Regulator threatens Nigerian airlines with sanctions for non-remittance of charges

The two-month deadline given to domestic airlines to automate the remittance of the statutory five per cent ticket sales/cargo sales charge ends on March 31, the Nigerian Civil Aviation Authority, NCAA, said on Thursday in Lagos.

Sam Adurogboye, the General Manager, Public Relations of NCAA, said at the expiration of the new ultimatum on Friday, the agency would not hesitate to deal with defaulting airlines.

The NCAA had on January 31 shifted the ultimatum to end of March at the instance of the Airlines Operators of Nigeria (AON) at their earlier meeting with its Director-General, Muhtar Usman.

“Failure to comply will be viewed seriously as the authority will be forced to invoke the necessary provisions of the law against defaulting airline(s).

“The five per cent Ticket Sales Charge/Cargo Sales Charge, an internally generated revenue to NCAA and other agencies as enshrined in the Civil Aviation Act 2006, is not a tax or levy on the airlines.

“It is a charge paid by passengers for services rendered towards the development of the aviation industry in Nigeria,” the spokesperson said in a statement.

He said the introduction of the Aviation Revenue Automation Project (ARAP) for revenue collection was to aid data integrity, transparency, transaction accountability, controls and revenue assurance.

Mr. Adurogboye said the collection of the charges by the airlines was a unanimous decision at the 2001 Civil Policy Review.

 

Source: NAN

Panic as Medview Airline plane develops fault midair en route to Abuja

Panic gripped over 100 passengers on Tuesday as Medview Airline flight from Lagos to Abuja was suspended midair after a fault was observed.

According to reports, a passenger on the flight said passengers suspected the plane, with flight number VL 2102, was faulty before takeoff, but they were assured by the pilot and the crew that all was well.

The plane was scheduled to get to Abuja before a final journey to Yola, Adamawa State.

The incident occurred at about 11a.m. forcing the pilot to abort the flight.

The Medview incident happened a day after a Boeing 737 aircraft belonging to Air Peace on Monday suffered a burst tyre while preparing for take-off at the Murtala Muhammed Airport, Lagos.

Aviation minister invites foreign airlines to inspect Kaduna Airport

Hadi Sirika, minister of aviation, has invited foreign airline operators to inspect the Kaduna international airport.

The airport will be used as an alternative during the six weeks that Nnamdi Azikiwe International Airport, Abuja, would be closed.

Speaking on Thursday during a meeting with representatives of the foreign airlines operating the Abuja route, Sirika said he called the meeting to know if the operators would need additional facilities at the Kaduna airport.

The minister said the Kaduna airport was fully ready to accommodate traffic diversion from Abuja between March 8 and April 9 – the period the Abuja runway would be undergoing repairs.

“We also planned to invite you to visit Kaduna probably in the next few days which we will be showing you the level of preparedness for the movement into Kaduna,” Sirika said.

“I thought it wise that at this point in time, having made Kaduna very ready for the operation, there is need to discuss certain things with you. I have called this meeting to discuss how movement into Kaduna would look like and to know if there are further requirements.”

Although, representatives of the foreign airlines declined to speak with journalists after the meeting, it was learnt that the Ethiopian Airlines expressed its readiness to fly to the Kaduna airport.

 

Source: The Cable

Cross River Set To Float Cally Air And Shipping Lines

Cross River State Government has completed plans to float its own airline as well as a shipping line, as part of efforts to increase revenue and lower dependence on federal allocation.

Addressing reporters in Calabar, Governor Ben Ayade said the state was taking full advantage of its huge tourism potentials and vast maritime resources by going into both airline and maritime services.

Huge Maritime Resources

The governor noted that while Cally Air was expected to transport tourists from all over Nigeria to the beautiful tourist sites dotted across the state, particularly the famous Obudu Ranch Resort, the shipping line would concentrate primarily on cargo services, especially along the shoreline of the Gulf of Guinea.

Ayade maintained that “Cross River State is only taking full advantage of its huge maritime resources by focusing on maritime trading particularly, cabotage services by providing merchant vessels that will ply the Gulf of Guinea and provide services to countries along this shoreline.

“In our 2017 budget, there is a provision for a merchant vessel that will provide maritime businesses with Gabon, Equatorial Guinea and Cameroun and the entire stretch of the shoreline.

“There is another provision for Wharf landing and other support services. So, we are also going to have a fabrication yard and other allied maritime services as we refocus on broadening the maritime sector in the state”.

Justifying government’s decision to venture into maritime services, Professor Ayade reasoned that with the maritime trade and connectivity along the region, his administration was confident that the return on the investment would definitely be huge and contribute immensely to the budget of infinite transposition.

“Our vessels are already berthing in Calabar as part of investment in 2017 because we are establishing business outlays in some West and Central African countries dealing mostly on petroleum products and because Cross River State is looking at an aggregate of driving an industrialised, business-like module for governance, soon, you will see us go into full time trading.

“That is why in our budget, we have budgeted about 14 billion Naira to expand investment in this direction to the Gambia,” the Governor explained.

Professor Ayade further told reporters that the state had the capacity to handle the huge investments, knowing full well that, it is a very delicate combination of public-private service administration structure running it from a private business perspective.

Cross River is announcing its plan two days after Imo State government said it had taken delivery of the first aircraft, to kick start, as the first state owned commercial airline, Imo Air.

During the official launch of the new airline at the Sam Mbakwe International Cargo airport in Owerri, the Imo state capital, the Governor Rochas Okorocha said the investment by the state government would boost economic activities in the state.

He added that it would increase the state Internally Generated Revenue and also generate employment opportunities for teaming unemployed youths in the state.

Foreign airlines operating in Nigeria ponder flight suspensions over planned 6-week closure of Abuja airport

Foreign airlines are considering suspension of their services over government’s decision to close down Nnamdi Azikiwe International Airport, Abuja runway for six weeks due to planned construction work.

The Guardian learnt that the option by some of the major European and American carriers was in lieu of the plan to divert air traffic to Kaduna Airport considered as “very unsafe for foreigners.”

And should the airlines carry out their threats, concerned stakeholders said that inbound and outbound travellers would be faced with lesser flight options, hike in fares and loss in revenue to government agencies.

Bankole said instead of foreign airlines suspending operations, the Federal Government should rather divert foreign traffic to Lagos, while domestic operators go to Kaduna airport.

Head of Operations at the Abuja office of a popular European carrier, who preferred not to be mentioned, said their consular office was already working out a better option.

The operator said: “All I can say is that safety is paramount to us and I’m sure it is a primary consideration for our counterparts too. From what I heard from our home country, our aircraft would not fly to Kaduna, come what may.

“In some days to come, the final decision would be taken on the matter. A temporary suspension of Abuja operations is tough, but it will be a sacrifice for the safety of crew and passengers,” the source said.

Aviation Security Consultant, Group Capt. John Ojikutu (rtd.) had said that with the security issues in the northern parts of the country, none of the foreign airlines would want to fly to Kaduna.

Ojikutu said: “For them (FG) to want to use Kaduna for foreign airlines, I have my doubts that the airlines will go there. It is for security reasons. The way security is built in the north is different from how we have built it here.

President of NANTA, Bankole said that the civil unrest in Kaduna worries the foreign airlines and their affiliated travel agencies, leaving none satisfied with the said security arrangement of the Federal Government.

In a related development, Minister of State for Aviation, Hadi Sirika, has disclosed government’s plan improve on electricity and fully address power outages in all the Nigerian airports with 2017 budget.

This is against the backdrop of the increase power outages witnessed in most of the airports in recent times, disrupting airline operations.

Sirika said that government was exploring alternative power supply for the airports and ensure improved power generation.

Nigerian Airlines Delayed 7,722 Flights in 3 Months

The Nigerian Civil Aviation Authority (NCAA) has said domestic airlines operating in the country recorded 7,722 cases of delayed flights in the third quarter of 2016.

This is contained in a document issued by the NCAA’s Consumer Protection Department which was obtained on Monday by NAN in Lagos.

The document indicated that 13,097 flights were operated by eight domestic airlines during the period under review, while 253 flights were cancelled.

It said the airlines in operation were Aero Contractors, Arik Air, Air Peace, Azman Air, Dana Air, First Nation, Med-View and Overland.

Arik, which operated 4,882 flights, topped the chart of delayed and cancelled flights with 2,824 and 128 respectively.

This was closely followed by Air Peace, which recorded 1,383 delayed flights and 16 cancellations out of its 2,754 flight operations.

Dana Air operated 1,665 flights with 1,160 incidences of delayed flights and one cancellation.

The airlines had attributed the delays and cancellations to the lingering scarcity of aviation fuel in the country.

However, in a recent meeting with airline operators, Hadi Sirika, the minister of state, aviation, assured them that the government was working assiduously to end the scarcity of the product.

As part of the move, Sirika also held a meeting with oil marketers who informed him of their challenges regarding the importation, supply and distribution of aviation fuel to the airlines.

Nigerian airlines delayed 7,722 flights in 90 days.

The Nigerian Civil Aviation Authority (NCAA) has said domestic airlines operating in the country recorded 7,722 cases of delayed flights in the third quarter of 2016.

This is contained in a document issued by the NCAA’s Consumer Protection Department which was obtained on Monday by NAN in Lagos.

The document indicated that 13,097 flights were operated by eight domestic airlines during the period under review, while 253 flights were cancelled.

It said the airlines in operation were Aero Contractors, Arik Air, Air Peace, Azman Air, Dana Air, First Nation, Med-View and Overland.

Arik, which operated 4,882 flights, topped the chart of delayed and cancelled flights with 2,824 and 128 respectively.

This was closely followed by Air Peace, which recorded 1,383 delayed flights and 16 cancellations out of its 2,754 flight operations.

Dana Air operated 1,665 flights with 1,160 incidences of delayed flights and one cancellation.

The airlines had attributed the delays and cancellations to the lingering scarcity of aviation fuel in the country.

However, in a recent meeting with airline operators, Hadi Sirika, the minister of state, aviation, assured them that the government was working assiduously to end the scarcity of the product.

As part of the move, Sirika also held a meeting with oil marketers who informed him of their challenges regarding the importation, supply and distribution of aviation fuel to the airlines.

Give us FOREX or we leave Nigeria – Foreign Airlines warn FG

The Association of Foreign Airlines’ Representatives in Nigeria (AFARN), on Wednesday said its members had yet to benefit from the concession granted to them to access foreign exchange at the inter-bank foreign exchange market.

The AFARN President, Mr Kingsley Nwokoma, told the News Agency of Nigeria (NAN) in Lagos that the present exchange rate was seriously affecting their operations.

NAN reports that the forex concession was granted to the airlines by the Central Bank of Nigeria (CBN) following the intervention of the Minister of State for Aviation, Sen. Hadi Sirika.

Sirika had assured the airline operators that their difficulty in sourcing foreign exchange for their operations would ease as a result of the move.

However, Nwokoma said the dollar scarcity problem was still persisting, warning that more foreign airlines could close shop if the issue was not resolved as soon as possible.

He, therefore, appealed to the Federal Government to hasten the ease of providing foreign exchange to the local and foreign airlines.

Nwokoma also said the AFARN was prepared to collaborate with stakeholders in the country to enhance the sustainable safety standards and policies in the aviation sector.

“There is need for stakeholders to collaborate in view of recent security developments in the world, in order to maintain safer skies.

“Aviation is a sector that everybody should come together to grow, and we will all be proud of it.

“There are so many units that make up the industry and collaboration is key to moving the industry forward. We want performance but we must drive safety with it,’’ he added.

More airlines impose Samsung Note 7 ban

German airline Air Berlin said in a security note on its website that the carriage of Samsung Galaxy Note 7 is prohibited on all flights of Air Berlin group.

The Note 7 mobile phones are not allowed to be brought on board immediately since Saturday, a spokesperson of Air Berlin was quoted by German media.

“Safety is always the highest of priorities for Air Berlin,” according to the security note.

The airline has already prohibited the use of the devices on its flights before.

Meanwhile, another German airline Lufthansa also announced to ban Galaxy Note 7 on all flights related to the United States.

According to a Lufthansa spokesperson, the ban would soon possibly apply to all other Lufthansa flights.

Singapore Airlines earlier said it will ban the mobile phones since October 16. U.S. regulators issued an emergency order on Friday that the devices would be banned on all flights since Saturday noon, reports Xinhua.

In Europe, Finnair has banned carrying Samsung Galaxy Note 7 devices on all of its flights, reported Finnish national broadcaster Yle on Sunday.

Due to security risks, the airline does not allow passengers to carry Samsung Galaxy Note 7 devices on its flights, not only in their checked luggage, but also in their carry-on luggage.

The prohibition also applies to transit passengers from other airlines to Finnair flights. In addition, the airline said that the devices cannot be shipped as air cargo in its flights.

Several cases of Samsung Galaxy Note 7 battery explosions have been reported since the new products were released in August.

Samsung announced on October 11 to permanently stop its production and sales of the devices globally.

Cross River to Float an Airline in November- Ayade

Governor Ben Ayade of Cross River state, has stated that his administration will float an airline in November. Ayade said this while playing host to a consortium of Indian investors in Calabar on Monday. Governor Ben Ayade He said the airline, which is to be called `Cally Air’, will be managed by Dana Group under a public private partnership (PPP) arrangement. The governor said it would fly Calabar, Obudu, Lagos and Abuja routes. “We have our own state’s aircraft currently in Aero Contractors’ fleet in Lagos.

“The management of Dana Airline has agreed to do a detailed technical study of the aircraft before it commences commercial flight operations.” Ayade said the state was in a haste to get the airline started while Dana Airline would serve as its technical partner. Jackies Hartmani, managing director of Dana Group, applauded the joint partnership between his group and the state government. Hartmani said: “My company is very impressed with what Ayade is doing to transform the state in terms of investment and we are committed to ensuring the success of the partnership.”

NCAA Dismisses Airlines Fold Up Claims

The Nigerian Civil Aviation Authority (NCAA), on Thursday dismissed claims that some airlines were winding down their operations in the country.

The authority dismissed the claims in a statement signed by the NCAA Director-General, Captain Muhtar Usman, in Lagos.

Usman said on the contrary, the airlines were merely suspending their operations temporarily to enable them undertake certain operational overhaul and strengthen their overall operational outlay.

“One of the airlines, Aero Contractors Ltd., at present has only one serviceable aircraft.

“This is in contradiction to the Nigerian Civil Aviation Regulations (Nig.CARS) which stipulates that no airlines operator shall carry out schedule commercial operation with only one aircraft.

“The minimum acceptable number is three aircraft.

“In other words, any airlines with one aircraft is in contravention of the NCAA regulations, therefore cannot be adjudged to be capable of providing safe operation.

“The only option available for such airlines is to suspend its operations temporarily while other aircraft arrive in due course,” he said.

Usman, however, said that NCAAs Regulations provided a window for such operator to embark on non-schedule operations in the interim.

He explained further that the First Nation Airlines on its part was in the middle of an Engine Replacement Programme for one of its aircraft.

“Another aircraft is due for mandatory maintenance as is allowable by NCAA.

“In these circumstances, these airlines clearly cannot continue to undertake schedule operations, hence the inevitable recourse to self-regulatory suspension.”

The director general said NCAA wished to reiterate that on no account would it compromise safety and security of airlines operations in the airspace.

Read More:

http://guardian.ng/news/ncaa-dismisses-airlines-fold-up-claims/

Nigerians Task NCAA To Wade Into Price War Among Airlines

Concerned Nigerians have tasked the Nigerian Civil Aviation Authority (NCAA) to fix the minimum fare chargeable by airlines in the country, following recent unnecessary rivalry that could endanger the passengers’ lives.
On the recent reduction of fares on Lagos-Owerri, Lagos-Calabar and Lagos-Enugu routes by some airlines to between N11, 000 and N12, 000, a frequent air traveler, Mr. Samuel Babatunde, warned that the development could compromise the safety of passengers. According to him, there is no doubt that airlines in the country were operating under very difficult circumstances, a situation, which was worsened by the foreign exchange and aviation fuel crises that further push up operational costs of airlines.
He expressed shock that some of the airline operators could resort to charging ridiculous low fares just to outdo one another and he called on appropriate authorities to ensure sanity in the system.
In his words: “Although, this should normally be something the flying public should be happy about, the danger this practice poses to the safety of passengers cannot be wished away. How can an airline charge N11, 000 for a trip from Lagos to Owerri without compromising passengers’ safety?
“I think NCAA should urgently look at the issue and set the minimum fares on the different routes to avoid a return to the era of plane crashes in the country. While the cut in fares may be good, passengers’ safety should not be compromised under any guise.”
Alsocontributing, Aliyu Saleh, a businessman, said it was difficult to explain why some airlines decided to cut their fares at a time flyers were expecting an increment because of the nation’s economic challenges and the rising operational costs of airlines.
“There is no way an airline would charge fares as low as N11, 000 and N12, 000 for routes such as Lagos-Owerri without compromising passengers’ safety. Airlines should not in the name of competition risk the lives of flyers. I don’t see how the airlines can maintain their planes with these unbelievably low fares,” he insisted.
Mr. Chike Ogbonna, however, dismissed the low fares charged by the airlines, saying the practice was fraudulent. He said some of the airlines had made it impossible for passengers to take advantage of the low fares they claimed they were charging.
His words: “The claim of low fares by some airlines in the country is only a gimmick to attract customers. Most of the time, it is difficult for majority of passengers to book at these ridiculous low fares. For me, NCAA should immediately step in to check the trend.
“I also agree that there is no way an airline will charge between N11, 000 and N12, 000 for a flight from Lagos to Owerri and still be able to mobilise enough resources to maintain its planes. The regulatory authorities must ensure that this fraudulent practice does not endanger the lives of the people.”
Lending his voice, a pilot, Capt Rwang Pam of Xejet Limited said: “There is a chance that if you are cutting down costs and you don’t have enough money, it will affect first safety and not so much of security because security.
“It is quite possible that safety will be compromised when fares are reduced so low unless the airline responsible for lowering the ticket prices have prepared a war-chest for a price conflict. In this case, they will make sure that they have enough cash to be run the routes for the next three months. They may even charge N9000 per person even on the day of flight, and because they will get customers from other airlines who will be flying with a smaller number of passengers.
If you are ready for a price war, you lower your prices and be ready to make losses because you have borrowed money from the bank.”

Credit: Sun

Airlines Cancel Flights Over Aviation Fuel Scarcity

The scarcity of aviation fuel, which has affected the industry over the past few days, became worse on Sunday as a number of domestic airlines cancelled their evening flights out of Lagos, while others simply rescheduled them.

Among the airlines that cancelled their flights were Aero Contractors, Medview and First Nation, while Dana Air rescheduled it flights out of Lagos.

As a result, many passengers, who were due to travel from the Murtala Muhammed Airport Terminal 2, had their plans disrupted.

Stakeholders in the industry had recently estimated that the scarcity of aviation fuel had led to 50 per cent reduction of the carrying capacities of the local airlines.

An intending passenger, who was scheduled to fly into Abuja, explained that while some passengers made frantic efforts to make alternative flight arrangements, several others whose flights were cancelled left the airport in disappointment.

According to the passenger who was due to fly Dana Air’s flight 9J 359 from Lagos to Abuja, the 5.10pm flight was cancelled with the passengers dispersing in disappointment.

However, he later received a message from the airline’s customer service team at about 5.50pm, informing him that the flight had been rescheduled for 18.30 hours.

Credit: Punch

Airlines May Ground Flights As Fuel Scarcity Bites Harder- Report

Airline operators have urged passengers to expect more delays or cancelled flights as the scarcity of aviation fuel, known as Jet A1, bites harder, adding that scheduled operations may stop altogether, unless more fuel is delivered in the next few days.

Since last week, domestic airlines have faced severe challenges sourcing aviation fuel for their scheduled flights.

It was gathered yesterday that Total, a major supplier of the product, imported two ships of aviation fuel, but was directed to wait until the ships with petrol were discharged. The consequence is that the scarcity of aviation fuel would linger for some time.

In response to the scarcity, foreign airlines have devised means of fuelling their aircraft outside Nigeria and only top up on arrival in the country.

It was learnt that as a result of this, many passengers might not be accompanied on their flights by their luggage, as the foreign airlines are forced to drop the luggage in order to carry more fuel, much to yhe displeasure of passengers when they arrive their destinations.

 “BA takes fuel from London and sometimes they stop in Malta so to avoid refuelling in Nigeria, even though they have a supply contract.

“The other day, Air France came to Abuja and met with Total. They normally take about 60,000 litres, but they asked for 20,000 litres, which is like a top up. That is what most foreign airlines are doing now,” an inside source said.

Another challenge the airlines are facing is the delay in trucking the product from Apapa, which could last for hours and when it arrives the airport, airlines would wait for another two hours for the product to settle so that contaminants would not get into the aircraft tanks.

Credit: Thisday

FAAN Issues 7-day Ultimatum To Debtor Airlines, Concessionaires

Taking a cue from the two weeks ultimatum issued debtor airlines recently by the Nigerian Civil Aviation Authority, NCAA, the Federal Airports Authority of Nigeria, FAAN also issued a seven-day ultimatum to all its debtors.

The agency stated that the ultimatum was the Final Demand Notice, which would expire on Monday, August 24, 2015.

A statement by the spokesman of FAAN, Mr. Yakubu Dati stated that all affected debtors had earlier been communicated with details of their respective indebtedness to the agency.

Information gathered revealed that among the debtors were airlines, concessionaires and other service providers, at all airports across the country.

Dati did not however mention the amount involved, but a source close to FAAN said that the total debts may be around N22bn.

The source said the management had exhausted the entire avenues to recover the debts, adding that after the seven days ultimatum, the management might be forced to involve anti-graft agencies.

Dati emphasised that if the affected debtors where in doubt, they should liaise with the authority’s Credit Control Department at its headquarters in Lagos for reconciliation of their accounts within the period of the notice.

The statement added: “At the expiration of this notice, the authority would, pursuant to a Presidential directive, be compelled to take necessary measures to recover these debts. FAAN is self-sustaining and cannot meet its responsibilities within the burden of these huge debts.”

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