MARCH 23, 2023

(Bloomberg) -- UK house prices fell at the fastest pace in 12 years in January, barring the pandemic, as higher mortgage costs piled further pressure on the housing market, official figures showed.

On a seasonally adjusted basis, which smooths out short-term fluctuations, prices fell 0.6% from December, according to the Land Registry. That followed a 0.4% decline in December and was the steepest monthly drop, bar distortions during Covid, since 2011.

For the year to January, prices climbed 6.3%, slower than the 9.1% annual rise to December 2022. More up to date figures from mortgage lender Halifax suggest prices may have recovered a little.

Britain’s housing market took off during the pandemic after the Bank of England cut rates to 0.1% in early 2020 and the government gave households tax breaks on property purchases. At its peak last July, annual house-price inflation was running at 14.5%.

Since the BOE started raising rates in late 2021, however, mortgage costs have doubled to around 4% and the property market has slowed. Transactions are down and annual price-growth is cooling.

Private renters are also being hit with higher costs, with average rents rising at the fastest pace since records began in 2016 - up 4.7% in the 12 months to February, the Office for National Statistics said.

Landlord instructions are falling while tenant demand is rising, putting the market off balance, the Association of Residential Letting Agents said in February.

While conditions for renters are deteriorating, there was a recovery in housing affordability for homebuyers last year, the ONS said. The average home cost 8.3 times the average full-time salary in England, a decline from a record of 9.1 times in 2021.

That was the steepest annual fall since records began in 1997 but only returned ratios “to the long-term trend.” Affordability improved because average house prices fell by £9,000 in England Wales in the 12 months to September 2022 while average wages rose £1,800, the ONS said.

MARCH 24, 2023

The federal government says Nigeria Air, the country’s proposed national carrier, would begin operations before the end of the President Muhammadu Buhari-led administration.

Hadi Sirika, the minister of aviation, spoke at the national aviation stakeholders forum 2023 in Abuja on Thursday.

In October 2022, Buhari had said the national carrier would commence flight services by December 2022, but that did not happen due to controversy surrounding the airline’s ownership structure, leading to a court order stopping the federal government from implementing the project.

Speaking at the stakeholder forum, Sirika said the latest deadline is another proposed date for the take-off of Nigeria Air.

He said the project is 98 percent completed.

“All of the roadmap items except, perhaps the airline which in my opinion is at 98 percent completion, and we will fly within these remaining two months by the grace of God,” the minister said.

“We will also finish the concessions. So, all those things we said we would do when we came in, we did them.

“Before the end of this administration, before May 29th, we will fly.”

Speaking on the bidding process of the Nigeria Air project, Sirika said he had hoped Emirate, Lufthansa, and Qatar airlines would emerge as the preferred bidders.

However, he said he was pleased that the Ethiopian Airlines (ET) consortium eventually emerged the winner. 

The minister explained that, except for Overland Airways, he approached international and domestic airlines about partnering with Nigeria Air.

“When we were setting up Nigeria Air limited, my gut feeling is to partner with airlines that I think will add value, with financial experience and high profile such as Emirate, Qatar, Lufthansa, and the rest of them,” he said.

“Those who worked closely with me know that this is my forecast and what I wanted because I believe if you partner with Lufthansa for example, automatically you will have license to fly.

“I thought we would do that, and I made attempts to reach them and invite them, as I did with all airline owners in Nigeria, except Overland.

“I reached out to them personally to come and partner to create a strong airline but fast forward, we had a bidder, Ethiopian airline.

“I was very happy that we got them (Ethiopian) to come. It was not my choice but I am happy now knowing what I know.

“They are a household name, strong, and they have been in business for 70 years unbroken and they have over 200 aircraft.

“So, I am very glad we are partnering with them and it is a reality.

“Some airlines are in court and their grouse is that it can be any airline in the world but not Ethiopian because, in their own way, they think Ethiopian is a competitor.”

MARCH 24, 2023

TSA head says US system opt-out is temporary

The federal Ministry of Finance of Nigeria has disclosed that talks are underway for the conclusion of agreements with Japan which will enable the deployment of facial recognition technology by NEC Corporation at some of the country’s airports, starting with a pilot at those of Abuja and Lagos.

At the end of talks which the Minister of State for Budget and National Planning Clem Agba had with the Turkish Ambassador to Nigeria Matsunaga Kazuyoshi and officials of NEC recently, the government official said deploying facial recognition in Nigeria’s airports will curb insecurity and other illegal activities, Punch reports.

The project is expected to be financed with grants secured through the planned cooperation agreement. NEC will first deploy the system at the Murtala Muhammed International Airport in Lagos and the Nnamdi Azikiwe Internal Airport in Abuja for a trial, before eventually expanding it to airports in the cities of Enugu, Kano and Port Harcourt.

Agba called on the support and collaboration of shareholders for the project which he said started with consultations back in January in the Japanese capital Tokyo.

He said he believes the system “would further strengthen the security of our people and the country as a whole” as “this project was conceived in view of several security concerns and the need to nip these growing concerns in the bud.”

Before the project implementation begins, Agba said a site visit would be conducted by a joint team.

The Japanese Ambassador is also quoted as hailing the project, saying it will go a long way in bolstering Nigeria’s airport architecture and encourage travel to and investment in the country.

“We want to holistically support the Nigerian Government to improve security, social cohesion and promote better migration management through the use of technology and installation of CCTV cameras at strategic places,” said Kazuyohsi as reported by Punch.

In the past, experts in the aviation industry in Nigeria have suggested the use of biometrics technology to improve security at the country’s airports.

Biometrics boost airport security, will become mandatory, says TSA

In an airports security related story, the head of the Transportation Security Administration (TSA) David Pekoske has underscored the use of facial recognition technology as one of the best ways of enhancing airport security and accelerating passenger checks at airports across the United States.

Speaking at a panel which was themed on improving airport security, Pekoske said the federal agency’s advanced technology including biometrics enables the screening of around 2.4 million persons at airports in the U.S. daily, as reports The Dallas Morning News.

The tech deployment, according to the TSA chief, means lesser need for deployment of personnel.

For now, biometrics screening for passengers by the TSA is optional as they can out of any stage they are uncomfortable with. The official mentioned however that this will not be the case eventually.

He added that their technology is being improved upon for greater efficiency.

“We’re upgrading our camera systems all the time, upgrading our lighting systems, upgrading our algorithms, so that we are using the very most advanced algorithms and technology we possibly can. With the technology we’ve already deployed, we know we don’t have to increase the size of our workforce,” said Pekoske.

MARCH 24, 2023

By Prince Okafor

Amidst ongoing litigation concerning the new national carrier, Nigeria Air, the Federal Government has again insisted that operations will commence before May 29, 2023.

The Minister of Aviation, Hadi Sirika made this disclosure at the 10th Aviation Stakeholders Forum yesterday, in Abuja.

Sirika, confirmed that the litigation was responsible for the delayed takeoff of the new airline initially proposed to commence operations December, 2022.

He also noted that domestic airlines were invited to invest in Nigeria Air but they declined because they did not believe in the project.

According to him, Ethiopian Airlines, ET, came up with a better proposal and were chosen as the preferred bidder because of the expertise it has shown and survived for a long time now.

“Negotiation meeting with the Ethiopian Airlines Group Consortium and the Federal Government of Nigeria is ongoing.

“Next step: Federal Executive Council approval of the Full Business Case.

“Operation of local and international flights will commence soon. Before the end of this administration, before May 29, we will fly,” he said.

Sirika also said the benefits Nigeria stands to derive from the establishment of the national carrier include a reduced capital flight from Nigeria, gaining the optimal benefit of BASA and SAATM and the development of an aviation hub.

He also said the national carrier would contribute to the nation’s GDP; facilitate hospitality and tourism; promote growth and development of the Nigerian Agricultural Sector and create jobs around the Agro-Cargo Terminals.

MARCH 25, 2023

(Bloomberg) -- American Airlines Group Inc. will temporarily suspend a route between the US and Spain because of ongoing delays in the delivery of Boeing Co. 787 Dreamliners. 

Service between Philadelphia and Madrid will stop throughout May and early June, American said in a statement Friday. The carrier is contacting customers booked on the affected flights to make new travel arrangements.

American and some other carriers have struggled for several years with delayed deliveries of the twin-aisle Dreamliner, which American last month blamed for causing “significant reductions to our planned long-haul flying.” Boeing once again paused handovers in February over documentation issues before resuming earlier this month.

“We continue to work with our customers, including American Airlines, on delivery timing and deeply regret the impact to their operations,” Boeing said in a separate statement. “We remain focused on driving stability in our production system, including closely partnering with our suppliers to address industry challenges to meet our customer commitments.”

American’s next scheduled 787 Dreamliner would be two years late if Boeing handed over the plane this month, the airline said. At the end of 2022, Fort Worth, Texas-based American was operating 33 787-8 aircraft and 22 787-9 variants. It’s scheduled to receive four of the planes this year and 12 in 2024. 

Boeing earlier suspended Dreamliner deliveries in May 2021 to address structural glitches, and didn’t resume them until August 2022.

The suspended route was reported earlier by the Wall Street Journal. 

MARCH 26, 2023

(Bloomberg) -- Hong Kong International Airport handled 2.1 million passengers last month, about 24 times that of February last year, airport authorities said in statement.

Cargo volume increased 6.7% to 290,000 tons and flight movements rose 95.7% to 16,305.

“Due to the relaxation of travel restrictions, all passenger segments experienced significant growths, particularly Hong Kong residents,” Airport Authority Hong Kong said in the statement on Sunday. “Traffic to and from Southeast Asia and Japan recorded the most significant increases.”

NOTE: Hong Kong Airport’s Passenger Volume Surges as China Reopens

MARCH 26, 2023

Air Peace, Nigeria’s biggest carrier, will fly directly for the first time from Nigeria to the State of Israel on April 20, 2023.

This is a relief to Nigerians and Israelis who have to travel for 27 hours from Nigeria to Israel via other nations but direct flight between the two countries would take just five hours.

Israeli government has confirmed that Air Peace’s inaugural flight to Ben Gurion International Airport, Tel-Aviv, Israel would be April 20, 2023.

Miri Regev, the Israeli Minister of Transportation and Road Safety, who disclosed this in Israel, noted that this would be a historical feat, as there had never been a direct flight between the Middle East nation and Nigeria.

“Nigeria’s flag carrier Air Peace will begin operating direct flights to Israel for the first time, starting on April 20, the Minister of Transportation and Road Safety announced today (Sunday). Minister Regev today approved the aviation agreement signed between Israel and Nigeria, and submitted it for government approval.

“The signed agreement will for the first time allow the airlines of each of the countries to operate regular flights at Ben Gurion Airport to several destinations in Nigeria, such as Abuja and Lagos. In the first phase, the Nigerian company (airline) will operate two weekly flights between Israel and Nigeria.

“So far, no direct flights have been operated between the two countries and the thousands of pilgrims who come to Israel every year from Nigeria have flown through Turkey or Ethiopia. The agreement will allow Israeli and Nigerian airlines to make direct flights between the countries and increase the number of pilgrims who come to Israel every year,” Israeli embassy source disclosed.

Regev said Israel has started opening new routes to connect the world and identified Nigeria as one of the leading countries in Africa that maintained close ties with Israel.

“Recently we have witnessed a wave of new routes being opened to destinations all over the world, and I am happy to announce the launch of direct flights to Nigeria as well. Nigeria is one of the leading countries in Africa, and it maintains close ties with Israel in a wide variety of fields, along with traffic of pilgrims who come to Israel to visit the holy places of Christianity. I welcome the opening of the new line and am sure that it will contribute to strengthening the business and cultural ties between the nations and between the governments,” she said.

Allen Onyema, the chairman and CEO of Air Peace, said that the airline is prepared for the inaugural and subsequent flights to the Holy Land, disclosing that it would begin with two flights a week and increase frequency with time.

Onyema commended the governments of Nigeria and Israel, saying that they made it possible, breaking old barriers to make direct flight between the two countries a reality, adding that it is an indication of the strong relationship between the two countries.

He also disclosed that the airline has completed plans to begin three times a week flight service to Jeddah and Medina in order to make it easy for Nigerians who wish to travel for pilgrimage, adding that it is in fulfillment of the promise the airline made to Nigerians of connecting them to domestic destinations and to the world.

He expressed confidence that the airline would secure approval from Saudi authorities for the flight service and in next few days would announce the date for the schedule flight operation.

Air Peace, which started operation in 2014, has recorded many firsts. It was the first Nigerian carrier that met the stringent safety and security standard of Israel, which enabled it to evacuate Israeli citizens during the COVID-19 lockdown in 2020.

The airline has started direct flight to China and on March 31 it would launch another direct flight to India.

Air Peace which has recorded the fastest growth by fleet in the African continent was the first in Africa to operate the new Embraer E195-E2 and it is expecting more deliveries of the aircraft in addition to receiving seven Boeing B737 MAX 8 and eight Boeing 737MAX 10 from 2023.

MARCH 26, 2023

BYJONATHAN E. HENDRY

The new national airline is due to begin operations from Lagos by the end of the current administration.

Nigeria's aviation minister confirmed this week that the country's upcoming national airline, Nigeria Air, is still on track to launch by the end of May. The comments came at the 2023 National Aviation Stakeholders Forum, where Nigerian Minister of Aviation, Hadi Sirika, also confirmed that the government was releasing more funds due to foreign airlines.

The country's original flag carrier, Nigeria Airways, collapsed twenty years ago, and efforts have been underway for several years to revive it. The original airline was rebranded into Nigeria Airways in 1971 following the dissolution of West African Airways Corporation, which was founded in 1958. Nigeria Airways was also based at Murtala Muhammed International Airport in Lagos, home of the upcoming Nigeria Air, and operated for 45 years before ceasing operations in 2003.

An influx of jobs

The minister expressed his excitement for the new airline to create additional employment opportunities. Mr Sirika claimed in his comments that Nigeria was the only country where qualified pilots struggle to find work, as countries worldwide struggle with pilot shortages. Upwards of 50 pilots have approached the aviation minister complaining about their unemployment status, which he said underscores the point that the national carrier should be able to employ more pilots and create other job opportunities.

The minister continued by promising the national carrier will contribute to Nigeria's gross domestic product, grow the hospitality and tourism industries, promote the agricultural sector, and create more jobs. A separate study has found the country's aviation sector is vital to the national economy by providing 241,000 direct and indirect jobs and an annual contribution of $1.7 billion.

The upcoming airline has faced several setbacks, including a legal challenge from local airlines that feel they were unjustly excluded from the bidding process. Sirika on Thursday, however, expressed his firm determination to have the airline running by the end of May:

“Local and international flights will commence soon by May 29. Negotiations between the Ethiopian Airlines Group Consortium and the Nigerian government are ongoing. The next step is for the country’s Federal Executive Council to approve of the full business case."

Over 16 million travelers passed through Nigerian airports last year, an increase of 9 million from 2020. The coming years will undoubtedly be even busier for Nigerian aviation. Local airlines, including Air Peace, Ibom Air, and Overland Airways, are expected to receive up to 40 new aircraft over the next 36 months.

Releasing additional airline funds

The minister further confirmed on Thursday that the government was actively releasing funds claimed by foreign airlines, which they have been unable to repatriate due to a lack of dollars in the nation. The total amount airlines have failed to repatriate from the country is said to have risen to $743.7 million in January, up from the $662 million remaining at the end of 2022.

While Sirka did not confirm a timetable for releasing the trapped funds, he did offer specifics for which airlines are currently receiving funds. Of the total amount, some $216 million goes to IATA airlines and $201 million to Qatar Airways, according to the International Air Transport Association (IATA). The aviation minister confirmed the government is "Doing our best to get the monies released" and added that Emirates Airlines had received the majority of its funds with only around $35 million still to be collected.

The airline was most recently granted its air operator's license (AOC) in June. It is still in court proceedings over its deal with Ethiopia Airlines to contribute its operational expertise and fleet to relaunch the new Nigerian carrier. The agreement calls for the Nigerian government to retain a 5% stake in the new airline, with Ethiopian Airlines taking 49% and Nigerian investors claiming the remaining 46%.

"Ethiopian Airlines, the offered bidder for the national carrier, is highly competent and profitable enough to add value to the Nigerian aviation sector," Sirika noted in response to questions regarding the matter on Thursday. Domestically, members of the Airline Operators of Nigeria, including Azman Air, Air Peace, MaxAir, United Nigeria Airlines, and TopBrass Aviation, have filed a lawsuit claiming that the ownership arrangements of the new carrier give it an unfair advantage and claims that Nigerians should wholly own any new national airline.

MARCH 26, 2023

By Muhyideen Jimoh

Mr Gangadharan Balasubramanian, Indian High Commissioner to Nigeria says the much anticipated direct flights from Nigeria to India is set to commence on March 31.

Balasubramanian told the News Agency of Nigeria (NAN) in Abuja that Air Peace, a private Nigerian airline had concluded plans for the inaugural flight from Lagos to Mumbai, Bombay.

” I can announce to you that that Air Peace will be flying directly from Lagos to India on March 31st for the inaugural flight.

“This is part of the implementation of the Bilateral Air Service Agreement (BASA) aimed at deepening relations between both countries, so I have been invited for the inauguration, ” he said.

Balasubramanian explained that the direct flight would further strengthen economic, trade, bilateral relations, and people-to-people ties between both strategic countries.

“The volume of trade between both countries as at 2022 is 14.95 billion dollars, so we believe agreements such as this will go a long way in boosting our relations,” he said.

He expressed optimism that the new route would increase the volume of trade between both countries, while opening new vista of opportunities for citizens of both countries.

NAN reports that Nigeria and the Republic of India had in 2019 signed a Bilateral Air Service Agreement (BASA), to deepen flight operations end to end.

Minister for Aviation, Hadi Sirika had expressed optimism that the agreement would further deepen cooperation between both countries.

BASA covers the basic framework under which airlines are granted bilateral rights to fly two countries. The frequency, designated airlines of the signatories, origin, intermediate points as well as traffic rights, type of aircraft and tax issues are normally covered by Memoranda of Understanding.

The new route is expected to further boost relations between both countries, as more than 135 indian companies currently operate in Nigeria.

India is becoming the prime destination for Nigerians seeking medical tourism, studies, businesses among others. (NAN) (www.nannews.ng)

Edited by Grace Yussuf

MARCH 27, 2023

By Sulaimon Salau

The Minister of Aviation, Hadi Sirika, has assured that the national carrier, Nigeria Air, would commence operation before May 29, 2023. Sirika, who disclosed this at the 2023 National Aviation Stakeholders Forum, said that the benefits from the establishment of a national carrier would include reduced capital flight, optimal benefit of BASA and SAATM and a developed aviation hub.
 
He listed other benefits to include higher contribution of aviation sector to the Gross Domestic Product (GDP), boosting of hospitality and tourism business, growth and development in agriculture as well as creation of jobs around the agro-cargo terminals.

He said that Nigeria has started making payments to foreign airlines’ whose ticket sales fund were held up by dollar shortages. He said Qatar Airlines had $201m blocked while another $216m was owed to IATA airlines. “We are doing our best to get the monies released,” Sirika said.