NOVEMBER 01, 2022

British Airways has resumed its London-Abuja flight after cancelling the flight for two days due to the security alerts on terrorism issued by the United States and United Kingdom governments.

The United States Mission in Nigeria had issued a security alert over the risk of terror attacks in Nigeria, especially in the Federal Capital Territory.

After cancelling its Abuja-bound flight on Friday and Saturday, the airline has now changed its flight schedule to Abuja with effect from Sunday.

In a memo issued to its trade partners, the airline said the temporary schedule change to and from Abuja, effective from October 30th to November 7, 2022 was “due operational constraint.”

The airline, however noted that its London-Abuja flight would now be departing by 0810 hours and arrive 1515 hours instead of the previous 22:25 hours and 4:40 hours.

On Thursday, the BA83 flight from London-Heathrow to the Nnamdi Azikiwe International Airport Abuja was suddenly diverted to Lagos.

The development caused outrage among the affected passengers who complained that there was no adequate notice.

Although BA did not provide any reason for the decision, the diversion of the flight might not be unconnected with the terror alert in Abuja with several foreign missions including the US, UK, Australia, Germany, among others issuing travel warnings to their citizens.

NOVEMBER 01, 2022

The Assistant General Secretary of the Aviation Round Table, Olumide Ohunayo, in an interview with Lilian Ukagwu, discusses numerous issues challenging the aviation industry and possible ways they can be addressed

How would you describe the current aviation crises and in what ways can they be tackled?

I don’t know what you call aviation crisis, but I can tell you that the major crises we have in the aviation industry now are the cost of aviation fuel, the depleting and concurrent fall of the naira to the dollar, and the infrastructure. Aviation fuel is deregulated, so there are no subsidies there to be paid by the government. There is an envelope of the sunset airport. These are airports that close by 6 pm and we have had four new airlines after COVID-19. It shows the local investors are strong, tenacious and believe that there is a market for them for operations and also make profits.

The Federal Airports Authority of Nigeria and the Nigerian Airspace Management Agency need to work on how they can extend some of the airport operations from the present 6 pm, maybe to about 9 pm for a start.  Though airlines might give commitments that they will operate on these grounds so that there won’t be wastage, I think these are some of the things we need to tackle to get the airlines back in full strength.

Again, the multiple policies are not within the power of the airlines are for the government to tackle using our resource and intellectual strength and I think they are working on policies now with the bills being amended.

They are also redesigning the naira so that people will bring out the naira that has been hoarded. I think they should work on it because as it is depreciating, accessibility at the official rate will be very difficult and almost inaccessible. So, this makes it very difficult for the airlines to buy at the black market rate of N781/$ naira to the dollar. It is painful.

The United Arab Emirates recently issued a visa ban on Nigerians. Do you think it is justified?

What I am looking at is sovereignty and security of the United Arab Emirates within their rights, because the first obligation of any government is the protection of lives and security. I think that is what we should learn from that. They just brought back over 500 Nigerians and the word they used was ‘stranded’. They did not go through any other route. They went there with visas and for them to have gotten into Dubai legally shows that there is a need to tweak the visa processing system for Nigerians and other countries.

Note that it was not just Nigeria that they stopped the visa issuance to. It is also for Ghana and other countries. So, we have abused it, and we have made a mess of their security and their tradition. So, they have the right to restore dignity, security and safety of all inhabitants of the Emirates. And I think that I support whatever measures put in place by the Emirati authorities to restore tranquillity and sanity in their land.

The lesson here for us is that every country must realise that before you can attract, you must first secure your country; you must limit immigration and, most importantly, illegal immigration of those who do not bring in quality service to your country.  For the airlines, they will survive. So many airlines go through Dubai. Emirates itself will feel the impact, but they are really not bothered; they want the sanity of that country. The UAE is losing nothing here.

It’s Nigeria that is losing because with what has happened, other Middle-Eastern countries will tighten the visa qualifications and requirements for Nigerians due to the impact of a few Nigerians. Our new airlines that want to start on that route might be having difficulties in getting passengers.

The Aviation Minister, Hadi Sirika, said the national carrier would commence operations in December 2022 after several commencement dates. Does Nigeria need a national carrier and do you think this date will fly?

We do not need a carrier in the domestic market. We have about eight to nine carriers now operating, so we have enough capacity and can still build more based on the people that have applied. What we lack is the power of international flight operations to reciprocate the Bilateral Air Service Agreements we have with the other countries. This is why people clamour for the national carrier because the local carriers have not been able to muster that energy and support from the Ministry of Justice, the Ministry of Foreign Affairs and the Ministry of Aviation when they operate these flights for Nigeria.

Once we designate an airline to leave Nigeria to other countries, that airline becomes your flag carrier on that route and deserves the protection and support of the Ministry of Justice, the Ministry of Foreign Affairs and the Ministry of Aviation. These have been lacking all the while since the time of Nigeria Airways and Virgin Nigeria.

So, it is on that premise that we call for a national carrier and not because our domestic carriers cannot or have not been meeting their obligations on the domestic route.

However, because we know that we have not been participating in the big league, we will continue to push for an increase in our participation on the international route, especially to Europe and America.

The issue of repatriation funds shows that we have a lot of capital flights that should be addressed. If you add more local capacity on these international routes, the fares will drop, and on that basis we are calling for a national carrier or even flag carriers that the government will support.

•  Why Nigerian airlines may not cut ticket fares – Stakeholders

At this point, it is not for me to doubt them again because they are eager to tick one of the boxes on the roadmap and they will do anything to make this airline take off, despite complaints on partnership with Ethiopian Airlines.

What we should look at is what happens after May 2023 when they are no longer there. Will that same force they have used to push this airline still be there to sustain the airline?

The Federal Government has faulted foreign airlines over trapped funds. Are these airlines to be blamed?

I do not know why they are being faulted. They said they would stop operating if they do not get funds.  If they do not get funds and stop operating, there is a repercussion. We signed an agreement and in that bilateral agreement, all foreign airlines are supposed to remit their funds after they have paid all domestic taxes at the official rate, not the black market rate.

Even at the black market, these airlines have no business with the government. They would have gone somewhere else to source the money. But the law says at the official rate. It’s on the agreement and the official rate is agreed with IATA, which is about N444 to a dollar. So, you cannot ask them to go and change dollars at the black market rate of N781. That’s a big loss. The Central Bank of Nigeria has come out to say, “Yes, we have agreed to pay part of it; that shows that it was a genuine request.”

You have agreed to pay 50 per cent, but you paid 12 per cent up front. If you have accepted to pay a percentage of the money, it means this money is being owed. When you owe someone, you don’t begin to threaten. All you need to do is to first make obligations to pay back. The only way to reduce owing more money is to increase your capacity on the international route and this capacity must be through Nigeria airlines. There must be local capacity to operate, so that will reduce capital flight.

Moving forward, what ways can the government explore to forestall more funds being trapped?

The government has started the process; they have given 25 per cent. The other 25 per cent will be at the end of October and thereafter other payments will follow. You said 50 per cent, why not pay it by October and come out again between October and end of the year to clear the outstanding.  You can then say you will pay a certain percentage. That is the way people do business and can be creditworthy among partners outside Nigeria.

There is an implication for this when you begin to tighten the noose around foreign airlines. You are reducing your credit rating internationally, which affects your airlines when they go for insurance, spares and aircraft leases. It will be hard for them because they do not trust them based on the rating and keeping to international trade agreements.

Domestic airlines have said the FG partnership with Ethiopian Airlines regarding the national carrier is tantamount to opening the nation’s domestic market to foreigners, a development they said will decimate the local airline industry and lead to capital flight. What are your thoughts on these?

Of all the seven airlines in Africa that Ethiopian Airline has shares, only Asky Airline operates beyond the domestic route. The remaining (Chad, Mozambique, Zambia, Congo, Guinea and Malawi are glorified local carriers). Asky has 12 aircrafts in 12 years, Air peace, Arik have surpassed that number of aircrafts so no big deal. The Part 9 of the Air Operator Certification and Administration (9.2.3.2) states that a new start up airline must have a minimum of three aircrafts. It must be registered in Nigeria, yet we are told they are going to wet lease later, damp lease aircrafts to start. So why breach the ACT from incubation? What happens later?

Virgin Atlantic offered 10 per cent shares to Nigerians as reciprocity for the investment in Virgin Nigeria. What is Ethiopian Airline offering Nigerians and shares in Ethiopia Airlines as reciprocity?  Why did ET, Egypt Air, two local airlines and other investors bid for the Ghanaian national carrier and only ET bid for Nigerian Air despite the huge market and potential these airlines ask for more frequencies and entry points?

They announced wet leased aircraft and investment from the Sovereign Wealth Fund which increased government exposure above 5 per cent.

Due to criticisms, it was changed to damp lease and advert placed for Nigerians to apply while the SWF was withdrawn from the list of investors quickly. Virgin Nigeria was stopped from operating into the US because of 49 per cent ownership by Virgin Atlantic. Hope this will not play out again for some countries with ET owning same 49%.

The minister announced preferred bidders for airport concession and all companies are foreign.  What are your thoughts?

The minister has announced the preferred bidders for three out of the four airports, which are Lagos, Abuja and Kano. They could not get a bidder for Port Harcourt, but I can tell you there are some international bidders that have Nigerian partners who are that silent in the partnership or who have not raised their head. I know that there are Nigerian partners among the bidders.

For me, I congratulate him. Maybe he can also tick that box in his roadmap. If you ask me, I would rather want a reputable international airport management company to come and manage the entire airports under FAAN’s purview. The company will review the operational procedure and turn it to a profit-oriented organisation. They can make it a PLC that can now invest in other airports within the sub region.

NOVEMBER 03, 2022

BY  Christopher Jasper, Bloomberg News

(Bloomberg) -- Virgin Atlantic Airways Ltd. Chief Executive Officer Shai Weiss pledged to resist any move to cap capacity at Heathrow airport in the lead up to Christmas after the hub said curbs may be needed due to staffing shortages.

The airline controlled by billionaire Richard Branson intends to fly a full winter program and called on London’s biggest airport to use the 55 days remaining before Christmas to ensure no restrictions are needed after a turbulent summer. 

“Disrupting passengers now is completely unacceptable,” Weiss said in an interview Wednesday. “It’s just not possible. What are we going to tell people, you’re not going to see your family over Christmas? You’re not going to go on the vacation for which you’ve saved for two or three years? So we’ll be flying our full schedule.”

The Virgin Atlantic CEO said he had expected Heathrow to confirm capacity curbs were a thing of the past after a ceiling of 100,000 departing passengers a day was scrapped at the end of the summer schedule, which was marred by lengthy delays due to a lack of workers. Instead, Heathrow boss John Holland-Kaye last week doubled down on warnings of further limits on the busiest days ahead of the festive season.

The lifting of the mandatory cap from Oct. 30 means any further attempt by Heathrow to reduce flying should come in the form of a request rather than an order, Weiss said.

Key Season

The period between the US Thanksgiving holiday and New Year is a vital one in a North Atlantic market where Virgin gets 70% of its business. The airline has so far managed a 99.3% completion rate this year despite the disruption at Heathrow by shuffling flights to avoid cancellations.

Prior to the pandemic, Heathrow averaged 130,000 departing passengers a day, according to Weiss, and even with blanket curbs in place the hub regained its crown of Europe’s busiest airport over the summer.

At the same time as restricting flight volumes, Heathrow is looking to raise the fees it charges airlines -- an aim Virgin says is behind efforts to emphasize both staffing issues and a slow return to pre-Covid traffic levels. A decision on prices is likely later this year or early in 2023, Weiss said.

A Heathrow spokesman said that no decisions have yet been made about the Christmas period, adding that issues around resourcing represent a sector-wide challenge and the main workforce it directly employees, security staff in departure halls, is back to pre-pandemic levels.

The airport said on Oct. 26 it was working with airlines “to agree a highly targeted mechanism” that will align supply and demand on a small number of peak days in the lead up to Christmas.

It now sees a full-year tally of as many as 62 million passengers, even after the disrupted summer, having initially forecast 45 million.

(Updates with Heathrow comment in ninth paragraph)

NOVEMBER 03, 2022

OTTAWA — The federal government is planning a massive increase in the number of immigrants entering Canada, with a goal of seeing 500,000 people arrive each year by 2025.

Immigration Minister Sean Fraser revealed the new targets on Tuesday, saying the move was necessary to ensure Canada's economic prosperity as the country struggles with a labour shortage resulting in 1 million job vacancies.

“Our plan has a focus on economic growth,” Fraser said during an event in North York, Ont. “And by the third year of this plan, 60 per cent of new immigrants will be admitted under economic immigration categories.”

The plan envisions a flood of new arrivals that will see 465,000 people arrive from outside the country in 2023, rising to 500,000 in 2025, with a heavy emphasis on admitting people based on work skills or experience.

At the same time, Ottawa is planning a more moderate increase in the number of family members who will be admitted into the country, and an overall decrease in the number of refugees.

Fraser sought to defuse criticism of the latter by noting that Canada was a world leader in resettling refugees in recent years, including Syrians, Ukrainians and Afghans fleeing conflict in their home countries.

He also promised the government is prepared to handle what will be an unprecedented influx of applications from prospective immigrants wanting to come to Canada, with hundreds of new staff and other changes to speed the process.

Immigration, Refugees and Citizenship Canada has previously been criticized for a backlog of applications from immigrants and prospective permanent residents.

The new plan comes days after Statistics Canada reported 23 per cent of people in the country are landed immigrants or permanent residents, which is the highest-ever percentage and top among G7 nations.

By 2041, Statistics Canada projects as many as 34 per cent of people in Canada will be immigrants.

This report by The Canadian Press was first published Nov. 1, 2022.

Lee Berthiaume, The Canadian Press

NOVEMBER 04, 2022

Emirates Airlines has suspended flight operations to Nigeria over its inability to repatriate blocked funds.

The airline in a statement made available to Channels Television on Thursday said the suspension took effect from October 29, 2022.

The airline said it has communicated its position to the Federal Government and the Central Bank of Nigeria (CBN).

Emirates had in August suspended flights to Nigeria over its $85 million repatriated revenue. In August, the International Air Transport Association (IATA) said foreign airlines have not been unable to repatriate $464 million from Nigeria.

CBN Governor, Godwin Emefiele subsequently promised to release $265 million to foreign airlines to offset part of the trapped funds.

“However, Emirates has yet to receive an allocation of our blocked funds to be repatriated,” Emirates said.

“Without the timely repatriation of the funds and a mechanism in place to ensure that future repatriation of Emirates’ funds do not accumulate in any way, the backlog will continue to grow, and we simply cannot meet our operational costs nor maintain the commercial viability of our operations in Nigeria.

“We have officially communicated our position and attended multiple hearings with the Nigerian government, and we have made our proposed approach clear to alleviate this untenable situation, including a plan for the progressive release of our funds.

“This included the repatriation and receipt of at least 80% of our remaining blocked funds by the end of October 2022, in addition to providing a guaranteed mechanism to avoid future repatriation accumulation challenges and delays.

“Under these extraordinary circumstances Emirates had no option but to suspend flights to/from Nigeria from 29 October 2022 to mitigate against further losses moving forward,” the airline explained.

NOVEMBER 04, 2022

BYMOLLY RUSSELL

Uganda Airlines will begin its West African expansion in December, offering flights from Entebbe to Lagos.

New connections

Speaking at the 18th Akwaaba Africa Travel and Tourism Market, airline chief executive Jenifer Bamuturaki confirmed that flights to Lagos will commence before the end of 2022, with further flights to Abuja launching in 2023. Firm dates and frequencies are yet to be announced.

“I am happy to tell you that we, the Uganda Airlines, will begin our flights to Nigeria for the first time in history in December 2022,” said Bamuturaki.

This will be our first flight to West Africa; we will begin that and then begin to grow slowly. When we come to Nigeria, we will be working through recognized travel agents and tour operators.”

The flag carrier currently offers 11 routes out of its hub in Entebbe, covering an array of destinations across Africa and the Middle East. The thrice-weekly flights to London Heathrow Airport have yet to be given the green light despite significant demand, with no potential launch dates announced. Its planned Guangzhou service also appears to be shelved amid ongoing COVID-19 restrictions within the country.

Uganda Airlines has been approached for further information.

During her keynote speech, Bamuturaki confirmed that the carrier was facing issues following increased aviation fuel prices. She added that the airline has managed the situation through the increase in sales of holiday packages and had no plans to increase airfares.

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Women in aviation

This week’s event also saw Bamuturaki become a recipient of the 100 African Women in Travel and Tourism Award, celebrating diversity within the industry. Bamuturaki commended the conference convenor Ikechi Uko for the recognition, choosing to dedicate her award to Africa, young people interested in aviation, and Ugandan women for “pushing forward and striving against all odds.”

Officially taking the reins of Uganda Airlines back in July, Bamuturaki took over from Cornwell Muleya, who was fired from the role in February pending investigation for mismanagement of public funds and irregular hiring practices.

Bamuturaki was tasked with revamping the airline, taking on a significant loss margin of UGX 232 billion ($61 million) in 2021. She has notably pushed for its continued growth and network expansion into Asia and Europe.

In August, Bamuturaki faced a parliamentary committee regarding concerns over her suitability for the role due to a lack of postgraduate training. She subsequently disputed the claims, noting that she had been appointed as CEO directly, with her team having a combined 100 years of work experience.

What are your thoughts on Uganda Airlines’ Nigeria services? What other destinations would you like to see the airline cover? Let us know in the comments.

Source: Business Insider, Daily Monitor

NOVEMBER 04, 2022

LAGOS, Nov 3 (Reuters) – Dubai’s Emirates has suspended flights to Nigeria for the second time since September citing an inability to repatriate funds from Africa’s biggest economy, the airline said on Thursday.

Nigeria is facing severe dollar shortages, forcing many citizens and business to seek forex on the black market, where the naira currency has progressively weakened.

An Emirates spokesperson said the airline had attended several meetings with the Nigerian government and proposed ways to clear a backlog of blocked funds.

“This included the repatriation and receipt of at least 80% of our remaining blocked funds by the end of October 2022, in addition to providing a guaranteed mechanism to avoid future repatriation accumulation challenges and delays,” the spokesperson said in a statement.

“Under these extraordinary circumstances Emirates had no option but to suspend flights to/from Nigeria from 29 October 2022 to mitigate against further losses moving forward.”

A spokesman for Nigerian aviation ministry could not be immediately reached for comment.

Emirates did not say how much it was owed in Nigeria but the airline resumed flights in September after the Nigerian central bank released $265 million to airlines to settle outstanding ticket sales.

Nigeria, which gets roughly 90% of its foreign exchange from oil, is struggling to produce due to pipeline theft and years of underinvestment.

(Reporting by MacDonald Dzirutwe, Editing by William Maclean)

NOVEMBER 04, 2022

Some aggrieved aviation workers, who staged protests at the entrance gates of the Murtala Mohammed Airport 2 (MMA2) Terminal in Lagos state, have terminated their strike and vacated the gates for resumption of flight operations.

The action had cost operators millions of Naira as activities were halted when aviation workers under the aegis of the Air Transport Services Senior Staff Association of Nigeria (ATSSSAN) blocked the gates on Tuesday morning, disrupting airport operations as airlines suspended flights.

The union said they were protesting the unprovoked termination of the appointment of 34 aviation workers by the operators of the airport terminal, the Bi-Courtney Aviation Services Limited (BASL).

The union listed those affected by the disengagement to include the ATSSSAN branch chairman, Secretary, Treasurer and Women Leaders, who were said to demand “the payment of terminal benefits to staff members who exited the service of the company lawfully in line with the signed Conditions of Service”.

ATSSSAN general secretary, Mr Francis Akinjolie, said BASL had recalled the disengaged workers.

“The strike that was embarked upon today against the Bi-Courtney Aviation Services Limited has been called off pursuant to the acceptance by the company to recall the laid-off members of our union and an undertaking to pay their salaries,” Mr Akinjolie said in a statement.

According to him, the agreement was reached at a meeting empanelled by the Ministry of Labour and Employment; Nigerian Civil Aviation Authority (NCAA); Federal Airports Authority of Nigeria (FAAN); Nigeria Airspace Management Agency (NAMA) and airport security agencies.

NOVEMBER 04, 2022

(Bloomberg) -- Automakers are on course for their worst year of UK sales in four decades as supply-chain issues hamper output and a growing cost-of-living crisis puts off buyers.

The Society of Motor Manufacturers and Traders trade group on Friday cut its full-year outlook for new-car registrations for a third time in seven months to 1.57 million, the lowest since 1982.

Carmakers struggling with parts shortages now face intensifying headwinds including soaring energy and borrowing costs. The Bank of England on Thursday pushed through its biggest rate hike in 33 years and warned of a “very challenging” outlook for the UK economy. The central bank’s forecasts imply gross domestic product will fall for eight straight quarters until mid-2024.

“Major demand headwinds are building for households and businesses, and the latest assessments of UK economic growth prospects are bleak,” said David Leggett, an analyst at London-based research firm Globaldata Plc. He sees “very tough trading conditions in prospect for at least the next 18 months.”

Read more: European Car Sales Recovery Threatened by Economic Turmoil

Sales of battery-powered vehicles have been a rare bright spot. Last month’s new-car registrations rose 26% in part because of surging demand for hybrid-electric models, the SMMT said. Still, the increase in October compares to a very weak prior-year month, and year-to-date deliveries are still roughly a third below what companies sold before the pandemic.

“A strong October is hugely welcome, albeit in comparison with a weak 2021, but it is still not enough to offset the damage done by the pandemic and subsequent supply shortages,” Mike Hawes, SMMT’s chief executive officer, said in a statement.

The lobby group started the year with a projection of 1.9 million vehicle sales, but lowered that estimate first in May and then again in August. While the SMMT expects the market to recover next year, to 1.81 million registrations, it said more public chargers are needed to ease consumers’ range anxiety and bolster sales of fully electric cars.

NOVEMBER 04, 2022

Dubai-based Emirates Airlines has suspended operations into Nigeria indefinitely owing to its trapped funds.

According to a statement by the airline on Thursday and obtained by our correspondent, the airline had no option than to suspend flights to and from Nigeria to mitigate against further losses going forward.

The statement read in part, “Emirates has continued to actively seek a solution for the repatriation of the remainder of its blocked funds in Nigeria. We were encouraged by the Central Bank of Nigeria’s efforts of reviewing our request, and considered that this critical issue would be swiftly resolved with the subsequent clearance of our remaining funds.

“However, Emirates has yet to receive an allocation of our blocked funds to be repatriated. Without the timely repatriation of the funds and a mechanism in place to ensure that future repatriation of Emirates’ funds do not accumulate in any way, the backlog will continue to grow, and we simply cannot meet our operational costs nor maintain the commercial viability of our operations in Nigeria.”

Emirates stated that this new decision became necessary as it had attended multiple hearings with the Nigerian government and officially communicated its position.

The airline also made it known that it had made its proposed approach clear to alleviate this untenable situation, including a plan for the progressive release of funds, which included the repatriation and receipt of at least 80 per cent of its remaining blocked funds by the end of October 2022, in addition to providing a guaranteed mechanism to avoid future repatriation accumulation challenges and delays.

“We hope to reach a mutual resolution with the Nigerian government around the repatriation of blocked funds to enable the resumption of operations and connectivity for travelers and businesses,” the airline said.

An attempt to book a flight from Abuja and Lagos on the Emirates portal proved abortive and yielded an automatic non-availability message as of the time of filling this report.

Meanwhile, in a telephone interview with The PUNCH, the president, Association of Foreign Airlines and Representatives in Nigeria, Kingsley Nwokoma, said that other airlines were most likely to follow in the steps of Emirates.

He said, “Tickets are being sold every minute. That means there’ll be more funds stuck here so even if the Federal Government says they’re releasing XYZ amount, the problem has not been solved. The solution is for all parties to sit and deliberate on how these monies would be paid. Apparently, no airline will want to keep running at a loss because they are not even sure of the next day.

“Check the IATA figures. Yes, some other countries owe but not as much as Nigeria, and the airlines need this money to function. There’s a likelihood that other airlines might follow in the steps of Emirates if this is not properly diagonised.”