Travel News
Local airlines seek 40% fuel surcharge, waivers as Jet A1 hits N822/litr - THE GUARDIAN
By Wole Oyebade
Urge apex regulator to scrap 5% fuel tax • Flay FAAN over Lagos runway closure
Local airlines, yesterday, sought approval to impose a new fuel surcharge of between 25 and 40 per cent on consumers as part of measures to cope with an upswing in the price of aviation fuel.
The operators, apparently hard-hit by the surging cost of fuel and operations, said their survival is dependent on the new surcharge, though with imminent effects on the already high cost of airfares.
Similarly, the airlines, under the aegis of Airline Operators of Nigeria (AON), urged the Nigeria Civil Aviation Authority (NCAA) to sacrifice the five per cent it receives as fuel surcharge and adopt the new 25 to 45 per cent regime on aviation fuel consumption.
This came as the operators also flayed the Federal Airport Authority of Nigeria (FAAN) for the alleged abrupt closure of Runway 18L at Murtala Muhammed Airport Lagos, without due notice.
The airlines, last month, raised the alarm that a number of the risk collapse without affordable aviation fuel to sustain commercial operations. They said besides the fuel scarcity disrupting scheduled operations, the prevailing market rate of N690 to N714/litre is unsustainable.
Aero Contractors has indefinitely shut down its operations, just as aviation fuel now sells for N822/litre in Lagos and much more in the North, The Guardian learnt.
Chairman of AON, Abdulmunaf Sarina, in a memo to NCAA, lamented that in addition to the crippling effect of intermittent shortages of Jet A1, the price rose from N420 per litre in February 2022 to over N780 last week.
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This has greatly increased the operational cost of airlines by well over 130 per cent. Yet, airlines are unable to increase fares and suffer the unavailability of foreign exchange to conduct operations.
“To forestall a backlash and total shutdown of the system, airlines are hoping to resort to introduction of a fuel surcharge of between 25 and 40 per cent of Neutral Unit of Construction (NUC) as a way of offsetting the additional burden brought about by increased fuel cost, bearing in mind that jet fuel accounts for about 40 per cent of total operational expenses.”
AON also sought immediate review of an extant rule that airlines are required to obtain approval for an initial three months before implementation of a fuel surcharge and waiver of the demand that airlines pay an additional five per cent on the fuel surcharge.
“Unless this is done, it will mean, in effect, that whatever is collected by the airlines as fuel surcharge, to cushion the effect of the high fuel price, will be taken away once again by NCAA. This will amount to double jeopardy as airlines will be unable to offset the additional cost, which the fuel surcharge is meant to address in the first place,” Sarina said.
The operators added that those waivers would help airlines weather the tough operating environment, being a standard cushioning practice in countries, like Britain, the United States and Singapore.
IN another development, the airlines faulted FAAN’s closure of the local runway for airfield lighting repairs, but without any work done on the critical facility in the last week.
In a letter to FAAN, the group flayed the 90-day period stipulated for the installation of the lighting.
It said due to the ever-rising cost of Jet A1, the closure of the main domestic runway of MMA, automatically, adds an additional 10 to 15 per cent more fuel costs, based on additional flight and taxing time incurred.
The operators urged the Managing Director of FAAN, Captain Rabiu Yadudu, to convene an urgent stakeholders’ consultation meeting, to review the closure of Runway 18L and enter into discussion with users towards ameliorating impacts.
The letter reads: “AON contends that in line with international best practices, runways of airports are only closed when there is no other option. For infrastructure projects, such as this one on 18L, to limit the impact on flight operations, FAAN ought to have ensured that the contractor does the work at night when the runway is not in use. If there is an absolute need for work to be done during daylight hours, then an agreement should have been reached with runway users on what time window would allow this.
“For the major airport in Nigeria, AON notes with disappointment that Runway 18L has been closed for a week now, with no evidence of any work going on. Yet the airlines have been burdened with huge but unnecessary additional costs and flight delays. Surely, this situation is not in the best interests of the industry.”
‘Why flights are not coming to Bayelsa airport’ - PUNCH
The Bayelsa State Government has said its airport is not operational because the airlines flying its route have sent their planes for a D-Check.
The state stated that the airport will be open to normal flight operations before the end of the month. According to the state, the absence of flights at the Bayelsa International Airport for some weeks was not its fault.
It also dismissed speculation in some quarters that the airport had been downgraded, saying the lull at the aviation facility had to do with technical issues involving two airline operators.
The State Deputy Governor, Lawrence Ewhrudjakpo, said this on Wednesday when the leadership of the Federated Correspondents’ Chapel of the Nigeria Union of Journalists, Bayelsa State Council, visited him at the Government House, Yenagoa.
He said Ibom Air and United Nigeria Airlines were carrying out a D-Check on their aircrafts and this has affected their flight operations from their primary routes.
According to him, the D-Check is a major maintenance check to determine the airworthiness of an aircraft after 10 years of commercial flights. He said the state government was in touch with the management teams of both airlines.
Ewhrudjakpo stated, “I can assure you that the Governor Diri-led administration is very much on course. I know that you are going to ask us what is happening at the Bayelsa International Airport.
“There are a few issues, but they are not really our issues as a government per se. We are aware some persons are pushing the news that the airport has been downgraded. That is not true. The Bayelsa airport has not been downgraded.
“What happened is that the two airlines working with us have gone for a D-Check. The D-Check means a plane going for a major maintenance check after it had been put to flight operations for 10 years to determine its airworthiness.
“If you watch very well, even flights in their regular or primary routes, like the Port Harcourt to Abuja route, have now been reduced to only one daily flight.”
Billionaire’s Airline Starts Ticket Sales in Crowded India - BLOOMBERG
(Bloomberg) -- Akasa Air, India’s newest carrier backed by billionaire Rakesh Jhunjhunwala, started ticket sales for its debut flights.
The low-cost airline will initially fly Boeing Co. 737 Max jets to four Indian cities, including Ahmedabad, Bengaluru, Mumbai, and Kochi, according to a statement Friday. The carrier will start operating 28 weekly flights between Mumbai and Ahmedabad on Aug. 7, followed by the same number of flights between Bengaluru and Kochi from Aug. 13.
Akasa’s network strategy will be to connect metro cities with smaller towns across India, Praveen Iyer, co-founder and chief commercial officer, said. The network will expand in a phased manner and connect more cities as Akasa adds two aircraft each month in the first year, he said. The carrier expects to have a fleet of 72 737 jets within five years.
The carrier’s debut comes as most rival airlines in the cutthroat Indian market are tainted with repeated non-fatal incidents caused by mid-air technical malfunctions. The aviation regulator recently grounded two Airbus SE A320 aircraft of Go First, India’s second-biggest airline, and a Boeing Co. 787 jet of Air India Ltd., the former state-run carrier that’s now under Tata Group, after they reported incidents.
Akasa, which touts itself as the “most dependable airline in India,” is offering cheaper ticket prices than the nation’s biggest airline IndiGo. A flight from Mumbai to Ahmedabad on Akasa costs 3,948 rupees ($49) compared with 4,263 rupees ($53) on IndiGo, their websites show.
The carrier doesn’t have any flights to Delhi, India’s busiest airport, underscoring the challenges securing landing slots at metro airports during peak hours. To expand capacity, India is developing a second airport for the capital.
‘Over 90% Of Local Telecoms Operators Will Go Into Extinction Five Years’ Time’ - INDEPENDENT
LAGOS – Former Special Assistant to the Former Chief Executive Officer, Nigerian Communications Commission (NCC), Engr. Ernest Ndukwe, Barr. Ayoola Oke has stated that over ninety percent of home grown telecoms operators may go bust within the next five years.
The ICT Legal and Regulatory Expert, who spoke to newsmen on the issues affecting the local operators yesterday in Lagos, said the bigger telecoms operators are suffocating the local ones.
Oke described the industry as subdivided into three tiers, with tier 1 for big network operators Mobile Network Operators (GSM); Starcomms, MTS 1st Wireless, Intercellular, Startech and the likes belonging to tier 2 and smaller operators such as Internet service providers, PNLs, International Data Access Service Providers, Swift Telephone networks, Rainbownet and the likes for Tier 3.
He further stated that none of the local operators in Tier 3 have been able to grow to become Tier 2 operators because they are dying, adding that the country would be left with a tier 1 Oligopoly if the home grown operators eventually die out.
The former Special Assistant cited the instance of bigger operators asking smaller operators to pay for termination rate in dollars rather than the country’s legal tender which is the naira and consequently leading to their disconnection.
“It is not a prophesy; if certain regulatory steps are not taken and things not done the way it should, more than 90 percent of home grown local telecoms operators will probably all die out in the next 5 years like what happened to tier 1 operators in the past 14 years and that will be terrible for the country and consumers.
“From the way the industry is structured now, the bigger operators are suffocating the industry.
“The industry is divided into three (3)- Big Network operators (Tier 1), Tier 2 ( Operators like Starcomms, Multilinks and the likes) and Tier 3 ( small operators such as Internet service providers, Data access service providers, Swift telephone networks, rainbow net.
“None of the ones in Tier 3 have been able to grow to become tier 2 because they are dying.
“Once they all die out, we will be left with oligopoly, where the few big operators, mostly originally foreign owned and controlled companies will dominate the market to the detriment of the country.
“Meanwhile, such is an illegality and a contravention of the provisions Section 15 and 20 of the Central Bank of Nigeria Act. Section 20 of the CBN Act expressly criminalising demand
“Due to this, small operators are for flimsy reasons without the nobeing disconnected by big operators tice of the NCC,” he said.
Oke proposed asymmetric regulations whereby the Commission controls the big operators more so that their weights won’t crush smaller operators.
Ayoola, who hailed the Commission’s dominance and significant market power, asked that they should be more proactive conducting timely investigations on big operators whenever they disconnect smaller operators.
“Federal Government should come up with policy restrictions and regulatory steps.
“NCC did well when it did dominance and significant market power which purpose was to subject those companies to asymmetric regulations.
“NCC should do more asymmetric regulations whereby they would impose more regulatory controls and obligations on the big operators so that their weights won’t crush small operators,” he said.
Passengers Commend Air Peace As Carrier Operates Second China Flight - INDEPENDENT
Some passengers on Air Peace’s second flight to its recently launched Guangzhou destination from Lagos have applauded the airline on its commencement of flight operations to the Asian country.
The passengers, in an interview shortly before their Guangzhou flight, departed on Wednesday, from the new international terminal in Lagos, expressed delight that a Nigerian airline could now operate a scheduled flight to China, a development that has taken off the connectivity burden, which the flying public faced on the route.
Air Peace commenced a weekly direct flight service from its base in Lagos on July 20, 2022 with plans to increase it in the future.
A statement by Mr. Stanley Olisa, the spokesman of the airline said that Mr. Clark Wang, one of the Chinese nationals on the flight, stressed that the Chinese community was excited over the launch.
According to him, the operations signalled a great stride in strengthening the commercial ties between Nigeria and China.
He noted that the flight connectivity between both nations would foster development and boost both economies.
Wang also applauded the Air Peace management for the strategic decision to make a foray into the route.
Another passenger, Mr. Emmanuel Okereke, expressed happiness over the China launch and felicitated with Air Peace.
POLL
He implored the airline to sustain the feat and be consistent in providing best-in-class services.
He called on Allen Onyema, the Chairman of Air Peace, to ensure sustenance of this new route and extend the wings of the airline to more cities.
Similarly, Timothy Ose, another passenger on board the service, said he flies Air Peace to Dubai and when he learnt of the new China route, he was delighted.
He said the expansion into Asia was a huge respite to Nigerians, especially those who frequent the China destination, while also congratulating Onyema,
Air Peace launched its China destination, which is its third international route, on July 13, 2022, with a load factor of 240 passengers.
The airline disclosed that it had India and Israel in the works and reiterated its commitment to continually ease the burden of air travel for Nigerians and, by extension, Africans.
According to Oluwatoyin Olajide, the Chief Operating Officer, Air Peace, the airline would continue to grow its route network as well as modernise the fleet strategically.
Flights Suspension: Passengers Besiege Dana Air Counters, Seek Tickets Refund - NAN
Scores of Dana Air passengers on Thursday besieged the Airline’s counters at the Murtala Muhammed Airport private terminal two, otherwise known as MM2, to...
Scores of Dana Air passengers on Thursday besieged the Airline’s counters at the Murtala Muhammed Airport private terminal two, otherwise known as MM2, to demand refunds of fair following their inability to travel after ticket purchases.
The confusion was caused by the indefinite suspension slammed on the airline by the Nigerian Civil Aviation Authority (NCAA) for alleged financial incapacity and other issues.
On July 20, NCAA, in a statement, announced that the suspension of the airline would become effective from Wednesday midnight.
Many of the passengers who were billed to travel on the airline tickets were caught up in the action leaving them with the option of buying fresh tickets from other available airlines in operation.
The passengers, numbering over 70, expressed reservations about the absence of personnel of the suspended carrier at the departure hall.
The passengers had expected the Airline to brief them on the next line of action over a possible transfer to other partner airlines or refund of their ticket fares.
One of the passengers who identified him as Franklin Johnson told NAN, “we came this morning in anticipation of flying to our various destinations but we are told Dana airline had been suspended.
“The management should have reached out to all passengers or arranged with other airlines to take its passengers.
The security officials of the terminal manager, Bi- Courtney Aviation Services Limited, made frantic efforts to calm some of the passengers.
All efforts made by the airline representatives to appeal to the passengers to remain calm were rebuffed as they insisted on collecting their money back.
Speaking to NAN, the image maker of Dana Air, Mr Kingsley Ezenwa, cited how the airline had reached out to the passengers on the matter.
He said the message was on the need for them to send their account details to enable the airline to commence the refund of their money.
“While you are making refunds the passengers should realize the fact that there are rules guiding such action as the process for the refund and for the passengers to get their money back may take two or three days and not immediately.
“We have been engaging the passengers through all social platforms.” (NAN)
Airlines accused of selling more tickets than available seats on flights - YAHOO FINANCE
The competition and aviation regulators have warned airlines they will face enforcement action if they do not minimise flight disruptions and obey the rules regarding compensation.
The Competition and Markets Authority (CMA) and the Civil Aviation Authority (CAA) have issued a joint letter to carriers, expressing concern that “consumers could experience significant harm unless airlines meet their obligations”.
The letter stated: “We are concerned that some airlines may not be doing everything they could to avoid engaging in one or more harmful practices.”
These include selling more tickets for flights “than they can reasonably expect to supply”, not always “fully satisfying obligations” to offer flights on alternative airlines to passengers affected by cancellations, and failing to give consumers “sufficiently clear and upfront information about their rights”.
The warning comes at a time of widespread disruption at airports caused by staff shortages, including long queues and cancelled flights, as the industry struggles to keep up with a surge in demand.
Both regulators warned they would consider enforcement action if they saw evidence of "consumers continuing to experience these serious problems".
“Images of queuing families, social media posts full of horror stories of people left stranded or getting cancellation emails on their way to the airport just hours before they were due to depart have left a bitter taste. The CMA has warned that any repeat this summer could force them to take action," Danni Hewson, financial analyst at AJ Bell, said.
“The level of service that’s been provided when disruption occurs and the fact many people have been left to fend for themselves, often at great expense. It has warned airlines that they need to think ahead and to take responsibility for customers who might not have the cash or the ability to get themselves where they need to go.
“Compensation must be paid quickly, and arbitrary limits shouldn’t be set on levels of compensation, plus travellers need to be kept well informed of cancellation policy and not find themselves struggling to pore over the small print.
“It’s about transparency and boosting confidence, both things which are in airlines best interests.
The CMA and CAA said they expect airlines to “not continue marketing tickets for flights if they cannot be reasonably confident they will go ahead”.
After a flight is cancelled, airlines unable to offer a “timely replacement” flight must give passengers the option of flying with another carrier, according to the letter.
But some companies ask passengers to make their own arrangements in these circumstances.
The letter stated: “We have concerns that in some cases, this is likely to breach professional diligence standards for those consumers who are not in a position to do so.
“For example, those who may be unable to: investigate or book alternative routes; self-fund the purchase of flight tickets and accommodation; or to afford to wait for reimbursement, would not be able to benefit from their statutory rights in the event of flight cancellation.
“We urge airlines operating this practice to quickly put in place mechanisms for these consumers to ensure re-routing is a viable option for them.”
The CMA and CAA also said passengers’ rights must be “presented clearly”, and consumers “should not be required to hunt for such information”.
Last month, the UK government temporarily relaxed rules around airport slots to allow airlines to devise realistic flight schedules.
UK officials warned government not to pursue Rwanda deportation plan, court told - REUTERS
- Government says plan is needed to smash people smuggling
- Case will decide if full judicial review should be held
- Rwanda says misconceptions about how would treat migrants
LONDON, July 19 (Reuters) - British officials repeatedly warned the government not to pursue its plan to send migrants to Rwanda and the country was initially excluded from the shortlist of partner countries because of human rights concerns, London's High Court was told on Tuesday.
Under an agreement struck in April, Britain will send tens of thousands of migrants who arrive on its shores illegally more than 4,000 miles (6,4000 km) to the East African country.
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The first planned deportation flight last month was blocked by a last-minute injunction from the European Court of Human Rights. read more
The government has vowed to press ahead with the plan, but the policy is facing a judicial review at the High Court where its lawfulness is being challenged.
Lawyers acting for asylum seekers from countries including Syria, Sudan, and Iraq, as well as charities and Border Force staff, have been sent thousands of documents detailing internal government discussions about the policy.
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In February last year, the British High Commissioner to Rwanda said in a memo that Rwanda should be not selected as a place to send migrants for a variety of reasons including that the East African country had been accused of "recruiting refugees to conduct armed operations in neighbouring countries", according to written evidence submitted to the court.
The memo also said that Rwanda "has a poor human rights record regardless of the conventions it has signed up to" and has been criticised by Britain for "extrajudicial killings, deaths in custody, enforced disappearances and torture".
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Another internal government memo from April 12, a day before the deal with Rwanda was signed, said the agreement was "unenforceable, consisting in part of upfront payments, meaning fraud risk is very high".
'HUMAN RIGHTS'
Officials in the Foreign Office also cautioned that if Rwanda were to be selected, "we would need to be prepared to constrain UK positions on Rwanda’s human rights record, and to absorb resulting criticism from UK Parliament and NGOs".
Yolande Makolo, a spokeswoman for the Rwandan government, has criticised what she called misconceptions about the way migrants would be treated in the country. The Rwandan government is not party to the hearing.
"Rwanda is a safe and secure country with a track record of supporting asylum seekers," a British government spokesperson said. "We remain committed to delivering this policy to break the business model of criminal gangs and save lives."
The government argues the deportation policy will smash the business model of people-smuggling networks after a record 28,500 people crossed the English Channel in small boats last year.
However, a report by parliament's Home Affairs Committee on Monday said there was no clear evidence the Rwanda plan would deter migrants.
"The government’s Rwanda plan is a total mess," Yvette Cooper, the home affairs spokesperson for the opposition Labour Party, said.
"Today's revelations show that ministers knew the policy was unenforceable, would be at very high fraud risk and would undermine UK foreign policy and our ability to raise the issue of Rwanda’s human rights record."
Tuesday's hearing was being held to decide when a full judicial review should begin, with the court due to give its decision on Wednesday.
As Aero, Dana Air Succumb to Rising Cost of Operations - THISDAY
The reality of the prevailing dire situation in the Nigerian aviation sector, which manifested in the withdrawal of services by Aero Contractors last week and the suspension of Dana Air operation by the Nigerian Civil Aviation Authority, over its poor financial status, is an indication that unless aviation authorities act swiftly, the fate that befell the two airlines may soon catch up with others, writes Chinedu Eze
On Monday, the management of Aero Contractors, Nigeria’s oldest airline, announced that it would suspend scheduled flight operations due to a hostile operating environment and on Wednesday, it was the turn of Dana Air to cease operation no thanks to the directive from the Nigerian Civil Aviation Authority (NCAA) to ground their service as a fallout of the prohibitive cost of aviation fuel.
The suspension of scheduled flight services by the 61-year-old Aero Contractors due to the high cost of operations could be described as the augury of what is to come in an industry stretched thin by an acute shortage of foreign exchange, high cost of aviation fuel, an exodus of personnel that are moving to more lucrative markets and a hostile environment characterised by dilapidated airport facilities and lack of critical infrastructure.
This is evidenced by the action taken by the Nigerian Civil Aviation Authority (NCAA) on Wednesday. It suspended the operating licence of Dana Air because if the airline is allowed to operate it could jeopardise lives in an accident, as experts note that air safety could be threatened if an airline loses its robust finance to effectively carry out maintenance of aircraft in its fleet, remunerate its workforce as at when due and abide by other financial obligations.
In a statement announcing the suspension of Dana Air’s operations, NCAA said, “The suspension was made pursuant to Section 35(2), 3(b) and (4) of the Civil Aviation Act, 2006 and Part 1.3.3.3(a)(1) of the Nigeria Civil Aviation Regulations (Nig.CARs), 2015.
“The decision is the outcome of a financial and economic health audit carried out on the Airline by the Authority, and the findings of an investigation conducted on the airline’s flight operations recently, which revealed that Dana Airlines is no longer in a position to meet its financial obligations and to conduct safe flight operations,” the statement said.
This is the precarious situation Nigerian airlines are facing, high cost of aviation fuel, high exchange rate and the depreciation of the naira. These are unpretentious threats to their existence, but industry sources said the first casualties might be the airlines with very limited capacity. Nigeria has about eight domestic airlines in operation with about 43 aircraft but a significant number are not in active service. Many of them operate an average of three aircraft, except Overland Airways, Ibom Air and Air Peace, which has the highest capacity in Nigeria.
Genesis of Aero’s Predicament
But the warning signs that Aero might not go the whole hog came about two months ago when it was stripped of its fleet, leaving two ageing aircraft: a Boeing 737 and a Bombardier Dash 8 and totally cash strapped as it was battling huge debts estimated at over N50 billion.
Aero Contractors management in a statement on Monday said, “Due to the impact of the challenging operating environment on our daily operations, the management of Aero Contractors Company of Nigeria Limited. wishes to announce the temporary suspension of its scheduled passenger services operations with effect from Wednesday, July 20, 2022.
“This does not in any way affect the maintenance activities of the Approved Maintenance Organisation (AMO) otherwise known as AeroMRO, the Approved Training Organisation (ATO) also known as Aero Training School, the Helicopter and Charter Services operations.
“This decision was carefully considered and taken because most of our aircraft are currently undergoing maintenance, resulting in our inability to offer a seamless and efficient service to our esteemed customers. We are working to bring these aircraft back to service in the next few weeks, so we can continue to offer our passengers the safe, efficient, and reliable services that Aero Contractors is known for, which is the hallmark of Aero Contractors Company of Nig. Ltd,” the airline said.
It also explained that the past few months have been very challenging for the aviation industry and the airline operators in particular with the high cost of maintenance, skyrocketing fuel prices, inflation, and forex scarcity resulting in high foreign exchange rates, adding that these are amongst the major components of airline operations.
Earlier Signs
Aero Contractors had been walking on a thin line between survival and extinction due to huge debts incurred by the former management when it acquired old aircraft at a highly inflated cost. The former Oceanic Bank supplied it with fiscal oxygen to sustain its operation until when it was absorbed by Ecobank Transnational Incorporation in October 2011.
THISDAY learnt that the airline’s bad situation was exacerbated by the high cost of aviation fuel, which price has continued to spiral, threatening the operations of other domestic carriers. With its financial inanities exposed, the airline suffered hiccups and became moribund until the Asset Management Corporation of Nigeria (AMCON) came to its rescue.
A former senior official of the airline and now the Managing Director/ CEO of 7 Star Global Hangar Nigeria Limited, Isaac Balami, told THISDAY that AMCON tried to rescue Aero Contractors when it took it over. It injected billions of naira into the airline and Arik Air, but after some time the agency felt it would not continue to inject funds into the airline, recalling that during that period the federal government and the then Minister of Aviation were worried and wanted to safeguard the jobs of the personnel and that explained why it continued to operate till the recent shut down; although there were times it stopped operation temporarily before it was revived in 2017.
“But now all the airlines are struggling. Nigerian airlines are trying but the problem is the high cost of aviation fuel. Aero management is wise enough to know when to stop; realising that because of the high cost of Jet A1 and high cost of forex, they have to shut down so that when they come back people can trust them,” Balami said.
Debts
The airline, which had provided shuttle service for the oil and gas industry for decades and extended its service to scheduled flight operations since 2000 was burdened by huge debts.
THISDAY investigations revealed that the economic recession occasioned by the COVID-19 lockdown and protracted low season after December heavy passenger traffic demand culminated in the financial drought of the airline.
Before this announcement by the management, the airline was finding it difficult to fuel its existing fleet
Two months ago, the management of the airline confirmed to THISDAY the precarious state of the airline and identified factors that led to the debilitating condition of the indigenous carrier and pointed out that the Aero could stop operation at any time because the management was finding it increasingly difficult to keep the aircraft in the airspace.
Industry in Distress
The high cost of aviation fuel, which is a global problem, is stripping Nigerian airlines of operational cash. It also pushed up airfares, forcing some potential travellers to keep away from the airports and use the roads, despite security threats. With a N50,000 base fare, airlines charge as high as N80,000 for a one-way flight. This has forced passenger traffic to drop on domestic air travel and has put the airlines in a quandary. The airlines do not have a choice but to pass some of the cost of aviation fuel to travellers.
Even at that, THISDAY learnt that some airlines might also suspend flight operations as their financial resources continue to deplete without recompense.
Last Tuesday, the Airline Operators of Nigeria (AON) frowned at the decision of the Federal Airports Authority of Nigeria (FAAN) to close the domestic runway at the Murtala Muhammed Airport, Lagos to install airfield lighting and argued that closing the runway, known as Runway 18L, for three months would cost the airlines billions of Naira in fuel burn, as aircraft trudge from the international runway to the domestic terminals, which could take about 30 minutes.
Crisis
Industry expert and former Commandant of Murtala Muhammed International Airport, Lagos, Group Captain John Ojikutu told THISDAY that the problem of Aero did not start today but started about 2010 when the British technical partners were allegedly sidelined and the management came under single management of the Ibru family.
Ojikutu explained that two years later Aero went into debt under the management of AMCON with limited knowledge in commercial aviation, adding that single management killed Arik Air alongside Aero and the defunct Okada Air, Kabo, Nigeria Airways Limited, which was a national carrier and others.
“Fuel prices have been irregularly increased almost monthly despite what the government called subsidies to fuel marketers. Within a year, it has quadrupled from N200/ltr to N800/ltr. 1.3 million barrels per day is what we are being told that are exported out of a production of 2.3 million barrels produced per day; what happens to the balance of one million barrels?” he asked.
The aviation industry has been tamed and frightened. Many observers note that unless the situation improves, more airlines may shut down their services.
Virgin Atlantic Seeking 200 More Pilots to Ramp Up Capacity - BLOOMBERG
(Bloomberg) -- Virgin Atlantic Airways Ltd. is seeking 200 pilots to help operate its flying schedule starting next summer, even as the European air-transport industry remains in the grip of a staffing shortage.
The U.K. carrier plans to hire first officers across both its Airbus SE and Boeing Co. fleets, according to a statement Friday. About 100 pilots will be needed for summer 2023, followed by 60 in 2024 and a further 40 the year after that.
Virgin is recruiting pilots after all those placed in a pool at the height of the Covid-19 pandemic and passed an interview returned or agreed start dates. The company says it’s a more attractive employer than other airlines due to the attractions of its long-haul routes, with 10,000 people applying for 800 cabin-crew and 45 pilot posts in an earlier hiring push.
Would-be recruits must have a minimum 1,500 flying hours on relevant aircraft, including 200 in the past 12 months.
The move comes as airlines across the world rush to take on workers after scaling back as travel ground to a halt during the coronavirus crisis. European transport chaos this summer is due to a shortage of 1.2 million workers across the EU, the World Travel & Tourism Council said this week.
Dubai-based Emirates said separately it will add a third daily flight from London’s Gatwick airport from July 27 through Aug. 3 to help accommodate passengers affected by capacity curbs at the UK capital’s Heathrow hub. The extra trips will be operated by Boeing Co. 777 aircraft after Gatwick was able to secure sufficient ground-handling resources.
Emirates will operate six daily flights to Heathrow during the period, while services to London Stansted will resume from Aug. 1 as planned with five weekly connections, going daily from September.
(Updates with other staff shortage statistics in fifth paragraph)