The Nation Newspaper

Category: Aviation

  • Air Peace is Company of the Year

    Air Peace has won the Company of the Year Award 2017 of Leadership Group.

    The airline received the award weeks after it was recognised as a National Carrier of Repute at the yearly conference of the Nigerian Institute of Public Relations (NIPR) in Umuahia, Abia State, where six of its crew members were also honoured as Nigerian Crew Member of Repute.

    Leadership Group Limited Chairman, Mr. Sam Nda-Isaiah, who spoke at the event in Abuja,   said Air Peace and other award recipients were selected for the honour on merit.

    He hailed the carrier and other awardees for making significant contributions to the economic development of the country, urging them to sustain the high standards they were reputed for.

    Meanwhile, Air Peace has dedicated the award to its customers, saying their huge support and patronage had been the pillars of its success since it commenced commercial flight operations more than three years ago.

    The airline assured that the award, which was received on its behalf by its Chief Operating Officer, Mrs. Oluwatoyin Olajide, would spur it to deepen the quality of flight services.

  • Skyways Aviation MD seeks airlines, firms merger

    The Acting Managing Director of Skyways Aviation Handling Company Limited ( SAHCOL), Basil Agboarumi, has canvassed cooperation and merger among airlines and ground handling companies.

    This, he said, will enable them benefit from economies of scale as well as have an enhanced customer experience in the business where isolation is no longer fashionable.

    In an interview in Lagos, Agboarumi said rather than engaging in unhealthy competition, ground handling companies should consider ways to assist one another in improving the quality of services to passengers, airlines and others.

    On airlines, he said merging would reduce cancellations and delay of flights.

    Agboarumi said such partnership by airlines would increase passengers’ confidence and reduce loses associated with individual carriers running unprofitable operations.

    He called on the Nigerian Civil Aviation Authority (NCAA) to create an enabling regulatory environment to foster such mergers.

    The  SAHCOL boss said cooperation, mergers and alliances were the operational models adopted by global companies to have the cutting edge.

    He said: “Where the world is going in aviation is cooperation, you can’t stand alone. As long as you have something to offer in aviation, the time has come whereby stakeholders in the industry must begin to relate with one and other and jointly take decisions that can move the industry forward.

    “Cooperation is for the best of the industry, we as a company we have identified cooperation as the tonic to build the industry. We will continue to do our best, take the right step and initiative to ensure that what can give us the kind of aviation that we desire in the future is done. there must come to a point whereby we will definitely need ourselves.

    “In other parts of the world, ground handling companies are pooling resources. It is for us to get to that maturity stage. Even, airlines are cooperating now. When you have airlines in various parts of the world, they complement each other in passenger and cargo operations. We will have better aviation industry once we begin to look at the industry from that perspective.”

    He expressed optimism that the proposed national carrier would contribute to the growth of the sector.

    His words: “Now, we are talking of having a national carrier, which we believe will be good for our aviation industry. We have come to a point where we have to realise that there is no Nigeria aviation, but global standards. That is why you see regulators that visit us regularly to determine our level of compliance. It means that we must do things in line with international best practices. “

  • Ethiopian Airline gets 100th aircraft 

    Ethiopian Airlines will take delivery of its 100th aircraft, a Boeing 787-900, on June 5.

    It is the first African airline to operate a 100-aircraft fleet, thus maintaining its aviation technology leadership role and ascertaining its position in all aspects of aviation services on the continent.

    Its Group CEO, Mr. Tewolde Gebre Mariam, said: “It is an immense honour for all of us at Ethiopian to reach the milestone of 100 aircraft.

    ‘’This milestone is a continuation of our historical aviation leadership role in Africa and a testimony of the successful implementation of our fast, profitable and sustainable growth plan, Vision 2025.

    Ethiopian was the first to avail jet service on the continent back in 1962, and operated the first African B767 in 1984, the first African B777-200LR in 2010, the first African B787-800 Dreamliner and B777-200 freighter in 2012 and the first African A350 in 2016 and the first African B787-9 aircraft in 2017.

    Ethiopian operates one of the youngest and most modern 100 aircraft, with an average age of less than five  years. Fleet modernisation and expansion is one of the four critical pillars of our Vision 2025 strategic roadmap, in support of our fast-expanding network, which has reached over 110 international destinations covering  five  continents.

    “Our new and cutting-edge fleet composed of B787s and A350s offer unparalleled on-board comfort to our customers and offer the best possible connections when traveling within Africa and between the continent and the rest of the world.

    ‘’This 100 fleet milestone, which we have achieved ahead of our Vision 2025 targets, compels us to revise our plans with a view to phase in more aircraft and further expand our network so as to meet the growing travel needs of our continent and support its economic development and integration by facilitating the flow of investment, trade and tourism.’’

  • Why aviation investment is poor, by experts

    Interest rates and lack of choice for credit facilities are some of the obstacles militating against investments in  aviation, some experts have said.

    According to Accident Investigation Bureau (AIB) Chief Executive Officer/Commissioner Akin Olateru; Council, International Civil Aviation Organisation (ICAO) President Bernard Aliu and Airline Operators of Nigeria (AON) Executive Chairman Captain Nogie Meggison, unless the obstacles were removed, investments in the sector would be slow.

    They spoke with The Nation in Lagos.

    According to Olateru, Nigeria’s poor credit rating, due to air accidents, prevent international financiers that can give long- term credit facility at single digit interest rates to those who wish to invest in the country’s airline business.

    Besides poor credit rating, Olateru, an aircraft engineer, said financial insitutions, whether local or international, were reluctant to grant huge loans to airlines because they lacked corporate governance structures.

    He said the environment, which appeared volatile, was also a disincentive to getting funds.

    He asid: “You have to look at the  environment. Who gives airline finance in air transportation business? Will the bank support you with finance.

    “We are at  such a disadvantage but I believe that we are on the right track and, over time, we will surmount all these problems.”

    Aliu said financial institutions were not funding or investing in aviation infrastructure in many African countries, including Nigeria, because of the risks of insufficient institutional, legal and regulatory enabling frameworks.

    The leader of the global aviation regulator said these factors were the major drawbacks militating against investments in airports across Africa.

    Aliu said countries with limited access to investment finances must ensure that critical airport infrastructure needs are included in the priority list of international public finance and assistance for development projects.

    According to Aliu, no financial investor in airport infrastructure is willing to commit funds, where there is policy somersault associated with regime change.

    He said global investors were seeking stable policy, regulatory and enabling environment where there is respect for agreements on airport infrastructure funding and the tenure of such projects for the investor to recoup his money.

    Aliu said: “No investor or financial institution wants to project their proposed returns based on eventuality, only to see those goal posts being moved by a government half way through a project after they have made their financial commitment.”

    He said until issues on uncertainties about investment in aviation infrastructure were resolved, African countries have to work out models that were sustainable  in closing the gap in airport facilities.

    His said: “The priority is for airport operators, in coordination with states, to clearly demonstrate where financing is required.This can be accomplished through gap-analyses of forecast demand, future capacity need and current infrastructure deficiencies.”

    He called on African countries to look beyond cost-recovery measures in the management of airports terminals by considering other ways of enhancing revenue  other than flights.

    The ICAO chief said revenue raised via passenger charges and taxes are often significantly outweighed by what a state will lose out in terms of more broad-based economic growth as a result of the dampened demand for air travel and air cargo shipments, which these charges lead to.

    Aliu said: “It is, therefore, important to complement aeronautical charges with a variety of non-aeronautical revenue.”

    He said many financial institutions have stopped investing in the sector because of frequent  government policies.

    This, he said, had become a disincentive to many investments in airport infrastructure and loss by a few investors who dared.

    Meggison said the poor performance of many domestic carriers discouraged financial insitutions from putting money into the sector.

    He said until there was review of multiple charges by various aeronautical agencies, the operating environment will remain stifling to push away investors.

    He said unless the government recognises the pivotal role aviation plays as a catalyst of economic growth, it must design policies that will make the sector attractive to investors.

    “Airline operators  have been screaming and complaining about the same issue over the years culminating  in  over 27 airlines going under in the past 25 years.

    “Stakeholders in the sector have consistently pointed out that with the huge capital outlay required for aviation investments and the attendant low returns, financial institutions must adopt a long term, single digit interest rate facility to  support the industry,”Aliu added.

    An airline chief, who spoke on condition  of anonymity, said the  interest regime of banks made it difficult for  airlines to either  borrow money, acquire or lease aircraft.

    He said: “The interest rate regime in Nigeria is not good for aviation. Take the over 20 per cent interest, you can’t do any business with that. So, we need to do something about it.”

  • Stakeholders to Sirika: inaugurate agencies’ boards 

    Some stakeholders have called on Minister of State, Aviation, Hadi Sirika, to inaugurate boards of agencies.

    The Federal Airports Authority of Nigeria (FAAN), the Nigerian Airspace Management Agency (NAMA), the Nigerian Civil Aviation Authority (NCAA) the Nigerian Meteorological Agency (NIMET), the Nigerian College of Aviation Technology (NCAT), Zaria and the Accident Investigation Bureau (AIB), among others, have been running without boards in the past five months.

    Muhammadu Buhari directed that the boards be inaugurated when he constituted them last December 29.

    Following the directive, the Secretary of the Government of the Federation (SGF), Mr. Boss Mustapha, directed ministers and their deputies to inaugurate boards.

    Investigations revealed that the agencies are being run by their maangement.

    According to observers, this might have given the minister unlimited power in the agencies.

    In an interview, Air Transport Services Senior Staff Association of Nigeria (ATSSSAN) National President, Comrade Ahmadu Illitrus, said it was not the first time such thing is happening.

    He painted a similar scenario during the tenure of Stella Oduah.

    According to Ahmadu, though the delay in the inauguration was abnormal, he attributed it to  ‘an error in the appointment of politicians with little or no knowledge on the technicalities’ of the sector.

    His words: “May be the minister saw the appointment as an error and waiting for the Presidency to correct it.

    “Most of the board composition are made up of politicians who do not have the technical knowledge about aviation.”

    But, an ATSSSAN National Officer, Comrade Sarah Rindams, disagreed with Ahmadu.

    She described the failure to inaugurate the boards by Sirika as  abnormal.

    Rindams said the minister’s refusal to inaugurate boards would only encourage unauthorised activities,  and absence of checks and balance  at the agencies.

    She said such negative development at a time Nigeria is preparing for election could have negative impact on the agencies.

    Rindams said the right thing to do was for Sirika to inaugurate the boards.

    An industry player, who pleaded not to be named, said Sirika might be capitalising on the delay in inaugurating boards for the agencies for a  motive based on the so called error in the appointment of non-industry professionals on the list.

    According to the key player, the failure to inaugurate the boards may have a negative effect on the agencies since the financial spending by their heads are limited by law as they can only go through the board for approval.

  • ‘Abuja flights enhancing global route network’

    The kick-off of flights into Abuja Airport by East African carrier Rwand Air is enhancing connections for passengers into the airline’s global route network, its Country Manager, Ms. Ibiyemi Odusi, has said.

    She said passengers from Abuja could connect  destinations in Europe, Middle East, United States and other places in Africa on the four weekly flights introduced  few weeks ago.

    This, she said, was beside the daily Lagos/Kigali  flights  operated by the carrier.

    In an interview in Lagos, Odusi said the new service would  allow Nigerians have more travel options.

    She said with right product pricing, scheduling, planning and other unique selling points  at the disposal of Rwand Air, the airline  intends to grow traffic on the route to 80 per cent Load Factor in the next six months.

    Odusi hinged the optimism on the carrier’s performance since  2012 when Rwand Air  started operations in Nigeria.

    She said the airline has  consolidated its flight operations from its hub in Kigali to Dubai, Johannesburg, Nairobi, Entebbe, Dar es Salaam, Accra, London, Brussels and other routes on its network.

    She said the Abuja/Kigali four weekly flights  would open vistas of opportunity for passengers who want to connect to many parts of the world by leveraging the carrier’s on time performance, IOSA safety record, international certification, excellent inflight entertainment, customer service, competitive  fares and other comparative advantages.

  • Why aviation investment is poor, by experts

    Table 02
    Table 02

    Interest rates and lack of choice for credit facilities are some of the obstacles militating against investments in  aviation, some experts have said.

    According to Accident Investigation Bureau (AIB) Chief Executive Officer/Commissioner Akin Olateru; Council, International Civil Aviation Organisation (ICAO) President Bernard Aliu and Airline Operators of Nigeria (AON) Executive Chairman Captain Nogie Meggison said unless the obstacles were removed, investments in the sector would be slow.

    They spoke with The Nation in Lagos.

    According to Olateru, Nigeria’s poor credit rating, due to air accidents, prevent international financiers that can give long- term credit facility at single digit interest rates to those who wish to invest in the country’s airline business.

    Besides poor credit rating, Olateru, an aircraft engineer, said financial insitutions, whether local or international, were reluctant to grant huge loans to airlines because they lacked corporate governance structures.

    He said the environment, which appeared volatile, was also a disincentive to getting funds.

    He asid: “You have to look at the  environment. Who gives airline finance in air transportation business? Will the bank support you with finance.

    “We are at  such a disadvantage but I believe that we are on the right track and, over time, we will surmount all these problems.”

    Aliu said financial institutions were not funding or investing in aviation infrastructure in many African countries, including Nigeria, because of the risks of insufficient institutional, legal and regulatory enabling frameworks.

    The leader of the global aviation regulator said these factors were the major drawbacks militating against investments in airports across Africa.

    Aliu said countries with limited access to investment finances must ensure that critical airport infrastructure needs are included in the priority list of international public finance and assistance for development projects.

    According to Aliu, no financial investor in airport infrastructure is willing to commit funds, where there is policy somersault associated with regime change.

    He said global investors were seeking stable policy, regulatory and enabling environment where there is respect for agreements on airport infrastructure funding and the tenure of such projects for the investor to recoup his money.

    Aliu said: “No investor or financial institution wants to project their proposed returns based on eventuality, only to see those goal posts being moved by a government half way through a project after they have made their financial commitment.”

    He said until issues on uncertainties about investment in aviation infrastructure were resolved, African countries have to work out models that were sustainable  in closing the gap in airport facilities.

    His said: “The priority is for airport operators, in coordination with states, to clearly demonstrate where financing is required.This can be accomplished through gap-analyses of forecast demand, future capacity need and current infrastructure deficiencies.”

    He called on African countries to look beyond cost-recovery measures in the management of airports terminals by considering other ways of enhancing revenue  other than flights.

    The ICAO chief said revenue raised via passenger charges and taxes are often significantly outweighed by what a state will lose out in terms of more broad-based economic growth as a result of the dampened demand for air travel and air cargo shipments, which these charges lead to.

    Aliu said: “It is, therefore, important to complement aeronautical charges with a variety of non-aeronautical revenue.”

    He said many financial institutions have stopped investing in the sector because of frequent  government policies.

    This, he said, had become a disincentive to many investments in airport infrastructure and loss by a few investors who dared.

    Meggison said the poor performance of many domestic carriers discouraged financial insitutions from putting money into the sector.

    He said until there was review of multiple charges by various aeronautical agencies, the operating environment will remain stifling to push away investors.

    He said unless the government recognises the pivotal role aviation plays as a catalyst of economic growth, it must design policies that will make the sector attractive to investors.

    “Airline operators  have been screaming and complaining about the same issue over the years culminating  in  over 27 airlines going under in the past 25 years.

    “Stakeholders in the sector have consistently pointed out that with the huge capital outlay required for aviation investments and the attendant low returns, financial institutions must adopt a long term, single digit interest rate facility to  support the industry,”Aliu added.

    An airline chief, who spoke on condition  of anonymity, said the  interest regime of banks made it difficult for  airlines to either  borrow money, acquire or lease aircraft.

    He said: “The interest rate regime in Nigeria is not good for aviation. Take the over 20 per cent interest, you can’t do any business with that. So, we need to do something about it.”

  • ‘Abuja flights enhancing global route network’

    The kick-off of flights into Abuja Airport by East African carrier Rwand Air is enhancing connections for passengers into the airline’s global route network, its Country Manager, Ms. Ibiyemi Odusi, has said.

    She said passengers from Abuja could connect  destinations in Europe, Middle East, United States and other places in Africa on the four weekly flights introduced  few weeks ago.

    This, she said, was beside the daily Lagos/Kigali  flights  operated by the carrier.

    In an interview in Lagos, Odusi said the new service would  allow Nigerians have more travel options.

    She said with right product pricing, scheduling, planning and other unique selling points  at the disposal of Rwand Air, the airline  intends to grow traffic on the route to 80 per cent Load Factor in the next six months.

    Odusi hinged the optimism on the carrier’s performance since  2012 when Rwand Air  started operations in Nigeria.

    She said the airline has  consolidated its flight operations from its hub in Kigali to Dubai, Johannesburg, Nairobi, Entebbe, Dar es Salaam, Accra, London, Brussels and other routes on its network.

    She said the Abuja/Kigali four weekly flights  would open vistas of opportunity for passengers who want to connect to many parts of the world by leveraging the carrier’s on time performance, IOSA safety record, international certification, excellent inflight entertainment, customer service, competitive  fares and other comparative advantages.

  • Why aviation investment is poor, by experts

    Interest rates and lack of choice for credit facilities are some of the obstacles militating against investments in  aviation, some experts have said.

    According to Accident Investigation Bureau (AIB) Chief Executive Officer/Commissioner Akin Olateru; Council, International Civil Aviation Organisation (ICAO) President Bernard Aliu and Airline Operators of Nigeria (AON) Executive Chairman Captain Nogie Meggison said unless the obstacles were removed, investments in the sector would be slow.

    They spoke with The Nation in Lagos.

    According to Olateru, Nigeria’s poor credit rating, due to air accidents, prevent international financiers that can give long- term credit facility at single digit interest rates to those who wish to invest in the country’s airline business.

    Besides poor credit rating, Olateru, an aircraft engineer, said financial insitutions, whether local or international, were reluctant to grant huge loans to airlines because they lacked corporate governance structures.

    He said the environment, which appeared volatile, was also a disincentive to getting funds.

    He asid: “You have to look at the  environment. Who gives airline finance in air transportation business? Will the bank support you with finance.

    “We are at  such a disadvantage but I believe that we are on the right track and, over time, we will surmount all these problems.”

    Aliu said financial institutions were not funding or investing in aviation infrastructure in many African countries, including Nigeria, because of the risks of insufficient institutional, legal and regulatory enabling frameworks.

    The leader of the global aviation regulator said these factors were the major drawbacks militating against investments in airports across Africa.

    Aliu said countries with limited access to investment finances must ensure that critical airport infrastructure needs are included in the priority list of international public finance and assistance for development projects.

    According to Aliu, no financial investor in airport infrastructure is willing to commit funds, where there is policy somersault associated with regime change.

    He said global investors were seeking stable policy, regulatory and enabling environment where there is respect for agreements on airport infrastructure funding and the tenure of such projects for the investor to recoup his money.

    Aliu said: “No investor or financial institution wants to project their proposed returns based on eventuality, only to see those goal posts being moved by a government half way through a project after they have made their financial commitment.”

    He said until issues on uncertainties about investment in aviation infrastructure were resolved, African countries have to work out models that were sustainable  in closing the gap in airport facilities.

    His said: “The priority is for airport operators, in coordination with states, to clearly demonstrate where financing is required.This can be accomplished through gap-analyses of forecast demand, future capacity need and current infrastructure deficiencies.”

    He called on African countries to look beyond cost-recovery measures in the management of airports terminals by considering other ways of enhancing revenue  other than flights.

    The ICAO chief said revenue raised via passenger charges and taxes are often significantly outweighed by what a state will lose out in terms of more broad-based economic growth as a result of the dampened demand for air travel and air cargo shipments, which these charges lead to.

    Aliu said: “It is, therefore, important to complement aeronautical charges with a variety of non-aeronautical revenue.”

    He said many financial institutions have stopped investing in the sector because of frequent  government policies.

    This, he said, had become a disincentive to many investments in airport infrastructure and loss by a few investors who dared.

    Meggison said the poor performance of many domestic carriers discouraged financial insitutions from putting money into the sector.

    He said until there was review of multiple charges by various aeronautical agencies, the operating environment will remain stifling to push away investors.

    He said unless the government recognises the pivotal role aviation plays as a catalyst of economic growth, it must design policies that will make the sector attractive to investors.

    “Airline operators  have been screaming and complaining about the same issue over the years culminating  in  over 27 airlines going under in the past 25 years.

    “Stakeholders in the sector have consistently pointed out that with the huge capital outlay required for aviation investments and the attendant low returns, financial institutions must adopt a long term, single digit interest rate facility to  support the industry,”Aliu added.

    An airline chief, who spoke on condition  of anonymity, said the  interest regime of banks made it difficult for  airlines to either  borrow money, acquire or lease aircraft.

    He said: “The interest rate regime in Nigeria is not good for aviation. Take the over 20 per cent interest, you can’t do any business with that. So, we need to do something about it.”

  • Stakeholders to Sirika: inaugurate agencies’ boards 

    Some stakeholders have called on Minister of State, Aviation, Hadi Sirika, to inaugurate boards of agencies.

    The Federal Airports Authority of Nigeria (FAAN), the Nigerian Airspace Management Agency (NAMA), the Nigerian Civil Aviation Authority (NCAA) the Nigerian Meteorological Agency (NIMET), the Nigerian College of Aviation Technology (NCAT), Zaria and the Accident Investigation Bureau (AIB), among others, have been running without boards in the past five months.

    Muhammadu Buhari directed that the boards be inaugurated when he constituted them last December 29.

    Following the directive, the Secretary of the Government of the Federation (SGF), Mr. Boss Mustapha, directed ministers and their deputies to inaugurate boards.

    Investigations revealed that the agencies are being run by their maangement.

    According to observers, this might have given the minister unlimited power in the agencies.

    In an interview, Air Transport Services Senior Staff Association of Nigeria (ATSSSAN) National President, Comrade Ahmadu Illitrus, said it was not the first time such thing is happening.

    He painted a similar scenario during the tenure of Stella Oduah.

    According to Ahmadu, though the delay in the inauguration was abnormal, he attributed it to  ‘an error in the appointment of politicians with little or no knowledge on the technicalities’ of the sector.

    His words: “May be the minister saw the appointment as an error and waiting for the Presidency to correct it.

    “Most of the board composition are made up of politicians who do not have the technical knowledge about aviation.”

    But,  an ATSSSAN National Officer, Comrade Sarah Rindams, disagreed with Ahmadu.

    She described the failure to inaugurate the boards by Sirika as  abnormal.

    Rindams said the minister’s refusal to inaugurate boards would only encourage unauthorised activities,  and absence of checks and balance  at the agencies.

    She said such negative development at a time Nigeria is preparing for election could have negative impact on the agencies.

    Rindams said the right thing to do was for Sirika to inaugurate the boards.

    An industry player, who pleaded not to be named, said Sirika might be capitalising on the delay in inaugurating boards for the agencies for a  motive based on the so called error in the appointment of non-industry professionals on the list.

    According to the key player, the failure to inaugurate the boards may have a negative effect on the agencies since the financial spending by their heads are limited by law as they can only go through the board for approval.