Travel News

(Bloomberg) -- South Africa’s minister in charge of embattled state-owned companies gave an impassioned defense of the sale of a majority stake in the national carrier for about $3 -- a deal that’s subject to a lawsuit from one of the spurned bidders.

The privatization of South African Airways is a vital reform for the country’s battered economy, Public Enterprises Minister Pravin Gordhan, 73, said in an interview at Bloomberg’s Johannesburg office. The winning bidder -- a partnership between a domestic aviation group and private equity firm -- was the one left with the most credible financial backing and industry experience, he said. 

The airline is an “example of a broken state-owned enterprise that has been loss making, that we have successfully re-positioned and got the private sector involved,” said Gordhan. Discussions with ratings companies suggest the move is “a classic example of reform.”

The acquisition by the Takatso Consortium has been criticized in some quarters for the notional purchase price, lack of transparency around the sale and an ongoing government requirement to settle debts. The group is made up of Global Airways, which owns domestic airline Lift, and private-equity firm Harith General Partners.

The backlash culminated in a law suit filed last month by Toto Investment Holdings Pty, which founder Bongani Gigaba said was unfairly excluded from the sale process. Yet the airline had been a drain on government finances for a decade, receiving numerous state bailouts before entering bankruptcy proceedings in 2019.

The terms of the transaction have been finalized between the parties and the deal is now subject to approvals by South Africa’s competition regulator and industry body, said Gordhan, who was finance minister over two spells under former President Jacob Zuma. 

As part of the deal, Takatso agreed to invest about 3 billion rand ($177 million) in the airline. 

“Their commitment remains in place,” the minister said. 

Nine Destinations

SAA has been downsized significantly as a result of bankruptcy proceedings, with the workforce about 80% smaller. The carrier flies to nine domestic and international destinations with a fleet of six Airbus SE jets.

About 30 interested parties were considering a move for SAA, including two “fairly big” foreign entities, Gordhan said. But when the bidding line up thinned out due to the devastating impact of coronavirus on the travel industry, only Takatso was left with the necessary financial backing and aviation experience, he said. 

“What is concerning is that there’s still a determined effort by some quarters to disrupt this process as much as possible and to raise suspicions around what has been a very legitimate and legal process,” the minister said.

As NPA awaits two petrol-laden ships, others at Lagos ports

Major oil Marketers Association of Nigeria (MOMAN) has said the regulated N165 pump price for Premium Motor Spirit (PMS), also known as petrol, is no longer realistic.

Chairman, Mr. Olumide Adeosun, made this known during a virtual consumer protection workshop for oil marketers by the Federal Competition and Consumer Protection Commission (FCCPC) yesterday.

Adeosun, who was reacting to the lingering fuel scarcity across the country, blamed the situation on the ongoing conflict between Russia and Ukraine, which has disrupted global energy supply distribution.

The MOMAN chairman likened the current situation to the COVID-19 pandemic era, with some countries moving to halt the exportation of petrol in favour of their own national energy securities.

He maintained that it would be difficult to enforce any kind of price control mechanism on marketers who have to slightly adjust their prices based on how much they bought products from the depots.

He said the way forward is phased deregulation of PMS by the Federal Government to reduce shock on consumers.

Adeosun said gradual price deregulation should be followed with targeted palliatives in areas of transportation and agricultural subsidies to the public to ease implementation.

He said a huge amount spent on petrol subsidy over the years would have been deployed to other critical areas that could have reduced the impact of the current energy crisis on Nigerians.

Adeosun empathised with Nigerians and the Federal Government who have been bearing the huge subsidy cost, adding that the government is working assiduously to mitigate the effects of the situation on the economy.

He said as the nation is moving towards full deregulation of the downstream petroleum sector, MOMAN would continue to collaborate with the FCCPC to ensure the protection of the rights of consumers.

Earlier, Executive Vice Chairman, FCCPC, Mr. Babatunde Irukera, charged oil marketers to shun anti-competitive conduct and other acts that could shortchange consumers.

Irukera (represented by Executive Commissioner, Operations, Mr. Adamu Abdullahi), reiterated the commission’s commitment to the protection of consumers from exploitation.

In his presentation, Mr. Ikem Isiekwena, a lawyer and Partner at Simmons Coopers, urged MOMAN to promote efficient health, environmental, safety and quality-related industry processes, in accordance with provisions of the FCCPC Act.
 
He also urged the marketers to liaise and coordinate with specific industry regulators and its members on consumer protection issues.

ALSO, the Nigerian Ports Authority (NPA), yesterday, said two of the six ships waiting to berth at the port were carrying 149,985 metric tonnes (MT) of petrol.

The NPA, in its daily Shipping Position, said the other four ships were carrying bulk wheat, fertiliser and container.

It said 25 other ships laden with petroleum products, food items and others were expected to arrive at the Lagos Port Complex from July 13 to July 28.

NPA said the ships contained general cargo, container, bulk sugar, bulk wheat, frozen fish, bulk clinker, bulk urea, bulk gypsum, bulk steam coal, petrol and bulk fertiliser.

The organisation said 19 other ships were at the ports discharging bulk wheat, general cargo, frozen fish, soya bean, bulk sugar, container, bulk coal, butane gas and petrol.

Nigerian flag carrier, Air Peace airline, yesterday launched direct flight operations from Lagos to Guangzhou in China.

Similar international operations will commence en route Mumbai, India, and Israel, the airline has said. The Asian routes are among a number of routes the Federal Government ceded to the airline before the outbreak of the COVID-19 pandemic.

Spokesperson of Air Peace, Stanley Olisa, said the new operations were motivated by the airline’s commitment to seamlessly connect Nigerians to other parts of the world and deepen international socio-economic ties.

Olisa said that the Guangzhou operation begins with once weekly flight and hopes to increase frequencies when operations gain momentum.

He noted that China and India were not new terrains for the airline. “Air Peace has operated a number of special/evacuation flights into both cities of Guangzhou and Mumbai in the past. So, we are very familiar with the airspace. Plans to launch in Tel Aviv, Israel, are in top gear also.

“Air Peace has an unflinching commitment to reducing the air travel burden on Africans, and we will continue to grow our route network as well as modernise our fleet strategically.

“Air Peace has accomplished so much in just seven years of operation, as we now have a network of 20 domestic routes, seven regional routes and two international destinations, including Dubai and Johannesburg, which we launched in 2019 and 2020 respectively,” Olisa said.

Reiterating the airline’s resolve to keep deepening its strategic network connections, in line with its no-city-left-behind mantra, Olisa hinted that the airline also has in the works two other African destinations – Malabo in Equatorial Guinea and Kinshasa in the Democratic Republic of Congo.

It can be recalled that in March 2022, Air Peace launched its Niamey route, and a few months before then, it flagged off Douala operations from Lagos and Port Harcourt.

The airline parades an optimal, mixed, modern fleet of over 30 aircraft, including five brand new Embraer 195-E2s, and has the largest fleet in West and Central Africa.

BY  Kingsley Nwezeh in Abuja and Sunday Ehigiator

The Inspector-General of Police (IG),  Usman Alkali Baba, has ordered a total ban on  use of Police Spy Vehicle Number Plates by vehicle owners across the federation without exception.

A statement by Force Headquarters stated that the ban was  irrespective of whether the earlier issuance was authorised or not.

It said: “All authorisations are hereby revoked indefinitely”.

Consequently, the police chief directed Commissioners of Police (CPs) in the 36 States of the federation and the Federal Capital Territory, as well as their supervisory Assistant Inspectors General of Police (AIGs), to give full effect to the directives. 

The IG specifically directed the AIGs and CPs to ensure that all SPY number plates currently in use were confiscated henceforth but the owners of such vehicles should not be arrested unless they are police officers or officers of other security agencies on escort duties.

The statement signed by Force Public Relations Officer and Chief Supretendent of Police (CSP), Mr Olumuyiwa Adejobi, said the order became necessary to forestall the continuous disregard for traffic rules and regulations and other extant laws guiding road use by individuals hiding under the privileges of SPY police number plates. 

“The IG  has, therefore, directed that police officers and officers of other security agencies attached to VIPs who use the SPY number plates should ensure prompt compliance with this directive or risk being arrested for violation of the order,” it said.

Meanwhile, the IG has directed Commissioners of Police (CPs) in the 36 States of the Federation and the FCT as well as their supervisory Assistant Inspectors General of Police (AIGs), to give full effect to the directives as contained above. 

The IG specifically directed the AIGs and CPs to ensure that all SPY number plates currently in use are confiscated henceforth but the owners of such vehicles should not be arrested unless they are police officers or officers of other security agencies on escort duties. 

“The IG, however, warned that while carrying out these assignments, officers must ensure the rights and privileges of citizens are respected in line with the laws of the land and in accordance with international best practices. 

“Other security agencies and members of the public are enjoined to cooperate with the police in this regard as the moves are aimed at strengthening our internal security,” it said.

An official said Nigerians in diaspora were free to come back home with expired or non-expired Nigerian passport.

The Minister of Interior, Rauf Aregbesola, has directed the Nigeria Immigration Service (NIS), to allow Nigerians in diaspora to return to Nigeria with their expired International Passports.

Mr Aregbesola gave the directive on Wednesday, in Lagos, while responding to a complaint by a Nigerian-American citizen, Jamiu Kasumu, at the Alausa Passport Office during his unscheduled visit to the facility.

He said Nigerians in diaspora were free to come back home with expired or non-expired Nigerian passport.

The Minister said no Nigerian needed travel certificate to come back home, except children, whose parents were Nigerians, but their identity were yet to be established according to immigration rule.

"I am using this medium to instruct all Nigeria Immigration Officers World-Wide to accord Nigerian travellers with expired Passport use such passports to return safely back home henceforth," he said.

The Minister also advised Nigerians in diaspora to update their travel document ahead of time to avoid rush during emergency.

Earlier, Mr Kasumu complained to the Minister that the Nigeria Immigration in America and Delta airline prevented him from coming to Nigeria because of expired Nigerian passport.

Mr Kasumu said he was able to return to Nigeria after he got travel certificate he obtained through a relation in Nigeria.

"I am appealing to you sir that the Immigration should allow Nigerians with expired passport to come back to their country," he said.

By Abdullateef Aliyu

Nigeria's biggest airline, Air Peace, on Wednesday recorded a full load factor of 240 passengers on its inaugural flight to Guangzhou, China.

The airline operated the flight with a Boeing 777 aircraft which left the Murtala Muhammed International Airport, Lagos around 7 p.m.

Speaking during the flag-off of the carrier's Lagos-Guangzhou flight, Chief Operating officer of Air Peace, Oluwatoyin Olajide said the airline is officially adding the continent of Asia to its network of continents, with the commencement of initial one-weekly flight to Guangzhou-China.

She said the commencement of the direct flight from Lagos to China would strengthen the economic pact of both countries, adding that Nigerians would be available to get visas to travel to China.

"If you look at what is happening today in Nigeria and if you look at the population of Chinese here and look at the projects Chinese are handling here, you can imagine the impact and now having a direct flight is going to strengthen the bond between the two countries and increase the revenue generated from the connections of these two countries.

"This is something that Air Peace has finally been able to cement to make this union a huge benefit," she added.

She airline also disclosed plans to partner Asian carriers to distribute passengers to other destinations outside Guangzhou, China.

Olajide noted that the airline is not entirely new to the Chinese airspace as it has successfully operated several evacuation/special flights to the country at different times in the past, especially in 2020, during the COVID-19 lockdown

She said, "So, we're going into China, not as newcomers, but as an airline that is technically and operationally acclimatised with the Chinese terrain.

"The flying public, especially those that fly the Guangzhou route, should expect best-in-class flight experience, which is characteristic of the Air Peace brand. We're not stopping with Guangzhou- India is next and Israel is in the works," she said.

She said the airline would soon launch Malabo in Equatorial Guinea and Kinshasa in the Democratic Republic of Congo, adding that Air Peace would continue to grow its route network as well as modernise its fleet strategically.

She also hinted that the Consultant is now open for more people to travel to China from Nigeria, following the lift on travel restrictions put by Chinese government before now.

"Air Peace currently boasts of a network of twenty domestic routes, seven regional routes and two international destinations, including Dubai and Johannesburg.

"As we kick off the Guangzhou route today, we must appreciate the Nigerian Civil Aviation Authority, Federal Airports Authority of Nigeria, the Ministry of Aviation, the Chinese government, our partners, and other stakeholders for making this possible. We promise to work harmoniously with all relevant aviation actors to ensure this new route is maximised," she added.

(Bloomberg) -- Air France-KLM’s French low-cost carrier, Transavia, cancelled 15% of flights amid a dispute with cabin crew, exacerbating the chaos engulfing European air travel.

Dozens of the company’s flights from Paris-Orly airport were not operating Wednesday, according to the SNPNC union, which had called for strike action over wages. The labor group refused to sign a deal agreed to with other parties last month -- including the biggest CGT union -- because the accord included bonuses but no increases in base pay.

The disruption is the latest to hit a sector that’s plunged into crisis over a combination of surging demand for travel, staff shortages and labor disputes. The strikes are also a setback for Air France-KLM Chief Executive Officer Ben Smith, who has touted the labor peace that followed his taking of the helm as crucial for the turnaround of the carrier.  

Emirates airline has rejected an order from Heathrow Airport that it must cancel flights, with the airline accusing the airport of “blatant disregard for consumers".

On Tuesday, Heathrow pleaded with carriers to stop selling summer tickets as it imposed a cap on passenger numbers until September 11.

The airline accused the west London airport of showing “blatant disregard for consumers” by attempting to force it to “deny seats to tens of thousands of travellers”.

The Dubai-based carrier said it had, on Wednesday, been given 36 hours to comply with the order as the west London hub airport attempts to ensure it can operate without further delays during the summer travel peak.

Emirates said in a statement: “LHR (London Heathrow) last evening gave us 36 hours to comply with capacity cuts, of a figure that appears to be plucked from thin air.

“Their communications not only dictated the specific flights on which we should throw out paying passengers, but also threatened legal action for non-compliance.

“This is entirely unreasonable and unacceptable, and we reject these demands.”

It added: “Until further notice, Emirates plans to operate as scheduled to and from LHR.”

Many passengers flying to and from the UK’s busiest airport have suffered severe disruption in recent months, with long security queues and baggage system breakdowns.

The Dubai-based carrier said its ground handlers at Heathrow are “fully ready and capable of handling our flights”, which means “the crux of the issue lies with the central services and systems which are the responsibility of the airport operator”.

It stated it would be “impossible” to re-book the number of passengers that would be affected by Heathrow’s cancellation demands.

Moving some of its operations to other UK airports at short notice is also “not realistic” as locating somewhere that can facilitate a widebody long-haul aircraft carrying 500 passengers is “not as simple as finding a parking spot at a mall”, the airline explained.

The statement added: “The bottom line is, the LHR management team are cavalier about travellers and their airline customers.

“All the signals of a strong travel rebound were there, and for months, Emirates has been publicly vocal about the matter.

“We planned ahead to get to a state of readiness to serve customers and travel demand, including rehiring and training 1,000 A380 pilots in the past year.

“LHR chose not to act, not to plan, not invest. Now faced with an ‘airmageddon’ situation due to their incompetence and non-action, they are pushing entire burden – of costs and the scramble to sort the mess – to airlines and travellers.

“The shareholders of London Heathrow should scrutinise the decisions of the LHR management team.”

Last week, Jet2 criticised airports for being "woefully ill-prepared and poorly resourced", which has led to "inexcusable" travel chaos.

Executive chairman Philip Meeson said: "Most of our 10 UK base airports have been woefully ill-prepared and poorly resourced for the volume of customers they could reasonably expect, as have other suppliers, such as onboard caterers and providers of airport PRM (passengers with reduced mobility) services.

"Inexcusable, bearing in mind our flights have been on sale for many months and our load factors are quite normal."

"This difficult return to normal operations has occurred simply because of the lack of planning, preparedness and unwillingness to invest by many airports and associated suppliers," he added.

A Heathrow spokesperson accused Emirates of focusing on profit instead of safety, and said airlines had not expanded their ground handling teams fast enough.

“While many factors have resulted in the delayed flights, misconnected bags, long waits for arriving bags and last-minute cancellations at Heathrow and airports across Europe in recent weeks, a key issue is airline ground-handling teams which are currently only resourced up to 70% capacity to serve passenger demand which has returned to 80-85% of pre-pandemic levels.

“For months we have asked airlines to help come up with a plan to solve their resourcing challenges, but no clear plans were forthcoming and with each passing day the problem got worse.

“We had no choice but to take the difficult decision to impose a capacity cap designed to give passengers a better, more reliable journey and to keep everyone working at the airport safe.

“We have tried to be as supportive as possible to airlines and our 100,000 cap on daily departing passengers is significantly higher than the 64,000 cap at Schiphol (in Amsterdam).“It would be disappointing if instead of working together, any airline would want to put profit ahead a safe and reliable passenger journey.”

PARIS (Reuters) - Air France KLM's low-cost unit Transavia said it was cancelling around 25% of its French flights on Thursday due to a strike protest among some staff over pay and working conditions.

Dozens of cabin attendants, stewardesses and stewards have been on strike since Wednesday, the national union of cabin crew SNPNC said, which plans to have its actions last until July 17.

Transavia's management had to cancel 15% of its flights on Wednesday. [FWN2YU28K]

The SNPNC want a complete review of salaries next January, adding the latest aid measures offered by the management to cope with soaring inflation were not enough.

Management said it planned to hold talks on the topic at the start of next year.

(Reporting by Caroline Pailliez; writing by Benoit Van Overstraeten; editing by Jason Neely)

By Wole Oyebade

Emirates and Air Canada have announced the signing of a strategic partnership agreement that will create more options for customers when travelling on the carriers’ networks.

Emirates and Air Canada intend to establish a codeshare relationship later in 2022 to offer enhanced consumer travel choices for Air Canada customers to travel to the United Arab Emirates and to destinations beyond Dubai, and vice versa.

Customers will have opportunities to book connecting travel between both airlines’ networks with the ease of a single ticket, seamless connectivity at the carriers’ respective global hubs and baggage transfers to their final destinations.

President of Emirates Airline, Sir Tim Clark, described the pact as a significant partnership that would enable customers’ access to more destinations in Canada and the Americas, via the Toronto and U.S. gateways.

“It also opens up many new route combinations for travellers across Emirates’ and Air Canada’s extensive networks in the Americas, the Middle East, Africa and Asia.

“We are pleased to partner with Air Canada, one of North America’s most established airlines and Canada’s flag carrier and we look forward to jointly progressing in various areas to provide even better customer flight choices and experiences.”

President and CEO of Air Canada, Michael Rousseau, added that they were very pleased to form a strategic partnership with Emirates, a highly respected flag carrier of the United Arab Emirates with a hub in the vibrant city of Dubai.

“This strategic agreement will create network synergies, and Air Canada customers will have additional, convenient options when travelling between Canada and the United Arab Emirates as well as destinations beyond Dubai. We look forward to introducing Air Canada codeshare service on key Emirates flights, as well as adding the EK code on select Air Canada flights, and welcoming Emirates customers on our services later this year.”

To further enhance the customer experience, the carriers will also establish reciprocal frequent flyer benefits and reciprocal lounge access for qualifying customers. Further details of the partnership and specific codeshare routes will be announced when finalised and will be subject to regulatory approvals and final documentation.