Category: Aviation

  • Challenges of travel business, by operator

    The Chief Executive Officer, Sesby’s Travel and Tours Limited, Adeola Sesby–Banjoh, has  identified  infiltration into the business by people not trained to handle travel planning as one of the major challenges facing the sub-sector.

    She lamented that this has led to poor service delivery.

    Speaking during the  launch of the company’s online portal and services in Lagos, she said the company made a turnover of N1 billion last year, in spite of the several challenges in the sub-sector.

    She explained that the major functions of banks are to accept deposits and lend money to customers, wondering why they should dabble into an area they don’t have core competencies.

    The travel chief described as abnormal, the sale of airline tickets by banks, adding that it does not happen in the United States and Britain.

    She stated that in these countries, the business of selling airlines tickets was restricted to travel agencies.

    “One of our major challenges is that some commercial banks have infiltrated into the travel business by selling airlines’ tickets.It is only in Nigeria that it is done. It is not done in Britain and in the United States,” she said.

    Another challenge, she said, is dearth of funds.

    On the travel agency’s relationship with other stakeholders, such as airlines and the International Air Transport Association (IATA), Sesby-Banjoh said it has been cordial, adding that the firm became IATA travel agent n June 4, 2003.

    She added that Sesby also has good working relations with airlines across the globe, noting that the major aim of the agency is to take off stress from customers.

     

  • ‘Quota system shouldn’t apply to national carrier’

    Former Rector and Chief Executive Officer of Nigerian College of Aviation Technology (NCAT)Capt. Adebayo Araba has warned promoters of a national carrier against using quota system  for recruitment.

    At an event in Lagos last week, he insisted that Nigeria required a national carrier to compete with others.

    The carrier he said would  provide jobs for qualified Nigerians and enable the sector contribute significantly to the Gross Domestic Products ( GDP) .

    He said quota system could be applied in some sectors of the economy, but not in aviation given its technical nature.

    Araba warned that introduction of quota system in the airline project may spell doom for it like the defunct Nigeria Airways.

    He  said because of quota system, Nigeria Airways lost about six or seven aircraft and hundreds of lives to accidents.

    Besides, he insisted that quota system deprived over 20 students from a particular state in the country from gaining admission into NCAT for their preferred courses when he was the rector of the institution. The school had to look for other courses for the students.

    He said:” You see, Federal Government is very clear concerning some certain issues. For instance, we are talking about quota, which government is very clear about, but when it comes to some specific disciplines, we have to be very careful how we manage the quota system.

    “At the Nigeria Airways wher I worked for so many years, we tried the quota system, we lost. Because of the quota system, we lost about six to seven planes and so many lives. The airline is gone now, and we can’t rectify the past, but we should be able to learn from what happened to take care of the future.

    “At NCAT, we put the quota system on ground anytime we had any new intake, we go strictly with the quota system, but once you are in, and the flag is down, for you to continue in that college, would be whatever you have in your head. Anything short of that, forget about quota system,”he said.

    On the challenges facing domestic airline operators in the country, Araba, queried their background and the technical-know-how of their sponsors in airline business.

    He said the fact that a sponsor had the financial wherewithal to run an airline didn’t mean such would manage the business successfully and urged the Nigerian Civil Aviation Authority, NCAA, to play its oversight function well for the development of the country.

  • Global air freight increases by 3.3%

    Global  air freight volumes released by the  International Air Transport Association (IATA) has shown a 3.3 percent increase in cargo volumes  in April 2015.

    The data released by the director general of IATA , Mr Tony Tyler said there is growth in cargo volumes compared to the same month in 2014.

    He did not give the figures .

    He said there has been no actual growth in aggregated global cargo volumes since late last year.

    According to him: ” These factors point toward a need to kick-start trade by reversing protectionist trade measures. Implementing the Bali Trade Facilitation Agreement would be a good start, as well as commitments to help facilitate trade in emerging markets.

    Also of note was the significant capacity increase of 5.5 percent in April 2015, driving the load factor down to its lowest for the past 12 months.

    Asia-Pacific carriers reported demand growth of 4.5 percent in April compared to April 2014, below a capacity expansion of 7.0 percent.

    Current trade volumes for emerging Asia markets are down 10 percent, and the region has been affected by a slowdown in exports to Europe.

    European carriers saw demand decline by 0.3 percent in April, compared to a year ago while capacity grew by 5.0 percent.

    Recent improvements in European business confidence have yet to be reflected in air freight volumes. A firming-up of oil prices and the Euro has meant that positive momentum from the European Central Bank stimulus has faltered.

    Middle Eastern carriers saw demand grow by 14.1 per cent , on the back of increased trade within the region, along with network and capacity expansion. Capacity grew 18.5 percent.

    Latin American airlines reported a fall of 6.8 percent in demand, while capacity grew by 7.0 percent.

    Month-on-month results for carriers in the region indicate that recent declines may have come to an end.

    The hope is that general increases in regional trade activity start to be reflected in stronger air freight demand.

    African airlines  on the other hand, experienced a 0.2 percent decline in demand and a 2.2 percent decrease in capacity.

  • Union demands workers’ release

    The Air Transport Services Senior Staff Association of Nigeria (ATSSSAN) has condemned the detention of its members by the Directorate of State Security (DSS) in Uyo, Akwa Ibom State .

    The union is demanding their unconditional release.

    A petition to the Director-General, DSSS, dated July 7, signed by the General Secretary of ATSSSAN, Captain Tarnongu, reads: “It’s our great expectation that you would deploy your good office to redress this wrong by ordering the immediate release of our members who are being conspiratorially detained by your officers in Uyo, Akwa Ibom State.

    “May we remind you that under a democratic society, rule of impunity is strongly frowned at.”

    Tarnongu said trouble started when members of the ATSSSAN and NUATE at Akwa Ibom Airport Development Company Ltd (IADCL) embarked on strike to express their grievances  over the management’s high handedness, mismanagement of the airport,  unpaid wages/allowances and desperate transfer of 150 specially- trained staff to ministries and other departments outside the airport.

    ATSSSAN stated that the management of IADCL has been displaying anti-union attitude,  adding that Barrister Idara  Etim, the resource administrator, in a memo, directed that no worker should join any union as the state government had not approved any form of trade unionism, while workers already in the union were given February 12, to renounce their membership or face disciplinary action.

    The union noted that there is right to  freedom of association, to join and belong to unions.

    The union alleged that the IADCL has planned to spend $34million to train workers to replace those redeployed to ministries saying it was a grand scheme to corruptly mismanage the state tax payers money.

    “To our chagrin however, security agencies were dragged in to a purely industrial relations matters that been mediated on by the Federal Ministry of Labour and Productivity yet the management remained recalcitrant and refused to honour all hallowed agreements,” the workers alleged.

    The Police arrested five of our members while the DSSS arrested three others. Our Lawyers were able to secure the release of members picked up by the Police but the Directorate in Uyo arm-twisted the judiciary in the State to get a back-door order permitting the Directorate to detain three of our members till 18th July, 2015”

    “It is imperative to add that the business of aviation all over the world is never micro-managed, there is nothing like Akwa Ibom aviation standards but there are only global standards as set out by ICAO. We are determined to make sure that these standards are maintained as well as those of industrial relations set by ILO.”

     

  • Maiduguri Airport’s  closure was politically-motivated, says Shettima

    Maiduguri Airport’s closure was politically-motivated, says Shettima

    The Re-opening of the Maiduguri International Airport will attract investment to the Northeast, Borno State Governor Ibrahim Shettima has said.

    The region has been grappling with Boko Haram insurgency.

    Shettima spoke last weekend   when Medview Airlines began scheduled flights into the airport.

    The airport was closed 18 months ago, in the heat of the insurgency.

    Shettima said it was wrong of the Federal Government to have shut the  airport, alleging that it was  politically motivated.

    He said even in war-torn countries, such as Iraq and Afghanistan, airports were not shut, adding that in some parts of  Middle East, including Syria and Lebanon, airports remain open, despite hostilities .

    Any government that is conscious of the role airports as critical infrastructure could play in economic growth would not shut down airports for almost two years, the governor said. Shettima said the government was working with relevant security agencies and aviation authorities to ensure seamless operations at the airport.

    He described airports as an important transport infrastructure that accelerates development, insisting that the re-opened airport would, once again, restore Borno and surrounding states to their glory in the transportation of agricultural produce.

    The governor noted that pilgrims for this years’ Haji would travel by road to Kano, Jigawa or Gombe to connect their flights to Saudi Arabia.

    He appealed to investors to come and invest in the state, saying:”We thank God that the Maiduguri Airport has been re-opened for scheduled flight operations. It was due to collaborative efforts by relevant authrities. “ It is a great day for the people of Borno State, the airport has been finally re-opened.   “It is evidence of the good relationship between the people of the state and the Federal Government. but, it is highly regrettable and it defies logic and common sense that about six million people were deprived of the use of this airport because of the activities of some people .

    “It was wrong for this airport to have been closed in the first instance because normal flight activities are going on even in some so called hot spots in the world including Bagdad and Kabul.”

    Shettima said the airport would create access for people to travel for business and leisure.

    He spoke of assurances by Medview to continue the flight to ensure Borno is linked to other airports. He said the state would collaborate with the airlines to sustain flights, calling on relevant security agencies to step up efforts to improve security at the airport.

    Medview Airlines Chief Executive Alhaji Muneer Bankole said the airline began flights into the airport following safety assurance by security agencies.

    “Our decision to commence flights to Maiduguri was informed by the need to link up the people of this region to other parts of the country,”  he said.

    The four flights from Lagos to Maiduguri will be routed via Abuja.

     

  • Bird strikes, others may kill airlines

    Bird strikes, others may kill airlines

    Incessant bird strikes have remained a challenge to airline operators. The problem, which is not limited to the nation’s aviation industry, has led to spiralling costs in terms of fixing damaged engines, loss of revenue, and other maintenance expenses, reports KELVIN OSA-OKUNBOR

    Domestic airline operators, acting under the aegis of Airline Operators of Nigeria (AON), have raised the alarm over incessant attacks of migratory birds on aircraft engines, warning that, along with other factors, the attacks may kill the industry if not addressed.

    Listing various challenges facing the sector, the group lamented that it is facing an uphill task running their fleet.

    Aside attacks on aircraft engines by birds during flights, it said other threats to the industry are: unfavourable government policies, multiple taxation, flunctuating price of aviation fuel, high cost of aircraft offshore maintenance and high cost of insurance.

    In an interview, its Executive Chairman, Captain Nogie Meggison, said indigenous airlines lose over 30 aircraft engines yearly to attacks by migratory birds.

    He said the birds were making operators lose between $120 million and $210 million yearly.

    He lamented that it costs a minimum of $4 million to change a small aircraft engine damaged by birds during flight.

    Middle range aircraft and large size aircraft engines, Meggison said, cost between $60 million and $70 million to replace if damaged through bird strike.

    Meggison said domestic operators have been grappling with this challenge for years without compensation from any government authorities or insurance firms.

    He wondered how an airline could make profit in the face of these challenges, noting that operators should be lauded for putting their investments in air transport given its attendant risks.

    He said the losses caused by the  birds could be reduced if aviation agencies stepped up control measures at the airports.

    This, Meggison said, is important because bird strikes could contribute to air disasters if not checked.

    Bird strikes, he said, could damage the aircraft engine blades, leading to possible malfunction, which is a threat to airline operations.

    He attributed 70 per cent of air disasters in the country to negligence by government agencies handling airlines.

    Meggison said Nigeria could achieve safer skies if the agencies and other service providers carried out their duties without interference by the Ministry of Aviation.

    He said the agency investigating air accidents needed to sit up to fix identified causes of air disasters to ensure that useful lessons are learnt to avoid any recurrence.

    Meggison said: “We need to start looking at landing aids and landing areas at airports because over 70 per cent of air crashes in Nigeria are linked to negligence on the part of aviation parastatals and oversight deficiencies of regulatory agencies and other factors.

    “For instance, the ADC crash of a few years ago, was due to air traffic control issue; Wings Aviation crash of a few years ago was also due to wrong charting by NAMA while Associated plane that crashed a few years ago was on ground for 24 months before it was taken to the skies.

    “We need to look at the issues and not sweep issues under the carpet in Nigeria. We also have issues ranging from bad drainage runway surface to failure of air traffic controller to properly monitor runways, among others.

    ”About 50 per cent of all plane crashes are caused by pilot error. That may seem like a very high statistic, but it makes perfect sense when you think about everything that a pilot must do.

    “Pilots must navigate through dangerous weather, respond to mechanical issues and execute a safe takeoff and landing.

    “Some plane accidents are caused when pilots misread equipment, misjudge weather conditions or fail to recognise mechanical errors until it’s too late.”

    Sometimes too, plane crashes happen when pilots become incapacitated during critical points of a flight, he added.

    In 1976, the only South African airways flight crashed when the captain suffered a heart attack.

    “Some pilot errors can even be the result of mental problems. “Take, for instance, the German wings crash in 2014. Automation has saved a lot of pilots but the pilots are not trained to save automation in today’s world.

    “Negligence or failure of air traffic controllers to properly monitor the airways is also one of the causes of accidents,” he said.

    According to him, this has to do with issues arising during various stages of a flight including approach and departure procedures.

    He said faulty equipment and/or mechanical failures are also common causes of accidents, adding that the manufacturer of an aircraft is responsible for an accident if the structural design of the aircraft is flawed, resulting in plane crashes.

    He said: “About 12 per cent of all plane crashes are caused by weather conditions. Although flights are often grounded when weather conditions are deemed hazardous, storms, heavy winds and even fog can sneak up on pilots and air traffic controllers.

    “But all of these could be reduced if there are proper navigation aids and landing equipment, radar and weather detectors are installed in our airports.’’

    Meggison said though Africa recorded zero fatality last year, steps should be taken to ensure her airspace is safer if the civil aviation authority is granted autonomy to regulate aviation.

    He said: “The Civil Aviation Authority must have the autonomy to regulate the industry.

    “It must have enough trained and capable technical hands to carry out the oversight of the airlines, crew and service providers.

    “It must be able to carry out over sight functions on all without fear or favour, to any airline, company or citizen regardless of the their political, partisan, zonal , religious or affiliations to the government.”

    IRS Airlines Managing Director, Yemi Dada, lamented that airlines were not making profit because of inadequate infrastructure and  insurgency challenge.

    “The risk in insuring is high, credit is not well-structured in Nigeria, aircraft leasor will ask you to pay three months’ rentals, the risk of losing the aircraft is at the heart of it all. Until the fundamentals of the economy is solved, we can’t break even easily,”he added.

  • Etihad Airways partners Etisalat on lower fares

    Etihad Airways partners Etisalat on lower fares

    Etisalat has joined hands with the national airline of the United Arab Emirates (UAE), Etihad Airways, on its premium GEM customers.

    The deal is aimed at strengthening the GEM reward system and offer Etisalat GEM customers loyalty benefits, which include discounted tickets and new roaming package.

    Etisalat GEM is the reward programme of Etisalat for loyal high value customers who attain a pre-defined threshold on the network in 12 months.

    With the partnership, Etisalat GEM customers will pay less than $3000 for family holiday to the UAE, which is inclusive of flight tickets, hotel stay for four nights and 30-day visa for a family of three.

    Similarly, Etisalat GEM customers are entitled to 20 per cent discount on flight tickets to the UAE when they fly Etihad Airways and roaming discounts during their holiday.

    Chief Marketing Officer of Etisalat Nigeria, Francesco Angelone, said: ‘’The goal of our partnership with Etihad Airways is to add value to the lives of our GEM customers and make holiday trips and vacations more enjoyable for them with value-added incentives. We believe that this partnership with Etihad Airways will provide unparalleled satisfaction to our GEM customers.”

    Etihad Airways’ Vice President, Africa sub-Sahara and Indian Ocean, Maurice Phohleli, said: “We are confident our collaboration with Etisalat will reward new and existing guests with travel options that provide great value. Etihad Airways prides itself on building strong relationships with its guests and, with the summer holidays here, we intend to show our appreciation by rewarding GEM customers for their loyalty.’’

    Meanwhile, Etihad Cargo, the freight business of United Arab Emirates (UAE) has increased its freighter services to Africa with the launch of a cargo only service from Abu Dhabi (AUH) to Maya Maya Airport, Brazzaville (BZV), in the Republic of Congo.

    Operating twice weekly using a Boeing 777F freighter aircraft, the new service will fly to Brazzaville via the Murtala Muhammadu  Airport, Lagos.

    The freighter has a capacity of 100 metric tonnes and will transports tools, machinery, general cargo, electronics and project equipment.

  • Margaret Ekpo, Aminu Kano airports are best, says FAAN

    Margaret Ekpo, Aminu Kano airports are best, says FAAN

    The Margaret Ekpo International Airport, Calabar, and the Mallam Aminu Kano International Airport, Kano, have been adjudged the best performing airports  by the Federal Airports Authority of Nigeria (FAAN).

    The awards were based on the Performance Management System (PMS) rating by the authority’s Department of Planning.

    The rating is an initiative for FAAN to measure, monitor and improve airport management and service quality through assessment to improve travellers’experience.

    The awards, which were presented by the Managing Director of FAAN, Saleh Dunoma, at an event, was given in the category of Best Performing Domestic Airport for Calabar, and Best Performing International Airport for Kano. They were received by the airports’ managers, Alhaji Mohammed Sanni (Calabar) and Alhaji Gambo Aboki (Kano).

    Margaret Ekpo International Airport Calabar emerged as the Best Domestic Airport in the first quarter of th year while Mallam Aminu Kano International Airport emerged as Best International Airport in the country.

     

  • NCAA okays new cargo charges for nahco

    NCAA okays new cargo charges for nahco

    The Nigerian Civil Aviation Authority (NCAA) has given the nod to the Nigerian Aviation Handling Company (Nahco Aviance) to implement a 20 per cent increase in cargo tariff.

    Under the new regime, nahco will charge N46 per kilogramme for cargo as against the old fee of N38. Courier handling charge will cost N54 per kilogramme as against N45.

    The approval was contained in a letter signed by its Director-General, Captain Muhktar Usman to the Managing Director Nahco, Mr Nobert Bielderman.

    The letter reads: “In line with powers conferred on the Authority by Part 18.7.3.1 of the Nigerian Civil Aviation Regulations (Nig. CARs) 2012, approval is hereby given to your company to increase the Import Handling Charge from N38/kg to N46/kg and the Courier Handling Charge from N45/kg to N54/kg as agreed with the stakeholders.”

    The NCAA chief praised nahco for consulting with stakeholders before embarking on the increase,

    NCAA said: “We wish to advise that Nahco Aviance should continue to ensure adequate consultations with the stakeholders in line with the laid down guidelines and regulations guiding review or introduction of any charge.”

    It said NCAA should be invited as an observer in future consultations.

    Nahco and the Association of Nigeria Licenced Customs Agents (ANLCA) and the National Association of Government Approved Freight Forwarders (NAGAFF) last month agreed to a 20 per cent tariff increment.

    At a meeting at the head office of Nahco in Lagos, on May 15, the negotiating team of ANCLA led by the Vice Chairman, Hon. Bola Ashiru-Balogun, the Treasurer, Afolabi Azeez and the Financial Secretary, Obanla Alex, said they reached the agreement with NAHCO in the interest of the industry.

     

  • Sale of airline tickets by commercial banks irks agents

    Sale of airline tickets by commercial banks irks agents

    The National Association of Nigeria Travel Agencies (NANTA) has urged the Central Bank of Nigeria ( CBN) to direct commercial banks to stop the sale of tickets to the public.

    Its National President, Alhaji Aminu Agoha, who made the plea last week, said the association has concluded plans to take appropriate steps to ensure that the banking regulator prevail on the lenders to desist from selling air tickets, adding that the banks’ action, constitute an infraction on the operations of travel agencies

    He said it was wrong for commercial banks to veer off their core business into the sale of airline tickets.

    He said travel agencies are  the only recognised bodies to sell tickets for airlines, noting that if the CBN fails to call the banks to order, it could push over 1,020 travel agencies and their 7,129 employees out of business.

    Agoha said if the banks must sell airline tickets, they should set up travel  agency outfits and undergo relevant industry certification before going ahead with the business .

    He lamented that travel agencies are facing challenges, including zero per cent commission from foreign carriers,  failure of airlines to get into the billing settlement plan, as well as failure on the part of airlines to close all ticket sales points outside the airport.

    He said there is need for government to protect the interest of travel agents who contributed over $2.3 billion to the country’ Gross Domestic Product  last year alone from ticket sales and tour packages.

    He said: “ One of the burning issues is the sale of airline tickets by Nigerian banks. Banks in Nigeria have become “Jack of all trades” and are gradually and consistently  encroaching on all businesses, including specialised areas such as ours,” wondering whether banks are licensed to act as airline agents?

    He said Travel agents undergo  a rigorous accreditation process before they are allowed to sell airline tickets.

    “Why are airlines colluding with banks to sell tickets by offering banks commission and offering agents none? he queried.

    He said banks are running series of adverts making ridiculous offers to the general public for the purchase of air tickets from such banks, warning that the trend portends a dangerous trend as banks have abandoned their core business and veered  into a domain that they are not licensed to perform.

    He also berated some airlines for their refusal to join the billing settlement plan, adding that their refusal has created distortion in the market.

    He said: “With the implementation of the Billing Settlement Plan (BSP) in Nigeria, it was expected that all airlines would operate on the BSP as it is done worldwide. Seven years after its full implementation however, some airlines have refused to join the BSP thereby distorting the market. We wish that all airlines operating in Nigeria be compelled to conform to the system that has been fully embraced by the Nigerian market.

    “Similarly, some airlines have also not joined the BSP; rather, their  management has subjected travel agencies to buying tickets on a cash-and-carry basis from their offices. Furthermore, some airline’s ticketing offices are run by non indigenous companies who earn between 12 per cent  and 20  per cent commission on ticket sales, yet deny travel agents their entitled commission.  We wish that all airlines are compelled to conform to the BSP in the Nigerian market.”

    He also berated foreign carriers for offering higher fares on Nigerian routes compared to what is obtainable in other West African countries .

    Agoha said: “We do not understand the great disparity in fares between what the airlines offer to the Nigerian market and what they offer elsewhere in the world.

    “The disparity in fares is alarming and we wonder why Nigeria should be singled out for this rip-off. We see no reason a flight ticket from Accra, Ghana to Europe or USA on some airlines would be cheaper than from Lagos to the same destinations on the same airline. For instance, a first class ticket to Las Vegas from Lagos is N1.8 million more than a first class ticket to the same destination from Accra. Nigerian travelers are now developing Ghanaian economy.Their travel agencies are making huge sales from the Nigerian travelers while most of our Nigerian agencies are folding up.

    “From our records, travel agencies posted $1,306,304,373  revenue for the year ended December, 2014. There is an increased influx of foreign airlines into the Nigerian market. Ordinarily, this should depict great revenue potential for Nigerian travel agents.

    “This is however not the case. These airlines are coming to Nigeria to rip us off. First of all, their base fares are  higher than what prevails for the same flight time for journeys originating from elsewhere in the world. Even when they offer promotional fares, the added taxes charged are so huge.

    “The new trend is for airlines operating in Nigeria to offer lower fares  which reduces the amount of commission agents receive and to charge exorbitantly.”

    He lamented the parlous state of airport facilities in Lagos, Kano and Port Harcourt, describing them as unacceptable.

    He said: “NANTA is very worried about the current state of most of our airports, particularly the Murtala Muhammed Airport, Lagos; Mallam Aminu Kano    International Airport, Kano and the Port Harcourt International Airport, Omagwa.”