APRIL 12, 2023

By Deborah Dan-Awoh

Nigeria’s flagship gateway-the Lagos Murrtala Muhammad International airport is suffering from underinvestment and poor service levels at various passenger touch points, the International Air Transport Association has said.

IATA-the Switzerland-based international airlines trade association-said several airports in Africa were still having infrastructure challenges and there was a need to tackle the challenges as well as others inhibiting the growth of Africa’s aviation.

IATA Regional Vice President for Africa & Middle East, Kamil Al Awadhi, said this during the launch of “Focus Africa” aimed at strengthening aviation’s contribution to Africa’s economic and social development.

Al Awadhi said the various challenges affecting Africa’s aviation sector stemmed from poor infrastructure and other issues which could impede Africa’s admirable future.

He said, “Many airports in Africa have systems and processes which do not offer a good passenger experience. For example, the Lagos Murtala Muhammad International Airport suffers from underinvestment in the passenger experience, processing capacity and bottlenecks in service levels at various touch points.

“As well, airports such as NBO in Kenya have multiple layers of airport access, perimeter and terminal security which often pose a challenge for passengers and airlines.”

According to the IATA VP, the Focus Africa initiative is expected to tackle infrastructural challenges and improve connectivity, safety and reliability for passengers and shippers.

 The initiative is expected to align private and public stakeholders to deliver measurable progress in six areas.

 “Africa accounts for 18 per cent of the global population, but just 2.1 per cent of air transport activities (combined cargo and passenger). Closing that gap, so that Africa can benefit from the connectivity, jobs and growth that aviation enables, is what Focus Africa is all about,” said Willie Walsh, IATA’s Director General at the event.

Infrastructure constraints, high costs, lack of connectivity, regulatory impediments, slow adoption of global standards and skills shortages affect the customer experience and are all contributory factors to African airlines’ viability and sustainability.

The continent’s carriers suffered cumulative losses of $3.5b for 2020-2022.  Moreover, IATA estimates further losses of $213mn in 2023.

In January, the Federal Airports Authority of Nigeria announced plans to expand  the General Aviation Terminal of the Lagos airport.

However, the challenges at Lagos airport appears to have been abandoned for a long time even though the agency has recorded some milestones in runway lights among others.

Awadhi also emphasised that Africa as a continent has the slowest adoption of passenger data  programmes globally, noting that only a handful of governments that have implemented passenger data programmes.

“API programmes, when implemented using Industry guidance and best practice, can strengthen borders, but also supports airports and governments to move towards advanced processing capabilities.

“Passenger data (API) is also important as it strengthens borders, and potentially paves the way for enabling additional efficiencies such as contactless and off-airport processing of passengers,” he noted.

He explained that “infrastructure in Africa also comes with a high price tag in many countries. User charges are eight per cent higher than the industry average.”

APRIL 13, 2023

The federal government and the International Organisation for Migration (IOM) have evacuated 152 more Nigerian migrants living illegally in Libya.

The stranded Nigerians arrived in the country via the Murtala Muhammed International Airport, Lagos, on Tuesday evening.

Kabiru Musa, Nigeria’s ambassador to Libya, in a statement, said this is the third repatriation exercise the Nigerian government and IOM have carried out in 2023.

He disclosed that over 500 Nigerians stranded in Libya have been successfully evacuated during the exercises.

The ambassador commended IOM and the Libyan authorities for their support and cooperation.

“Today, we have successfully evacuated another 152 Nigerians stranded in Libya to Nigeria,” he said.

“Libya is a transit country for irregular migrants to the Western and other parts of the world.

“Whenever these irregular migrants can no longer continue their journey to expected destinations, they become stranded here.

“Because of their status as undocumented immigrants, they become vulnerable to exploitation and degrading treatment, including forced labour and prostitution.

“The federal government is determined to protect the rights of these migrants and will continue to facilitate their safe and voluntary return home.

“This is the third exercise we have conducted this year. We evacuated almost 4,000 stranded Nigerians from Libya in 2022 and we hope to surpass that number this year.”

On March 28, 2023, the federal government announced that 151 stranded Nigerians have been repatriated from Benghazi in Libya.

Barely 24 hours later, another batch of 128 Nigerian migrants living illegally in Libya returned to the country.

APRIL 13, 2023

By Funmilayo Fabunmi

As part of its expansion efforts to enhance its global connectivity, RwandAir has signed a codeshare agreement with Turkish Airlines.

A statement from RwandAir noted that the codeshare partnership allowed its customers to access Turkish Airlines’ extensive network of over 300 destinations worldwide, providing greater travel choices and seamless connection opportunities in Kigali, Rwanda, and Istanbul, Turkey.

It stated that Turkish Airlines customers would also benefit from the agreement, as they can now enjoy smooth onward connections across RwandAir’s African network from Kigali.

Currently, Turkish Airlines operates daily flights between Istanbul and Kigali.

The statement disclosed that RwandAir recently launched codeshare agreements with other leading airlines, such as Qatar Airways, as it sought to expand its reach and strengthen its position in the aviation industry.

“RwandAir is known for its excellent on-time performance, customer service, and safety, operating to 24 destinations across Africa, the Middle East, Europe, and Asia from its hub at Kigali International Airport, which is located at the heart of Africa,” it stated.

The CEO of RwandAir, Yvonne Makolo, said, “We are incredibly excited to have signed this new codeshare agreement with one of the world’s largest and leading carriers, Turkish Airlines.

“This landmark move will not only allow our customers to access the 124 countries served by Turkish Airlines but will improve connections for inbound travellers to Africa via our extensive continental network.”

He claimed that RwandAir was always exploring new commercial opportunities to expand its reach into markets, which can deliver financial return and benefit our growing customer base.”

APRIL 13, 2023

By Funmilayo Fabunmi

 

A Nigerian airline, Green Africa, has announced plans to expand its network across Nigeria starting August 2023, connecting Abuja to Sokoto, Kano, Enugu, and Ibadan

It would also be establishing a base in Abuja and extending its presence to 16 routes across 10 states including the Federal Capital Territory.

In addition to the new routes, Green Africa will also add a second daily service between Benin and Abuja and resume service between Abuja and Owerri.

The airline aims to continue its reputation as one of the most affordable and punctual carriers in Nigeria, with fares starting as low as N25,000 on all routes, including the new ones, if booked at least 60 days in advance.

The founder and Chief Executive Officer of Green Africa, Babawande Afolabi, stated that the expansion is the next phase of the airline’s journey to use air travel to create a better future in Nigeria and eventually across Africa.

Green Africa began commercial operations over a year ago and has quickly gained a strong reputation in the market.

APRIL 13, 2023

Azman Air, one of the nation’s domestic airlines, has suspended its domestic flights for the past two weeks due to lack of serviceable aircraft, Daily…

By Abdullateef Aliyu

Azman Air, one of the nation’s domestic airlines, has suspended its domestic flights for the past two weeks due to lack of serviceable aircraft, Daily Trust learnt.

Our correspondent reports that many passengers and stakeholders of the airline have been at a loss as to the sudden suspension of domestic flights by the airline.

One of the staff who spoke with our correspondent on the condition of anonymity said, “We have not been operating for the past two weeks now but we don’t know what is happening.

“Many passengers were asking us when are we resuming but we didn’t really have any clue. It was later that we were told that we don’t have any aircraft serviceable.”

Daily Trust gathered that the airline suspended flights because all its aircraft were due for maintenance.

One of the officials who spoke with our correspondent said the airline on its own suspended flights to enable it carry out scheduled maintenance on the aircraft.

“This action is part of our commitment to safe flight operation and we will never compromise safety in our operation.”

It was further learnt that the Nigeria Civil Aviation Authority (NCAA) was informed of the development.

When contacted yesterday, a spokesperson for the airline, Mr. Nura Aliyu said two of the aircraft would arrive next week for the airline to resume operation.

“All our aircraft are under maintenance but we will resume operations by next week by the grace of God. Two of our aircraft will arrive by next week,” he said.

APRIL 13, 2023

(Bloomberg) -- Ether rallied past $2,000 for the first time since August after a widely anticipated software upgrade to the most commercially important blockchain went according to plan, and as worries of initial rapid outflows proved unfounded.  

The so-called Shanghai update enables investors to queue up to withdraw Ether coins that they had pledged to help operate the Ethereum network in return for rewards, a process called staking. Ether jumped as much as 5.2% to $2,008 as just 0.3% of all 18.1 million tokens staked were withdrawn in the 12 hours following the upgrade, according to data from Nansen. 

Ether is now up 67% this year and within a whisker of topping an August high, which would take it to levels not seen since late May. Its advance still trails the 83% surge in larger token Bitcoin, hinting at more upside should withdrawals remain muted. 

“The amount of ETH entering the market from Shanghai withdrawals is much lower than what was previously expected,” said Grayscale Research analyst Matt Maximo. “The amount of new ETH being staked is also outpacing the withdrawals, which is creating added buy pressure to offset the withdrawn ETH.”

Tim Beiko, who helps to co-ordinate the development of Ethereum, posted on Twitter on Wednesday that the upgrade is now “official.”

The network revamp — also known as Shapella — is designed to let people exit an Ether staking investment and has stirred debate on whether the appeal of the largest token after Bitcoin will increase over time.

“Ethereum is updating and navigating with great skill — so far anyway — and cementing its position as the No. 2 crypto,” said Aaron Brown, a crypto investor who writes for Bloomberg Opinion. He added that the network is “moving to the future much faster than Bitcoin.”

About 1.2 million of Ether tokens — worth approximately $2.3 billion at current prices — are expected to be withdrawn over the next five days, according to researcher Coin Metrics. Some $36.7 billion of Ether is locked up for staking, data from Staking Rewards shows.

Crypto exchange Kraken dominated the initial exit queue, based on figures compiled by Rated Labs. Kraken is discontinuing staking products in the US as part of a settlement with the Securities and Exchange Commission. The regulator earlier this year alleged the firm’s staking service was an illegal sale of securities.

Investors were braced for crypto price swings around the upgrade but digital-asset markets were largely steady.  

Smaller coins from applications that try to make it easier to harness Ether staking rewards, such as LDO and RPL, also advanced, according to CoinGecko data. LDO clinbed 6.1% and RPL was up 2.3%, the data showed. 

The Ethereum blockchain in September last year transitioned to a proof-of-stake from a proof-of-work approach, a revamp called the Merge that slashed the network’s electricity consumption.

Proof-of-stake uses piles of Ether — placed in special so-called staking wallets — to help order transactions on the Ethereum network. Proof-of-work, the system used by Bitcoin, relies on power-hungry computers and consequently has been attacked for its environmental footprint.

--With assistance from Sidhartha Shukla.

(Updates with Ether price reaction from first paragraph.)

APRIL 14, 2023

The strike is over ths FG’s plan to demolish Lagos offices of aviation parastatals and the delay to review workers Condition of Service.

Flight operations might be disrupted in NigerIa as aviation unions have announced that they would embark on strike from April 17th to 18th, 2023, over the plan of the federal government to demolish Lagos offices of aviation parastatals and the delay to review workers Condition of Service, (CoS) as negotiated between the unions and four aviation agencies seven years ago.

Other reasons given for the planned industrial action included non-implementation of minimum wage consequential adjustments and arrears for the Nigeria Meteorological Agency (NiMet) since 2019 and the planned demolition exercise of all the agency buildings in Lagos by the Minister of Aviation for an airport city project, known as aerotropilis.

In a notice of a two-day warning strike to workers of all aviation agencies, signed by the scribes of the five unions, it insisted that if the warning strike fails, an indefinite strike shall ensue.

The unions included National Union of Air Transport Employees (NUATE), Air Transport Services Senior Staff Association of Nigeria (ATSSSAN), Association of Nigeria Aviation Professionals (ANAP), National Association of Aircraft Pilots (NAAP) and Engineers and the Amalgamated Union of Public Corporation Civil Service Technical and Recreation Services Employees.

The unions which signed the notice said they had earlier issued a 14-day ultimatum to the Minister of Aviation since February 7, 2023 on the same matter.
According to the notice, the ultimatum had since expired and nothing tangible had been yielded from their efforts.

“Recall our unions as named above issued a 14-day ultimatum to the Honourable Minister of Aviation and specific aviation parastatals since February 7, 2023 over the following demands: non-implementation of minimum wage consequential adjustments and arrears for the Nigeria Meteorological Agency, NiMet since 2019, refusal of the Salaries, Income & Wages Commission, NSIWC and Office of the Head of Service of the Federation, OHCSF, to release the reviewed Condition of Service, CoS, of Nigerian Airspace Management Agency, NAMA, Nigerian Civil Aviation Authority, NCAA, Nigerian College of Aviation Technology, NCAT and Nigerian Meteorological Agency, NiMet , as negotiated between our unions and the Agencies, and as duly conveyed by the Federal Ministry of Aviation since upwards of nine years.

“The ultimatum has since expired and nothing tangible has been yielded from our efforts and that of the Ministry of Aviation. Furthermore, it has become evident that the Minister of Aviation remains adamant in carrying out his threat to demolish the headquarters of FAAN, NAMA and NCAA in Lagos, despite all our entreaties towards caution.

“In view of the foregoing and unless the demands are met , NiMeT consequential adjustment is implemented and the arrears paid, the CoS for NAMA, NCAA, NCAT and NiMeT are immediately released and the Minister’s demolition exercise is halted, all aviation workers are hereby directed to withdraw all services in the sector on April 17 and 18, 2023 as warning strike. Should the warning strike fail to achieve the desired results, an indefinite strike shall ensue. All workers should comply and all state councils and branch exco members shall enforce this directive without compromise,” the statement read.
The unions have directed all their members to comply with the directive while all state councils, branches and executives have been urged to enforce the directive without compromise.

Chinedu Eze

APRIL 14, 2023

CHICAGO, April 13 (Reuters) - Delta Air Lines (DAL.N) on Thursday offered an upbeat outlook for summer travel demand that it expects will result in higher-than-expected profit for the quarter through June, despite growing risks of an economic recession.

Rising interest rates, high inflation, mounting job losses and turmoil in the banking industry have fueled concern about the strength of consumer spending, which has allowed carriers to mitigate rising labor and fuel bills with higher ticket prices.

Those concerns were amplified on Wednesday after American Airlines Group Inc's (AAL.O) revised earnings forecast fell short of Wall Street estimates, sparking a sell-off in airline shares.

Investors had been alarmed by recent booking data that showed customers were booking trips well in advance, leading to a moderation in close-in ticket sales, particularly for domestic travel. Delta's advance cash bookings in the first quarter were up nearly 20% compared to 2019.

Chief Executive Ed Bastian, in an interview with Reuters, attributed it to an attempt on the part of customers to lock in the opportunity to travel sooner as well as elimination of flight change fees by many airlines, including Delta.

"Consumers are anxious to travel," he said, adding that demand for international travel was especially strong this summer.

Delta's air traffic liability, reflecting future bookings, at the end of the January-March quarter came in at $11.2 billion, up about 35% from the end of last year.

Some analysts said the company's outlook helped ease demand concerns. "Ticket purchase patterns have changed, let's get used to it," said Citi analyst Stephen Trent.

Delta's shares, however, were down 0.5% at $33.57 in afternoon trade.

The lifting of pandemic-related travel restrictions is encouraging more people to travel overseas. Travelers are also being emboldened by a strong U.S. dollar and more flexible work arrangements.

Delta said 75% of its international flights in the June quarter have already been booked. Premium cabins, which have been outperforming the main cabin in terms of revenue growth, are in great demand on its long-haul flights, it said.

To meet increasing demand, it is adding 20% of seating on international flights from a year ago.

Revenue in the June quarter is estimated to rise 15% to 17% from a year ago on capacity growth of 17%.

"We're growing supply at that level and not seeing a deterioration in the overall revenues," he said. "It's unusual in our industry."

Delta expects an adjusted profit of $2.00 to $2.25 per share in the second quarter, higher than a profit of $1.66 per share estimated by analysts.

It posted weaker-than-expected profit of 25 cents a share in the first quarter, as winter storms hurt its revenue and drove up operational expenses.

Reporting by Rajesh Kumar Singh; Editing by Jamie Freed and Shinjini Ganguli

APRIL 14, 2023

(Bloomberg) -- Delta Air Lines Inc. sees profit this quarter topping Wall Street’s estimates, buoyed by steady bookings heading into the crucial summer travel season, even as it posted weaker-than-expected results for the first months of the year.

Adjusted second-quarter earnings will be $2 to $2.25 a share, the Atlanta-based airline said in a statement Thursday. That compares with a $1.61 analyst consensus estimate compiled by Bloomberg.

Revenue and average fares continue to grow, Chief Executive Officer Ed Bastian said, even if the pace of demand across the industry has moderated from a recent post-pandemic surge. The carrier forecast that second-quarter revenue will climb as much as 17% from the same period a year ago. 

“If there are signs of slowing, don’t look here,” he said in an interview.

Investors are watching for any signs of waning demand, particularly in April and May before summer leisure travel demand kicks in, as consumers face high prices and threats of recession. The air-travel industry, which so far has been resistant to those pressures, also has been battling stubbornly high operating costs. 

The carrier’s shares rose less than 1% at 9:39 a.m. in New York. Rivals including American Airlines and United Airlines, along with some European carriers, climbed as well.

Delta’s guidance for growth in average fares confirms demand strength in the peak summer travel period and “is a good sign for other international carriers,” Helane Becker, a TD Cowen analyst, said in a note Thursday. But investors remain concerned about non-fuel unit costs for the full year, which will need a “meaningful drop” in the second half to hit Delta’s forecast for a decline of 2% to 4% in 2023.

The company reiterated its existing expectation for full-year revenue growth of 15% to 20% over 2022 and earnings per share of $5 to $6. Delta’s pricing power for tickets is allowing the carrier to offset its own rising costs. 

First-Quarter Miss

Delta’s first-quarter adjusted profit of 25 cents a share fell short of the 29-cent average from analyst estimates. Revenue excluding refinery sales was $11.8 billion, shy of analyst expectations for $12 billion.

Demand is typically weakest early in the year after peak holiday travel and before spring break. The 11 largest US airlines operating under their own brand are expected to report a combined net loss of $550 million for the quarter, with $50 billion in revenue and an operating profit of $400 million, according to Michael Linenberg, a Deutsche Bank analyst.

American Airlines Group Inc. said Wednesday that first-quarter profit will likely fall short of Wall Street’s estimates, with persistently high costs offsetting gains from steady travel demand. The airline will report full results on April 27.

Delta’s guidance counters investor concerns that followed American’s update, which was viewed by some “as signaling a meaningful slowdown in domestic demand in March,” Savanthi Syth, a Raymond James analyst, said in a note. Delta and United should have “outsized momentum” going into this quarter from growth in international demand, she said.

Delta’s non-fuel costs to fly each seat a mile, a gauge of efficiency, rose 4.7% — more than the carrier originally expected. The airline expects so-called unit costs to rise 1% to 3% in the second quarter. First-quarter revenue on the same basis climbed 23% year over year. 

The airline will trim some flying this summer, primarily at New York’s LaGuardia Airport, in response to a Federal Aviation Administration request for help easing summer congestion, Bastian said without providing details. 

United Airlines Holdings Inc. already has reduced planned May flights at LaGuardia, Liberty International Airport in Newark, New Jersey, and Washington Dulles in response to the FAA request, which is tied to a shortage of air traffic controllers.

(Updates with opening shares in sixth paragraph)

APRIL 15, 2023

By Funmilayo Fabunmi

Aviation workers’ unions have threatened to withdraw their services over the refusal of the Federal Government to release the reviewed condition of service negotiated over seven years ago.

Other grievances include the non-implementation of the National Minimum Wage consequential adjustments and arrears for workers of the Nigeria Meteorological Agency since 2019.

The union also rejected the planned demolition of aviation agency buildings in Lagos to pave the way for an airport city project initiated by the Minister of Aviation, Hadi Sirika.

In a notice of a two-day warning strike signed by the secretaries general of five aviation unions – National Union of Air Transport Employees, Air Transport Services Senior Staff Association of Nigeria, Association of Nigeria Aviation Professionals, National Association of Aircraft Pilots and Engineers, and the Amalgamated Union of Public Corporation Civil Service Technical and Recreation Services Employees – it was stated that if the warning strike, scheduled to commence on April 17 failed, an indefinite strike would be embarked upon.

The unions had on February 7, 2023 issued a 14-day ultimatum to the Federal Government on the same issued.

In the latest strike notice, the unions said they had directed their members to comply with the directive, adding that all state councils, branches, and executives had been mandated to enforce the directive.

Copies of the notice of the warning strike have been sent to the Airport Command of the Nigerian Police Force, Airport Commandants of the Nigerian Air Force, Department of State Services, chief executive officers of aviation agencies, and foreign airlines.

The situation may disrupt aviation services in Nigeria if the industrial action sails through.