The Nation Newspaper

Category: Aviation

  • ASRTI flays FG over foreign carriers $464m trapped funds

    ASRTI flays FG over foreign carriers $464m trapped funds

    AVIATION industry safety watchdog and think tank group – Aviation Round Table Safety Initiative (ASRTI), has expressed its dismay over the appalling handling of accumulated foreign airline funds trapped in the Central Bank of Nigeria (CBN), describing as unacceptable the non- allocation of foreign exchange to the affected carriers.

    The trapped funds, according to the International Air Transport Association (IATA), hit $464b million last month.

    The ASRTI berated the Nigerian government for violating extant articles in all bilateral air services agreements it signed with other countries, which expressly require Nigeria to facilitate the transfer of earnings to foreign carriers.

    In a statement on Friday, the spokesman of the ASRTI, Mr Olumide Ohunayo said the Federal Government was under obligation to allow designated carriers the right to convert and remit to its country on demand, local revenues in excess of the sum locally disbursed.

    According to Ohunayo, the refusal of the Nigerian government to allow foreign carriers to repatriate their trapped funds “is already serving as a disincentive to investors in the aviation sector.”

    The statement reads:  “In all Bilateral Air Services Agreement an Article in the agreement — transfer of earnings, clearly states that each designated airline shall have the right to convert and remit to its country on demand, local revenues in excess of sums locally disbursed. Conversion and remittance shall be permitted without delay in accordance with the prevailing foreign exchange regulations.

    “International trade is bound by agreements which are sacrosanct and respected. Nigeria cannot do otherwise if we crave the attention of investors in our industry.

    “It’s important to state that foreign airlines sold these tickets at the official IATA rate and cannot be expected to go to the parallel market to source, convert and remit as opined in some quarters, the Central Bank should do the needful as enshrined in the BASA agreements.

    “These funds should have been remitted at the official rate on the date of Sale immediately the Airlines get clearance after paying all the local obligations including taxes.

  • Aircraft leasing as panacea for survival

    Aircraft leasing as panacea for survival

    The harsh aviation environment is forcing airlines to explore survival options. To reduce the cost of operations, given the soaring price of aviation fuel, airlines are navigating new bends to keep their operations afloat. KELVIN OSA OKUNBOR reports.

    The unfriendly business environment is pushing investors/operators to rejig their strategy.

    This is coming on the heels of the increase in the price of aviation fuel otherwise known as Jet A1.

    In Nigeria, the price of jet gas is hovering around N1,000 per litre depending on where the product is sourced.

    With a big aircraft such as Boeing 737/MD 83 consuming between N50 million and N70 million fuel daily, operators are cutting flight frequencies to keep afloat.

    To stave off the hammer of the regulator – Nigerian Civil Aviation Authority (NCAA) – which is looking into the books of indigenous carriers to ascertain their financial/technical health- operators are leasing aircraft.

    The leasing option, which experts say could either be the dry/wet option, requires an operator to use the airplane of another carrier for its flight.

    Investigations by The Nation revealed that Arik Air, Air Peace, United Nigeria Airlines and others have adopted this option in the last dozen months.

    Last week, the oldest Nigerian carrier Aero Contractors Airlines opted for a joint venture with another indigenous carrier – UMZA Express Limited.

    Aero Contractors Airlines, according to the deal, entered into the joint venture to utilise Dash 8 (Q-400)  aircraft on the fleet of the partner to resume scheduled flights to be made public soon.

    Experts have described the joint venture as equipment investment by UMZA Express Aviation Services in Aero Contractors.

    The first of the Dash 8 Q-400 aircraft arrived at Abuja Airport last week. Other aircraft are expected in the coming weeks.

    Aero has taken delivery of the first set of two Dash-8 (Q-400) aircraft at the Nnamdi Azikiwe International Airport, Abuja. The Nigerian registered aircraft owned by UMZA Air will be operated by Aero Contractors.

    The Dash 8 is one of the most- fuel efficient and modern aircraft in the market and has a capacity for 74 seats.

    Speaking after taking delivery of the aircraft, Aero Contractors Managing Director Captain Abdullahi Mahmoud said: “This is part of our recovery strategies since most of our aircraft are undergoing maintenance and we want to ensure that when we are coming back as we promised, we come back very strong.”

    He said Umza’s investment is “a strategic business alliance” that we see both companies share in the profits the aircraft will make.

    “If you look at the aircraft, it is not like a wet lease because it is a Nigerian registered aircraft, so it is our crew that are going to operate it. Our pilots, cabin crew are going to operate it. We have finished signing the agreement with them. There are five aircraft coming in and this is the first,” he said.

    “We are getting prepared to resume operation as soon as possible. I don’t want to give the exact date that we are resuming but we are going to resume as soon as possible. So, we are working day in and day out because we don’t want to rush coming back.”

    UMZA Express Aviation Services Chief Executive Officer Mahammed Abubakar described the decision to invest in Aero Contractors as strategic.

    He said: “We are diversifying into aviation despite the troubling situation because some people have to take the risk.”

    He said the aircraft to be brought were Dash 8 Q-400.

    “I think it is the best because of the fuel efficiency,” he added.

    NCAA Director-General Captain Musa Nuhu said the situation in global aviation necessitated the need for airlines to rejig their strategy.

    He said there was nothing wrong for carriers to adopt any partnership that would enable them keep their operations afloat.

    In particular, he said, the rising price of jet gas calls for the right use of aircraft.

    In a related development, the NCAA boss reaffirmed his commitment to ensuring the continued sustenance of safe and secure flight operations.

    In an interview with reporters in Lagos, at the weekend, Nuhu said the regulatory agency would continue the implementation of its responsibilities of  ensuring the confidence of the flying public.

    Nuhu said investigations were ongoing into the operations of the suspended Dana Air. He said the carrier would remain grounded until the identified issues were resolved in compliance with the Nigerian Civil Aviation Regulations (Nig.CARs).

    He said the NCAA had carried out audit of the airline, which outcome showed a weak financial position and violations of Nig.CARs, that led to  the suspension of the airline’s Air Transport License (ATL) and Air Operators Certificate (AOC).

  • NAHCO Chair: reasons for our growth

    NAHCO Chair: reasons for our growth

    The Chairman, Nigerian Aviation Handling Company (NAHCO) Plc, Dr. Seinde Fadeni, has attributed the growth of the ground handling company in the last few years to the support of its clients in  its  professionalism, despite the challenges facing  the aviation sector

    Speaking at a dinner organised for its clients and partners,  including clearing agents, airlines, Nigeria police, Nigeria Immigration Service, Nigeria Customs Service and Federal Airports Authority of Nigeria (FAAN) and others  at the weekend in Lagos, Fadeni  said there are numerous challenges limiting the growth of ground handling business in Nigeria .

    He assured that despite the hurdles, NAHCO  as a leader in the value chain  would continue to deliver quality  services to its clients.

    Fadeni  acknowledged  that some of the challenges being faced by the airlines and clearing agents were beyond the company, but assured that NAHCO would collaborate with FAAN and other major stakeholders to address the bottlenecks in the sub-sector.

    He also observed that some of the ground support equipment were ageing, affirming that  approval  for equipment upgrade was already in place as new facilities  would be delivered  very soon.

    He said: “We are trying as much as possible to aggressively improve on the equipment, which we have now. Some of our equipment are as old as 20 years and above. We are working hard to ensure that we serve our clients better.

    “However, we know that we can’t have it all 100 percent, but we are consistently working to ensure we satisfy our customers. ‘

    NAHCO’s Group Managing Director/ Chief Executive Officer, Mr. Indranil Gupta, the handling company had performed the foundation stone laying of its export processing centre at the Murtala Muhammed Airport (MMA), Lagos.

    Gupta said construction would soon start on the structure, which is being conceptualised as a two-storey building, adding that all the facilities at the centre would be automated for seamless transaction.

    He said: “On the monument gate, we understand your challenge as clearing agents, but we must also listen to the concerns of FAAN, too. I am sure FAAN doesn’t want to make life difficult for its clients. They know why they locked up the gate, but I can assure you that we will discuss with them soon.”

    Earlier, some of the clients commended NAHCO for making them priority, assuring  that they would continue to work with the company.

    Mr. Segun Musa, a leading Clearing Agent lauded the company for fostering a good relationship with its customers, promising that it would continue to be a  ‘’partnership in progress.” and appealed to the management to improve on its equipment, especially those at its export warehouse.

    Also, Managing Director, Everspeed Nigeria Limited, Murphy Thomas, lauded NAHCO for addressing the complaints of clients regularly.

    The Managing Director, Cargolux, Mr. Kingsley Nwokoma, observed that the ease-of-doing business scheme of the Federal Government was still being confronted with some challenges in the sub-sector.

    He decried that the layers of security agencies at the export warehouse was giving the clearing agents some challenges and asked the management to address the challenges through a meeting with the various security agencies at the export warehouse, reiterating that security checks should be one-stop search.

    The Group Executive Director, Commercial and Business Development, Prince Saheed Lasisi, assured all present of the Managements resolve to address the issues raised. ’’We will not relax until we are sure that our clients are happy, and we are open to further suggestions.’’

  • NAHCO invests N4b in ground support equipment

    NAHCO invests N4b in ground support equipment

    The Nigerian Aviation Handling Company Plc (NAHCO Plc) has invested over N4 billion in the acquisition of ground support equipment to boost its operations.

    Chairman of the company, Dr. Seinde Fadeni, who made this known after the Annual General Meeting (AGM) in Lagos at the weekend, said despite the challenges of the COVID-19 pandemic, the company  would continue to be the ground handling leader in Africa in terms of market share, client base, revenue, and profitability.

    Last year, Fadeni said, the economy was fragile, after exiting recession in the last quarter of 2020  “Our focus in 2021 was a responsible and inclusive growth, which allowed us to be a source of stability for our customers during the challenging times,’’ he said.

    He lamented that the high forex rate and challenges in accessing the forex and the global increase in the crude oil prices, had dampened the positive projections for the year.

    The chairman said further that despite various challenges, NAHCO continues to invest  in the acquisition of Ground Support Equipment (GSE).

    He added: “With the pronouncement of the new safety threshold by the Nigerian Civil Aviation Authority (NCAA), which prescribed a minimum price for services, we hope that the issue of price war and unhealthy competition would be a thing of the past, as competition will  be based on service and not price. Management has been mandated not to rest on its oars and ensure the company performs even better in 2022.”

    Fadeni said the company would continue to strive to be the leading ground handling company in Africa.

    Also, Mr. Indranil Gupta, the Group Managing Director, said with more new GSE to the fleet and the significant investments in technology, the company’s service will look totally different from the past.

    He further hinted at planned strategic investments which will further brighten the future of the company.

  • ‘Low aircraft use, inadequate facilities affecting industry’

    ‘Low aircraft use, inadequate facilities affecting industry’

    Nigeria ranks low among countries with effective utilisation of aircraft by airlines. The drive for increasing use of the equipment is hampered by restricted operational hours and inadequate air navigation facilities. Stakeholders and experts met in Lagos recently to address the challenge. KELVIN OSA-OKUNBOR reports.

    The push for higher utilisation of aircraft is gaining traction as players in the air transport sector strategise on ways of achieving its sustainability.

    Experts says the minimum use of the airplanes because of restricted hours of operations into some airports further threatens the survivability of indigenous carriers.

    Speaking at the 26th League of Airports & Aviation Correspondents Conference in Lagos, last week, players in the industry called for the provision of more air navigation facilities, including airfield lighting and other terminal facilities, to enable airlines to operate flights 24 hours into airports nationwide.

    Noting that flights restriction  for aircraft from dawn to dusk, into some airports described as “SunSet Airports”, does not bode well for the growth of the aviation sector.

    Chief Operating Officer (COO), Ibom Air, Mr George Uriesi, said inadequate air navigation facilities at some airports is limiting the use of aircraft, acquired at a higher cost by carriers.

    He said: “Aircraft in the fleet of Nigerian carriers are  operating in a systemically limiting environment that makes it harder for you to be as productive.There are a number of blockers that make it hard to fly aircraft in Nigeria maximally.”

    Giving a global benchmark, Uriesi said Nigerian carriers are losing potential revenue due to poor utilisation of aircraft.

    He said: “Let me give you a benchmark of what we have in the world. From Airbus, the global average is 9.1 to 9.7 bloc hours a day. Some do 12 hours. In the Nigeria, that is nine domestic flights a day. On a monthly basis, it is 275 to 292 bloc hours, and  yearly 3,300 to 3,500 bloc hours.

    “Imagine the productivity of those aeroplanes, compared to ours where it is between 5.5 and 6.6 bloc hours per day. That is five or six hour sectors per day. That translates to 165- 198 bloc hours a month.The reason is that the productive limitation at most of our airports offer airlines limited operational hours.’’

    Also, Chairman, Finchglow Group, Mr Bankole Bernard, called on aviation authorities to scale up facilities to enable airlines to utilise their aircraft based on market demand.

    He, however, said: “How many domestic airlines in Nigeria have schedules for 24-hour operations? What is the economic impact of operating for 24 hours? Who bears the cost of operations? Should FAAN decide to make provisions for 24-hour operations on these routes, are the airlines able to pay for these services, and has there been any intentional effort to drive traffic to our airports such as creating non-aeronautical sources of revenue like cinemas, amusement parks and other attractions around the airports?”

    The Director-General, Nigerian Civil Aviation Authority (NCAA), Captain Musa Nuhu, said one of the  reasons some airports are restricted to sunrise-sunset flights in Nigeria is to eliminate or mitigate the safety implications and challenges of night operations.

    Some of the challenges, he itemised, as inadequate infrastructure, airports poor financial outlays, security risks and threats, inadequate airport and air navigation  infrastructure; traffic level, and airline capacity.

    He said: “There are issues involving fire cover, primary and secondary power sources, provision of communication, navigation and surveillance aids, automatic weather stations.”

    The Acting Managing Director, Nigerian Airspace Management Agency (NAMA), Mathew Pwajok, said the agency has sufficient air navigation facilities at airports for airlines seeking extension of operational hours.

    But, he said, there was the need to match the cost of running such airports with the expected revenue for such operations.

  • Furore over runway repairs at Lagos Airport

    Furore over runway repairs at Lagos Airport

    Plans by the Federal Airports Authority of Nigeria (FAAN) to fix airfield lighting at the Runway 18 Left of the Murtala Muhammed Airport (MMA), Lagos has sparked a controversy between domestic carriers and the airport authority. Carriers are lamenting that the 90-day runway closure will lead to increased cost of flights. KELVIN OSA-OKUNBOR reports

    Confusion is building up in the air transport industry as the Federal Government is consolidating efforts to fix abandoned airside infrastructure in the strategic sector.

    The move by the government to address gaps in deficit air navigation and airport facilities is, however, not going down well with the potential users of such equipment.

    Indigenous operators under the aegis of the Airline Operators of Nigeria (AON) have kicked over the modalities for the 90-day closure of the Runway 18 Left of the Lagos Airport, accusing the management of the Federal Airports Authority of Nigeria (FAAN) of not carrying its members along on the procedure of operations before it shut the facility on July 8, this year.

    Before repairs of the runway commenced last week, the facility had been abandoned for 14 years for reasons bordering on approval and procurement challenges by the supervising Federal Ministry of Aviation.

    The runway was last renovated in 2008, but the airfield lighting component was not incorporated. But the contractors rolled out their equipment last week to carry out major repairs in the facility, which when completed, would reduce cost of operations for local carriers.

    FAAN’s Managing Director, Captain Rabiu Yadudu, attributed the delay to approval processes.Worried over the runway closure, AON in a letter to FAAN berated the authority for closing the runway of the Lagos Airport without considering the huge cost implications on affected airlines.

    The AON alleged that since the runway was shut, works on the installation of air field lightning had not commenced.

    Accusing FAAN of being insensitive to their plight, AON called for a review of the closure and engagement with affected operators on the procedure that would reduce the cost impact on local carriers.

    The operators said the closure adds between 10 and 15 per cent  to the cost of fuel per sector into and out of the Lagos Airport.This burden is unsustainable for a three-month period for airlines.

    The letter reads: ”The runway has been closed for one week now, with no evidence of any work going on.”

    FAAN, has, however, clarified the scope of work on Runway 18 Left of the Lagos Airport.

    The authority said it has commenced work on the project with mobilisation of equipment since July 8.

    Its spokesperson,  Mrs Faithful Hope-Ivbaze, said the workers resumed on July 9.

    She said allegations by AON that work misrepresented the situation.

    The airport manager said marking of the runway centreline light commenced and 240m marking from the threshold 18L was done.

    She said the digging of cable trenches from the switch room 18L to approach commenced the same day.

    FAAN further explained that on July 10, marking of the touchdown zone light and runway centreline light continued and up to 410m from 18L was done and digging of cable trenches continued.

    The Airport manager said on July 11 and 12, digging of cable trenches and marking of centreline and touchdown light continued with marking of the TDZ and RWY centreline light progressed to 840m on July 13.

    She said cutting of links to the transformer pit commenced with fabrication of cable rollers.

    In a statement, she said: “On the 14/7/22, marking of TDZ light completed while that of Runway centreline light continued. Digging of cable trenches completed at Approach area and continues from there to C1 holding position Cutting of the pavement for insertion of fittings commenced.

    “On the July 15, FAAN continued the marking of runway centreline, digging of cable trenches at 18L and 36R and cutting of pavement for the inset fittings continued and equally said marking of runway Centreline was completed same date.

    “Also that digging of cable trenches at approach 18L and from the left side of the Runway and taxiway C completed while cutting of pavement for the inset fittings continued.’’

    FAAN also said fixing of fittings on the pavement with the elevated fittings 30m prior to the threshold had commenced.

    The airports authority, however,  explained that last week’s heavy downpour rain affected the progress but stressed that so far, work is progressing well.

    “As of July 18, FAAN is digging cable trenches while installation of the threshold 18L has commenced with cutting and excavation of the secondary cable trench and fixing of fittings.

    “Marking of the taxiway Centreline, stop-bars and No Entry lights on taxiway C has commenced and is almost completed,” it added.

  • ‘Specialised airport’ beckons in Gateway State’

    ‘Specialised airport’ beckons in Gateway State’

    To trigger development in their domains, more state governments are getting involved in constructing airports. Ogun State has joined the train  in  birthing a unique  model –  an aerotropolis, cargo and related activities are expected to take off in this “specialised airport ” soon. KELVIN OSA-OKUNBOR reports.

    Investment in air transport infrastructure is gaining traction among states.

    Despite concerns about their viability, new entrants are enlisting for the project.

    Experts say stand alone airports are not enough to push their viability; but construction of other related logistic chain value activities: cargo, agro- processing, aircraft repair and maintenance units could be the game changer.

    To align with the new thinking, some states – Ekiti and Ogun – in the Southwest are toying with the idea of building airport cities, otherwise known in aviation parlance as aerotropolis.

    Speaking during a tour of the Ogun International Agro-Cargo Airport in Ilisan-Remo recently, the state Commissioner for Information and Strategy, Abdulwaheed Odusile, said the administration had embarked on the establishment of a specialised airport.

    He said the government had studied other models abroad before adopting the airport city initiative.

    With the 3.8-runway kilometre, control tower and two terminal buildings under construction, the facility would change the narrative in efficient air transport infrastructure management.

    Odusile said: “That will be the first of its kind and the fastest airport to be  built in Nigeria.

    “We started the construction of this airport in April 2021. It would be an international airport in all ramifications.

    “We are not just building an airport, we are building an aerotropolis. We are bringing different people and, don’t forget, this is a specialised airport as it will be an agro-cargo airport. This will be the only truly agro-cargo airport in Nigeria.

    “This airport is also an important component of our transportation master plan, which will bring together rail, road and water transportation. This airport is not just a standalone airport, it is also being supported by other transportation facilities that we are building in Ogun State.

    “So many businesses associated with aviation would be here and we are ready to accept everyone. Before the end of this year, aircraft will land and take off in this airport.”

    His Works & Infrastructure counterpart, Ade Akinsanya, spoke on the project’s viability.

    He said the closeness of Ogun to Lagos would not affect the project’s patronage, citing its strategic location and advanced unique selling point.

    Akinsanya said: “The Murtala Muhammed Airport (MMA) in Lagos is one of the most difficult airports to get into before the road is expanded. For this airport, you can access it through Lagos-Sagamu, Lagos-Ibadan, Lagos-Epe roads. I don’t think any airport can rival it anywhere within this country and the facility is unique.

    “We have two separate terminal buildings for the airport; cargo and passenger. At any time, the apron can accommodate four Boeing 777 aircraft. It can take two wide bodies and two Boeing 737 models.”

    On the edge the airport would have over others, Akinsanya said:” Passengers can land here and be in Lagos within 30 minutes and for those going to the east, they can land here and be anywhere within a few hours. So, the viability, to me, is the best location and it will be a big relief for Lagos also.”

    Also, Senior Project Manager, Craneburg Construction Company, Nicholas Mfarrej, said the major components of the infrastructure: fire station, control tower, apron and the cargo terminal would be completed before the end of the year.

    He said: “We can assure you that it will be completed before the end of the year.The terminal building could process about 3,000 passengers at any time. We still have some redundancy capacity within the terminal. If four aircraft  land at a time, there won’t be an issue.

    “The control tower has room for expansion and it has a unique shape that will make it a quality job. At present, we are on the third level.

    “Everything that will make an airport functional is here.”

    On power supply at the airport, the project manager said: “We have private power supply and also connected to the national grid. We also have two redundancies; the generator and the UPS in case of power failure.

    “We are at about 90 per cent completion for the runway and the runway would be completed by the end of July.”

    He also spoke on the state of airfield lighting  for the project, assuring: “This is already programmed into the project. This airport is supposed to run for 24 hours. So, all the auxiliary things that will make it functional are already programmed.”

  • How technology is redefining air travel

    How technology is redefining air travel

    Two years after the COVID-19 pandemic altered the face of air transportation, passengers are using technology to achieve new feats. From contactless booking and check-in procedures, the adoption of technology is driving processes in favour of manual methodology. KELVIN OSA OKUNBOR writes.

    The global air transport sector is still counting losses triggered by the COVID-19 pandemic. Lockdowns, travel restrictions and other measures put in place to mitigate the spread of the virus are beginning to ease out as logistics-related activities pick up for the industry’s rebound.

    Airport terminals deserted by passengers are beginning to achieve footfalls as airlines announce return of flights on routes hitherto suspended.

    In Nigeria, for instance, carriers are increasing flight frequencies on the triangular routes of Lagos-Abuja and Port Harcourt. Besides, new terminals are opening for flights to various destinations.

    Aside new terminals opening, old terminals, including the General Aviation Terminal (GAT), at the Murtala Muhammed Airport, Ikeja, Lagos is undergoing expansion.

    But, there are emerging trends in the global aviation sector on the growing adoption of technology for processing travel.

    Foremost industry information technology solutions provider SITA has its report on the role of digitalisation in the travel industry.

    SITA’s 2022 Passenger IT Insights research highlighted the demand for business and leisure travel after the pandemic, with passengers further embracing mobile and touchless technologies to make the journey as convenient and seamless as possible.

    The survey shows an increase in passenger use of mobile devices for booking on board the airplane, and for bag collection in the first quarter of the year, compared to the same period in 2020, while automated gates saw increases in adoption for identity control, boarding, and border control.

    The results reflect the accelerated digitalisation of air travel since the outbreak of the pandemic and passengers’ willingness to adopt technologies. However, health verification is a pain point that has slowed end-to-end automation. In Q1 2022, despite some uptake of technology at this stage, over half of passengers were still doing their own research on health verification requirements and manually submitting documentation.

    SITA’s research also finds reduced technology adoption in the early stages of the journey (check-in, bag tag, and bag drop) in favour of manual processing. Uncertainty about health requirements and travel rules has likely led travelers to seek more staff interaction when starting the journey.

    The survey shows that the more technology there is during travel, the happier passengers are. About 87 per cent of passengers has positive emotions about identity control, up 11 per cent from 2016; the same is true for 84 per cent  of passengers about bag collection by nine per cent These are also the areas where technology adoption has risen the most, driven by mobile and automated gates, with half of passengers now additionally receiving real-time information at bag collection on time until delivery.

    Asked about comfort levels with biometric identification throughout the journey, passengers scored an average of almost 7.3 out of 10 (with 10 representing most comfortable), most likely reflecting their desire for ease of travel moving forward from the pandemic.

    SITA’s Chief Executive Officer, David Lavorel said: “It is exciting to see demand recovering and even surpassing pre-pandemic levels, not just for leisure but also for business travel. We are seeing that the technology-driven end-to-end passenger journey is becoming a reality, as the air transport community continues to digitise its travel processes and industry operations, accelerated by the pandemic. We are also seeing that passengers are increasingly embracing mobile and touchless technologies across the journey, to make their travel as convenient and seamless as possible. The use of IT to help drive and sustain the recovery of air travel is vital today, and it is also critical to the post-pandemic digital journey of tomorrow.”

    As that recovery gathers pace, SITA’s Passenger IT Insights survey says that passengers intend to fly more from next year than they did prior to the pandemic, anticipating averages of 2.93 flights per passenger per year for business, and 3.90 for leisure. When weighing up whether to fly or not, the main barriers are ticket prices, health risks, and geopolitical risks.

    Passengers also consider sustainability before they choose to fly. About half of passengers would value airports and airlines putting in place new IT solutions to support sustainability such as monitoring airport environmental performance to reduce emissions and flight path optimisation to reduce fuel burn.

    On the airport front, this initiative has overtaken green airport infrastructure for most value since Q1 2020, suggesting all eyes are on the promises of technology to support concrete reductions to the environmental impacts of the industry.

    Almost all passengers would pay on average 11 per cent of their ticket price to offset carbon emissions from their flight. Asked if the air transport industry is doing enough to become more sustainable, more than half of passengers either think not, or don’t know, suggesting there is room for industry improvement in communicating sustainability initiatives and actions.

    Experts seek solution to challenges at ‘Sunset Airports’

    Experts in the aviation sector are working on a template that would address the safety and economic implications of flights at ‘Sunset airports’.

    Sunset Airports are classified in aviation as aerodromes with limited operating hours fixed between 7.00 am and 6.00 pm, due to absence of airfield lighting.

    The experts include Chairman, Bi-Courtney Aviation Services Limited (BASL), Dr. Wale Babalakin; Chairman, Peace Airlines, Allen Onyema and others would constitute a panel at the forthcoming 26th annual conference of the League of Airport and Aviation Correspondents (LAAC).

    The event scheduled for July 28, this year has received the approval of   the Minister of Aviation, Hadi Sirika, and ground handling firms.

    A statement by the Secretary, Planning Committee, Mr. Albinus Chiedu, listed Capt. Musa Nuhu; the Director-General, Nigerian Civil Aviation Agency (NCAA), Lawrence Pwajok; the Acting Managing Director, Nigerian Airspace Management Agency (NAMA), and Managing Director, Federal Airports Authority of Nigeria (FAAN), Capt. Rabiu Yadudu, among the panelists.

    Others include the Commissioner, Accident Investigation Bureau-Nigeria (AIB-N), Akin Olateru, and CEO, Topbrass Aviation Limited, Capt. Roland Iyayi.

    The conference is expected to attract over 250 professionals.

    Dana Air increases flight frequencies 

    DANA Air has introduced additional flights on its Lagos and Abuja route network.

    The airline, in a statement said, the introduction of the new flights were based on demand and the need to follow through with its strategic route expansion.

    In a statement, the carrier said: “With these flights passengers can rest assured that we will always have convenient, optional flight times on the Lagos and Abuja routes. This expansion will be across the network, as we take delivery of more of our B737 aircraft very soon. We want to be available to our passengers at suitable times across the network and our growth has been consistent, meticulous and commendable and we want to keep it that way for our loyal customers who have kept us going.”

  • Tackling hike in jet fuel price

    Tackling hike in jet fuel price

    Challenges arising from the increase in the price of aviation fuel, inadequate and obsolete infrastructure, and other supply chain hurdles affecting domestic airlines was at the centre-stage last week when players, regulators, operators and stakeholders gathered in Abuja to define new paths to trigger growth for the beleaguered sector. KELVIN OSA OKUNBOR reports.

    These are interesting times for airlines, ground handling firms, aviation fuel suppliers and other players in the air transport industry.

    It is a season of lamentation. Leading the pack are indigenous carriers, which have been caught in the web of increasing costs of putting their aircraft into the sky. Aviation fuel price, otherwise known as jet gas, hit N714 per litre last week.

    The spike came on the heels of a collapsed deal by the Federal Government to rein in major fuel marketers to achieve stability in the price of the product.

    In the last one year, the price of aviation fuel has moved from less than N200 per litre to N714.

    The Airline Operators of Nigeria (AON) has warned that if the trend continues, at least three airlines would close shop.

    In an interview at the National Aviation Conference organised by the Federal Airports Authority of Nigeria (FAAN) in Abuja, Vice President of AON and Chairman of Air Peace Mr. Allen Onyema said though the price increase was not limited to Nigeria, but fluctuations in foreign exchange (forex) made it worst for airlines.

    Besides airlines, other players – fuel marketers, ground handling and aviation catering services firms – continue to bemoan the paucity of forex and the weakening value of the major against other major currencies as hurdles militating against the growth of their business.

    According to AON, to address the challenge, the Federal Government had approved 10,000 metric tonnes of aviation fuel to the airlines, but said the carriers were yet to access it.

    Onyema explained that the airlines hoped to start lifting the 10,000 metric tonnes of aviation fuel from this week.

    He said: “That is why we ran to the government and the Federal Government has given us about 10,000 metric tonnes of fuel at N580 per litre in Lagos and about N607 per litre outside Lagos.

    “This is not the only issue. Since the COVID-19 crisis, most airlines all over the world, including Nigeria have not recovered from COVID-19, except those whose countries have injected a lot of funds to assist them. This is nobody’s fault. It just happened. Government has tried its best by giving us this aviation fuel. This aviation fuel can take airlines out, not only in Nigeria but everywhere.

    “Some airlines outside Nigeria have closed down because of the effects of rising aviation fuel. If these things are not addressed in Nigeria, it can affect the bottom line of all airlines in Nigeria.

    “We have come to realise that there is little or nothing the committee set up can do because this is as a result of foreign exchange and the price of oil all over the world now. The fuel marketers will sell according to what they are paying. The cost of aviation fuel has increased, even in London and every other country. Our own is worse because of the increase in foreign exchange.”

    However, the Chairman of Major Oil Marketers Association of Nigeria (MOMAN), Olumide Adeosun, said the product is not as exorbitant as local airlines are putting it.

    Adeosun explained that the verifiable prices in West Africa range from $1.25 per litre in Ghana to as high as $1.51 per litre in Liberia.

    He said: “Due to the intervention of NNPC over the last several weeks, aviation fuel is landed into marine terminal tanks in Nigeria at between N480 and N500 per litre depending on the logistics efficiency of the operator. Due to the high costs of specific handling of Jet-A1 with – special transport and continuous filtration –  the product sold a few weeks ago on the tarmac at Lagos Airport  between N540 and N550 per litre and across other airports at between N570 and N580.

    General Secretary, Aviation Fuel Market Association of Nigeria (AFMAN), John Adewole Abegunde has argued that Jet fuel is fully deregulated, calling on the government to hand it off from commercial-related issues on the product.

    This is just as he has listed product availability, product price often not being competitive, logistics challenges, inequality in standard practices as some factors militating against availability and pricing of aviation fuel.

    According to him, The Federal Airports Authority of Nigeria (FAAN), Nigeria Civil Aviation Authority (NCAA) and Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) should be more concerned about the stringency of the aviation fuelling requirement while calling on NCAA/NMDPRA to harmonise oversight responsibilities to ensure no quality compromise in this area of business.

    He charged FAAN to watch out for portfolio and unlicensed suppliers to discourage racketeering and black-market business of aviation fuel and discouraged throughput while encouraging joint venture agreements.

    He also advocated that FAAN reviews land leases and multiple charges as the volumes are not looking good for the initial business projection.

    On the challenges, he said the biggest costs for airlines included labour, equipment, and fuel, stressing that labour and equipment costs were largely fixed in the short term, while fuel costs can swing wildly based on the price of oil.

    He said jet fuel costs accounted for about 10 to 15 per cent of operating costs.

     

     

    Adewole stressed that organisation’s mandates which include supplying good quality dry aviation fuel that meets up global standard requirement, ensuring satisfaction in service delivery and stringent quality control mechanism as well as offering product and services at competitive price which guarantees product availability all year round may be hindered by the factors above.

    He however mentioned some successes which include capacity to sustain the industry supply beyond market demand, representation in all airports of Nigeria to aid seamless operation of the airliners, Industry employment growth and opportunities and better synergy between Aviation Fuel Marketing Company and international airline.

    Abegunde, however, said the marketers were faced with numerous challenges that include the availability of the product to supply to the airlines, uncompetitive price, logistic hiccups in transporting the product and inequality in standard practices – all of which rob-off on the pump price.

    He added that the industry and its investors would be better off if regulators focused more on having a stringent aviation fuelling requirement and harmonised oversight responsibilities to ensure quality.

    “FAAN too should watch out for portfolio and unlicensed suppliers to discourage racketeering and black-market business of aviation fuel.Throughput? No! Joint ventures, yes! All parties should encourage joint ventures and have JV agreements. We should be wary of portfolio investors who come in when there are opportunities in the sub-sector but move out with their briefcases immediately after there are challenges. FAAN needs to review land lease arrangement and multiple charges as the volumes are no longer looking good to the initial business projection,” he said.

    Meanwhile, stakeholders have expressed divergent views on the quality of aviation fuel on sale. They said trucking of Jet A1 from the depots to the airports had been reported to have led to the contamination of the commodity; a situation they said erodes air safety.

    The pipeline meant to transport aviation fuel to the Lagos local airport but which has been sitting idle for 30 years should be repaired to ease fuel supply to airlines, industry stakeholders have said.

    While the former Commandant, Murtala Muhammed Airport, Group Capt. John Ojikutu (rtd), and some other stakeholders affirmed that there were various reports before the Nigerian Civil Aviation Authority (NCAA) indicating contamination of the product with many domestic carriers not having the equipment to undertake final screening before it is dispensed into aircraft, Chairman, Air Peace Airlines, Mr. Allen Onyema and Mr. John Abegunde, a top official of CITA Petroleum Nigeria Limited disagreed.

    Ojikutu, who is also Secretary-General of the Aviation Safety Round Table Initiative, wondered why the pipeline designed to transport fuel from Ejigbo to the Lagos airport could not have been repaired by the Nigerian National Petroleum Company (NNPC) Limited since 1992 after it was ruptured.

    According to Ojikutu, “It would have cost about $9.2million then to replace the ruptured pipes but sadly, nothing was done or had been seriously considered to be done. Rather, tankers have been bridging the supply from the NNPC depots, with the cost of transportation and demurrage added, and having to for days and sometimes weeks to discharge at the airport depots.”

    “The best practice is the piping of Jet A1 to the airport. We spend a lot of money on fuel contamination. The remote cause of accidents is seen in engine problems through fuel contaminated aviation fuel. Reports show that most of the aviation fuel in Nigeria is contaminated.”

    They said if the pipeline was functional; the trucking of aviation fuel to the airport would be avoided, thereby reducing the costs being incurred by airlines.

    The CITA chief stated that the fuel supplied had been of high quality, hinting that trucking the commodity from the depots to the airports is safe same as piping it through to the airport.

    He, however, stated that for efficiency, it would be better to supply Jet A1 to the airlines through a more decent and less cumbersome.

     

    BRIEF

    Experts seek solution to sunset airports challenges

    Experts in the aviation sector will be addressing safety and economic implications of flights at sunset airports.

    Sunset Airports are aerodromes with limited operating hours fixed between 7.00 am and 6.00 pm, due to absence of air field lighting.

    The experts, who include Dr. Wale Babalakin, the Chairman of Bi-Courtney Aviation Services Limited (BASL), and Chairman Peace Airlines, Allen Onyema, would constitute a panel at the forthcoming 26th Annual Conference of the League of Airport and Aviation Correspondents (LAAC).

    The conference scheduled for July 28, 2022 has received the approval of the Minister of Aviation, Hadi Sirika and ground handling firms.

    A statement by the Secretary, Planning Committee of the association, Mr. Albinus Chiedu, listed the Director-General, Nigerian Civil Aviation Agency (NCAA), Capt. Musa Nuhu; the Acting Managing Director, Nigerian Airspace Management Agency (NAMA), ;  Lawrence Pwajok, and Managing Director, Federal Airports Authority of Nigeria (FAAN) Capt. Rabiu Yadudu, sa among the panellists.

    Others are the Commissioner, Accident Investigation Bureau – Nigeria (AIB-N), Akin Olateru, Akin Olateru, and Chief Executive Officer, Topbrass Aviation Limited, Capt. Roland Iyayi.

    The conference is expected to attract over 250 professionals.

     

     

  • Nigeria accused of blocking repatriation of $450m foreign airlines’ funds

    Nigeria accused of blocking repatriation of $450m foreign airlines’ funds

    Nigeria is withholding $450 million in revenue that international carriers operating in the country have earned, an executive at the world’s largest airlines’ association said yesterday.

    Nigeria, harbouring Africa’s largest economy, has restricted access to foreign currency for imports and for investors seeking to repatriate their profits as the nation tackles a severe dollar shortage.

    The International Air Transport Association’s  (IATA’s) Vice President for Africa and the Middle East, Kamal Al Awadhi, described talks with Nigerian officials to release the funds as a “hectic ride”.

    “We keep chipping away and hoping that it clicks that this is going to going to damage the country down the road,” he told reporters in Doha on the eve of IATA’s annual meeting of airline chiefs there this week.

    Al Awadhi, a former Chief Executive of Kuwait Airways, said Nigerian officials had blamed the foreign currency shortage for not repatriating the airline’s revenue.

    Spokesperson of the Central Bank of Nigeria (CBN) did not immediately respond to a request for comment.

    Nigeria had previously blocked revenue from foreign airlines before later repatriating the funds.

    IATA has held two rounds of talks with Nigerian officials, including from those from the CBN, who Al Awadhi said were “not responsive” to releasing cash.

    Another round of talks between IATA and Nigerian officials is expected to start soon, the airline’s lobby group said, without specifying when.

    “Hopefully, we can get some sort of solution where it starts going down, (but) it won’t. I doubt if it would be paid in a single shot,” Al Awadhi said.

    IATA said $1 billion of revenue belonging to foreign airlines is being withheld across Africa, although Nigeria is the only country where the value of blocked funds has risen.

    The $450 million, the largest amount withheld by any African nation, in May, was 12.5 per cent higher than the previous month’s.

    Algeria, Ethiopia and Zimbabwe, which combined are withholding $271 million from foreign airlines, in May, marginally paid down what they owed.

    Eritrea was unchanged at $75 million, IATA said.