...Concessnaire to invest N28bn

By Okungbowa Aiwerie, Asaba

The Delta State government, Wednesday, signed a N28 billion concession deal with First Investment/ Menzies (FIDC-MENZIES) Consortium to develop the Asaba Airport for a 30-year period following an initial deposit of N1billion.

Secretary to the State Government, Chiedu Evie and Director-General, Delta State Investment Development Agency signed on behalf of Delta State government.

The event which took place in Asaba, the Delta State Capital attracted aviation experts.

Under the agreement, the investors, Asaba Airport Company, are to invest a N28 billion into the development of Asaba International Airport.

Gov Ifeanyi Okowa, at the occasion, stressed that the development would enhance economic growth and employment.

He explained that the concession would run for an initial period of thirty years after the Delta State Executive Council and the Delta State House of Assembly and the consortium reached terms that will improve the development of the airport.

The approved terms, according to the governor, are; “Naming of the Airport: The name of the Airport shall remain Asaba International Airport. However, the Concessionaire, upon discussion with the State, can include tagline to the existing Airport name for the purpose of branding.

“Competing Airport: There shall not be any publicly or privately-owned new airport, whether greenfield developments or expansions in Delta North Senatorial District of Delta State, during the concession period.

“Employment of Deltans: The Concessionaire shall at all times be under an obligation to maintain an employment ratio of twenty percent (20%) of its staff for the operation of the Airport comprising indigenes of Delta State.

“Mandatory Capital Projects; The Concessionaire shall undertake the development of Mandatory Capital Projects, and they shall be completed within a period of three (3) years from the effective date of the transaction.

“The Mandatory Capital Projects include Airport/Terminal Facility, Cargo Facility, Maintenance, Repair and Operations (MRO) Facility, Tank Farm Facility, Industrial Park and Office Facility, and Hotel and Conference Facility.

“Concessionaire Obligation: The Concessionaire shall be responsible for the management, operation and maintenance of the airport, keeping it in good operating repair and condition throughout the concession period at its own cost and risk, and in accordance with Prudent Industry Practice and the provisions of the Agreement.

“Exemption of Payment of Tax: The Concessionaire shall be exempted from the payment of some specific taxes to the State for a period of five (5) years, to enable it concentrate on the development of the mandatory capital projects as listed above;

“Rights of Inspection of the Airport Facilities: The State and its representatives, with a written notice to the Concessionaire, no less than seven (7) days prior to visit, can undertake the inspection of the airport facilities to ascertain compliance with the terms of agreement.

“Project Delivery Oversight Committee (PDOC): A Project Delivery Oversight Committee comprising representatives of the State and the Concessionaire shall be constituted to ensure the implementation of the terms of the agreement.

“Terms of the Concession: The assets and all infrastructure constructed by the Concessionaire, together with all related investments in, and upgrades to the assets, shall be handed back to the State at the end of the concession period.”

Other terms are; “Insurance Policy: The Concessionaire shall purchase and maintain in full force and effect any and all of the insurances required for the operation of the airport.

“Royalty Fee: The Concessionaire shall pay to the State a royalty fee of 2.5% of the annual Earnings Before Interest, Taxes, Depreciation, and Amortization.

“Annual Fee: The Concessionaire shall pay to the State an annual fee of One hundred-million-naira (N100,000,000.00) each year during the concession period, with 10% escalation every five (5) years of the concession period.

“Upfront Fee: The Concessionaire shall pay to the State an upfront fee of N1b only on or before close of business on the 15th day following the signing of this agreement.

“My good people of Delta State, with over N28b expected to be pumped into the airport development by the Consortium over the concession period, the benefits to the State in terms of employment generation, economic growth, urban renewal, and tourism potentials are enormous.

“I thank the Project Steering Committee and the Committee that analysed the bids, for a job well done. My deep appreciation also goes to the Transaction Advisers for their patience and commitment to guide us through the entire process. I also express my profound gratitude to the First Investment/Menzes Consortium for believing in this project, which is the first Brownfield Airport Concession in Nigeria, and possibly Africa.”

Australian carrier Qantas reported on Thursday a US$5.5 billion plunge in revenue during the second half of 2020 and said international passenger flights would not resume until October as the pandemic continued to devastate the industry.

The country's biggest airline said it suffered an underlying pre-tax loss of Aus$1.03 billion (US$814 million) in the six months to December 31, with statutory losses climbing to Aus$1.47 billion.

"These figures are stark, but they won't come as a surprise," said Qantas CEO Alan Joyce.

"A year ago, none of us knew just how big an impact Covid would have on the world, or on aviation. It's clearly worse than anyone expected," he said.

"Border closures meant we lost virtually 100 percent of our international flying and 70 percent of our domestic flying -- three-quarters of our revenue -– around Aus$7 billion -– went with it."

Joyce noted that the company had already seen revenue fall Aus$4 billion during the first half of 2020, bringing the total impact of the pandemic to Aus$11 billion.

"That is a massive number, probably a bigger number than any other company in Australia is experiencing because of Covid," he told a news conference.

Joyce pushed back the expected resumption of international passenger flights from July to the end of October, but said the cost of keeping those planes on the ground was largely being offset by increased freight operations.

With Australia's successful containment of the pandemic, Qantas flagged a return to 60 percent of pre-Covid domestic capacity by the end of March and 80 percent by the end of June.

Qantas had posted a US$1.9-billion loss for the year ending June 30 as the coronavirus pandemic gripped the global economy.

Joyce said a total of 8,500 staff would lose their jobs due to the crisis, and another 7,500 would remain suspended until the resumption of international flights.

Around 100 planes have also been grounded as part of a Aus$10 billion cost-cutting blitz and restructuring effort that Qantas said would save it Aus$1 billion a year from 2023.

Air New Zealand and RwandAir are both trialling Iata’s Travel Pass

BY  Simon Calder

After the UK government said it was pressing ahead with agreeing a “vaccine passport” to smooth international travel in the coronavirus era, one of the leading contenders has announced more support for its plans.

The International Air Transport Association (Iata) is promoting its Travel Pass initiative – an app-based system that, it claims, offers high security and privacy as well as global acceptability.

Rather than personal information being stored on a central database, the details are shared at the travellers’ discretion, the organisation says. Data is, though, transmitted internationally.

Air New Zealand has announced it will trial the digital app on its Auckland-Sydney route in April, while RwandAir is the first African carrier to sign up for the project.

Jennifer Sepull, chief digital officer of Air New Zealand, said: “Once borders reopen, travel is going to look very different, with customers’ health data needing to be verified at check-in.

“This will give customers peace of mind that they meet all travel requirements for the different countries around the world before they even get to the airport.

…terminals upgrade infrastructure on anticipated surge in passenger traffic

BY  Ifeoma Okeke

Nigerian airlines are beginning to reduce airfares on local routes as new airlines spring up, passenger traffic gradually improves and more aircraft are being deployed on local destinations, intensifying competition on these routes.

Few weeks after the resumption of local flight operations across Nigeria, BusinessDay had reported a 100 percent fare increment by domestic airlines as a result of increased operational cost, but the situation is changing as more airlines deploy more aircraft on local routes.

For instance, a one-way ticket from Lagos to Enugu, which cost between N40,000 and N45,000 after the re-opening of the airports, now costs between N23,000 and N28,000, indicating a 40 percent decrease in fares over a period of three weeks.

Also, a one-way ticket from Lagos to Abuja, Port Harcourt or Owerri on United Nigeria, Air Peace, Dana or Arik, which cost about N47,000 to N52,000 after the reopening of the airports, now goes for about N26,000 to N35,000, indicating a 38 percent decrease.

United Nigeria, a new entrant, two weeks ago commenced operations in Nigeria, making Enugu airport its operational hub. The airline, which commenced operations with four aircraft, is operating to Lagos, Abuja, Asaba, Owerri and Port Harcourt, while it plans to expand to other destinations soon.

Green Africa, another prospective domestic carrier, which is at the final lap of obtaining its Air Operators Certificate (AOC), has restated its commitment to providing low-cost carriers.

Air Peace, Ibom Air and Dana Air have deployed more aircraft in recent times to feed the local routes.

Air Peace deployed eight Embraer ERJ145 hopper jets with 50-passenger capacity, with one newly delivered Embraer 195-E2 aircraft.

Ibom Air deployed one Bombardier CRJ900 aircraft in addition to the two it had to operate local destinations.

Olumide Ohunayo, an aviation analyst, told BusinessDay that before now, capacity was not enough and the exchange rate impacted operational cost, which pushed ticket prices up.

Ohanayo said although operational costs still persist with the introduction of train services and new airlines had helped to bring down ticket fares.

“As new airlines come in, those existing are becoming jittery and reducing fares to retain customers. The days of having few airlines control the travel market is no more,” he said.

Tayo Ojuri, managing partner, Aglow Aviation Support Services Limited, told BusinessDay that although passenger traffic was gradually coming back, more aircraft indicates increased supply which could crash airfares.

According to Ojuri, a lot of airplanes are back from maintenance and there are new entrances, which signifies available seats for passengers.

“The number of COVID-19 cases is reducing in Nigeria and vaccines will be delivered to us soon. These successes would boost passenger traffic, and we would begin to see a significant increase in passenger traffic in the next quarter of 2021,” he explained.

John Ojikutu, an aviation security consultant and secretary-general of the Aviation Safety Round Table Initiative (ASRTI), said the presence of more airlines on local routes would help reduce airfares.

Ojikutu advised airlines to consolidate on local operations before reeling out plans to commence regional operations.

Obiora Okonkwo, chairman of United Nigeria, said Nigeria’s air travel market was huge and there was a need to have more aircraft on local destinations, saying there was nothing wrong in having a healthy competition on local routes and passengers should have options, as this would help grow the sector.

Seyi Adewale, CEO, Mainstream Cargo Limited, told BusinessDay that as new airlines come in, airlines must strengthen their sales and marketing initiatives and campaign aggressively.

“It is at this time that the Strategic Business Unit (SBU) can pull their weight and prove to the operations and engineering SBU of their positive impact on the overall business. It is more like a challenge!

“I expect this SBU to develop special products, promos among others in support of capital and cash flow. For example, banks, telecoms do a lot of promos to generate needed cash flow during low seasons. Even Multichoice develops Big Brother as a special purpose product during off-peak season,” Adewale said.

He also advised airlines in Nigeria to partner hotels more whereby their flight schedules are placed at their reception desk with seamless connectivity to the airline for a ticket purchase, hotel pickup, and flight change and this could be easily done through ICT capability enhancement.

“Special products can be generated for targeted state or public service sectors to encourage them to travel. Similar incentives can be issued to their premium customers and performing sales agents that make them go the extra mile on their behalf

“If well crafted, the airline load factor will surely improve during this off-peak period and could evoke customer loyalty during peak season,” he said.

As airlines deploy aircraft on domestic routes, domestic terminals are also being upgraded with infrastructure to attract more airlines.

For instance, Bi-Courtney Aviation Services (BASL), operator of Murtala Muhammed Airport 2 (MMA2), has received more X-ray machines and air conditioners in order to ensure its passengers’ safety, security and comfort.

Asaba International Airport in Delta State on Tuesday concessioned the facilities to a consortium of private investors under a public-private partnership (PPP) model.

This is as the government notes the consortium of investors is expected to expend at least N28 billion on various developmental projects on the airport over the 30-year concession period.

By Thomas Hornall, PA  5 hrs ago

Some of the first people to check into quarantine hotels are to be released on Friday morning.

© Yui Mok People arrive at the Renaissance London Heathrow Hotel for quarantine (Yui Mok/PA)

From last Monday, UK and Irish nationals returning to England from a “red list” country deemed at high risk for Covid-19 have had to self-isolate in hotels for 11 nights.

Hotel “guests” have complained about the £1,750 fee for the stay, which is punishable by a fine of up to £10,000 or 10 years in prison if breached, according to the Government.

The rule applies to people returning to Scotland from any destination.

© Provided by PA Media A man in quarantine at the Renaissance London Heathrow Hotel (Yui Mok/PA)

If travellers return a negative test on day two and day eight of their stay they are allowed to leave, the Department of Health and Social Care said.

Delivery driver Roger Goncalves, 23, who was among the first travellers to be medically impounded at the Radisson Blu Edwardian hotel near Heathrow Airport after arriving from Brazil, should be one of the first to taste freedom.

Another, businessman Wayne Kelly, 37, of Birmingham, said he feels “like I have been through a prison sentence” and said he could not wait to see his wife and children.

He told MailOnline: “I was thinking of having a poster on the wall where I could just cross one day off each day.

“I just want to go back to Birmingham to my home and my family and put this all behind me. I should never have been here in the first place. I had a negative test when I left Dubai.

“I’m really glad that my release day is nearly here.”

Another traveller, Zari Tadayon, 66, from north London, told the PA news agency on Wednesday she was “relieved” her quarantine was almost completed after arriving from Dubai last Monday.

She previously said she was unprepared for her stay and had not packed any books, adding: “How I’m going to cope I don’t know. It’s going to be tough.”

Travellers arriving in England must quarantine in a hotel if they have been in one of the Government’s 33 “red list” countries – which covers Portugal, the United Arab Emirates, South America and southern Africa – in the past 10 days.

The UK has banned direct flights from those locations, so passengers must take connecting flights, mixing with passengers from countries not on the list.

The Prime Minister said last week he expects those in quarantine to be able to “cover their costs” when asked what happens if a person has to extend their stay after a positive test.

Boris Johnson said: “It is currently illegal to travel abroad for holidays anyway.

“We would expect people who are coming in from one of these red list countries to be able to cover their costs.”

BY  Chinedu Eze 

Industry consultant and CEO of Aglo Limited, Tayo Ojuri has predicted that Nigerian airlines would record weak profit in 2021, due to the weakness of the marco-economy.

Ojuri said this in a telephone interview with THISDAY. He identified three factors that would hinder the ability of the airlines to post healthy profit.

One of the factors he said was low government spending, which he said could reduce cash in circulation, predicting that less number of people would travel by air. With low passenger traffic, the airlines would not enjoy high load factor so they won’t break even in most of their routes, he forecasted.

Another factor identified by Ojuri was exchange rate, saying airlines would find it difficult to fund their operations, acquire spares, carry out training, which require dollars payment because they are done overseas.

The aviation consultant also expected that the devastating effect of the coronavirus pandemic would still drastically affect airline operations globally.

He noted that as long as air travel is still low in other parts of the world, domestic operations would correspondingly be low because international flight operations feed domestic service, as about 70 per cent of the passenger traffic on domestic destinations come from international traffic. “COVID-19 is still not gone. The only people who are travelling now are people who travel for business. People don’t travel for leisure and tourism, which means that passenger traffic is low.

“International travel feed domestic operations. In the next two quarters travel won’t pick up. England, for example, is opening up in May. “About 70 per cent of domestic passenger traffic comes from outside and these are businessmen who come to the country and use domestic airlines to travel to places. So if they are not able to come it will affect domestic passenger traffic,”Ojuri said.

Ojuri’s prediction was in tandem with projections made by the International Air Transport Association (IATA), which stated that globally that the airlines would remain cash negative in 2021.

The latest new analysis released by IATA estimated that the airline industry was expected to remain cash negative throughout 2021, but previous analysis (November 2020) had indicated that airlines would turn cash positive in the fourth quarter of 2021.

The global body identified some factors as responsible for the new development and it includes weak start for 2021, noting that it is already clear that the first half of 2021 would be worse than earlier anticipated.

“This is because governments have tightened travel restrictions in response to new COVID-19 variants. Forward bookings for summer (July-August) are currently 78 per cent below levels in February 2019 (comparisons to 2020 are distorted owing to COVID-19 impacts),” IATA said. However, IATA expressed optimism that from this lower starting point for the year, an optimistic scenario would see travel restrictions gradually lifted once the vulnerable populations in developed economies have been vaccinated, but only in time to facilitate tepid demand over the peak summer travel season in the northern hemisphere.

“In this case 2021 demand would be 38 per cent of 2019 levels. Airlines would burn through $75 billion of cash over the year. But cash burn of $7 billion in the fourth quarter would be significantly improved from an anticipated $33 billion cash burn in the first quarter,” the body said.

“With governments having tightening border restrictions, 2021 is shaping up to be a much tougher year than previously expected. “Our best-case scenario sees airlines burning through $75 billion in cash this year. And it could be as bad as $95 billion. “More emergency relief from governments will be needed. A functioning airline industry can eventually energize the economic recovery from COVID-19. But that won’t happen if there are massive failures before the crisis ends. “If governments are unable to open their borders, we will need them to open their wallets with financial relief to keep airlines viable,” said IATA’s Director General and CEO, Alexandre de Juniac.

By Seun Opejobi

The Federal Government has announced the reopening of the Third Mainland Bridge in Lagos State.

Babatunde Fashola, Minister of Works and Housing announced the reopening on Saturday.

In a tweet, Fashola said the bridge reopened from midday of Saturday.

He wrote: “Third mainland bridge rehab completed. Fully opens to traffic at 12noon today. Thank you all for your patience. Drive safely.”

Recall that Fashola, who is a former governor of the State had during the week, said the bridge will reopen for traffic ‘’this weekend’’. 

He had said the lane markings and finishing touches would be done within the next 48 to 72 hours.

The Lagos State Government had shut down the Third Mainland Bridge on the 26th February.

The Commissioner for Transportation, Dr. Frederic Oladeinde said the total closure of the bridge will help contractors move equipment off the bridge.

By Sharay Angulo, Humeyra Pamuk

MEXICO CITY (Reuters) - U.S. Secretary of State Antony Blinken on Friday urged Central Americans without travel papers not undertake risky journeys to the United States, as the Biden administration grapples with fast-rising irregular immigration across the southern border.

Speaking at an online meeting with officials in El Paso and Mexico’s Ciudad Juarez at the start of a “virtual visit” that included conversations with Mexican ministers, Blinken said the United States was strictly enforcing border laws.

Greece and Austria are urging other EU states to adopt coronavirus vaccination "passports" which could help revive Europe's stricken tourist industry.

The idea of such a document, likely to be a certificate, would be to permit those who have been vaccinated to travel freely within the EU.

The proposal was put forward during a virtual discussion between EU leaders.

But a vaccine passport faces opposition from some of the bloc's 27 member states.

France and Germany say such documents could be premature because data on the efficacy of vaccines in preventing a person from carrying or passing on the virus is incomplete.

There are also concerns that enabling a vaccinated minority to enjoy foreign travel while others, such as young people who are not seen as a priority for inoculation, continue to face restrictions would be discriminatory.

A further complication is the rapid spread of more contagious Covid variants - the English, South African and Brazilian forms - and the possibility of future mutations. So it is more likely that people will need booster jabs to remain protected.

Greece - as well as Israel - already has digital vaccination certificates, and others such as Denmark and Sweden have talked about developing them.

Greek Deputy Prime Minister Akis Skertsos told the BBC that a common digital certificate "is not discriminatory at all". He argued that non-vaccinated tourists could also visit Greece this summer, but the procedure for them would be slower - they would have to be tested and might have to self-isolate on arrival.

Greece and Cyprus have agreed to admit Covid-negative Israeli tourists this summer - those who can prove their status with the Israeli "green" digital certificate.

Greek Tourism Minister Harry Theocharis said a similar deal could be reached with the UK. However, the UK government has not yet approved any vaccination certificate, nor has it given the go-ahead for foreign holidays.

Greek tourism slumped disastrously last year because of the pandemic. Its revenues fell to €4bn (£3.5bn; $5bn), from €18bn in 2019, Reuters news agency reports. Tourism makes up about a fifth of the Greek economy, employing one in five workers.

Austrian Chancellor Sebastian Kurz tweeted that "we're advocating a digital Green Pass, like Israel's".

"That should allow you to prove, on your mobile phone, that you've been tested, inoculated or have recovered [from Covid]. Our goal: to avoid a lengthy lockdown and finally enable freedom to travel again in the EU, and freedom to enjoy events and cuisine."

German Chancellor Angela Merkel said it would take three months to set up a data system for use at the borders and in national healthcare systems, but that most countries agreed that "a digital vaccination certificate" could be necessary in the future.

As some EU countries now struggle with a third wave of the virus there are tensions over unilateral border restrictions. Germany is the latest to have received a complaint from the European Commission, since it imposed new police checks on the Czech and Austrian borders.

During the virtual meeting on Thursday, EU leaders also discussed how to address concerns over the slow vaccine rollout that has been widely criticised.

• How are European countries tackling the pandemic?
• What Europeans have learned from a year of Covid

The Commission - the EU executive - has been under fire over its vaccine procurement strategy. It got into a row with AstraZeneca, because the Anglo-Swedish drug firm fell far short of the first-quarter delivery target.

Some member states have also implied that the AstraZeneca vaccine is somehow inferior to others - French President Emmanuel Macron said at one point that it might be "quasi-ineffective" in the over 65s, without offering any evidence.

This has reportedly led to issues of authorities in some countries, such as Italy, reluctant to use supplies of the drug.

The Commission still aims to get at least 70% of adults vaccinated in the bloc by mid-September. But so far, the total vaccinated is below 10%.

European Commission President Ursula von der Leyen said she felt assured that the target would be met. "These are 255 million people in the European Union, and if we look at the planned figures, this is a goal we are confident we'll reach," she said.

The EU is desperately seeking ways to increase vaccine supplies and improve its ability to track new variants, BBC Europe correspondent Kevin Connolly reports. But it is pursuing policies that might pay off in months or years, when voters want answers in days or weeks, he says.

By Alao Abiodun and Okwy Iroegbu-Chikezie

The Third Mainland Bridge in Lagos reopened fully for traffic yesterday after 19 months of its rehabilitation by the Federal Government.

Workmen began early in the morning to clear the bridge of debris and removed crash barriers from the site and put finishing touches to asphalt laying on some sections before the main opening with spectators watching.

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The Director, Highway Bridges and Design , Mr. Emmanuel Adeoye who supervised the reopening said that work on the surface of the bridge had been completed but additional work would continue underneath.

Adeoye said several expansion joints, bearings were fixed.

“We have done a lot of rehabilitation works on the super structure and the bridge is fit for use now and we are set to open it, that is why we are here.

“For now the superstructure is the main one that is being worked on now we are going to work on the substructure and the foundations much later, but that does not affect the flow of traffic.

“Traffic can be flowing and we can be doing our work under the water quietly. We are opening the bridge now because it is fit for use now.

“The repairs is very durable that is why we have taken pains and have been working on it since July to make sure it is good for use. We have gone round, we have checked, we have found out that it is ok,” he said.

He said that bridge maintenance unit of the Federal Ministry of Works would continue to carry out periodic maintenance subsequently and check components of the bridge.

He said that the work under the bridge would be completed between the next six months to one year.

The Federal Controller of Works Lagos, Mr Olukayode Popoola thanked Lagos residents for their understanding and patience during the rehabilitation works.

Popoola explained challenges which slowed down construction to include the COVID-19 and the EndSARS protests which made the contractor lose some time.

“Now that we have finally opened the bridge today as the Federal Controller of Works in Lagos, I am very happy that the promise that federal government made that this bridge will be rehabilitated and opened to traffic before the end of February has been actualised.

The  Third Mainland Bridge was  partially shut on July 24 for another round of rehabilitation works.

The repair expected to last six months was extended by one month due to the recent #EndSARS protests in Lagos extending the completion date from January 2021 to February.

The construction was initially divided into two phases of three months on each carriageway, starting with the Oworonsoki bound carriageway whose completion dragged to four months.

Traffic was partially diverted on a stretch of 3.5km where construction is ongoing between Adeniji Adeniji Ramp and Ebute Meta, while different time belts were allotted for traffic diversions on the bridge.

The 11.8km bridge is the longest of the three bridges connecting Lagos Island to the Mainland.

The bridge starts from Oworonshoki, which is linked to the Apapa-Oshodi Expressway and the Lagos-Ibadan Expressway and ends at the Adeniji Adele Interchange on Lagos Island.

Constructed in 1990, the bridge was adjudged as the longest in Africa until 1996 when the Oct. 6 Bridge in Cairo, Egypt was completed.