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Tag: air

  • Air strikes kill 12 terrorists, destroy storage base in Borno

    Air strikes kill 12 terrorists, destroy storage base in Borno

    Air strikes by the Nigerian Air Force (NAF) fighter jet have killed 12 terrorists and destroyed their storage base at Parisu, a location near Sambisa Forest, in Borno state.

    The air bombardment was conducted on January 5 after the military observed movement of items suspected to be weapons and ammunitions to the area.

    NAF spokesperson, Air Vice Marshall Edward Gabkwet, disclosed this in a statement on Sunday, January 7.

    He said the operation was part of the efforts by the the military to clear the remnant of Boko Haram/ISWAP terrorists in North East Nigeria.

    Gabkwet said the military had once cleared Parisu of terrorists activities, but the convergence of terrorists within the location raised suspicion of their intent and plan, hence the directive to strike the location.

    He said: “The aftermath of the strikes led to a huge ball of flames from 2 adjacent spots within the vicinity, while some surviving terrorists were observed scampering for safety.

    “Feedback also revealed that 12 terrorists were neutralized in the strike, and their logistics destroyed, thereby degrading their ability to attack soft targets and own troops.”

    Read Also: Incessant killings: Anyaoku laments non-prosecution of perpetrators

    Gabkwet said similar strikes were also carried out at a location about 1.5Km Southwest of Tumbun Agiri within the Tumbuns in the Lake Chad region on 6 January 2024.

    According to NAF’s spokesperson said intelligence gathered over time had revealed the continuous gathering of armed terrorists in pick-up vehicles and motorcycles, hence the go-ahead to attack the location.

    He said: “The precision strikes on the location led to the destruction of the vehicles, motorcycles as well as elimination of several terrorists.

    “Prior to the aforementioned strikes, the Air Component of Operation Hadin Kai, on an air reconnaissance mission on 2 January 2024, had struck some opportunity targets at Tumbun Alura.

    “The targets, which consisted of 3 canoes, were observed loaded with suspected Premium Motor Spirit (PMS). They were subsequently engaged with a huge explosion observed afterward.

    “Similar successful strikes were also conducted at Tumbun Buwari and Sabon Tumbun on terrorist structures within the Lake Chad region.”

  • Passengers’ surge force air fare hike, boost airlines’ revenue

    Passengers’ surge force air fare hike, boost airlines’ revenue

    As demand for air travel services outstrips seats available on aircraft on major routes across the country, surge in passenger traffic for yuletide travels has boosted revenue for local carriers.

    This is as local carriers latch on prevailing market forces to charge prohibitive fares on some routes considered high traffic belts for end of year travels.

    Routes that fall within these high traffic belts include Lagos/Owerri, Anambra, Enugu, Port Harcourt, Benin, Uyo, Asaba.

    Airlines operating in these routes include Air Peace, United Nigeria Airlines, Green Africa Airways, Ibom Air, Aero Contractors, Arik Air, Max Air, NG Eagle Airlines, DANA Air, and Overland Airways.

    While airfares from Lagos to routes in the Southeast / Southsouth regions are the highest in the latest pricing regime, the cost of air tickets into destinations between Lagos/Abuja/Kano/Jos/ Yola/Maiduguri/Sokoto/ Kaduna and other routes in the northern region are not that prohibitive.

    Worried by the trend, passengers are weighing travel options to beat the prohibitive airfares charged by local carriers, a development many say requires the intervention of the industry regulator, Nigerian Civil Aviation Authority (NCAA).

    The fare regime has altered the travel itineraries of many Nigerians opting to move from one part of the country to another, forcing air travellers to cough up more funds four times the cost of a one-way ticket a few years ago.

    For instance, the least airfare on the Lagos/South Eastern routes – Owerri, Enugu, Anambra – goes for between N171, 500 and N266, 800 for a one way trip for limited seats between December 22, 2023 and December 24, 2023.

    Data from the Nigerian Bureau of Statistics (NBS) indicate that domestic air transport fares increased by 66.36 per cent in the last one year.

    Checks by The Nation on the website of some airlines suggest that fares for intended travel on the Lagos/Benin route for Sunday, December 24, 2023 and December 28, 2023 ranges between N 114, 400 and N143, 000 , N190, 600 and N238, 200 respectively.

    Booking for flights for intended travel between December 24 and 28, 2023 on the Lagos/Asaba route has a fare offering for N173, 500.

    Fares on the Lagos/Warri route go for between N143, 100 and N238, 000 for travel intended for December 24- 28, 2023.

    Fares on the Lagos/Port Harcourt route for travel for between December 24 and 28, 2023 go for between N123, 000 and N143, 000, while fares on the Lagos/Uyo route for same travel dates indicated scarcity of seats on some of the local carriers.

    Investigations by The Nation reveal that fares on the Lagos/Abuja routes for same travel dates go for between N85, 800 and N100, 300.

    Fares on same travel dates on the Lagos/Kano routes are oscillating between N76, 300, N85, 800, N100, 300, N143, 000, N190, 000 and N238, 200.

    Flight booking for same travel dates on the Lagos/Yola route goes for N143, 000, whereas flight bookings for same travel dates on the Lagos/Kaduna route go for N143, 100.

    Passengers are not only trapped in the difficulty of raising more funds to purchase tickets, but also struggling to get seats aboard the aircraft as most seats have been taken by early booking.

    The difficulty in securing seats onboard the aircraft is not only on the economy cabin, seats on the business class cabin are also booked and filled.

    Investigations reveal that the spike in airfares is dominant on the Lagos/South East and South South routes, where passengers’ movement is on the upswing compared to fares on the Lagos/Abuja, Kano, Yola, Maiduguri, Sokoto and other northern routes.

    The escalating fares on these routes, The Nation investigation reveals, speaks to market forces and availability of seats by the airlines that operate these routes.

    This year’s air fares, which suggest an unusual trend, is a far cry from what operators charged on the routes a few years ago.

    Experts say the rising fares for the yuletide travel not only indicate the increasing number of available travellers on some of the routes, but the increasing preference for air travel following a spike in insecurity, kidnapping and banditry on the roads.

    The prohibitive fares by local carriers may also have been triggered by the increasing cost of operations, multiple levies by aeronautical authorities, oscillating price of aviation fuel and other associated costs factored into airline cost.

    Secretary of Aviation Round Table (ART), Mr. Olumide Ohunayo, said he noticed that fares have increased by 300 per cent, stressing that it is a reflection of the rate of exchange since the floating of the Naira which made the products needed in aviation to be expensive.

    His words: “Look at aviation fuel price, most times, it has crossed the N1000 per litre price. Aviation fuel is a major cost in aviation and because of the hike in jet fuel occasioned by forex scarcity it has badly affected ticket pricing.

    “Again, the leasing of aircraft during this season is more than thrice the cost it would have been without the season. I flew to Owerri last year on a wet-lease aircraft and I checked on the internet that the same ticket to Owerri on economy flight is N200, 000. You can see that the capacity is not there.”

    “Some of them could not lease aircraft like they did last year to augment the seasonal flights and the expected crowd. The high insecurity in the East of Nigeria has discouraged people from travelling by road as people will pay the higher fares than be kidnapped and expect to pay N20 million for ransom.

    “This increase is strictly for this season and for South-South and South-East. Fares to Abuja and other northern parts are somehow stable”.

    Read Also: Nigerians battle acute hunger amidst insecurity

    Speaking on the development, the Managing Director of Aero Contractors, Capt. Ado Sanusi, said spike in airfares could be traced to the lure to make more money by operators exploiting gains on some routes.

    He said: “I believe that there are some exploitative prices. I believe so, especially on the monopoly routes. The Eastern routes are somehow monopolised and come with exploitative prices.

    “It is the capacity. If we have more airlines coming into the country and the NCAA allows more airlines to fly, then it will bring the price down. The more airlines we have flying, the more competitive it becomes and the more the prices will go down, but since we make regulations that are so hostile to start-up airlines, then, the prices will always go up.”

    An official of a leading domestic carrier said there is nothing unusual about airfares during the yuletide season. He said airfares are fixed based on market dynamics.

    He clarified: “As an aircraft seat gets fuller, the higher fares automatically get displayed. This is not just applicable to the domestic airline fare system; even the international airline fare system follows the same principle.

    “The Eastern routes’ increased demand for flight tickets/high passenger traffic this season automatically impact how aircraft seats get sold. The seats get sold out faster than some routes with less traffic.

    Therefore, the airline booking engine reservation system displays the higher fares faster even though eventually, the higher fares will get displayed on the less traffic routes as the seats get fuller, too.

    “For instance, if you want to book a Lagos-Owerri flight for December 27, 2023, you will pay more than another customer who booked for the same flight in October because the flight has gotten fuller, and so higher fares are now showing on the booking platforms.”

  • So far, so fair

    In its determination to unlock the economy, the Buhari administration is tackling headlong the challenges of transportation, writes ADEYINKA ADERIBIGBE

    The sector witnessed unprecedented activities across all the modes – road, water and air – last year.

     

    State of roads

    The Federal Government took off  last January by reviewing the Lagos-Ibadan Expressway, approving N134 billion to accommodate more features on some sections of this critical artery in the road architecture. The government announced the extension of the deadline for the delivery of the road from 2018 to 2020. The repairs started in 2006.

    The Federal Government pursued the completion of 44 highways, 66 interstate roads and 45 bridges scattered across 34 states, which were awarded in 2017. But last year, it awarded close to 60 roads, bridges and highways, which cut across 12 states – Yobe, Adamawa, Benue, Kwara, Ekiti, Lagos, Ogun, Edo, Enugu, Borno, Anambra and Sokoto, the Minister of Power, Works and Housing, Babatunde Fashola.

    The ministry had a N555.9 billion budget last year; out of which N295 billion was earmarked for key capital projects, and the funding of road construction, expansion and maintenance.

    The Federal Government also approved N5.44 billion for the construction of the Otukpo (Benue State) and Enugu road, as well as N348.59 billion for the Akwanga – Jos-Bauchi – Gombe road expansion which cover 420.6 kilometres.

    The road, according to Fashola, completes the integration of the Northcentral with the Southeast and the Northeast.

    “Council had previously approved the Abuja-Keffi Road and the Akwanga-Lafia-Makurdi Road – all in the Northcentral.  In May, Council had also approved Nineth Mile, Enugu to Makurdi road that connected the Southeast to the Northcentral.

    “That completes the spine of the major movement of agro produce and other related produce,” Fashola disclosed.

    The ministry in October received N100 billion proceeds from Sukuk bonds subscription to fund repairs of 25 key economic road projects across the six geo-political zones.

    Fashola, who disclosed that the worst road networks in the country were located in the Southsouth and Southeast geo-political zones declared that the Federal Government would change the narratives and deliver these road projects on time, in view of the high traffic usually recorded at the end of the year.

    These are apart from the $1.5 million African Development Bank loan approved for the Lagos-Abidjan road project, which, according to the Minister of Finance Zainab Ahmed, was Nigeria’s allocation of the $13.5 million approved for the multinational highway, which involves Benin Republic, Ghana, Togo and Cote d’Ivoire.

    According to Fashola, this is outside the N63.023 billion approved last November by the Federal Executive Council (FEC) for the construction of the Lagos-Badagry-Seme border Expressway and the $575.5million awarded to Julius Berger, for the construction of the 11.9 km link road to the second Niger Bridge.

    Fashola said the government had embarked on massive rehabilitation and construction in response to the critical situation of the road network.

    Though Nigeria has 108,000 km surfaced roads as at 1990, largest road network in West Africa and second largest, south of the Sahara, it has battled decaying infrastructure.

    The minister believes the administration is doing so much with much less, underscoring the regime’s penchant for prudence in the public sector.

    Waterways

    Though the nation still battles with massive underfunding of the waterways, the government has made appreciable investments in the provision of water ambulance across the waterways to prevent fatalities. The government, through the National Inland Waterways Authority (NIWA), has embarked on aggressive enlightenment to drive home the need for voluntary compliance with regulatory codes by all operators on the waterways.

    But, perhaps, more significant is the readiness of NIWA to begin the operation of its strategic inland ports, such as the Baro River Port in Niger State, the flagship port in the North, which despite the huge investments, were rendered unusable by lack of motorable roads.

    The port, which is being equipped with top of the range cargo handling equipment, would soon be inaugurated by President Muhammadu Buhari. The inland port would reduce the pressure on Lagos ports as cargoes for the Northern parts of the country may find their way there quickly.

    NIWA Managing Director Senator Olorunnimbe Mamora said he was determined to steer the agency towards the path of efficiency as he is determined to improve NIWA’s effectiveness as the regulator on the waterways. He expressed readiness to work with other state agencies in driving sanity into all operators on the waterways in order to reduce the level of accidents and deaths.

    He expressed the hope that operators would soon begin to deploy safer and better water craft to the water way to enhance safety, profitability and efficiency on the water.

    Railway

    Though the concessioning of the narrow gauge to the United States’ (US’s) industrial giant General Electric (GE) ran into stormy waters, when  it announced its divestment from transportation, the Buhari government, however, insisted the concessioning remains on course as it has resumed discussion with the GE’s major partner Transnet International.

    The deal is to address sundry issues, such as refleeting of the fixed and rolling stocks of the Nigerian Railway Corporation (NRC), which upon the ratification of the concession deed operate as the regulator of the subsector.

    While it firms up negotiations on ensuring smooth operations on its narrow gauge asset, the Federal Government in 2017 began work on the Lagos Ibadan Standard Gauge. The $1.7 billion project, which is the second Lot on the Western line, which is to construct a standard gauge rail line from Lagos to Kano, is penciled to be delivered within the first quarter of 2019.

    When done, passenger and cargo traffic would be able to move from the Ports to Ibadan on a speed train that could connect the two southwest states within one hour.

    The Minister of Transportation Rotimi Amaechi, who has been driving the construction, awarded to China Civil Engineering Construction Corporation (CCECC), said the government envisages high subscription of the train service, especially as the speed rail cuts across several border towns of Lagos, Ogun and Oyo States.

    He said the train service will proceed on the final lot – Ibadan to Kano – once the contractor delivers on the Lagos-Ibadan this year.

    Amaechi, whose ministry disbursed N263.7 billion last year, said the government intends to link at least all the state capitals by rail before 2023, adding that once the government accesses funds, work would also begin on the Lagos-Calabar coastal rail line, even as work, according to him, would also start soon on the construction of speed rail line on the eastern flank, from port Harcourt to Maiduguri. He said narrow gauge train connects up to Gombe, and could have hit Borno, but for the prevailing insecurity.

     

    Enabling laws

    The National Assembly has been instrumental to the increasing government’s activity on the transport sector. No fewer than six inhibiting laws are in various stages of amendments. The Nigerian Railway Corporation Act 1945 amendment Bill, is awaiting concurrent amendment from the House of Representatives, even as others, such as the Nigeria Transportation Commission Bill, which seeks to establish a regulator for the transportation sector is awaiting second reading at the National Assembly, the Nigerian Shippers Council Amendment Bill, and the Nigeria Ports Authority Amendment Bills are also are at various stages before the National Assembly.

    Senate Committee Chairman on Land Transport Senator Gbenga Ashafa assured the National Assembly would strive to remove all bottlenecks towards ensuring that the transportation contributes maximally to the nation’s Gross Domestic Product (GDP).

    Ashafa insisted that seamless transportation remains the bedrock of any economy, adding that this cannot be achieved where obnoxious laws, or absence of it impedes the operations of the sector.

     

    Conclusion

    From sustaining the gains of its predecessor on the railway transformation agenda, the government moved towards the reinvigoration of the 25-year railway development policy. This policy not only sustained the rehabilitation of the narrow gauge, but embarks on modernisation of the rail system by standard gauge.

    The development of other transportation modes – waterways, road and air – remains the way to go if the nation is to break the jinx where the sector contributes the least (four percent) to GDP.

     

  • Experts seek solution to air quality, others

    Environmentalists have met in Abuja to proffer solutions to some problems in the country.

    This was at the 10th Stakehol-ders’meeting of the National Evironmental Standards and Regulations Enforcement Agency (NESREA) at NICON Luxury Hotel in Abuja.

    The event’s theme was Air quality: aspect of control and regulations.

    Participants discussed installation of emission control devices on vehicle generations, collaboration within relevant agencies in environmental management and encouraging urban to rural movements.

    They also discussed firewood as a cooking instrument versus gas cooker, deforestation, ozone friendliness, toxicity, biodiversity and species extension and cost.

    A member of the Nigeria Environment Society (NES) Chief James Nwachukwu said to get quality air in the country, the following must be done: awareness on the implications of air pollution and its health hazard, the menace should be tackled with scientific alacrity and there had to be sincere strategic plans by the government.

    Accappocco Global Services Nigeria Limited Managing Director Opone Valentine Ottis rooted for the establishment of an Air Quality Control Commission (AQCC), rejigging of the laws establishing some parastatals to avoid clash of interests, higher penalty for defaulters, and periodic Environmental social Impact Assessments (ESIA).

    The forum later went into technical sessions. Its chairman was Prof. Babajide Alo, a former DVC, University of Lagos.

    In a communique, it urged the Federal Government to provide adequate funding for effective implementation of air quality programmes, including compliance monitoring and enforcement. It askedthe Federal Government to build capacity for national monitoring of emissions from both stationary and mobile sources, including the development and management of national emission inventories for the major air pollutants and greenhouse gasses.

    It suggested that NESREA should establish an air quality monitoring network to link the geo-political zones for data acquisition.

    The participants said since the world would converge on Maracach in Morocco this month to discuss global air quality and its environmental and health impact, Nigeria had to attend with a ratified document on environmental management.

    Among those at the event were Minister of Environment, Hajia Amina J. Mohammed who gave the keynote address, House Committee on Environment and Ecology Chairman Hon. Osita Obinna and Nigeria Meteorological Agency (NIMET) Director-General.

  • Lufthansa partners Air China

    The Lufthansa Group and Air China have signed a wide-reaching partnership agreement in Beijing which will enable the two aviation groups to jointly operate all connections between Europe and China as part of a commercial joint venture.

    This means that the two companies will successfully implement what they agreed to do as part of a memorandum of understanding in summer 2014.

    The joint venture aims to significantly expand their mutual code-sharing connections and enhance their commercial partnership. This will allow the Lufthansa Group to continue pursuing its partnership-driven Asia strategy. Following a joint venture with the Japanese airline All Nippon Airlines (ANA) and a joint venture with Singapore Airlines, which was signed in November 2015, this is now the Lufthansa Group’s third enhanced partnership in Asia.

    “As the flag carrier, Air China is the ideal partner for the Lufthansa Group in the People’s Republic of China. This ground-breaking joint venture will fundamentally strengthen our competitive position on routes between Europe and China. The significantly enhanced partnership will enable us to create additional benefits for customers,” said Carsten Spohr, Chairman of the Executive Board and CEO of Deutsche Lufthansa AG, at the signing of the agreement in Beijing.

    “The Chinese aviation market is one of the most important growth markets worldwide. We want to profit from this growth together with our Star Alliance partner Air China,” added Spohr.

  • Boko Haram: Air and ground operations have improved, says GOC

    •10, 000 soldiers promoted in Yobe

    The General Officer Commanding 3 Division Nigerian Army Brig. General Mohammed Adbullahi Aliyu has said that the bureaucracy once associated with air operations and ground troops in the fight against Boko Haram has long been removed and the operations are quicker, more effective and responsive at the moment.

    The GOC while briefing journalists in Damaturu, the Yobe State capital, as part of his working tour, noted that all Brigade Commanders in the Northeast could make direct calls for air assistance in any part of the region in the event of any Boko Haram attack unlike in the past where long protocols must be observed before a pilot flew to a troubled area.

    Brig. Gen. Aliyu also spoke on the effort the military is putting in place to ensure that displaced people are returned to their liberated communities without recurrent attacks from the insurgents.

    He noted that about 400 soldiers had been deployed to Yobe State to ensure that commercial activities return to the liberated areas, especially the Damaturu/Buni Yadi/Biu road which had been closed from public travel for more than year.

    After assumption of office, Chief of Army Staff, Lt. Gen. Tukur Buratai, declared the road open to motorists but many refused to ply the road except security agencies that relocated to Buni Yadi.

    Speaking on the recent pockets of attack in Yobe, the GOC who is in charge of the Tactical Command, Damaturu explained that his troops have been generally on top of the situation, adding that the insurgents failed to wreak greater havoc because of the flow of useful information from the general public which he maintains is key to the success of the fight.

    He disclosed that the Boko Haram terrorists that attacked 120 Batalion at Goniri on January 15 this year were pursued to the villages of Ajgin, Talala and Kafa, while about 14 Boko Haram terrorists were killed on the same day in Churokusko in Tarmuwa Local Government of Yobe State with different kinds of ammunitions recovered, including six AK-47 riffles, three IEDs, four 36 handheld grenades, one GPMG, four magazines and 382 Rams of 7.62 mm (NATO).

    In another attack in Babangida village on Sunday morning, the GOC said that the terrorists attacked a police station and took off with two Hilux vehicles belonging to the police. They also burnt down the Airtel telecommunication mast in the DPO’s compound.

    The GOC regretted that the attack on Babangida must have been aided by collaborators in the village, noting that the “Headquarters of 3 Division Civil Military Coordination Cell (CIMIC) is working hand-in-hand with the state government to sensitise the locals in order to discourage the collaborators aiding BHTs in achieving their aims”.

    Speaking on the morale of soldiers in the theater of operation, Brig. Gen. Aliyu disclosed that about 10, 000 soldiers have been given special promotion for exemplary fight against the insurgents in the state, with 1, 500 awaiting promotion.

  • First women radio hits the air

    First women radio hits the air

    The much anticipated women-inclined radio station; WFM 91.7, began broadcasting last Monday, with an ovation that witnessed several callers felicitating with the owners and operators, St. Ives Communications.

    The broadcast which kicked off at exactly 6:00am apparently got listeners prepared, following several advertisement on the gender radio, centered around women and the family.

    Callers praised the initiative, which many say is the first-of-its-kind in Nigeria, and perhaps in sub-Saharan Africa.

    As the voices of the station’s OAPs hit listeners’ receivers, excitement rend the air as the likes of Abisola Grace Aiyeola, Funmi Jinadu and Bolatito Bez Idakula unveiled programmes to expect in the coming days, while also interacting with callers on the station’s 91.7 frequency modulation (FM) channel.

    Listeners have praised the station for clear reception, urging the operators not to relent in their offerings. The signal was described as clean and clear.

    According to Bekky Solaate, a resident of Alausa, Ikeja Lagos, “it is as if they (WFM) are right inside my living room. The signal is so clear. I think the station has a great future.”

    Promoters say the WFM 91.7 is operating on the very best and latest in broadcast technology, manufactured by Clyde Broadcast, a Glasgow, Scotland-based world renowned radio broadcast equipment manufacturer.

    Another listener who simply gave her name as Rebecca, called in from Shagamu, Ogun State could barely hold back her excitement. “I congratulate your station for this achievement. So we women now have something we can call our own. I thank God for this,” she said. When asked to comment on the station’s signal in her location, Rebecca replied: “It’s loud and clear here.”

    A couple of other callers including male listeners attested to the clarity of the station’s signals across several locations mostly in South-West Nigeria.

    Notable brains behind the niche radio include Dr. Babatunde Okewale, Chief Medical Director at St. Ives Specialist Hospital, Lagos and veteran broadcast journalist, Toun Okewale Sonaiya, Executive Director at St. Ives Communications and Managing Director of the broadcasting outfit.

  • ‘We must pray for air safety’

    The founding president of the African Foundation for Peace and Love Initiatives, Rev Titus Oyeyemi, has appealed to Nigerians to continue to pray for air safety.

    Oyeyemi made the appeal at the 16th edition of the Nigerian Air Safety Prayer programme of the African Children of Peace Club at the Nigeria Airspace Management Authority and Nigeria Civil Aviation Authority (NCAA) Headquarters, Murtala Mohammed, International Airport Ikeja, Lagos.

    According to him, the place of regular prayer to God for airspace free of crashes cannot be over emphasised.

    He said that airspace safety was not just up to operators but must be the priority of all Nigerians, who must keep praying for safety.

    Oyeyemi said: “We need prayers to strengthen the world force, the unity, love and liberty in which members of the agencies are doing their work.

    “The fellowship and unity of the agencies is what God is using to demonstrate its own power for miracles, for safety and protection,” he said.

    Oyeyemi recalled that the prayer programme started as a response to rapid plane crashes between 2005 and 2007.

    “We are teaching the children how to pray, how to show respect to elders, for their teachers and for one another as well as showing them how to become good citizens – we are cultivating new constituencies of youth peace and nation builders.”

    The President of the NAMA Fellowship, Kayode Osho, lauded the efforts of the club in praying for air safety.

    “The aviation industry all around the world is going through serious turbulent times and when such things happens, it affect the psyche of the flying public, thus praying for air safety in the global airspace is very germane,” he said.

  • Arik Air boss advocates reduction in borrowing costs to airlines

    Arik Air boss advocates reduction in borrowing costs to airlines

    The Managing Director, Arik Air, Mr. Chris Ndulue has appealed to the government to ensure reduction in the borrowing cost to Nigerian airlines by 50 to 75 per cent.

    Ndulue said that the borrowing cost in Nigeria is on the high side, noting that the trend impacts negatively on the operations of the airlines especially when seeking funds to acquire aircrafts abroad.

    Speaking at the unveiling of its frequent flyer programme, Arik Affinity Wings at the airline’s headquarters in Lagos, Ndulue said that if the borrowing cost is reduced, it would enable the country’s airlines to compete favourably with its counterparts anywhere in the world.

    Ndulue also condemned multiple taxations on the country’s airlines, maintaining that as one of the key sectors necessary for national development, it was wrong for the government or its agencies to continue to impose high tax regime or multiple taxations on the operating carriers.

    He emphasised that the country’s aviation industry should not be mapped out as a source of revenue for the government even when the government was not able to support its agencies 100 per cent. Rather, the operating airlines should be supported by the government to continue to create employment opportunities for Nigerian youths.

    He said: “We keep saying that what we expect from the government is just the environment for doing business, as long as this environment is good, everybody is happy including Arik Air. I’m not asking for specifics or things out of the world, we are only expecting that the business environment should be  good.

    “One of the biggest challenges we have especially as an airline that acquires aircraft for operations is borrowing cost. If you don’t have an aircraft, you may not have this problem of borrowing cost, which is very high and this is one of the biggest problems that needs to be solved.

    “If the cost of borrowing is reduced, especially  in Nigerian situation, it has to be reduced by as much as 50 per cent or 75 per cent because the cost of borrowing is extremely high here. If that happens, it puts the airlines in a better position to be able to compete with other airlines from outside Nigeria.

    “We have also spoken about multiple taxations on Nigerian airlines and I think that government realises that aviation industry is something that requires special support and that was why some time ago, there was something called aviation intervention funds. Just like we have had in similar industries that government has considered as key to national development. What this means is that it is an industry the government should be supporting.”

    Speaking on its new flyer programme, Arik Affinity Wings, Ndulue said that the programme was designed to reward guests for their loyalty by giving them the opportunity to earn miles on domestic, regional and long-haul flights.

    He noted that customers could join the programme by logging on to arikaffinitywings.com and completing an online enrolment form where they would receive 1000 bonus affinity miles along with a personal affinity wings membership number.

    He said: “Once redeemed, miles can be used to fly to any destination on Arik Air’s roster, upgrade tickets and make payments for excess baggage allowance, access to Arik Air’s business lounges and priority check-in at the airport.”

  • ‘Nigeria, others can earn $1.3b from air transport liberalisation’

    The International Air Transport Association ( IATA ) has declared that Nigeria and 11 other countries  in Africa can earn about $1.3billion as Gross Domestic Product (GDP) yearly if they implement the  liberalisation of air transport  in the continent . The policy  is otherwise known as  Yamoussoukro Decision .

    IATA mad this known in a report it released in Geneva.

    Yamoussoukro Decision is the agreement for liberalisation of air transport for the West African region reached at a regional conference in 1999.

    The Yamoussoukro Decision committed 44 signatory countries to deregulating air services and  opening  of regional air markets to transnational competition.

    The implementation of this agreement has  however been slow due to lack of political will by African leaders.

    Other factors militating against the implementation of the policy include: unnecessary restrictions on establishing air routes and the penetration of African skies by foreign carriers through obnoxious air agreements.

    IATA said the implementation would lead to provision of 155,000 direct jobs for the 12 strong aviation countries in the continent.

    Apart from Nigeria, other countries to benefit from the decision  according to IATA include : Algeria, Angola, Egypt, Ethiopia, Ghana, Kenya, Namibia, Senegal, South Africa, Tunisia and Uganda.

    The Director-General, IATA, Mr. Tony Tyler said  potential five million passengers annually are being denied the chance to travel between these markets because of unnecessary restrictions on establishing air routes.

    Statistics presented by IATA indicated that Nigeria would have additional 17,400 employments with $128.2million annual GDP.

    Algeria is expected to generate about 15,300 jobs with  revenue potentials netting $123.6million, while Angola is to generate about 15, 300  jobs  with over $137.1million  contribution to its GDP.

    On its part, Egypt  is expected to generate over 11,300  jobs and $114.2million contribution to its GDP.

    Ethiopia  according to IATA is expected to generate over 14,800  jobs and $59.8m contribution to its GDP.

    For Ghana , it is expected to generate over 9,500  jobs and $46.8million  contribution to its GDP, whereas  Kenya  is expected to generate about  15,900  jobs and $76.9million annual GDP.

    Others are Namibia expected to create over 10,600 jobs and $94.2m  contribution to its GDP annually.

    Senegal  on its part is expected to create about 8,000  jobs and $40.5million to its GDP, while South Africa  is expected to create about 14,500  jobs and $283.9million to its GDP with  Tunisia expecting about 8,100  jobs creation and $113.7million  contribution to its GDP and Uganda with 18,600  jobs and $77.6million annual GDP.

    Tyler stated: “This report demonstrates beyond doubt the tremendous potential for African aviation if the shackles are taken off. The additional services generated by liberalisation between just 12 key markets will provide an extra 155,000 jobs and $1.3billion in annual GDP.

    “A potential five million passengers a year are being denied the chance to travel between these markets because of unnecessary restrictions on establishing air routes.

    “”Furthermore, employment and economic growth are just the tip of the iceberg in terms of the benefits of connectivity. Aviation is a force for good, and plays a major role in helping to reach the African Union’s mission of an integrated, prosperous and peaceful Africa.”

    Tyler noted that aviation already supports 6.9 million jobs and more than $80b in GDP across Africa, adding that the InterVISTAS research demonstrates that liberalisation would create opportunities for further significant employment growth and economic development.

    He insisted that the study clearly highlighted the crucial role air transport plays in driving economic and social development in Africa through enhanced connectivity.