Aviation Archives - Inside Business Africa

Jul292020 by Joshua OlotuNo Comments

Airline operator, pilots spat over pay cut

Aviation

Pilots in the operations of Air Peace airlines and their management have had a spat over pay cuts that is not unconnected with the dwindling fortunes of local airlines. The Guardian learnt the pilots recently protested against a cut in salary and downed tools, forcing the management to lash out at the “insensitive” workers, amid the chairman’s threat to shut down operations. Recall that local airlines three weeks ago resumed commercial flight operations, although with low patronage and an attendant load factor of about 30 per cent. The development has caused airlines to struggle, unable to recoup the cost of operations among other obligations, which have forced some of the airlines, including Air Peace, to review the salary of pilots and crew. Apparently displeased by the pilot...

Jul172020 by Joshua OlotuNo Comments

Airlines cancel flights over low patronage, apathy

Aviation

A number of flights were yesterday and Wednesday cancelled over low patronage on some of the recently opened routes. Following the early success on the Lagos and Abuja corridors, more airports have resumed operations but without the airlines having flights on the routes. The Guardian learnt that although Kaduna Airport has resumed, it was yet to receive flights. At least three airlines cancelled their sole flight to Kaduna yesterday, just like on Wednesday, due to low passenger turnout. The Maiduguri Airport, according to the Federal Government’s reopening plan, was cleared as of last Saturday. It also had its scheduled flights cancelled. The Sam Mbakwe International Cargo Airport, Owerri, has been having few flight services, but with a very limited number of passengers. Operat...

Jun102020 by Joshua OlotuNo Comments

‘Border reopening, financial support to save airlines from collapse’

Aviation

World airlines yesterday rallied governments to reopen international borders, and give financial bailouts to save economies and airlines from collapse. The airlines, under the aegis of the International Air Transport Association (IATA), said the measures would hasten the recovery and slow current losses that are plundering the airlines out of business. IATA, Tuesday, released its financial outlook for the global air transport industry showing that airlines are expected to lose $84.3billion in 2020 for a net profit margin of -20.1 per cent. Revenues will fall by 50 per cent to $419billion from $838billion in 2019. In 2021, losses are expected to be cut to $15.8billion as revenues rise to $598billion. IATA’s Director General and CEO, Alexandre de Juniac, said financially, 2020 w...

Jun102020 by Joshua OlotuNo Comments

African air travel market plunges by 98.7 per cent

Aviation

Airlines in Nigeria and other African countries hit the rock bottom in the month of April, with passenger traffic dropping by a whopping 98.7 per cent. A regional travel estimate recently released by the International Air Transport Association (IATA), showed that the dip was nearly twice as bad as the 49.8 per cent demand drop in March, and a record in the history of modern air travel. Capacity contracted by 87.7 per cent, and load factor dived 65.3 percentage points to just 7.7 per cent of seats filled, lowest among regions. Indeed, the plunge was not unconnected with local and international flight restrictions as countries battle to contain the spread of the coronavirus disease pandemic. Things have, however, started looking up as nations are beginning to ease the lockdown w...

May272020 by Joshua OlotuNo Comments

Experts seek review, sustainability measures as airports reopen Friday

Aviation

Aviation stakeholders have urged the Federal Government to constitute a committee to review the aviation sector and its sustainability in the coronavirus era. The experts, under the aegis of the Aviation Safety Round Table Initiative (ASRTI), said the call aligns with the need to chart a path to a new financial and safety demands in the sector, especially as the international airports may reopen Friday. The Federal Government’s March 21 closure and another two weeks extension placed on Murtala Muhammed International Airport, Lagos (DNMM), Nnamdi Azikwe International Airport, Abuja (DNAA), Mallam Aminu Kano International Airport, Kano ( DNKN), Port Harcourt International Airport, Omagwa, Port Harcourt (DNPO) and Akanu Ibiam International Airport, Enugu (DNEN), will elapse Thursday, Ma...

May272020 by Joshua OlotuNo Comments

Fare hike, flight delays, multiple checks await air travelers

Aviation

Air travellers in the country may be in for unpleasant travel experience as the Federal Airports Authority of Nigeria (FAAN), introduces new safety measures at aerodromes ahead of the resumption of commercial flight services. The Authority, following the decontamination of Lagos and Abuja airports, said health screening would be more thorough to warrant several checks from the point of arrival at the airport to departure. Consequently, the development would warrant mandatory early arrival for departing travellers, longer check-in duration, flight delays, checks and re-checks all in observance of the safety protocols. Similarly, the General Manager, Corporate Affairs of FAAN, Henrietta Yakubu, also disclosed that escorts of VIPs would no longer be allowed to tag alo...

May162020 by Joshua OlotuNo Comments

Onboard physical distancing to spike air fares by 50 per cent

Aviation

The economic implication of physical distancing onboard and attendant vacant middle seats has been estimated to cost the industry more and therefore not sustainable. According to estimates, distancing measures on aircraft would shift the economics of aviation by slashing the maximum load factor to 62 per cent. That is well below the average industry breakeven load factor of 77 per cent. Already, a local airline, Dana Air, has hinted on the plans to keep the middle seats vacant for a while once commercial flights resume. But with fewer seats to sell, unit costs would rise sharply. Compared to 2019, air fares would need to go up dramatically—between 43 per cent and 54 per cent depending on the region—just to break even. FILE - In this Jan. 26, 2016, file photo, ec...

Mar282020 by Joshua OlotuNo Comments

S’African Airways Seeks More Time for Turn Around

Aviation

Struggling South African Airways has asked the government for more time to turn the airline around. The third extension was reportedly due to the new challenging market conditions that have decimated the airline industry. Currently, the airline is restricted to flying only domestic shuttle routes between its hub in Johannesburg and Cape Town. South African Airways has been in financial peril for the last few months. The airline has been plagued by management issues, old aircraft (notably Airbus A340 aircraft it uses to fly long-haul international routes) and aggressive expansion by rivals. Last year, the airline was placed into the care of a business rescue firm run by partners Les Matuson and Siviwe Dongwana. But, since then, the two partners have asked the government for fur...

Feb62020 by Joshua OlotuNo Comments

‘Why U.S. attached conditions to return of $308m Abacha loot’

Corporate Stories

In spite of President Muhammadu Buhari winning the 2018 African Union (AU) Anti-Corruption Champion Award, the United States seems not to trust the Nigerian government to properly utilise the $308 million Gen. Sanni Abacha’s loot stashed away in Jersey for which return agreement was signed recently. Specifically, the agreement which the Attorney-General of the Federation and Minister of Justice, Mr. Abubakar Malami, signed on behalf of Nigeria, tied the return of the looted $308 million to three major projects spread across Nigeria’s three recognised regions after independence. The projects are the Lagos-Ibadan Expressway (Western Region), Abuja-Kano Road (Northern Region), and Second Niger Bridge (Eastern Regi...

Feb62020 by Joshua OlotuNo Comments

PEBEC launches new NAP 5.0 to improve Ease of Doing Business Reforms

Business

Honourable Minister FCT, Alhaji Mohammed Bello; Special Adviser to the President on Ease of Doing Business, Dr. Jumoke Oduwole; and Special Adviser to the President on Infrastructure, Mr Ahmad Rufai Zakari; launch the National Action Plan (NAP) 5.0.The Presidential Enabling Business Environment Council (PEBEC) launched its fifth accelerator, the National Action Plan 5.0 yesterday, February 4, 2020, during the L.I.Tuation subnational tour in Abuja, with several measures aimed at the rapid implementation of reforms for further improvement of the ease of doing business in Nigeria. Launched by Alhaji Mohammed Bello, Honourable Minister of the Federal Capital Territory and PEBEC member and Dr Jumoke Oduwole, Special Adviser to President Muhammadu Buhari on Ease of Doing Business and Secretar...