The Nation Newspaper

Tag: airline

  • Airline offers five per cent discount

    A new entrant into the market, Africa World Airlines, has promised to pay travel agencies five per cent commission for the sale of its tickets.

    This is coming a time the regional carrier started two daily return flights from Accra to Lagos.

    With this development, Africa World Airlines becomes one of the 24 international airlines operating into the country.

    Its Head, Commercial, Ridwane Adamou, who at a meeting with travel agents in Lagos, said the airline promised to pay the commission said it was aimed at encouraging agencies to sell it tickets amid the stiff competition in the industry.

    He added that it is in line with the airline’s strategy of gradual, but steady expansion into West Africa that it chose the country as its first destination of choice.

    He said: “We are introducing our very comfortable flight services to the market, which is based on the promise of safety, on-time schedule and comfy cabin configuration.”

    Adamou said the airline would operate 14 weekly flights from Kotoka International Airport, Ghana to the Murtala Muhammed International Airport (MMIA),Lagos with modern aircraft which average age is four years.

    He added that Accra/Lagos flight would be serviced with Embraer 145, with 50 passenger economy seats.

    The airline, which has three aircraft started flight operations last year from Ghana.

  • Why investors eye domestic airline business, by experts

    Improved operating environment, removal of import duties on aircraft and spares and easy acquisition of aircraft have been identified as incentives driving investment in the industry.

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

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

    They told The Nation that many airlines failed because the managers lack the knowledge and technical skills to keep their operations afloat.

    Among the new carriers billed to resume operations soon are: Discovery Air, NigeriaOne, the proposed private sector national carrier, Hak Air and others.

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

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

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

    Aligbe said: “People are investing more in airlines because they believe that the environment is friendlier. Now, operators could get newer aircraft that are more fuel efficient, added to this is the opportunity created by the waiver granted operators for aircraft and spares.

    This has reduced the cost of the business, and has added value. He said at the same time, the quest for air travel is rising, and there is increased passenger traffic which presents an opportunity for growth. He said the market is huge and yet to be fully exploited by indigenous operators.

    The industry is expanding, and this has opened opportunity for new investors who could inch into the market, he said, adding that the greatest problem of domestic airlines is the owner manager syndrome, which was what killed the defunct Nigeria Airways, he added.

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

    Ayigbe, an industry analyst, said undue interference by the owners of the business result in airline collapse.

    In the case of private airlines, the list is endless, the owner manager factor, is in most cases responsible their collapse, he said, adding that this factor has to be removed, if they must be run profitably.

    Ayigbe, who is also the former spokesman of Virgin Nigeria Airways, said many airlines were eager to come to Nigeria because they believe they can offer better management and service than the ones that existed before.

    He said the new investors think they can achieve a shift of that paradigm. The fact is that many airlines do not engage in proper revenue management, forensic route evaluation , revenue accounting . But, the new investors think they would overcome such challenges by getting it right.”

    He said: “More airlines are coming in because it is a high revenue yielding areas. People are coming to the industry for many reason. They think it could provide opportunity to engage in round tripping of money under the guise of running an airline.

    “Some are coming in for ego tripping. There should be security clearance for the would be investors.

    “Most of the airlines are not structured to make profit.”

     

  • ‘African airlines record rise in passenger traffic’

    African airlines grew passenger traffic by 7.5 per cent in the second quarter of the year as against the 2012 figures, the Director-General of the International Air Transport Association (IATA), Tony Tyler, has said.

    Tyler said African airlines recorded an increase of 5.6 per cent in capacity to become the second region with load factor averaging 1.3 percentage points. He alligned the increase to expansion in trade, which, he said, is driving the rise in air travel in the continent.

    He said: ”African airlines’ traffic climbed 7.5 per cent compared to July 2012, representing the second best among the regions, while capacity rose 5.6 per cent, and boosting load factor by 1.3 percentage points to 73.6 per cent.

    He said expansion in trade is driving the healthy rise in demand for air travel on the continent, adding that overall, revenue per passenger kilometers (RPKs) went up by five per cent, compared to July 2012. All regions were up year-on-year, with emerging markets recording the strongest increases.

    He said: ”Capacity rose 5.5 per cent on the previous July, ahead of demand, and industry load factor dropped 0.4 percentage points to 82.4 per cent Although July’s five per cent performance was not as strong as June’s. This likely reflects both a market correction in line with prevailing economic conditions as well as the impact of reduced travel in markets.”

    “Passenger demand continues to be strong. But the story of emerging markets driving growth as developed economies stagnate could be shifting. We are still expecting growth of five per cent this year. How that growth is achieved, however, appears to be at a turning point.”

    He explained that the emergence of the Eurozone from an 18-month recession provided the biggest boost to traffic over recent months. In contrast, the deceleration of the Chinese economy has been a dampener on air travel, with weakness showing up throughout emerging Asian markets.

    The price of oil, a huge cost item for airlines, is tracking political tensions in the Middle East. Along with the global cost impact of this, at the regional level, there is the potential for disruption for one of aviation’s strongest and most consistent growth markets,” said Tyler.

    He said July international passenger traffic climbed 5.1 per cent compared to the year-ago period. Capacity rose slightly faster at 5.4 per cent causing load factor to slip 0.2 percentage points to 82.7 per cent. .

    “Performance across all regions was positive.Asia-Pacific carriers’ July traffic was up 6.3 per cent on a year ago. Capacity rose 6.6 per cent and load factor dipped 0.2 points to 79.5 per cent . The support for growth at this rate is weakening.

    The region’s largest economy—China—continued to decelerate in the second quarter. With trade volumes in emerging Asian markets shrinking by almost five per cent over the first half of the year, the softness is not isolated to China. In particular, India’s near term growth prospects are looking bleak. For the year we would expect performance to even-out around the 4.1 per cent growth achieved year-to-date.”

    He said European carriers recorded a 3.7 per cent increase in demand compared to July 2012, in line with year-to-date growth although a significant decline compared to June results.

    “ The Eurozone emerged from its 18-month recession during the second quarter, giving grounds for cautious optimism for the region’s performance in the second half tempered by significant variations by country. Capacity rose 3.6 per cent and load factor improved marginally to 85.5 per cent

    North American airlines’ international traffic rose 3.6 per cent in July versus the same month last year, while capacity climbed 2.9 per cent pushing load factor up 0.6 percentage points to 87.4 per cent , highest for any region. “

     

  • Ethiopian Airlines links Enugu Airport

    Ethiopian Airlines links Enugu Airport

    The Minister of Aviation, Pricess Stella Oduah, has confirmed that Ethiopian Airlines will kick off its inaugural flight from

    Enugu to Addis Ababa later this month.

    This would mark the first international flight operation from the Akanu Ibiam International Airport since it was designated by the Federal Government as an international.

    The commencememt of direct flights between Enugu and Addis Ababa is part of the Aviation Master Plan, which gives every zone an opportunity to grow to its full potential in economic and social development.

    She said the airline will operate four weekly flights from the Coal City, largely regarded as the capital of the Southeastern zone.

    “The operation of Ethiopian Airlines into Enugu will be the satisfaction of an enduring call from the people of the South East who have for many years clamoured for an international airport for the zone, which they believe will reinforce the resourcefulness of the people, who are known for their entrepreneurship and trade,” he said.

    The General Manager, Corporate Communication, Federal Airports Authority of Nigeria (FAAN) Yakubu Dati said the Jonathan administration has fulfilled its promise of giving every part of the country equal opportunity to develop and realise its dreams, adding that few months ago the President unveiled the domestic terminal at the airport and also laid foundation for the building of international terminal, which work is in progress.

    He said: “This Minister of Aviation has shown her determination to actualise the goals of the aviation master plan which the Jonathan administration has pegged its transformation agenda which objectives include giving every part of the country and every citizen the opportunity to grow to his full potential. With the international flight operations at the Akanu Ibiam International Airport, a novel opportunity has been given to the people of the South East zone to expand their business horizon without stress and the inconveniences of having to travel far to catch international flights.”

  • Three African airlines seek flights into Nigeria

    Air Zimbabwe, Air Uganda and Binter Canarias have expressed interest in operating flights into Nigeria.

    Other international airlines, who are operating into the country also wanted a greater participation in the market.

    Plans by the airlines were unveiled at the just concluded Routes Africa strategy summit in Kampala, Uganda.

    At the event, different groups and airlines who met with the Nigerian representatives at the event expressed their willingness to partner with the Federal Airports Authority of Nigeria(FAAN) in exploiting opportunities in the Nigerian Aviation market, especially exploring additional routes.

    FAAN’s Managing Director/Chief Executive Mr George Uriesi was represented at the event by the General Managers, Business Development and Planning, Abubakar Achimugu and Nse Ikiddeh.

    The summit also focused on the need for private sector investment and participation in airport management and infrastructure, with emphasis on public- private- partnership, financial and operating models.

    The need to encourage the outright concession of airport development to the private sector to free up public sector funds for airport security and safety infrastructural development was equally discussed by participants.

    Participants at the summit, which addressed issues ranging from Public Private Partnership for Airport Management and Development; the Development of Airports in Africa; New Carriers for new Africa and Understanding Market Opportunities among others, were impressed because FAAN had already adopted most of the models being advocated.

  • Union to picket airlines

    The National President of Air Transport Services Senior Staff Association of Nigeria (ATSSSAN), Comrade Benjamin Okewu, has said the association is collaborating with the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) to picket domestic airlines that refused to unionise.

    He said in Lagos that the affected airlines have been given an ultimatum to comply with the directive of the association, warning that failure to comply will attract stingy penalties.

    He explained that apart from the challenge of unionisation, many domestic airlines are owing workers salaries, a development he described as unhealthy for the industry.

    He spoke of plans to take up the matter with the Nigeria Civil Aviation Authority (NCAA),saying that a disgruntled aviation staff owed salaries is a threat to safety and security in the aviation sector.

    Okewu however appealed to airlines that have not fulfilled their obligation to do so.

    He said: ‘’We are appealing to the airlines to pay their workers salaries. We will not stop appealing to them, considering that they are not unionised. This is because welfare is key for aviation workers. Inability to guarantee the welfare of aviation workers is an instrument that negates safety.

    ‘’That is why we have stepped up the mobilisation for them to pay workers’ salaries promptly. We would also prevail on the NCAA to urge the airlines to pay. We are convinced that a disgruntled staff is an accident waiting to happen.”

    He said from next month, airlines that are not unionised will incur the wrath of the unions, which are set to picket them.

    Okewu added: “We are in discussions with the NLC, TUC to ensure that the airlines do the needful, by getting their organisations unionised. Most of the foreign airlines operating in Nigeria are unionised, but the domestic carriers are not complying.

    ‘’We have given them till next month to take a decision. If the airlines fail to comply, ATSSSAN will seek help from TUC, and NLC to picket the erring airlines.”

    Meanwhile, Okewu is seeking the position of financial secretary in TUC in the forthcoming election, where he hopes to utilise his wealth of experience to strengthen performance.

    He said:” We are taking TUC to the next level. With my wealth of experience and the convergence of interests , I am convinced we will strengthen performance .”

  • Airline boss urges govt to reduce taxes

    Chief Executive Officer of Skyjet Aviation, Alhaji Kashim Shettima, has called on the Federal Government to reduce the multiple taxes charged charter operators by aviation agencies.

    He said it is one way to eliminate obstacles militating against the growth and development of the sector.

    Shettima, who spoke in an interview, explained that until such charges are reduced, operators will continue to grapple with high costs, which according to him has been disincentive to many investors in the sub sector.

    He also lamented the slow process of issuing operators licence, urging thatis should be fast-tracked as it is done in other parts of the world.

    He said his experience with while processing the airline’s Air Operators Certificate (AOC) with the Nigerian Civil Aviation Authority (NCAA), could be improved upon to facilitate business for charter operators.

    He said: “ You know aviation industry is not an easy industry where you can easily make money. It is an industry with a lot of challenges. There are aircraft issues and a lot of other challenges, including some government policies.

    “However, I think the minister of aviation is on the right track and she will take us to the place where we need to be.

    “But there is a serious challenge in this industry. Every time the government talks about attracting foreign investors, but there are lots of people in-house who are willing to invest in the country.

    “All they need is the support and enabling environment to do it and I believe that before foreign investors can come and invest here, you need to show them that your own people are doing it, then they would come and would want to partner with the indigenous investors.”

    Shettima added : “ The aviation industry in Nigeria still has a lot of challenges because I have seen it. However, I believe that at some point, the airline operators and the authorities need to sit down to look at issues critically.”

     

    “But so far, the minister of aviation has done her best in securing import duty waiver for us on aircraft and spare part importations. Until it was waived, it was only Nigeria that was paying that kind of duty on aircraft which is a lot of cost for the airlines to bear. For now I think we are on the right track.”

    >>> He said : “ Right now, one of the critical aspects is maintenance of our aircraft which is cost intensive. Another burden is the issue of taxes. We pay a lot of taxes especially some of us who are operating foreign registered aircraft.

    >>> But then I don’t understand why I should be considered foreign when I am investing money locally here in Nigeria. We have invested over $5 million in our facility here in Nigeria. I don’t understand why we keep paying high on landing charges and these are the things that can kill an airline. About 90 per cent of our employees are Nigerians and we create jobs.

    >>> The government or the agencies in the industry would have to consider all these. These are some of the challenges.”

     

  • Qatar Air aircraft in emergency landing at MMIA

    Qatar Air aircraft in emergency landing at MMIA

    A burst tyre forced a Qatar Air aircraft with 248 passengers on board to resort to emergency landing on Saturday at the Murtala Mohammed International Airport (MMIA) in Lagos.

    The aircraft was guided to land on the runway close to the cargo shed, the News Agency of Nigeria (NAN) reports.

    Mr Ibraheem Farinloye, the South-West Public Relations Officer (PRO) of the National Emergency Management Authority , (NEMA), confirmed the emergency landing to journalists.

    The airbus 332 was said to have flew into Lagos from Doha.

    Farinloye said that NEMA received an alert from FAAN between 12. 55 p.m. and 1.00 p.m. that the aircraft with registration number A7AEE had landing challenges.

    “We are happy to inform you now that it had landed safely with the assistance of the various security and other agencies, such as the FAAN fire fighters, Lagos State Emergency Management Agency (LASEMA), the police , Julius Berger officials and men of the Lagos State Fire Service.

    A source said that the pilot had suspected the problem and informed the control tower at MMIA to prepare emergency landing facilities for the jet liner.

    NAN observed that the aircraft was towed to the international air-side of the airport where the passengers on board disembarked.

    Eyewitnesses around the airport cargo shed said that the airbus plane roved in the air for about an hour before it finally landed. (NAN)

  • Air passengers struggle for seats as Arik remains grounded

    Air passengers struggle for seats as Arik remains grounded

    Hundreds of air travellers stranded at the Nnamdi Azikiwe International Airport, Abuja, on Friday “hustled” for tickets in a bid to travel out of the city for the weekend.

    The News Agency of Nigeria (NAN) reports that the few airlines that were operating on the domestic routes, claimed that they were fully booked as some passengers struggled to get tickets.

    The situation followed the suspension of flights by Arik Air on Thursday after its operations were grounded by unions operating in the aviation sector.

    The unions said they undertook the action to get Arik and other debtor airlines to pay their debts.

    Following the development, only three airlines — IRS, Aero and Overland — have continued to operate.

    One of the stranded passengers, Dr Harrison Maduike, attributed the situation to the latest development in the aviation sector following the DANA plane crash of June 3 that has yet to resume flight operations and Arik Airline that was shutdown on Thursday.

    NAN reports that many of the passengers that were stranded in Abuja were those travelling to Lagos, Kano and Port Harcourt, while passengers travelling to other destinations such as Enugu and Ibadan went by Overland.

    Another passenger, Mr Mike Ozurumba, said he was ready to buy any airline ticket at any amount to Port Harcourt in order to meet up with an emergency meeting.

    “The situation would have not been worst if the other airlines were to be working but whatever decision the government has taken concerning any of the airlines is regarded as the best even though it is affecting us; I believe it is for a while.

    “I wanted to travelled urgently this morning with an Aero airline by 11:20 a.m. but I was amazed when an airline staff told me the seats were fully booked from now till Monday.

    “IRS also said the only available seats are for Monday and that they are not even going to Port Harcourt but Lagos and I have an emergency meeting in my constituency today (Friday).

    “Some of the passengers who had even booked before me and came late were advised to reschedule their flights against next week,’’ Ozurumba said. (NAN)

  • The Dana dilemma

    The Dana dilemma

    •Govt might have fulfilled legal righteousness, but will it find passengers for the airline?

    We must state upfront that an air accident need not be the end of the operation of an airline as has been witnessed in Nigeria in the recent past. But on the other hand, the lifting of the operating licence of Dana Airline barely three months after a horrendous crash which cause has yet to be determined, and which pieces have not been picked, is bound to raise eyebrows and trigger pathos, and understandably so.
    A Dana Airline commercial plane had crashed in the Agege suburb of Lagos last June 3, killing all 153 passengers and crew as well as 10 persons on the ground. The Federal Government had promptly grounded the airline, ostensibly to keep it from flying while investigations and remediation went on. The Accident and Investigation Bureau (AIB) is yet to turn in its report, less than half of the bodies of the victims have been so far identified and retrieved by family members while a good number are still in the mortuary, caught up in identification controversy. Compensation issues are also still embroiled in forensic details with only $30,000, a small fraction, paid to few families. Interments and memorial services for victims are still going on across the country and the pall of mourning is yet to dissipate.
    It is under this circumstance that the aviation minister, Ms Stella Oduah announced the lifting of the suspension of the operational licence of Dana Airline. She said the “action is based on our satisfaction, after carrying out a technical audit of the operator, that the airline is airworthy.” As if to mitigate the uproar that action was expected to cause, the minister explained that it shared the pains of the family members of the victims of the crash and that the decision was taken with every sense of responsibility. It said further that none of the reports so far released on the June 3 crash had indicted the airline, noting that it was not usually the practice in the industry to ground the operations of an airline whose plane was involved in an accident but added that the step had to be taken because of the sentiments in Nigeria.
    We agree with the minister that an airline need not crash and go into oblivion just because of one accident as has been the case in Nigeria. Airlines like Bellview, Sosoliso and ADC have ceased to exist largely on account of long suspension of their licenses after a crash. This need not be so. On the other hand, we think the government has behaved most insensitively not only by giving Dana a clean bill of health while the major accident report was yet to be turned in, but by making what comes across like a gleeful pronouncement in lifting the suspension of the airline’s licence. A little more tact and sensitivity was required in handling such an emotive matter.
    The Dana affair is yet another example in which though the government may have fulfilled legal righteousness, it totally neglects the feelings and sentiments of the people in its approach and implementation. Given what we knew about the ill-fated air plane, that accident might have been avoided if the airline had not been carefree in its operations.
    We offer that Dana should not hurry back into Nigeria’s airspace; even though it already has the go-ahead from the government. And if it does without putting its house in order, hoping to circumvent the pervert system, Nigerians also have their way of voting with the choice of airlines to fly after such disasters. Countries where the regulatory authorities are up and doing can afford the luxury of not stopping airlines involved in crashes; we cannot vouch for our own regulators here.