The Nation Newspaper

Category: Aviation

  • Why govt is acquiring 30 planes, by Minister

    Why govt is acquiring 30 planes, by Minister

    •Aircraft acquistion won’t solve domestic carriers’problem’

    THE Federal Government has spoken on why it is buying 30 planes to aid domestic carriers.

    Minister of Aviation Princess Stella Oduah said the government’s gesture was informed by the need to revitalise ailing airlines

    Her media aide Joe Obi said the modality for buying the planes and the mode of distribution were being worked out.

    The government he, said, would contact the Airlines’ Operators of Nigeria (AON) to determine the needs of each operator.

    Denying reports that the planes would be acquired with a $500million loan from China, Obi said: “The fact of the matter is that the said amount was the loan secured from China for financing the remodelling of airports in the country.”

    two experts have suggested ways of utilising the aviation intervention fund.

    Managing Director Capital Airlines, Captain Amos Akpan and the Assistant General Manager, AON Mohammed Tukur, said a careful application of the funds would solve many problems.

    According to him, the buying of aircraft by the government for domestic operators, may not yield the desired result, if operational demands of the affected carrier are not considered.

    He suggested the financing of aircraft acquisition by financial institutions, which will be guaranteed by the government.

    There is, he said, stunted development in the sector because the players and the regulator are not using the best model.

    Akpan said before the government facilitates the purchase of aircraft for any airline, some issues must be clarified.

    These are analysis of the aircraft, its proposed route and the operator, or the funds deployed could be misapplied, he said.

    He said: “The N300 billion intervention fund that the government made available through the Bank of Industry was wrongly applied because there was no need to give individuals or institutions funds that its use could not be monitored.

    “The intervention procedure of buying aircraft for domestic airlines, as we heard the government is proposing is not clear. I perceive this is another wrong application of good intentions. Aircraft acquisition is a product of fleet expansion, upgrade, or additions based on specific airlines need at a stage. What type of aircraft is required? For what route? And for which operator?

    “If an operational module has been identified; research of availability of passengers and cargo identified. The frequency and capacity required must be determined. These, then, determine the size and type of aircraft. The safety envelope of categories of airports and the facilities they offer must be critical input too. We should not jump into lopsided amelioration again.”

    He explained that the option of the government acquiring aircraft for private operators is no longer fashionable.

    Akpan said: “No person or institution should be given money to buy an aircraft. When the operator identifies the aircraft that soothes its operations, the operator should get NCAA to inspect and approve it; the government should pay through its bank and retain the title of ownership while the airline is only the operator.

    “The insurance must be paid by the title owner and he retains the right of first loss payee. Furthermore, the scheduled maintenance checks must be financed or funded by the owner when the maintenance by calendar or by hours is due.”

    He said payments for salaries, training, spare parts, and line maintenance must be on an open requisition programme to avoid default as these are budget items. Fuel credit scheme must be such that payment is automated between the banks and the fuel company on presentation of audited vouchers.

    ‘’Monthly payment on the aircraft from the sales must be automated to avoid default on lease rentals.

    “All of these will ensure there is no hiding to create excess capacity in one route because of high traffic while under developing other routes,” he said.

    Tukur called on the government to carry airline operators along in the proposal to buy aircraft for domestic airlines.

    Tukur said for such plan to sail through, there was the need to let the operators know the type of aircraft that would be deployed and the modalities for accessing.

    “We actually requested for bailout but the Ministry is packaging another one but I am afraid, it is not being handled well”, he said.

     

  • ‘Nigeria needs aircraft maintenance hangar’

    Chief Executive Officer Belujane Konzults Mr Chris Aligbe has canvassed the setting up of a maintenance facility for aircraft repairs in the country.

    Aligbe said such a facility would reduce operating costs for domestic carriers that fly their planes overseas for major repairs.

    If the facility is established here, it would create jobs for the industry’s professionals, he said.

    Aligbe, a former spokesman of the liquidated Nigeria Airways Limited, said to make the project viable, the facilitators must adopt measures to sustain patronage for the project.

    He said: “A maintenance facility in Nigeria is long overdue. The government should facilitate the establishment of such a project, and ensure that the airlines have enough aircraft in their fleet to ensure that it is profitable.

    “If there are not enough aircraft to sustain the maintenance, repair and overhaul facility, it could be a failure. Above all, there must be competence in fleet and aircraft type to make it work.

    “One sure way of achieving this is the entrenchment of standardisation of fleet and line management to boost the competence of such a facility.”

    He affirmed that without standardisation of aircraft type, the industry could have issues with growth and development, as major aircraft repair facilities are driven by the development of competences in aircraft types.

    He said: “Most of the airlines in Nigeria do not have commonality of aircraft type to drive maintenance and repair overhaul facilities.”

  • Delta Airlines announces Business Elite

    Delta Airlines has announced the selection of wines to be served on board its Business Elite cabin in 2013.

    The selection profiles wines from four continents including wines from four European countries: Italy, Spain, France and Portugal; as well as from California, Australia, Chile and South Africa. The new wines will be served on board this year. Delta chooses its Business Elite wine cellar each year in a rigorous weeklong process during which Delta Master Sommelier Andrea Robinson evaluates and samples more than 1,600 different wines from more than 50 wineries worldwide.

    Numerous factors are considered including: the complexity and intensity of the wine; aesthetic details such as the image of the bottle and its label; and logistics such as the amount of production necessary to fulfill Delta’s requirements.

    Twenty-two winning labels are profiled in cycles throughout the year, including eight red wines, eight white wines, four dessert selections and sparkling wines. Approximately 1.5 million bottles of each wine are served worldwide in Delta’s Business Elite cabin every year.

    “Delta wants to offer an exclusive experience to its Business Elite customers who tell us they truly appreciate a great wine,” Robinson said. “This year I have made two selections label as ’discoveries’ – Banfi Rosa Regale dessert wine and Barco Reale di Carmignano. These wines are exciting because, while they are classic Italian wines, they are styles few people have tried. The Rosa Regale is a unique sparkling rose dessert wine, and the Barco Reale could be considered Italy’s first Super Tuscan.”

    Wine is an important part of Delta’s overall BusinessElite offering and the airline has launched a Sky Sommelier programme for pursers to provide a deeper insight into the wines served on board.

    “We want to inspire our customers to discover the world through our selection of wines and meals. Our global selections for the Business Elite cabin have heart and soul and represent the rich cultural heritage of all the countries selected,” Robinson said.

  • BA pilots switch to ipads

    British Airways is equipping its 3,600 pilots with iPads to further improve customer service and operational efficiency levels.

    The move, which follows the airline’s rollout of iPads across its cabin crew and ground operations teams, is part of the company’s £5billion investment in new products and technology to provide the best possible flying experience for British Airways’ customers.

    By having access to additional real-time operational data, shared with ground colleagues, pilots will be able to plan the flight more efficiently using the most accurate information available pre-departure.

    This means flight crew can provide customers with faster and more accurate flight information than ever before. With the latest operational updates customers will be better informed and able to make plans if their flight time has changed for any reason.

    Pilots will also be able to use historic and current data, supplied by the customer, to provide an even more personalised service during the flight.

    British Airways’ Director of Flight Operations, Captain Stephen Riley, said: “As pilots we want to deliver a safe and memorable experience for each and every British Airways customer, on every single flight.

    “The iPads will help us to achieve this goal by giving us the means to provide a more personalised service and share more timely flight information with our customers and colleagues.”

     

  • Boeing 787 for review

    United States of America aviation regulators have ordered a review of Boeing’s latest passenger jet, the 787 Dreamliner, citing “concern” over a spate of technical problems in recent weeks.

    Regulators said the 787 remained safe to fly but a thorough examination was needed to identify the root cause of the problems including a fire on a parked 787 last week.

    “There are concerns about recent events involving the Boeing 787. That is why we are conducting a comprehensive review,” Transportation Secretary Ray LaHood told a news conference.

    The review will put an emphasis on the 787’s advanced electrical systems and cover their design, manufacture and assembly, the Federal Aviation Administration said.

    The move comes on top of a separate probe by US safety investigators into a battery fire which caused “serious damage” to an empty Japan Airlines 787 jet at Boston airport on Monday.

    Adding to incidents that have tested confidence in the world’s first mainly carbon-composite airliner, the jet suffered a cracked cockpit window and an oil leak on separate flights in Japan on Friday.

    The 787 is Boeing’s newest jet and uses new technology to cut the fuel cost for operating the plane by 20 percent.

    Each lightweight jet has a list price of USD$207 million.

    Airlines are pleased with the savings, and have so far given the plane their approval, both by ordering more than 800 jets and mostly sticking by it through the current spate of troubles.

     

     

     

  • Emirates connects Bangkok

    Emirates Airlines has introduced a fifth daily, non-stop service between Dubai and Bangkok, with the announcement coming just weeks after it launched a daily service between Dubai and Phuket.

    From March 31, 2013, Emirates will operate 35 flights a week between Dubai and Bangkok, plus a daily Airbus A380 service between Bangkok and Hong Kong, and a daily flight between Bangkok and Sydney, which connects on to Christchurch. These services, along with the Phuket flights, take the number of weekly Emirates departures from Thailand to 56.

    March 31, 2013 will also mark the start of the airline’s fourth daily service between Kuala Lumpur and Dubai, while a third daily Manila service started on January 1, 2013 and a third daily.

    Jakarta service will commence on March 1, 2013. Elsewhere in the region, the Singapore service received a boost in capacity following the introduction of a 517-seat A380 to the route in December 2012, while flights from Ho Chi Minh City were launched in June last year.

    “Emirates has been operating flights to Bangkok since 1990 and this capacity increase – combined with the launch of the Phuket service in early December – demonstrates what an important market Thailand is to us,” said Salem Obaidalla, Emirates’ Senior Vice President, Commercial Operations, Far East & Australasia.

     

     

     

  • Why compensation is delayed, by Dana Air chief

    Why compensation is delayed, by Dana Air chief

    The inability of family members to get relevant documents, including letters of administration from the probate registry of the Lagos High Court, has been identified as the main reason delaying the payment of the 70 per cent compensation to families of victims of the June 3, 2012 Dana Air plane crash .

    The airline’s Director, Mr Francis Ogboro, said once they get the documents required by the insurers, the balance of $70,000 each would be paid to the victim’s families.

    He spoke during the inaugural flight of the airline, after the crash, on the Lagos/A buja route last weekend.

    Ogboro said, so far, the airline had paid $70,000 to eight families of victims who had completed the documentation.

    Dana Air has put the crash of June 3, 2012 behind, and is forging ahead to comply with the requirements of the Nigeria Civil Aviation Authority (NCAA), he said.

    Ogboro said some investors have approached the airline to invest in it, adding that discussions were going on.

    He also spoke of an insurance scheme for the airline, which would take care of families that need to be paid.

    Ogboro said: “We have paid up to 90 per cent of the 30 per cent initial compensation, and we are working on the outstanding 70 per cent. The people, we have not paid, are the families that have not turned up.

    “For the second stage of payment, we have had a few people turn up, if they satisfy the requirement for payment, they will be paid. They will not have to wait for the two months to elapse. If they meet the requirement anyway, they will be paid.

    “If after two months, the families have not been paid, it is not because Dana Air does not have the money to pay, it is not because Dana Air insurers do not have the money to pay, it is because the claimants have probably not fulfilled the requirement for the claims available,” Ogboro said.

    He said the conditions of payment for the initial claims of 30 per cent was to assist the families of the victims, unlike the outstanding which requires more detailed processes.

    “We had a few issues with the DNA tests; a few had issues with double claims, in the case of those with many wives. But, in the case of the 70 per cent outstanding, we have started payment to a few families, about nine of them.

    “We have insurance that covers all the passengers that were on board.”

    He said Dana Air would continue to meet the conditions spelt out for compensation to families of victims of the crash.

    On those whose properties were destroyed on the ground, Ogboro said the insurers would resolve the technicalities of the value of what was damaged.

    He said: “We will make sure we take care of everybody. We are praying not to be involved in an accident, and, by the grace of God, it will not happen again. I want to say that Dana Air management spares no effort in the training and re-training of our crew, spending a lot of money to get the right training, which NCAA can attest to.”

    Ogboro said the plan to acquire the Boeing 737 aircraft was not an indication that something was wrong with the airline’s homogenous fleet of Mc Donnel Douglas 83, but a strategy to meet the needs of customers.

    He said abroad, there were over 900 MD 83 aircraft still flying, with over 400 flying in the American airspace.

    This contradicts the position of the National Assembly Committee on Aviation, which released a report that Dana Air is the only airline in Africa still flying MD 83.

    MD 83 aircraft still fly in Afghanistan; Argentina, Bangladesh, Democratic Republic of Congo, Denmark, Egypt, Greece, Indonesia, Iran, Italy, Kenya, Mali, Romania, South Africa and Spain.

    Other countries where the MD 83 still fly include: Taiwan, Ukraine, United States and Venezuela.

  • ‘Interline agreement good for airlines’

    The implementation of interline agreement among domestic carriers will facilitate air travel, Managing Director, Medview Airlines, Alhaji Muneer Bankole, has said.

    According to him, cooperation among carriers is the only way to make air transport seamless and cost effective.

    He said if airlines cooperate, the plan by the Nigeria Civil Aviation Authority (NCAA) to facilitate interine agreement would not only reduce costs for airlines, but also make air travel less cumbersome.

    Bankole said it was time Nigerian carriers embraced global practices.

    He said the rationale for interline pact may not be unconnected with lack of cooperation and other operational factors that led to the collapse of over 10 airlines in the country.

    The implementation of interline agreement, he said would give airlines the leverage to tap from the benefits of economies of scale, which in turn would reduce cost for the operators.

    He cited a situation where Medview Airlines had some operational challenges with one of its aircraft, and had to transfer its passengers to another airline under an arrangement between the two carriers.

    Bankole said: ”If the cooperation and understanding did not exist between Medview Airlines and Aero Airlines, how would we have handled such passengers, who have already paid for the flight. With such arrangement, as tidy as it was, the passengers will always come back to fly with us. Our counsel is that more airlines should come together and forge cooperation, which is good for the survival of the business.”

    Last year, plans by the NCAA to effect interline agreement among active domestic operators, such that passengers could use one ticket to board any flight within the country suffered some challenges as the terms and conditions attached to the pack provoked a fresh row among carriers over which organisations hold the ace as the clearing house for all transactions.

    NCAA Director-General, Dr Harold Demuren, who confirmed readiness of the authority to effect the new operational regime said domestic carriers and other parties are meeting on how to achieve seamless operations.

    According to industry sources, though some operators have expressed their readiness to imbibe the new business model, some carriers are worried that if clearance matters are not properly sorted out, some of the airlines may back out of the new arrangement.

  • Showing off aviation’s strides

    What should the public expect from aviation this year? With what was seen in the sector last year, those at the helm are expected to consolidate on their gains in 2013. For starters, new airport terminals will be built in Abuja, Lagos, Kano and Port Harcourt. The Aerotropolis project will also take off. Aerotropolis is a concept that involves building cities around airports and thus connecting businesses, suppliers and goods to the aviation world.

    The competiveness of any economic base is linked to the quality and quantity of the infrastructure available to it. There is a link between the state of a nation’s infrastructure and the height attained in its pursuit of economic emancipation. Thus, no modern economic growth model designed for implementation is worth it if basic and necessary infrastructure are not in place.

    Most of the airports and terminals were built in the 70’s and by 2011, they were in a state of disrepair. Airport users complain that the infrastructure are a disgrace to the country’s standing in the comity of nations.

    It is estimated that the country will need to invest about $100 billion over the next 10 years in just four basic infrastructure areas; power, rail-track, road, and aviation. According to the Central Bank of Nigeria, N300 billion will be required to turn aviation round.

    On resumption, the Minister of Aviation, Princess Stella Oduah, left no one in doubt that she will “walk her talk”. Worried by the scale of infrastructure deficit at the airports, she initiated the reconstruction of 22 of them. Within two months of being in office, 11 airports earmarked in the first phase were undergoing reconstruction simultaneously.

    This is without interrupting operations at these airports. The Lagos Terminal 1, popularly known as GAT, was inaugurated within 300 days after the start of work. The project costs N648 million. The remaining 10 airports are at different stages of completion, with the world class facilities at Abuja, Kano, Benin and Owerri already being used by travellers.

    Agencies in the Ministry are being transformed and appropriate laws initiated to make them more accountable. Questionable concession agreements skewed against the public interest are being reviewed.

    In the area of safety and security, modern security equipment have been procured following a comprehensive security threat and vulnerability assessment.

    Deliberate strategies are being deployed to change the orientation of aviation employees through capacity development. For instance, the Managing Director of Federal Airports Authority of Nigeria (FAAN), Mr George Uriesi, is changing the orientation of the Authority’s employees towards service delivery, accountability, and self-sustenance of the agency.

    Some airports have been designated agro-allied and cargo terminals to promote investment and make them self-sustaining. This will lead to reduction in rural-urban immigration, massive rural development, provision of employment and reduction in crime. The Port Harcourt International Airport, for instance, has been designated a Free Trade Zone (FTZ) and Export Processing Zone (EPZ) to maximise its strategic location, with special incentives to stimulate economic development and foreign direct investments.

    Towards the end of last year, the airfield lighting on Runway 18L at the Domestic Terminal of Murtala Muhammed Airport, Ikeja, Lagos, was restored, making it possible for night landing. This will ease pressure on Runway 18R, the international runway that accommodated domestic flights operating into Lagos after 6pm.

    The expanded “E” Arrival Wing of the international terminal of the airport also began operations on Christmas Eve to handle the unprecedented passenger flow that reached its zenith that day.

    •Yakubu Dati General ManagerCorporate Communications

  • Who owns GAT, FAAN or Bi-Courtney?

    Who owns GAT, FAAN or Bi-Courtney?

    •Row over airport terminal deepens

    The war of attrition between the Federal Airports Authority of Nigeria (FAAN) and Bi-Courtney Aviation Services Limited over the ownership of the remodelled General Aviation Terminal (GAT) at the Murtala Muhammed Airport, Ikeja, Lagos, is still raging . According to FAAN, the truth has not been told about the status of the terminal.

    faan, according to its spokesman, Mr Yakubu Dati, explained that it is imperative to explain the ownership status of the terminal following what he calls misrepresentations by Bi-Courtney. The firm, which manages the MMA2 terminal, is claiming ownership of the facility.

    dati was reacting to a statement by the firm’s spokesman Mr Steve Omolale-Ajulo, that the terminal does not belong to FAAN.

    dati said: “ It is an open secret that Bi-Courtney, in a desperate bid to also deceive unwary Nigerians, has taken it upon itself to engaged in a campaign of calumny against both the Federal Ministry of Aviation and the Federal Airports Authority of Nigeria for standing up against the company’s well-known penchant for taking undue advantage of its business partners, especially government agencies.

    “This has been done through several sponsored articles using different channels to propagate lies to the public. Other times it had gone overboard to sponsor faceless individuals to do its bidding.

    “We know that the case between FAAN and BASL has not been finally decided by the judiciary, so we will limit our response to his article and present facts that will debunk the lies and expose the mischief contained so that the public is not deceived.

    “The pertinent question remains, agreement approved by who? Does the Ministry of Aviation and FAAN have the authority to cede government property to a third party or concessionaire, without the approval of the Federal Executive Council, which approved the initial concession in the first place?

    “It should be noted that it is not in all the cases that a minister’s action receives the approval of Mr President and some ministers have been relieved of their portfolios or meted with stricter measures because of such illegal or irrational actions.

    “The fact is that the draft agreement for the Build, Operate and Transfer (BOT) of the Domestic Terminal 1 was for a total cost of N3.9billion and the tenure of the agreement was 12 years, dully approved by the Federal Executive Council. This is the only authentic agreement.

    “Immediately after this agreement, Bi-Courtney organised a consortium of banks and got a loan facility to the tune of N38billion contrary to the terms of the agreement which pegged the cost at N3.9billion. Bi-Courtney then proceeded to build a different design that was not agreed nor approved by FAAN. This was the genesis of Bi-Courtney’s predicament.

    “The company after realising its folly now approached a consultant KPMG on how long it would take to recoup the N38billion. The consultant findings revealed that it would take 36 years.

    “Their co-travellers at the Ministry also got another consultant, who recommended 45 years! Realising this dilemma, they started various divisive antics on how to get an elongation of tenure of the initial agreement through their connections at the helms of affairs at that time.

    “They approached the former President, the late Alhaji Umar Musa Yar’Adua, to authorise an elongation; predictably, he out-rightly refused them because it was not in the overall interest of the nation.

    “They again went back to a former Minister of Aviation, and persuaded one of his Personal Assistants contrary to government’s regulation who gave them a purported letter of approval extending the tenure to 36 years. It is this fraudulent and criminal document they have been brandishing around as official approval for this bogus project.

    “Furthermore, the company got another purported approval from a former Attorney-General, who set up a committee, got people who are not staff of FAAN to be the members of the committee, to extend the tenure to 36 years.

    “All the so-called approvals were without any FEC approval. There was none, whatsoever from DPP, ICRC and other mandatory organs. We challenge Bi-Courtney to produce any formal approval, for extension of the tenure of agreement by FEC, and bring this out to the public domain.

    “The purported approvals are not in the best interest of the nation and people who ought to be in jail are busy misinforming the public in pursuit of greedy, selfish interest.

    “Bi-Courtney is the one talking about its predicament so, the onus is on it to justify this so-called predicament imposed by government, by publishing the document signed by the same government granting it a 36-year concession and the ownership of GAT.

    “If Bi-Courtney does not take up this challenge, it is an admission that the company is suffering from a self-imposed predicament, engendered by greed and insincerity, to say the least.

    “Nigerians should appreciate this government for deciding to put an end to the discrepancies and criminal tendencies associated with many concession agreements of the past, no matter who is involved in these concessions.

    “The overall best interest of the country should override the narrow and parochial interests of a few self-serving government officials and fraudulent investors.

    “In the words of Abraham Lincoln: ‘You can fool some of the people all the time, but you cannot fool all the people all the time.’ The game is up for Bi-Courtney.”

    •Dati is General Manager, Corporate Communication, FAAN