The Nation Newspaper

Category: Aviation

  • Ebola: Airlines count losses

    Ebola: Airlines count losses

    For the third week, air transport in some parts of West and Central Africa has been disrupted; no thanks to the outbreak of the Ebola Virus Disease (EVD), which has led to flight bans and restrictions in parts of the sub-region. With the suspension of flights into and out of Nigeria by some carriers, KELVIN OSA-OKUNBOR reports that the losses are enormous.

    These are not the best of times for airlines operating flights into West and Central Africa.

    The carriers are recording low passenger traffic, unimpressive busineses and, in worst cases,  losses.

    Aside airlines, aviation authorities and ground handling firms are also counting their losses.

    Officials of the airlines and other agencies have declined to state how much has been lost.

    They said containing the spread of the deadly Ebola Virus Disease is more important than any commercial considerations.

    The outbreak of the EVD has led to the death of over 1,000 persons in Guinea, Sierra Leone, Liberia and Nigeria.

    Three carriers Arik Air, ASKY Airlines and Gambia Bird have  been affected by the disease.

    The Nigerian Civil Aviation Authority (NCAA), in the wake of the spread  of the disease, suspended the operations of ASKY Airline.

    The Togolese carrier flew in the Liberian passenger, Mr Patrick Sawyer, who brought the disease into Nigeria.

    ASKY Airline is an important player in West, East and Central Africa, operating 80 flights into Lagos and Abuja weekly.

    Connecting flights into some countries in the sub-regions has become difficult due to the suspension of its operations.

    The suspension of Arik Air flights into Monrovia, Freetown and Banjul in The Gambia has affected its hub and network, forcing passengers to explore other options to access airports in the countries.

    Amid these, the NCAA has rolled out new guidelines for airlines for the screening of passengers.

    Worried over its suspension, the management of ASKY Airlines protested to the regulatory body, which caused it to review the sanction. The Director-General, ASKY Airlines, Yissehak Zewoldi, faulted the suspension of its operations  by NCAA.

    The airline said the suspension was having serious impact on passenger movement within the West African sub region, urging the authority to reconsider its stand.

    The ASKY boss argued that since the initial outbreak of the Ebola virus in Conakry last February, the airline has taken measures to avoid its spread.

    He said he had written to the  NCAA chief twice on the measures taken and his commitment to working with all authorities, governments and organisations in the fight against the spread of the disease.

    He noted that ASKY is determined to keep its passengers and staff safe during this unsettling time, adding that the carrier is following the situation closely and will issue updates as the situation changes.

    He said: “Considered to be the biggest carrier with a very large network within the West and Central Africa region, the carrier has constantly followed up all developments in collaboration with airport authorities, the World Health Organisation (WHO), Ministries of Health and the civil aviation to implement collective preventive measures against the spread of this deadly disease – Ebola – in suspected areas.”

    He listed steps so far taken to include stoppage of food uplift, stoppage of overnight for crew, re-enforcement of aircraft disinfection, implementation of sanitary items, such as gloves, antiseptic liquids as well strict control of the transportation of perishable goods and food items.

    But the Acting Director-General of NCAA, Benedict Adeyileka, who spoke through the General Manager Public Affairs, Mr  Fan Ndubuoke, said the lifting of the suspension followed the steps by the airline to abide by its rules and regulations to curtail the spread of the deadly virus.

    He said NCAA was collaborating with other airlines to curtail the spread of the virus, assuring that everything possible would be done to ensure safety.

    Last week, the Minister of Aviation, Mr. Osita Chidoka, restated the Federal Government’s commitment to controlling the spread of EVD at airports.

    The minister said this in Lagos at the end of an inspection of projects at the Murtala Muhammed Airport.

    He said part of his visit to the airport was to review the medical procedures, including the screening of  passengers, that had been put in place, and to assure travellers and other airport users that the government would do its best to ensure their safety.

    For three weeks, officials of the Federal Airports Authority of Nigeria ( FAAN) and Federal Ministry of Health have been screening inbound passengers with infra ray equipment at the arrival halls of the Murtala Muhammed International Airport , Lagos.

    This is to avoid body contact with passengers who arrived the country.

    The screening includes the filling of forms to ascertain their health status and checking of the aircraft with infra red equipment before they embark on immigration protocols.

    Facilities have been provided at the airport for passengers that manifest unusual body temperature and other symptoms of the disease.

    Scores of Port Health personnel, attached to the Lagos International Airport, wearing white gloves, are stationed at varous units at the arrival hall before immigration protocol to carry out body temperature tests on the arriving passengers.

    The  General Manager, Corporate Communication, FAAN, Mr Yakubu Dati, said the screening was part of efforts by the government to curtail the spread of the virus.

    He said isolation facilities had also been put in place to quarantine passenger who tests positive to the deadly virus.

    Dati said the mandatory screening  was imperative for in-bound passngers. He said the relevant agencies  working at the airport, including, Customs, Immigration,  Port Health, Police, FAAN security, have been sensitised to step up efforts to detect any possible spread of the virus into Nigeria.

    Dati said airlines had been sensitised to ensure adequate screening of both in bound and out bound passengers to step up efforts to curtail the spread of the virus.

    His words: “We have given instructions that airlines should carry out their screening and make sure that anybody that has virus should not be allowed to travel. The second stage is that passengers are given forms in the aircraft to fill in their health status; then thirdly is on arrival, we also have Port Health staff that is there to carry out preliminary checks which they do with infrared facilities, which does not involve contact and that is done even before Immigration Counter.

    “For any case that require further checks we have a holding area where the passenger or passengers will be taken to and if it is a case that needs closer attention we have given them a space for quarantine where the passenger will quarantined. So ours is to provide the facility and the area for Ministry of Health to carry out their functions and we are doing that all across.”

    Kenya is shutting  its borders against  travellers from Guinea, Liberia and Sierra Leone, the three countries worst hit by the Ebola outbreak, the government said.

    Kenya Airways announced that it would suspend its flights to Freetown and Monrovia when the government travel bar on passengers comes into effect.

    Kenyan Health Minister James Macharia said the measure was also aimed at travellers who have passed through the affected countries.

    “In the interest of public health the government has decided to temporarily suspend entry into Kenya of passengers travelling from or through the three West African countries affected by Ebola, namely Sierra Leone, Guinea and Liberia,” he said.

    Kenyan Airways would continue to fly to Nigeria, despite a much smaller Ebola outbreak in its largest city, Lagos, the company said in a statement.

  • Experts to meet in Abu Dhabi over improved airline financial health

    The International Air Transport Association (IATA) has said experts  will hold the first World Financial Symposium (WFS) Abu Dhabi from September 17 to 18 to exchange ideas and identify strategies for improved airline financial health.

    According to the Director-General of  IATA, Tony Tyler, over 600 experts are expected to attend the event, which wil be hosted by Etihad Airways. He added that experts in revenue accounting, treasury, risk management, fraud prevention and other areas will be there.

    He said: “Aviation has a global economic impact of $2.4 trillion and transports 35 per cent of goods traded by value—around $6.8 trillion this year. And consumers spend one per cent of global Gross domestic Product (GDP) on air transport. But there is a mismatch between the value that the industry contributes to global economies and the rewards that it generates for those who risk their capital to finance the industry.

    ‘’This year, we anticipate that the average return on invested capital will reach 5.4 per cent. This is an improvement on prior years and reflects successful consolidation and restructuring. But investor returns are around $15 billion less than would be expected for an industry such as commercial air transport.”

    A keynote address will be given by Chairman, Seabury Group, John Luth.

  • How airlines can become profitable, by experts

    How airlines can become profitable, by experts

    In an industry with airlines’ lifepan less than 10 years, experts are worried about the options for survival and profit. To them, regulatory requirement, licensing structure and creation of a clearing house could foster the merger and consolidation of weak carriers. Aviation Correspondent KELVIN OSA-OKUNBOR reports.

    he high mortality rate of  domestic airlines in Nigeria is generating concerns among experts and operators.

    Experts are worried that if nothing is done to address what they describe as the “ bust and boom cycle’’,  more airlines may  collapse.

    The average life span of domestic carriers is less than 10 years, owing largely to unsound business plan, managerial incompetence, wrong use of airplanes and inability of operators to come together under an arrangement that could bring about the merger and consolidation of airlines.

    Over 22 carriers have collapsed in the last two decades.

    They include: Albarka Air Services,  Okada Air, EAS/ NICON Airways,  Nigeria Airways Limited, Freedom Air Services, Oriental Air Services, Concord Air, DASAB Airlines, Space World International Airlines, Capital Airlines, Sosoliso Airlines, ADC Airlines, Savannah Air, Skyline Airlines,  Slok Air, Air MidWest, Afrijet, Falcon Air Services, Harka Air, Bellview Airlines, Virgin/Air Nigeria and Fresh Air.

    About seven airlines are carrying out scheduled operations. They are: Arik Air, Aero Airlines, DANA Air, Medview Airlines , Overland Airways, Discovery Air, AZMAN Air, Air Peace, Hak Air, First Nation Airways and Topbrass Aviation.

    IRS Airlines and Chanchangi Airlines are not operating scheduled operations because of unavailability of at least two aircraft as prescribed by the Nigerian Civil Aviation Authority (NCAA).

    According to experts, the collapse of airlines can be attributed to some factors which include insufficient  capitalisation,  incompetent management, wrong business model, the use of wrong airplanes and lack of regulatory template to force mergers and consolidation.

    In 2006, the Federal Government introduced new legislation that set the minimum capital requirements for airlines as part of restructuring aimed at boosting safety.

    Under the legislation, domestic operators are to be capitalised with a minimum of N500 million while that of carriers operating in Africa  N1 billion.

    This is expected to increase to N2 billion for carriers with services outside the continent.

    The former Manager Director of Nigeria Airways Limited, Mr Andrew Okuyiga, has canvassed the merger or consolidation of airlines as one of the strategies to ensure profitability.

    He said the issuance of air operators’ certificate to airlines with two aircraft was not good, adding that it would not boost their profitability.

    He said a policy, which prescribes the minimum number of aircraft an airline should have before it could be considered a serious player in the air transport sector, should be put in place.

    He argued that with a low capital base, two aircraft, an operator would not recover his operating costs  at a time cheaper fares are dominating the market.

    According to Okuyiga, until NCAA puts a policy in place that  would force domestic airlines to merge through increased capitalisation, minimum number of aircraft and a pool of expertise, the local air transport sector would continue to struggle for survival.

    Also, the President, Sabre Travel Network West Africa, Mr Gbenga Olowo, said until the domestic carriers merge, they would not be able to compete with foreign carriers.

    Experts said domestic airlines would continue to face difficulties while competing with their West African counterparts because of lack of cooperation.

    Due to lack of understanding of the business, many domestic airlines do not fill their aircraft with passengers. This trend has led their inability to recover their operating costs.

    Experts said merger is the way to go if aviation industry must grow.

    Olowo urged the NCAA to direct domestic airlines to cooperate  through merging of their operations.

    He said it was time NCAA perfected the setting up of a clearing house, which would provide a seamless platform for airlines to pursue merger or consolidation.

    Olowo pointed out that it is the responsibility of the regulatory agency to ensure that the airline sub-sector survives.

    He said for domestic airlines to survive in the economy, NCAA must make regulation that would compel airlines to merge, adding that Europe and America that introduced stiff competition in the past have embraced merger and consolidation, wondering why the carriers still feels that they could do it alone with two aircraft in their fleet.

    He explained that an aircraft is meant to fly between 2,000 and 3,000 hours yearly for the operator to break even, warning that if they allow their aircraft to be on ground for a long time, it would be impossible for them make profit.

    He said: “The regulator should merge the airlines if we are to enjoy the benefits of aviation growth in the sector. The West that brought intense competition is talking about merger, consolidation and others. Can’t our own airlines merge?

    “If our airlines are unreliable, how can they partner with foreign carriers? NCAA must sit down seriously by looking at the economies of the operators. NCAA should be able to mid-wife our airlines that are coming up. Nigerian airlines should be in the International Air Transport Association, IATA, and it is the responsibility of NCAA to do this.”

    However, some experts, such as Chris Aligbe, Sheri Kyari and Francis Ayigbe, believe that there is room for more carriers if the would-be investors use the right aircraft model in their operations.

    They canvassed the owner/investor model as the best for the business, arguing that the owner/manager model as is the case with many airlines was responsible for the high rate of failure of domestic carriers.

    They said many airlines failed because the managers lack the knowledge and technical skills to keep their operations afloat.

    According to them, an owner/investor is one who has the technical knowledge of the industry and sufficient funds to invest in the business, while an owner/manager doesn’t have technical knowledge of the industry, but has funds to invest.

    Aligbe, the Chief Executive Officer of BeluJane Konzults, said the recipe for running a profitable carrier is using the right operational model and equipment.

    He said Nigeria could only deliver profitable carriers if the operators were ready to imbibe the culture of investor/manager, which would bring about inclusion of technical expertise in the running of the airline as opposed to undue interference by the owner/manager.

    Aligbe said the greatest problem of domestic airlines is the owner/manager syndrome, adding that it  killed the defunct Nigeria Airways, he added.

    He said nearly all the airlines that have collapsed are traceable to the problem of owner-manager. If this factor could be addressed, the business could fare better, he added.

    Aligbe said undue interference by the owners of the business results in airline collapse.

    On his part, the Chief Executive Officer of Centurion Securities, Group Capt. John Ojikutu, said unless there is a forced merger of domestic carriers, they would not compete with international carriers.

    He advised that domestic airlines should merge or raise funds from the capital market, adding that any indigenous carrier that cannot operate five airplanes in its fleet and cannot operate in more than three routes should not be given Air Operator’s Certificate (AOC).

    “No airline for now can survive in the market by selling ticket at N7, 000 for an hour flight to Abuja without cutting some corner or jeopardising safety. I have been wondering why the NCAA has not started inspecting the balance sheets of these airlines in accordance with the economic regulations,” he said.

    An expert, who refused to be mentioned, said the growth of the economy does not reflect in the number of airlines in the  domestic market, adding that as long as they ignore global trends in aviation, the problems in the sector might continue to worsen.

    “In the past 10 years, there has been an average of 10 domestic airlines in operation at any particular time, with average fleet capacity of about 10. Today, there are only a few licensed airlines operating in Nigeria. All the aircraft owned by Nigerian airlines put together do not add up to the fleet of individual airlines in the United States, Europe or Asia,” he said.

    He,  however, noted that two major reasons airlines on the continent and, indeed, Nigeria have not been able to merge are the lack of trust for one another and fear of competition.

    According to him, the airlines also have to meet some of the prerequisites for mergers, adding that many of them cannot boast of such.

    “There must be desire and ability to collaborate or share; inherent transparency and trust; there must sound business model and sound management and discipline,” he  said, adding that the airlines must have strong customer appreciation or be customer-centric as well as have strong governmental/regional support.

  • Medview to begin flights into Jeddah, Dubai

    TO reciprocate the bilateral air services agreements between Nigeria and the Kingdom of Saudi Arabia and United Arab Emirates, Medview Airlines has concluded plans to begin flights to Jeddah and Dubai.

    The flights, according to the Managing Director of Medview Airlines, Alhaji Muneer Bankole, is sequel to obtaining necessary licences and approvals to operate four flights into Jeddah and Dubai weekly.

    He said the flights into Jeddah would originate from Kano and Abuja, while operations into Dubai are billed to begin  inNovember.

    Speaking in an interview in Lagos after the opening of its Middle East regional office in Jeddah Bankole said it was the fulfilment of a lifelong dream.

    His words: “We thank Allah for fulfilling this dream. It has been our ambition to establish an airline that could serve the Nigerian-Jeddah route and help numerous Nigerian passengers.

    ‘’Medview has obtained all necessary licences and approvals to operate four scheduled weekly flights from Kano and Abuja into Jeddah. We have also obtained license to fly into Dubai. We expect this service to start in November.”

    Nigetian Consul General to Saudi Arabia, Ambassador Ahmed Umar praised the airline for alleviating the suffering of Nigerian travellers to the Kingdom who had to spend long hours for a journey of just four hours.

    He pledged to support Medview and other Nigerian businesses willing to establish business in Saudi Arabia.

    Umar said Medview operations would foster better relationship between Nigeria and Saudi Arabia.

  • BASA hits stormy weather

    BASA hits stormy weather

    To encourage unrestricted cooperation among nations, the International Civil Aviation Organisation (ICAO) has urged them to stop collecting air agreement royalties. To this end, Nigeria will stop collecting royalties on the 78 Bilateral and Air Services Agreements (BASA) it signed with other countries from October 27 KELVIN OSA-OKUNBOR examines the implication of this policy for the economy.

    From Otober 27, Nigeria will stop  collecting  royalties on bilateral air services and commercial agreements it signed with other countries – in deference to the International Civil Aviation Organisation (ICAO) regulation, which is to encourage unrestricted agreements among  nations.

    Nigeria signed about 78 bilateral air services agreements (BASA). It signed a dual designation agreement with Britain and  also signed an open skies agreement with the United States and other countries.

    There are different categories of air agreements– dual designation, open skies and multi-lateral air agreements. Dual designation prescribes that  there should be reciprocity and equality in agreements.

    According to civil aviation regulations, Nigeria collects royalties from countries which airlines fly into Nigeria without designation of indigenous carriers into such countries  in line with the reciprocity clause contained in the deal.

    Should the government go ahead with the policy given the attendant loss of huge revenue that could have been used to fix critical infrastructure.

    A storm is gathering as many experts have faulted government’s action in abolishing royalties by foreign carriers .

    To drive home their agitation, they met in Lagos last week to discuss the issue, calling for a review of air services agreements.

    The President, Sabre Travel Network, Gbenga Olowo, said the way the government has handled BASA was detrimental to the development of the sector.

    He said a bogus commercial air agreements would not only destroy the sector, but give foreign carriers an edge.

    Multiple entry points granted to foreign carriers would not assist domestic carriers which are supposed to fly passengers to their destinations within the country.

    He said many foreign carriers enjoyed the multiple entry points  in Nigeria, because indigenous carriers did not have the capacity to reciprocate the frequency of flights into their countries.

    This, Olowo said, skewed the Bilateral and Air Services Agreements (BASA) in favour of foreign carriers.

    Captain Dele Ore, who leads Roundtable, a thinktank group, said it was wrong for the government to abolish royalties.

    Such a move, he said, would further underdevelop the industry and affect the market negatively.

    He canvassed the cancellation of the open skies agreement with the US, claiming that, for over 13 years, Nigeria has not benefited from it.

    He said this should form part of the new assignment of the Aviation Minister, Mr Osita Chidoka.

    Ore said it is unprofitable for the government to grant multiple entry points to foreign carriers, when their countries do not  reciprocate, stressing that of the 78 BASA, only 12 were reciprocated.

    He said:“If the government goes ahead to abolish the payment of royalties, the sector would be affected in many ways. What we need to do is to ensure a review of bilateral air services agreements to pave the way for a single entry point into Nigeria by forign carriers. That is the only way to make some airports viable for domestic carriers.

    “Why should our bilateral services agreements not take care of the inadequacy in our air transport system. This is further affected by the lack of reciprocity, capacity and inability to compete by our domestic airlines.”

    The Executive Chairman, Airline Operators of Nigeria ( AON), Captain Nogie Meggison, attributed the problem to the absence of a  sound policy to address bilateral air services and commercial air agreements .

    He said the new directive by the government was another step to  undermine the survival of domestic airlines.

    Meggison said the non-payment of royalties would cost the government significant revenue, noting that BASA funds and royalties had assisted to fund major  projects.

    He said experts were not  carried along before the government cancelled the agreements.

    Meggison said the government, through the Ministry of Aviation, only informed the umbrella body of domestic carriers after the cancellation.

    He said the Ministry of Aviation violated the regulation of notice of rule making, which requires that stakeholders be given a 90-day notice to make their input on any matter before it becomes law.

    The AON boss said though the stoppage of payment of royalties is tandem with the Open Skies Policy, Nigeria was not ripe for  it.

    The move is another attempt to further erode the market, he stated.

    Meggison said: ” If something drastic is not done to correct these anomalies, the domestic carriers will be out of business in five years.”

    He said with such waiver or stoppage of payment of royalties, how would the government raise substantial funds to liquidate the money it borrowed to fix airport infrastructure.

    With such a huge indebtedness, how will the government pay the loans used to fix the airports, when funds accruing from royalties could be utilised to offset such loans? he asked.

    “While some African and other  foreign countries are slow in embracing the policy, Nigeria had rushed to approve of the decision without considering the economic implications on the industry.

    Aviation consultant and Chief Executive Officer, Belujane Konsult Limited, Chris Aligbe, said Nigeria was being exploited by foreign carriers due to its unfavourable BASA policies and the failure of domestic airlines to run successful operation.

    Aligbe said: ‘’In the event where one party cannot reciprocate, it collects royalties from its ‘performing’ partner and when the other party indicates interest to reciprocate, it is expected to get equal treatment from its partner.’’

    The former Nigeria Airways Public Relations manager added: ‘’That is why countries signing BASA deals assemble a crack team of aviation experts with vast experience in route designation/evaluation, market analysis, aviation politics/law, at the negotiating table.”

    The Chief Executive Officer, PDT Consulting,  Mr Taiwo Adenekan, said countries should try to protect their domestic carriers from bigger foreign airlines who capitalise on various air treaties to prey on them.

    He expressed disappointment at the government’s generosity in granting both extra frequencies and entry points to foreign airlines at the detriment of domestic carriers.

    Adenekan, who is an aviation Consultant, said: ‘’Multiple entries gives more money to the foreign airlines at the detriment of the domestic airlines.

    ‘’However, with multiple entries becoming the order of the day, domestic operators have lost that juicy market to the European carriers that become stronger while Nigeria registered airlines become weaker.’’

    Analysts have argued that the country is worse off if she does not protect her market.

  • Long search for a national carrier

    Long search for a national carrier

    For years, a national carrier has been on the cards, following the liquidation of the Nigeria Airways, but it has not taken off because of the intrigues surrounding its formation, reports KELVIN OSA OKUNBOR.

    Does Nigeria need a national carrier? Will its formation correct the imbalance in the bilateral air services agreements, Nigeria signed with some countries? Will the pursuit of a hub status for international airports be stalled by lack of a national carrier? Is the dearth of aviation manpower caused by the absence of a national carrier?

    These are some of the questions being asked  as the government seeks to deliver a national carrier.

    While some stakeholders reasoned that the establishment of a national carrier will reposition the sector, others said rather than set it up, the government should encourage the designated flag carriers to compete with foreign carriers.

    With stakeholders divided over the government’s plan to set up a national carrier, former Supervising Minister of Aviation, Dr Samuel Ortom, said there was no going back on the issue. He said the government was discussing with some Chinese investors to set up a carrier.

    Ortom promised that the government would create a conducive environment for investors, insisting that the government was ready to work with some investors to float the carrier.

    Attempts by the government to establish a carrier in the past ran into murky waters because it favoured a certain domestic carrier over others.

    Many industry groups, including the Airline Operators of Nigeria (AON), are kicking against the move, saying the plan to designate a domestic operator  as the national carrier was lopsided.

    The fulcrum of air transport development is built on a national carrier, which could be private sector driven or fully owned by the government, like Africa’s most profitable airline, Ethiopian Airlines. Nigeria lost its bearing and prime position in the sector when it liquidated the Nigerian Airways Limited (NAL) 11 years ago.

    Manpower development, dominance of a country’s lucrative routes and commercial air service agreements revolve around a national carrier or flag carrier that has the full backing of the government.

    Experts say Nigeria loses over N400 billion yearly to foreign airlines and expatriate manpower since  the NAL was liquidated. The training of aviators and NAL’s lucrative routes have been taken over by foreign airlines, which easily get frequencies from the government.

    Former Secretary-General of the African Airlines Association (AFRAA) Nick Fadugba said: “Ideally, in 2003, the government should have privatised the loss-making national carrier, Nigeria Airways, rather than liquidate it. The government of Kenya followed this strategy and Kenya Airways is now one of the leading airlines in Africa.

    “Running a successful airline is a very difficult job.

    ‘’This is one of the hurdles the plan to have a national carrier is facing. The major reason the government has so far failed to establish a national carrier is because it failed to take the easy way out by building a national or flag carrier with the most promising indigenous airline, Arik; rather the government in its last attempt chose Aero which neither has the desired fleet nor the routes, with only a local experience. The attempt failed and industry insiders said another attempt that excludes utilising the existing major carrier that has international routes experience may also fail. But what is certain is that Nigeria needs a national carrier or empowered flag carrier to get back to reckoning in the African and world market.

    Group Chief Executive Officer Arik Air Dr. Michael Arumemi-Ikhide said Arik Air was not bothered over plans by the government to set up a carrier.

    He  said: “We have been aware of the plan to establish a national carrier. Arik Air is the only indigenous airline carrying out national service on the long haul market. We connect all airports in Nigeria from the Federal Capital Territory (FCT) to West and Central Africa,” adding that the airline is established for Nigeria  and Nigerians.

    “There have been some discussions about the national carrier. As far as Arik is concerned, we are  not troubled. At the end of the day,  we have a huge market comprising 170 million Nigerians but the market penetration is limited. As the aviation sector develops, as Nigerians have more opportunities to travel, it helps the socio-economic and political integration of the nation. It stimulates businesses; it stimulates foreign direct investment, it stimulates social cohesion. We are all for anything that will improve the lives of our people and we have a role and a part to play in that.”

    ‘’While Nigerians are bickering, foreign airlines are carting away the nation’s wealth. The country needs to develop a national carrier in order to move towards redemption of the air transport sector.”

    But the President of Sabre Travel Network, Mr Gbenga Olowo, canvassed  the designation of three airlines as national carriers with each airline having 50 aircraft  in its fleet.

    This, he said, was the only way  carriers could compete with the over 27 foreign airlines that operate into the country.

    Olowo said if domestic airlines must compete with foreign carriers, they need to consolidate by pooling resources to enhance their capacity.

    The former Chairman, Airline Operators of Nigeria (AON) Dr. Steve Mahonwu said the plan by the government to reestablish a national carrier would create  jobs.

    He said: “Whatever method the government wants to formulate to bring about the reestablishment of a national carrier for the country, we should give it  the support. We should allow national interest to take overriding position. The government  said it was going to involve private investors.

    ‘’It is going to get other shareholders to participate.

    ‘’There are still several airlines that are national carriers today; for instance, South African Airways is a national carrier and it is today one of the best in Africa, but in Nigeria, we don’t have a national carrier.”

    He insisted that until the country got a national carrier, the Murtala Muhammed International Airport, Lagos, would not become a hub.

    But, the Director, Zenith Travels, Mr. Olumide Ohunayo,  kicked against the re-establishment of a carrier.

    He said the designation of private airlines as flag carriers was the solution to the problem.

    He expressed support for flag carriers, saying they should develop from a regulatory consolidated process.

    Olunayo argued that airlines were the weakest link in the transformation agenda, adding that a national carrier with accompanying exclusivity and protection would compound the problem in the sector.

    An airline operator, who pleaded anonymity, said the government should adopt the privatisation model  in countries, such Britain, to get a national carrier for Nigeria.

  • Firm creates online check-in platform

    Overland  Airways has introduced  online check-in service which will enable  passengers  check-in  online  after  flight booking and issuance of tickets.

    Passengers are to log on to www.overland.aero after booking and issuance  of  tickets  to  check-in  and  choose  their preferred seats.

    On completion of the check-in, passengers could print their boarding pass.

    According  to  the  Chief  Operating Officer, Mrs. Aanu Benson, the online check-in is convenient for  the firm’s customers as they could   check  in  and select their preferred seats.

    ‘’Our esteemed passengers will be able to conclude their travel arrangements from the comfort of their homes/offices or on-the-go and proceed to the boarding gate to fly.

    ‘’The  new  on-line  check-in  platform  is  part  of our commitment to our customers  to  continuously  offer  excellent flight experience from online flight booking and payment, to our new online seamless check-in process and flying  onboard our modern aircraft, Overland Airways customers are assured of  a  unique  pleasurable, peaceful and pleasant travel experience,’’ said Mrs.  Benson.

  • FAAN urges states to build airports

    The Federal Airport Authority of Nigeria (FAAN) has implored states to build airports to enhance the movement of cargoes and passengers.

    Its General Manager, Corporate Communication, Mr. Yakubu Dati,  said more airports would accelerate economic development.

    Dati said the global aviation industry had moved beyond the transportation of passengers to include  freights, saying most airports would contribute to the  Gross Domestic Products (GDP) .

    More airports with cargo terminals, he said, would assist in carrying farm produce to the markets.

    In the last few years, many states have built airports. They include Akwa Ibom, Delta, Bauchi, Katsina, Gombe, Kebbi and Jigawa.

    Some states that propose to build airports  are: Lagos, Ogun, Osun Ekiti, Bayelsa and Zamfara.

    However, some stakeholders have condemned the establishment of more airports, saying they are unviable, but others insist the country requires more airports.

    Dati said: “We have to look at the fact that aviation industry is changing worldwide. It is not just about transporting air passengers alone; it is becoming a key in the movement of cargo. If you have an airport in these states, by the time they think about moving farm produce, they will be making enormous revenues daily.

    “Look at Jigawa, for instance, it has a predominantly farming population that brings its goods to Lagos with trailers, which takes weeks at times and even the farmers lose. But if there were a cheaper means of transporting for them to get to their final destinations and faster,too, it makes such airports viable.

    “By the time we begin to change our perspective about aviation that it is not just for passengers’ movements, but to also movement of products, you will begin to see that we need more airports in this country and  they will be viable.

    ‘’We need creation of more airports for the movement of passengers and cargoes, especially with more emphasis on cargos. Every state should look at its strength and develop it.”

    Dati emphasised that the remodelling of 22 airports by the Federal Government has contributed immensely to the crash in fares and encouraged more airlines to come into the sub-sector.

    He said the move has created a better enabling environment for investors to come into the ssector, adding that the Federal Government’s transformation agenda for the industry had been successful.

  • Why we built airport, by Lamido

    Why we built airport, by Lamido

    Airports are key to accelerating socio-economic development. The N11.5 billion Dutse International Airport built by the Jigawa State Government is expected to drive economic activities in the agrarian state where a perishable cargo terminal is underway. KELVIN OSA OKUNBOR reports.

    Are there enough airports in Nigeria? What is the driving motive for state governments to embark on hugely capital intensive air transport infrastructure ?

    These were  the questions some of the stakeholders were asking last week when the Jigawa State Government inaugurated commercial flights into Dutse International Airport.

    The first commercial flight into the airport was operated by Overland Airways.

    Apart from Overland Airways that has signed a memorandum of understanding (MoU) with the government to operate commercial flights into the airport, other airlines it was learnt, are considering following suit. There are plans for charter flights.

    The Dutse International Airport, in the state capital brings to 29 the number of airports in Nigeria.

    It is the ninth  airport embarked upon by a state after Akwa Ibom, Delta, Katsina, Gombe, Bauchi, Kebbi, Bayelsa  and Taraba.

    Other states that have proposed to build airports include: Osun, Ekiti, Anambra, Ogun and Lagos.

    The viability or otherwise of  these airports has continued to elicit  reactions from players  in the aviation industry .

    But, Jigawa State Governor Sule Lamido explained that the Dutse airport would open up the state for economic activities .

    Lamido explained that the airport would serve as one of the agro allied airports built by government to open up states for anticipated economic development.

    He said the government built  the airport to serve as a gateway to move passengers, cargo and agro allied produce out of the states in the North West  zone.

    Apart from Jigawa, Lamido said the airport would service Kano, Bauchi, Yobe and surrounding states as a gateway into the world.

    He said the airport was not built to compete with other airports, but to serve its unique role of move agricultural and livestock  produce out of Jigawa and other states into the international market .

    Investigations revealed that the total cost of the airport is put at N11.5 billion. The first phase gulping over N7 billion, while the second phase is above N4 billion.

    The Federal Government, it was learnt, has contributed over N900 million to the project, while other costs  were borne by the Jigawa State government.

    Also speaking a member of the Aircraft Owners Association of Nigeria ( AOAON ), Alhaji  Ibn Na ‘ Allah, described the Dutse International Airport as an air transport infrastructure that would jump start the economic development of the Jigawa State.

    The former House of Representatives member said airports play a key role in the development of states where they are built.

    He said: “The Dutse Airport is a world class facility . I think it is very important for Jigawa State.There are a lot of countries that do not have this as their international airport. I think this is a very important development for the state.

    “A lot of people don’t understand the economic importance of airports. Airport is one of the strongest security and economic infrastructure  for any community. Let me tell you what this would do, today, if somebody is sick and needs to be evacuated, he can be evacuated out of Jigawa within the shortest possible time.

    “They can use this airport for export and this is an agrarian state.Of course, like I’ve always said, the people of Jigawa will find it convenient to come home and definitely boost the economic activities of the country.That is the way the economy of a country is developed.

    “That is why an airport is an important asset for any community.”

    Speaking in an interview, the  Jigawa State Director of Press, Alhaji  Umar Kyari,  said the airport is an attempt by the government to boost the economic activities of the state.

    According to him, the airport would also go a long way in attracting more investors, based on the World Bank’s report which described Jigawa as an investment haven because of the prevailing peace in the state.

    He noted that  Katsina, Gombe and Kebbi states which were created out of Kaduna, Bauchi and Sokoto states respectively  have built their own airports which have opened up commercial activities in their state.

    He said :” Air transportation impacts economic, environmental, cultural and social ways of life worldwide. More people and more companies depend on air transportation than ever before.

    Airports play an important role  in regional economic development.

    If a city is equipped with an efficient airport, including extensive passenger and cargo links, it would certainly have comparative advantage. Cities and airports can attract economic development through airport business parks.

    “Transport infrastructure provides defined channels of movement for the physical interaction of goods and people between places. The flow of goods and people is the crux of economic functioning and it is possible with transport infrastructure. The functioning of an economy requires the use of  air transport .

    “Apart from the direct employment generated by the airport, there is indirect employment associated with activities that support the airport, airlines  and passengers.”

    “Viability of airports is for the users/owners to determine.

    “Airports  are not just for passenger travels there are other major business that can grow around an airport.”

    According to the project Consultant representing El-Mansur Atelier Company, Mr. Victor Obatu ,the Dutse International Airport  will  create job opportunities for Nigerians, boost the economy of the state  in particular and the country in general .Conducting journalists round the airport last week, Obatu disclosed that the construction of the airport started in February 2013 .The airport, he said has  capacity to handle a wide body aircraft such as Boeing 747. He said, the  airport has a  three kilometre runway  in length while the runway width is 60 metres.According to Obatu, the first phase include the construction of the terminal, runway, control tower, two ambulances, two fire tenders, conveyor belt, ticketing  counters a mall and lounges for Very Important Persons among others facilities.

    He explained that the second phase will include the expansion of the apron wing and installation of airfield lighting for night operations, which he said had already been awarded by the government.

    According to him:” This project was completed in a record period of 18 months, having begun in February 2013.

    “The airport complex has a very functional control tower with all the Air Traffic Services in place, the fire station is equipped with two fire tenders full scale category two firefighting tenders, the runway navigational aids are also installed. As it is, it can accommodate a Boeing 747 aircraft. “he said

    “However this project is one of the projects initiated by the current administration to transform the North-West geopolitical zone with an agro-allied airport. The airport was designed specifically to develop unique economic opportunities for different states in the region.”

    On his part, the Chief Executive Officer of Overland Airways, Capt. Edward Boyo, said that “the commencement of scheduled flights operations on the Abuja-Dutse-Abuja route in addition to the existing routes is part of Overland Airways’ objective to facilitate air transportation between the major cities of Nigeria”.

    Boyo lauded  the Jigawa State Government for the vision to embark on and complete in record time the  project.

    He assured that Overland Airways will serve the good people of Jigawa State efficiently.

    Overland Airways, he said, will commence thrice weekly flights.

    Overland Airways managing director  Edward Boyo said the Dutse Airport is one of the projects built in all the key political zones in the country with the vision to drive agricultural products.

    “Through collaboration between the Ministry and Aviation and the Ministry of Agriculture working together to bring about some integration for cargo, you will find that Nigeria will become a major exporter of fresh produce because we have the capacity to produce it.

    “In addition, as a derivative of that, you are going to create more jobs aviation related.”

  • Peacock wins award

    Peacock Travels and Tours  has won the Sustained Excellence Corporate Travel award for the year.

    According to a statement by the travel firm, the award presentation was done by the Mayor of London Borough of Richmond, Jane Boulton last  week in London.

    While presenting the award, Boulton commended Peacock Travel for the hardwork of its staff .

    She said: “This award is a result of the hard work of Peacock Travel staff”.

    She expressed happiness for having a forward-looking establishment like Peacock in her Borough and pledged her support at all times.

    The Travel Manager, Peacock, Mr. Keith Lloyd said it is assuring that the travel firm would continue to maintain the high level of service the company had been known for.

    “We want to be a travel agency that is unique and that has utmost concern for its client, unlike online bookers.” he added.

    Keith noted that the award was based strictly on review and votes by industry practitioners in the UK as well as the evaluative research always carried out by the awarding magazine.

    Also speaking, the  Executive Chairman, Peacock Group, Mr. Segun Phillips   dedicated  the award to God and  customers of the company.

    He said the gesture is  testimony of the world- class service that had been the trade mark of Peacock Travels.

    Phillips said: “For a subsidiary of the company to win such a reputable award in the United Kingdom, it means the core value of the company in rendering qualitative and unparallel service will continued to be maintained.