Tag Archives: Airline Operators

We Are Dying, Airline Operators Tell Senate

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Airline operators in Nigeria have told the Senate Committee on Aviation that unless the federal government promptly pumped intervention funds into the aviation sector, all domestic airlines operating in the country will die.

The operators stated this wednesday during an emergency interactive session convened by the Senate Committee on Aviation.

Speaking on behalf of Airline Operators’ Association of Nigeria, the Chief Executive Officer (CEO) of Arik Airline, Mr. Chris Ndule, said the economic state of the aviation industry had largely deteriorated. “The economic situation as it is today, is suffocating us out of operation,” he said.

Ndule said some other airlines besides Aero Contractors would collapse unless the federal government promptly intervened in the aviation sector.
He listed high interest rate of 24 per cent on bank loans, worsening exchange rate and multiple charges from various regulatory agencies as the factors militating against sustenance of aviation business in Nigeria.

“There are a lot of economic indicators that have made business more difficult which are now manifesting in the inability of the airlines to continue to operate,” he said, explaining that the airlines were operating in an industry that had very little (profit) margin.

According to him, “If you have to borrow money and you have to pay 24 per cent, and you don’t make a margin of 24 per cent, it means that you will find it very difficult to pay back the debt. And there is a limit to what you can do in terms of being able to manage the debt. These fundamentals are the things we need to address.

“The last time we were here (the Senate), the Central Bank of Nigeria (CBN) was here (too) and it was the CBN that made it clear to everybody that the intervention fund earlier granted, was not for the airlines. In effect, what this meant was that the loans we took from some banks were transferred to the Bank of Industry and there was a reduction in the interest rate. To that extent, there was a little trickle down effect on the airlines.

“But, there hasn’t been a bailout targeted at salvaging the airlines or addressing the finances of the airlines. I think that is where the committee could assist us by interfacing on our behalf with the federal government. The airlines did not get as much as they wanted in the first place, even for that little reduction in the interest rate. But now, the economic situation has moved from being bad to worse. I think the intervention needs to take place to avoid total collapse of the industry. Two airlines have closed shop; there could be more airlines if the trend continues.”

He advised the committee to collaborate with the federal government and bring Aero Contractors back to operation, noting that the extinction of the airline would send a wrong signal to other airlines, bearing in mind that the airline had operated in Nigeria for 59 years.
However, the Director General of Nigerian Civil Aviation Authority (NCAA), Mr. Muktar Usman, assured the committee that the federal government was already taking steps aimed at salvaging the sector.

Read More: thisdaylive

Airline Operators Back FG’s Plan To Concessionaire Lagos, Abuja Airports

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The Airline Operators of Nigeria (AON) has given its backing to the plan by the Federal Government to concessionaire the Abuja and Lagos airports, after the completion of their new terminal buildings.
AON’s president, Capt. Nogie Meggison, made this known in an interview with the News Agency of Nigeria (NAN) on Wednesday in Lagos.
NAN reports that the Minister of Transportation, Mr Rotimi Amaechi, had announced the plan while defending the ministry’s budget before the National Assembly.
Meggison noted that the privatisation of airports in the country was long overdue, adding that government had no business managing airports and their facilities.
“Everywhere in the world, what government is involved in is the concessionaire of public-private partnership or Build, Operate and Transfer. So government cannot manage the facilities properly.

“When you compare the Murtala Muhammed Airport 2 which is managed by Bi-Courtney to the Murtala Muhammed International Airport, you will understand what we are talking about.’’
He said despite making more money annually than MMA 2, the international airport was operating at a lower standard of service delivery because it was government-owned.
“So when you look at it, you will realise that it is time to move on. If Nigeria wants to become a hub like we are planning, then privatising the airport is the way to go,’’ Meggison said.
He, however, advised government to jettison the idea of establishing a new national carrier, like the defunct Nigerian Airways.
According to him, the government should give priority to upgrading critical facilities that will improve the nation’s aviation sector.

 

(NAN)

Hadi Sirika Warns Airline Operators

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The Minister of State for Aviation, Sen. Hadi Sirika, has warned airline operators, especially international airlines, against shabby treatment of Nigerian passengers who travel on board their flights.

 

 

Sirika gave the warning when a delegation from the Emirates Group paid him a courtesy visit in his office in Abuja, a statement signed by Mr James Odaudu, the Deputy Director, Press and Public Affairs Unit, Office of the Minister, on Monday, said.

 

 

The statement said the minister warned that the government would no longer condone the practice of subjecting Nigerian travellers to all forms of suffering.

 

It said that Sirika specifically warned against making them walk long distances before boarding or using small aircraft that would not carry them along with their luggage to their destinations.

 

 

“Sirika informed the group that the Nigerian Civil Aviation Authority (NCAA) has been directed to invoke all relevant laws to protect the interest and rights of Nigerians and others from being flagrantly abused by airlines.

 

He, however, assured the operators of the Federal Government’s commitment to complete the overhaul and upgrading of the nation’s airport facilities to make the use of Nigeria’s airspace a delightful experience.”

 

 

The statement added that the minister gave assurance that the second terminal at the Nnamdi Azikiwe International Airport, Abuja, now under construction, would be ready before the end of the year.

 

 

It added that the completion of the project would improve the comfort and convenience of both airline operators and the flying public.

 

 

It said that Mr. David Broz, the Vice president Aeropolitical and Industry Affairs, Emirate Group, had earlier pledged the commitment of the airline to serve Nigeria better, being its second biggest market in Africa.

 

 

He commended the government for its efforts to upgrade airports’ facilities and promised that the group would to maintain a good relationship with Nigeria, to ensure its smooth operation in the country.

 

 

 

(NAN)

Airline Operators Urge Sirika To Create Jobs In Aviation Industry

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The Airline Operators of Nigeria (AON) on Wednesday urged the Minister of State for Aviation, Capt. Hadi Sirika, to use aviation to create jobs for youths in the country.

 

The President of AON, Capt. Nogie Meggison, gave the advice in an interview with newsmen in Lagos.

“He should use aviation to create employment for our youths. We have over 500 pilots who are unemployed. We have thousands of unemployed engineers too.

“Aviation can easily generate 100,000 support services. So, he should use aviation to catapult employment in the country,’’ Meggison said.

 

He also advised Sirika to review the policies governing aviation in Nigeria and ensure that they were geared toward economic growth and contribution to the Gross Domestic Product.

 

“Right now, we can see that there is decline in our oil revenue. So, they should concentrate on aviation so that it can generate income.

“This can be achieved when the right policies are put in place by the government,’’ the AON president said.

 

Meggison commended President Muhammadu Buhari for appointing a professional to head the industry, expressing optimism that the minister would bring his wealth of experience to bear in discharging his responsibilities.

He said: “We are happy that we are getting one of us, who is a pilot coming into the industry to head it.

So, we are hoping that he will bring professionalism to the industry. We will support him and wish him the best’’.

On the merger of the aviation ministry with its transport counterpart, Meggison said the move became necessary due to past abuses and the exigency of the present situation in the country.

He said: “If you look at Nigeria as at today, with our economic situation, if the government is merging ministries, it is a welcome idea.

“I am sure government must have thought about it before rolling out its plans. So, it is maybe trying to maximise output with our limited resources.

“In the past, the head of parastatals were always in Abuja answering to the ministry of aviation but without that board now, hopefully the parastatals will have freer time to concentrate’’.

 

 

(NAN)

House Of Reps Investigates Malpractices By Airline Operators

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The House of Representatives has mandated its Committee on Aviation to investigate malpractices by airline operators in Nigeria’s airspace and their treatment of passengers.

The decision was reached on Tuesday during plenary, after Honourable Rita Orji moved a motion on the need for airline operators in Nigeria to adhere to international best practices.

Some of the lawmakers, who contributed while deliberating on the motion, said airline operators in Nigeria engaged in many malpractices, ranging from cancellation of scheduled flights to outright sale of ticket by its passengers.

The leadership of the House of Representatives also met with chairmen and deputy chairmen of the standing committees in the House.

At the meeting, the Speaker, Honourable Yakubu Dogara, got a reassurance of unflinching support from the chairmen and deputy chairmen of the standing committees in the House.

Briefing reporters after the meeting, the Chief Whip of the lower chamber, Honourable Ado Alhassan, said only two lawmakers rejected the position of chairman given to them by the Speaker.

Credit: ChannelsTV

How Airline Operators Lose Millions Of Naira To Presidential Movements

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Many times passengers on inbound flights to Lagos, Abuja and major cities that sometimes play host to Mr President are told by the pilots that in another five minutes the plane will begin descent to the city to land, only to be informed minutes later that they have to hover round the airports and stay longer in the sky as there is “presidential passenger or movement”.

Presidential passage or movement, is a situation where the airspace is shut to commercial and other aircraft when presidents, vice presidents and their families are flying in or out of an airport. Government officials often cite security reasons as the underlining rationale behind the action.

Passengers most times rain curses on the airline involved and resort to prayers for them to land safely.

Presidential movement

They do not ask what is this presidential movement that endangers their lives; what is the economic cost of hovering round the airport for more than Thirty minutes when the plane was supposed to have landed in Five minutes; and is this how presidential movement in other countries disrupts flight operations?

Read More: allafrica