767, B777, A330 and A340 aircraft types.
The D-Check is - by far - the most comprehensive and demanding check for an airplane. It is also known as a Heavy Maintenance Visit (HMV). This check occurs approximately every 5 to 6 years. It is a check that, more or less, takes the entire airplane apart for inspection and overhaul. Also, if required, the paint may need to be completely removed for further inspection on the fuselage metal skin. Such a check will usually demand around 40,000 man-hours and it can generally take up to two months to complete, depending on the aircraft and the number of technicians involved. The cost of this check ranges between $2 million and $2.5 million according to aircraft maintenance engineers.
Experts have argued that the insolvency of the airlines has led to insinuations of corner-cutting in the maintenance of their aircraft.
Sources said that the NCAA as constituted, after the 2005 and 2006 crashes involving Bellview, Sosoliso and ADC Airlines made the regulatory authorities to focus on safety without necessarily regulating the financial health of the operators.
Just last week, Air Nigeria was grounded for alleged bankruptcy after the outcome of the financial audit carried out on the carrier by the aviation regulator. More airlines are expected to receive the same pill following disclosure from a source in NCAA that, “many of the airlines are in a financial bad shape.’’
“The result of the audit revealed that Air Nigeria and many other airlines are indebted to aviation agencies and marketers. We cannot overlook the result of the audit because what we discovered showed that Air Nigeria is insolvent. There are many others like that. We don’t want the airline to start cutting corners and endanger the safety of passengers,” the source said.
President, Sabre Network, West Africa, a United States (U.S.)-based airline global distribution system, Gbenga Olowo, said not a single Nigerian airline was liquid, stressing that working capital was permanently inadequate.
He disclosed that they had advocated intervention funds, but that the response to this came so belatedly and the funds were absolutely wrongly applied.
According to him: “Indebtedness to banks was addressed rather than continued healthy operations of the airlines that will conveniently service rescheduled debts. We also advocated debt forgiveness on some user charges and single digit interest rate. No action as we speak along this direction.”
On factors that have made the carriers insolvent, Olowo listed uncontrollable high fuel cost (up to 30 per cent) of earnings, too high user charges including Ticket Sales Charge (TSC), Passenger Service Charge (PSC), landing, parking, rent, over-flight charges and Value Added Tax (VAT), which he stated, was up to about 20 per cent of gross earnings.
“There is no VAT in other means of transport except domestic aviation. Simply put, airlines are revenue collectors and a cash cow without pay,” he said.
He carpeted the carriers for simply doing the same things by operating to wrong routes with wrong equipment and charging uneconomic tariffs.
On the way forward, the former Executive Director of Bellview Airlines advocated merger so that the operators could put resources together, harmonize schedules, deploy scientific revenue management tools, global distribution, modern reservation technique, interlining and global alliance, joint fuel negotiation and hedging.
“Nigeria does not need more than four flag carriers (private or otherwise). Membership of IATA must be voluntarily compulsory. IATA airlines are self- regulated and operate above minimum equipment list required by any Civil Aviation Authority (CAA). Policy in this direction remains the necessary and sufficient condition for strong Nigeria airlines.”
In the same vein, aviation analyst, Olumide Ohunayo, said the NCAA had been a bit flexible with the economic auditing considering the malaise that cut across almost all the carriers.
“The solution is not a one-shop thing. It borders on capital injection which could be external or internal, to galvanise this capital. There must be some sort of protection in the industry.
“AERO’s unblemished safety record, Arik’s young fleet and Air Nigeria IOASA certification and the International Air Transport Association (IATA) membership were not enough for the government to use to negotiate with foreign airlines,” he said.
http://www.ngrguardiannews.com/index.php?option=com_content&view=article&id=90661:airlines-n800b-debt-stirs-fear-of-more-aviation-crises-&catid=1:national&Itemid=559
Wednesday, June 27, 2012
N6.5b aviation contract: Judge walks out of court as SANs engage in argument
By
The on-going trial of former Minister of Aviation, Babalola Borisade, took a dramatic turn on Tuesday when the judge of an Abuja High Court, walked out on the court.
Borisade is standing trial alongside a former Managing Director of the Nigeria Airspace Management Agency (NAMA), Rowland Iyayi; Tunde Dairo, a former Personal Assistant to Borisade and George Eider, an Austrian and Managing Director of Avsatel Communications Ltd.
The four are standing trial over the alleged mismanagement of the N6.5 billion Aviation Safe Tower contract.
They were arraigned by the EFCC on a 15-count charge bordering on bribe-taking and forging of documents relating to aviation contract on November 19, 2009.
At the resumed hearing yesterday, Justice Abubakar Umar walked out on the court for 35 minutes, as he ordered ‘a trial within trial’ to ascertain whether the confessional statement of Dairo (third accused) was admissible.
During the trial, Chief Adegboyega Awomolo (SAN), counsel to Dairo (third accused) and Mr Sebastine Hon (SAN), EFCC counsel, engaged themselves in a heated argument.
The judge, who had earlier asked each of them to take their seats and allow one person to talk, ordered the clerk, Akinwale Akinlolu, to announce his (judge’s) exit from the court when the counsel refused to stop arguing.
The argument started after Hon, EFCC counsel, objected to the manner a witness, Mr Reuben Omosigho, was being cross-examined by Borisade’s counsel, Mr Kehinde Ogunmiyiju.
But Awomolo, counsel to Iyayi, also stood up and asked Hon to stop interjecting in the re-examination process, but Hon refused and continued with his objection.
“I cannot be intimated by anybody. My witness should not be made to answer any question the way the accused counsel wants the answer to be,” Hon said.
Replying, Awomolo shouted: “I became a SAN before you. I am 24 years as SAN. You should have respect for me.”
Justice Umar then asked both of them to stop shouting in court and take their seats.
He said: “If you will behave like this, how do you expect the younger ones in the bar to act?”
The arguments lasted for close to 10 minutes and when Umar could not bear the situation, he immediately summoned the SANs to his chamber, and walked out.
After about 35 minutes, the two SANs returned to the open court and some minutes later, Justice Umar returned.
When the case resumed, the prosecution witness, Mr Omosigho, continued with his testimony.
He told the court that the third accused (Dairo) made the statement voluntarily, and denied the accusations by counsel to the accused that the EFCC obtained the statement under duress.
Before the adjournment, both Hon and Awomolo apologised to the judge over what had happened.
Awomolo said: “I wish to on behalf of my learned silk apologise to the court for the earlier disruption of court process.
Justice Umar, after listening to the apology, adjourned the ‘trial within trial’ to July 10 for continuation of hearing at the instance of the EFCC.
http://www.thenationonlineng.net/2011/index.php/news/51813-n6-5b-aviation-contract-judge-walks-out-of-court-as-sans-engage-in-argument.html
The on-going trial of former Minister of Aviation, Babalola Borisade, took a dramatic turn on Tuesday when the judge of an Abuja High Court, walked out on the court.
Borisade is standing trial alongside a former Managing Director of the Nigeria Airspace Management Agency (NAMA), Rowland Iyayi; Tunde Dairo, a former Personal Assistant to Borisade and George Eider, an Austrian and Managing Director of Avsatel Communications Ltd.
The four are standing trial over the alleged mismanagement of the N6.5 billion Aviation Safe Tower contract.
They were arraigned by the EFCC on a 15-count charge bordering on bribe-taking and forging of documents relating to aviation contract on November 19, 2009.
At the resumed hearing yesterday, Justice Abubakar Umar walked out on the court for 35 minutes, as he ordered ‘a trial within trial’ to ascertain whether the confessional statement of Dairo (third accused) was admissible.
During the trial, Chief Adegboyega Awomolo (SAN), counsel to Dairo (third accused) and Mr Sebastine Hon (SAN), EFCC counsel, engaged themselves in a heated argument.
The judge, who had earlier asked each of them to take their seats and allow one person to talk, ordered the clerk, Akinwale Akinlolu, to announce his (judge’s) exit from the court when the counsel refused to stop arguing.
The argument started after Hon, EFCC counsel, objected to the manner a witness, Mr Reuben Omosigho, was being cross-examined by Borisade’s counsel, Mr Kehinde Ogunmiyiju.
But Awomolo, counsel to Iyayi, also stood up and asked Hon to stop interjecting in the re-examination process, but Hon refused and continued with his objection.
“I cannot be intimated by anybody. My witness should not be made to answer any question the way the accused counsel wants the answer to be,” Hon said.
Replying, Awomolo shouted: “I became a SAN before you. I am 24 years as SAN. You should have respect for me.”
Justice Umar then asked both of them to stop shouting in court and take their seats.
He said: “If you will behave like this, how do you expect the younger ones in the bar to act?”
The arguments lasted for close to 10 minutes and when Umar could not bear the situation, he immediately summoned the SANs to his chamber, and walked out.
After about 35 minutes, the two SANs returned to the open court and some minutes later, Justice Umar returned.
When the case resumed, the prosecution witness, Mr Omosigho, continued with his testimony.
He told the court that the third accused (Dairo) made the statement voluntarily, and denied the accusations by counsel to the accused that the EFCC obtained the statement under duress.
Before the adjournment, both Hon and Awomolo apologised to the judge over what had happened.
Awomolo said: “I wish to on behalf of my learned silk apologise to the court for the earlier disruption of court process.
Justice Umar, after listening to the apology, adjourned the ‘trial within trial’ to July 10 for continuation of hearing at the instance of the EFCC.
http://www.thenationonlineng.net/2011/index.php/news/51813-n6-5b-aviation-contract-judge-walks-out-of-court-as-sans-engage-in-argument.html
Govt plans safer aviation sector
Abiodun Fagbemi( The Guardian)
TO check future air mishaps in the country, the Federal Government yesterday announced a comprehensive plan that would ensure the safety of the nation’s airspace.
Vice President Namadi Sambo, who spoke in Ilorin at the opening ceremony of the 47th Yearly General Meeting and Conference of Nigerian Institution of Surveyors (NIS) held in Ilorin with the theme: “Surveying, Disaster Management and Global Warming”, however said the Federal Government’s efforts must be complemented by those of the states of the federation and other relevant agencies so that the exercise would not be futile.
According to the Vice President represented at the event by the Surveyor-General of the Federation, Peter Nwilo, the recent plane disaster in Lagos leading to the loss of lives of many people was still fresh, hence the need to tinker the best way out towards preventing a recurrence of it.
“We all realise that ensuring safety and being able to be properly positioned to manage disasters is predicated on having real-time information on locations and time. This essentially is what maps and its attribute products enable us to do. The government of Nigeria will do everything possible to ensure that our geographical space is properly and comprehensively mapped.”
He added: “The challenge is up to our surveyors to consistently propose plans of effectively doing this through appropriate channels. The office of the Surveyor-General of the Federation is being positioned and enabled to perform its rightful roles. It would be complementary if all state governments do likewise so that in no distant future, our country would possess the spatial knowledge and application capacity to take care of all environment and disaster challenges that may arise.”
Speaking on the right the NIS recently obtained to host in Abuja the world surveying community under the aegis of the International Federation of Surveyors, Sambo said President Goodluck Jonathan, apart from having accepted to be the grand patron of the event, has equally pledged the Federal Government’s commitment to the successful hosting of the global event. The proposed conference is fixed for May 6 and 10 2013.
http://www.ngrguardiannews.com/index.php?option=com_content&view=article&id=90539:govt-plans-safer-aviation-sector&catid=1:national&Itemid=559
TO check future air mishaps in the country, the Federal Government yesterday announced a comprehensive plan that would ensure the safety of the nation’s airspace.
Vice President Namadi Sambo, who spoke in Ilorin at the opening ceremony of the 47th Yearly General Meeting and Conference of Nigerian Institution of Surveyors (NIS) held in Ilorin with the theme: “Surveying, Disaster Management and Global Warming”, however said the Federal Government’s efforts must be complemented by those of the states of the federation and other relevant agencies so that the exercise would not be futile.
According to the Vice President represented at the event by the Surveyor-General of the Federation, Peter Nwilo, the recent plane disaster in Lagos leading to the loss of lives of many people was still fresh, hence the need to tinker the best way out towards preventing a recurrence of it.
“We all realise that ensuring safety and being able to be properly positioned to manage disasters is predicated on having real-time information on locations and time. This essentially is what maps and its attribute products enable us to do. The government of Nigeria will do everything possible to ensure that our geographical space is properly and comprehensively mapped.”
He added: “The challenge is up to our surveyors to consistently propose plans of effectively doing this through appropriate channels. The office of the Surveyor-General of the Federation is being positioned and enabled to perform its rightful roles. It would be complementary if all state governments do likewise so that in no distant future, our country would possess the spatial knowledge and application capacity to take care of all environment and disaster challenges that may arise.”
Speaking on the right the NIS recently obtained to host in Abuja the world surveying community under the aegis of the International Federation of Surveyors, Sambo said President Goodluck Jonathan, apart from having accepted to be the grand patron of the event, has equally pledged the Federal Government’s commitment to the successful hosting of the global event. The proposed conference is fixed for May 6 and 10 2013.
http://www.ngrguardiannews.com/index.php?option=com_content&view=article&id=90539:govt-plans-safer-aviation-sector&catid=1:national&Itemid=559
Tuesday, June 26, 2012
Crashed aircraft has $354.5m insurance, says Dana Air
By
DANA Air said yesterday its crashed aircraft was insured with all premium paid to date.
The airline’s spokesman, Tony Usidiamen, disclosed that the aircraft has an insurance cover totalling $354.5 million.
He said the aircraft was insured by Prestige Assurance Plc as (Lead Underwriter), while Lloyds of London, is the foreign insurer.
The explained that the aircraft had two insurance covers: $4.5 million for the value of the plane (Hull) and $350 million for third party liabilities.
Usidiamen further disclosed that the company has contacted 103 of the 112 families who lost their loved ones in the accident. It has also contacted the six embassies managing the communication with the families of foreign victims, he added.
These families and embassies have been sent letters of condolence and the insurance documentation necessary to facilitate compensation.
He said the company has received completed insurance forms for 23 of the victims, two of which were its staff.
He said: " NCAA guidelines require that where possible, initial compensation payments be made within 30 days of the accident taking place. NCAA guidelines set the compensation level at $100,000 per victim.
On the identification and release of bodies to the families, he said airline has been working with the Lagos State Government and the Lagos State University Teaching Hospital (LUTH) to to expedite the process.
He said 98 per cent of DNA samples have been collected and sent to a United Kingdom laboratory for analyses, while the remainder would be sent today.
To facilitate the completion of claims’forms by the families, the company has established toll free lines to a crisis management centre to provide assistance, he said.
He assured that the airline would continue to provide this service until all claims have been settled.
http://www.thenationonlineng.net/2011/index.php/business/51660-crashed-aircraft-has-354-5m-insurance-says-dana-air.html
DANA Air said yesterday its crashed aircraft was insured with all premium paid to date.
The airline’s spokesman, Tony Usidiamen, disclosed that the aircraft has an insurance cover totalling $354.5 million.
He said the aircraft was insured by Prestige Assurance Plc as (Lead Underwriter), while Lloyds of London, is the foreign insurer.
The explained that the aircraft had two insurance covers: $4.5 million for the value of the plane (Hull) and $350 million for third party liabilities.
Usidiamen further disclosed that the company has contacted 103 of the 112 families who lost their loved ones in the accident. It has also contacted the six embassies managing the communication with the families of foreign victims, he added.
These families and embassies have been sent letters of condolence and the insurance documentation necessary to facilitate compensation.
He said the company has received completed insurance forms for 23 of the victims, two of which were its staff.
He said: " NCAA guidelines require that where possible, initial compensation payments be made within 30 days of the accident taking place. NCAA guidelines set the compensation level at $100,000 per victim.
On the identification and release of bodies to the families, he said airline has been working with the Lagos State Government and the Lagos State University Teaching Hospital (LUTH) to to expedite the process.
He said 98 per cent of DNA samples have been collected and sent to a United Kingdom laboratory for analyses, while the remainder would be sent today.
To facilitate the completion of claims’forms by the families, the company has established toll free lines to a crisis management centre to provide assistance, he said.
He assured that the airline would continue to provide this service until all claims have been settled.
http://www.thenationonlineng.net/2011/index.php/business/51660-crashed-aircraft-has-354-5m-insurance-says-dana-air.html
Monday, June 25, 2012
Crashed plane not manufactured in 1983 — Dana Air
SADE WILLIAMS ( Businessday)
The management of Dana Air has insisted that the crashed MD- 83 aircraft was manufactured in 1990 as against insinuations that the plane was manufactured in 1983.
Oscar Wilson, the Director of Flight Operations, Dana Air, made the clarification when he appeared before the committee probing the Dana plane crash and other sundry issues in the country’s aviation industry weekend.
He said the average age of planes in the inventory of the airline is 21 years.
Wilson told members of the joint committee that the most important factor in an aircraft operation was not its age but its history of regular maintenance.
“A three months old aircraft can as well crash if not regularly maintained. The age of aircraft does not determine their safety or airworthiness,” argued Wilson, adding that the ill-fated plane had its last maintenance check in September 2011.
Jacky Hathramani, Dana’s Managing Director, also disclosed that the airline’s maintenance checks were done by a Turkey-based company called MYTECHNIC and stated that the crashed aircraft had its last C-Check in September 2011.
Wilson in turn said the crashed plane had never been grounded for any technical issue prior to the June 3 crash at Iju-Ishaga in Lagos.
Hathramani had also told the committee that the aircraft that crashed had operated earlier in the day as Flight 9J 999, departed Lagos at 08:31a.m local time with 135 passengers to Abuja and returned from Abuja to Lagos as flight 9J 998 at 10:24a.m with 141 passengers on board and later in the day operated as Flight 9J 993 from Lagos to Abuja with 141 passengers at 1251 hours.
Associated Aviation to buy 4 new aircrafts for $30m
Sade Williams (Businessday)
Associated Aviation has revealed that it would be acquiring four new 60-seater Embraer 145 aircraft from the United Kingdom, worth over $30 million, just as it has started a phasing out process of the old aircraft in its fleet.
The airline’s management in Lagos through its managing director, Cordelia Ekwueme, made this known to Business Day, at the weekend, saying it is validating its fleet, while phasing out its four 30- seater Turboprops 120 aircraft from its fleet to pave way for the six year old aircraft that are fuel efficient and more comfortable for travellers.
The aircraft she, said would be delivered into the airlines fleet, in the next three months.
She further, disclosed that two Embarer aircraft are currently on maintenance schedule approved by European Airspace Safety Agency (EASA) and Federal Aviation Administration (FAA) abroad, adding that the fleet would be increased to five, for commercial operations on the acquisition of the other four.
“Our strategic plan is to enlarge our fleet by four aircraft, we are phasing out four, out of five aircraft, they are between 19 and 22 years old. It is a plan that has been in place, we have tested the Embraer 145 and it is an aircraft that is reliable. Our purpose is to provide the best quality service to the flying public with utmost safety and reliability.
“Therefore, for fuel efficiency, maintenance cost and passenger preference, we are purchasing aircraft that are less than six years old, because when you do the cost analysis of maintenance, it will be better to go for newer aircraft. We have two cargo aircraft and for efficiency purpose too, we will change the cargo fleet but I am not saying they are not safe”, she said.
Ekwueme, who explained that the fleet renewal had been in the plan of the management said, its engineers were licensed by the Nigerian Civil Aviation Authority (NCAA) adding that they carry out only line maintenance (A and B) checks on their aircraft, while the airline has maintenance agreement with some companies in the United States, South Africa and in Europe for its C-checks.
“The NCAA does a though check on our airline all the time, in fact, their officers had to go and approve the maintenance facilities abroad before taking our aircraft there. Everything possible is being done by the NCAA to ensure safety”, she added.
She however called on all domestic airline operators to pull resources together to build an aircraft hangar for all maintenance levels in Nigeria, in order to save the industry the huge capital flight while ferrying aircraft abroad for maintenance.
“At least it takes $1 million to do a C-check every 18 months on a Boeing aircraft , I think the airline operators need to come together to see that we achieve economies of scale. It may not be an immediate thing but it will save us the capital flight”, she said.
Associated Aviation, apart from its charter operations, operates daily flights into Akure, Ibadan, Gombe, Benin and Sokoto and currently planning to to include Asaba.
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