Monday, May 17African Business News
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Tag: IATA

Airliners bicker over N4b bailout sharing formula

Airliners bicker over N4b bailout sharing formula

Aviation
Some airline operators have expressed displeasure over the sharing formula adopted for the distribution of N4 billion aviation bailout funds, saying it skewed the largesse in favour of few airlines. The complainants, who operate smaller capacity, were displeased with the ratio 70:30 adopted between the schedule and non-scheduled carriers. As of yesterday, the likes of Air Peace, Azman, Arik, Aero Contractors, Overland, and Dana Air had been listed as the biggest beneficiaries. The Federal Government had, last week, shared the sum of N4 billion bailout funds among a total of 18 scheduled and non-scheduled carriers. The special intervention was thrown open to all airlines with a valid Air Operating Certificate (AOC) and distributed according to the size of the carrier. The pa...
African air cargo demand surges amid global downturn

African air cargo demand surges amid global downturn

Aviation
Air cargo demand and movement have recorded a surge in the African region, though global demand still remains weak on account of the COVID-19 aviation disruptions. The International Air Transport Association (IATA) in the September data for global air freight markets showed that air cargo demand, while strengthening, remains depressed compared to 2019 levels. According to the data, African airlines saw demand increase by 9.7 per cent year-on-year in September. This was the fifth consecutive month in which the region posted the strongest increase in international demand. Investment flows along the Africa-Asia route continue to drive the regional outcomes. International capacity decreased by 24.9 per cent. However, global demand, measured in cargo tonne-kilometres (CTKs), was ei...
Foreign air traffic shows no signs of recovery

Foreign air traffic shows no signs of recovery

Aviation
About a month after international flight operations resumed in Nigeria and other countries, air traffic is not showing signs of recovery, suggesting global traveller apathy and adverse impact of border restrictions. In the African region, for instance, African airlines’ traffic sank 90.1 per cent in the last one month, though slightly improved over a 94.6 per cent decline in July. Capacity contracted 78.4 per cent, and load factor fell 41.0 percentage points to 34.6 per cent, which was the lowest among regions.In a similar vein, the International Air Transport Association (IATA), has downgraded its traffic forecast for 2020 to reflect a weaker-than-expected recovery, as evidenced by a dismal end to the summer travel season in the Northern Hemisphere. IATA now expects full-year 20...
‘Local travellers to arrive airports 90 minutes before departure’

‘Local travellers to arrive airports 90 minutes before departure’

Aviation
The Federal Government, Monday, reduced the passenger facilitation time for local air travellers from three hours to 90 minutes.The Minister of Aviation, Hadi Sirika, said the reduction was in the aftermath of local operations since commercial flight services resumed last Wednesday. The adjustment comes just as the government scrapped earlier directive mandating airlines to keep onboard middle seats vacant, and global airlines rally against extra safety measures, as filtered cabins are adjudged safer for all. The Federal Airports Authority of Nigeria (FAAN), earlier shifted the pre-boarding arrival time from one hour to three hours for local travellers. The international passengers got a shift from two to five hours, as part of measures to facilitate health and security screening...
Long-haul records zero traffic as foreign airlines resume

Long-haul records zero traffic as foreign airlines resume

Aviation
Travellers’ apathy has welcomed long-distance international travels, as more foreign airlines resume operations globally. The development is not unconnected with fears of coronavirus infections, the luxury of leisure travel during the recession, and tedious safety protocols like mandatory 14-day quarantine still in place at many destinations. The International Air Transport Association (IATA), however, urged governments to embrace the International Civil Aviation Organisation’s (ICAO) harmonised safety guidelines that include the use of face masks as a better alternative to quarantine and physical distancing onboard the airplane. IATA, the clearinghouse for over 280 airlines worldwide, disclosed that the demand for long-haul travel remains close to zero. The forwar...
Long-haul records zero traffic as foreign airlines resume

Long-haul records zero traffic as foreign airlines resume

Aviation
Travellers’ apathy has welcomed long-distance international travels, as more foreign airlines resume operations globally. The development is not unconnected with fears of coronavirus infections, the luxury of leisure travel during the recession, and tedious safety protocols like mandatory 14-day quarantine still in place at many destinations. The International Air Transport Association (IATA), however, urged governments to embrace the International Civil Aviation Organisation’s (ICAO) harmonised safety guidelines that include the use of face masks as a better alternative to quarantine and physical distancing onboard the airplane. IATA, the clearinghouse for over 280 airlines worldwide, disclosed that the demand for long-haul travel remains close to zero. The forwar...
Hard, challenging recovery await air travel as airspace reopens

Hard, challenging recovery await air travel as airspace reopens

Aviation
Ahead of the air travel restart across the globe, the International Air Transport Association (IATA) has warned that a hard and challenging recovery await aviation across several levels. The body, which is the clearing house for over 280 global airlines, said without support from governments, the recovery might be harder. Already, IATA released its financial outlook for the global air transport industry showing that airlines are expected to lose $84.3 billion in 2020 for a net profit margin of -20.1 per cent. Revenues will fall by 50 per cent to $419 billion from $838 billion in 2019. In 2021, losses are expected to be cut to $15.8 billion as revenues rise to $598 billion. Airlines entered 2020 in relatively good financial shape. After a decade of profits, debt levels were relati...
Airlines, airports’ council seek harmonised measures for air travel restart

Airlines, airports’ council seek harmonised measures for air travel restart

Aviation
World airlines and airports’ council yesterday, sought a harmonised and globally acceptable safety and security measures ahead of air travel restart is many parts of the globe. The bodies were worried by selective safety measures like mandatory 14-day quarantine for arriving passengers in some countries including Nigeria, and physical distancing onboard, both of which have been described as injurious and unsustainable to already beleaguered aviation business. The Airports Council International (ACI) World, and the International Air Transport Association (IATA), specifically called on governments to ensure any new measures introduced for airports and airlines in the wake of COVID-19 are supported by scientific evidence and are consistent across the world. Indeed, the aviation s...
World airlines issue safety guidelines for restart

World airlines issue safety guidelines for restart

Aviation
World airlines have proposed new safety guidelines to governments toward re-starting passenger flights amid the coronavirus crisis.The airlines, under the aegis of International Air Transport Association (IATA), Wednesday, said the aviation-friendly guidelines aim to provide the confidence that governments would need to enable the re-opening of borders to passenger travel, and the confidence that travellers would need to return to flying. Similarly, aviation regulatory bodies and airlines in Nigeria, are already meeting to review the level of preparedness towards possible resumption of air travel business once the current four weeks restriction ends. The regulators, like the Nigerian Civil Aviation Authority (NCAA), and Federal Airports Authority of Nigeria (FAAN), are looking at the var...
Onboard physical distancing to spike air fares by 50 per cent

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...