AUGUST 01, 2023

BY  Ifeoma Okeke-Korieocha

There may be flight delays from Wednesday as labour unions in the aviation sector have mobilized workers for the nationwide strike proposed by the Nigerian Labour Congress (NLC) starting Wednesday, August 2, 2023.

NLC and the Trade Union Congress (TUC) have threatened to shut down the nation’s economy from Tuesday, August 1st, 2023, due to the total removal of fuel subsidies and the attendant consequences on workers in the country.

Aviation unions under the aegis of the National Union of Air Transport Employees (NUATE), Nigeria Aviation Professionals (NAP), and National Association of Aircraft Pilots and Engineers (NAAPE) issued a circular to workers, directing all aviation workers to comply with the protest.

The circular was signed by Ocheme Aba; General Secretary, NUATE, Abdul Rasaq Saidu; General Secretary, ANAP and Umoh Ofonime, Deputy General Secretary, NAAPE.

“As you are all aware, the Nigeria Labour Congress (NLC) has directed nationwide protests against the present regime of subsidy removal, which has wrecked untold hardship on workers and the common people.

“Accordingly, as affiliates of NLC, all state councils and branches of the above-named Trade Unions are hereby directed to fully join the respective State Councils of the Nigeria Labour Congress in all States of Nigeria, starting on August 2, 2023, for the protests. All must comply,” the circular reads.

AUGUST 02, 2023

VANCOUVER — The Real Estate Board of Greater Vancouver says last month's home prices rose from June amid strong sales figures and low levels of housing inventory.

The board says the composite benchmark sat at just over $1.2 million in July, up 0.6 per cent from the previous month and 0.5 per cent compared with the same month last year.

Sales in the market totalled 2,455 last month, a 28.9 per cent increase from a year ago.

The board says the sales were 15.6 per cent below the 10-year seasonal average of 2,909.

New listings hit 4,649 last month compared with 3,975 in July 2022.

The board's director of economics and data analytics says the "not insignificant" year-over-year bump in sales corresponds with the shock felt in 2022 from the Bank of Canada's steep rate hikes.

“Looking under the hood of these figures, it’s easy to see why sales are posting such a large year-over-year percentage increase," Andrew Lis says in a news release.

"Last July marked the point when the Bank of Canada announced their ‘super-sized’ increase to the policy rate of one full per cent, catching buyers and sellers off guard, and putting a chill on market activity at that time.”

This report by The Canadian Press was first published Aug. 2, 2023.

The Canadian Press

AUGUST 02, 2023

ATHENS, Greece (AP) — Visits to the Acropolis of Athens, Greece's most popular archaeological site, will be capped starting next month at a maximum 20,000 daily and subject to varying hourly entry limits, the Greek government said Wednesday.

Culture Minister Lina Mendoni said the controls are needed to prevent bottlenecks and overcrowding at the UNESCO World Heritage site. As many as 23,000 people a day have been squeezing into the monument complex, mostly large groups visiting before noon.

“That's a huge number,” Mendoni said in an interview with the Real FM radio network. “Obviously tourism is desirable for the country, for all of us. But we must work out how excessive tourism won't harm the monument.”

The new entry limits will be implemented on a trial basis from Sept. 4, and will come permanently into effect from April 1 2024, the minister said. There will be no limit on how long visits may last, although Mendoni said people who come with organized tours or from cruise ships, who account for about 50% of the daily visitor count, spend an average 45 minutes at the site.

Different numbers of visitors will be allowed in hourly during the site's 8 a.m.-8 p.m. opening hours. Half of the Acropolis' foot traffic currently arrives between 8 a.m. and noon, Mendoni said. Under the new system, 3,000 people will be granted access from 8-9 a.m., 2,000 during the next hour and the numbers will vary during the rest of the day.

“The measure will address the need to protect the monument, which is the main thing for us, as well as (improving) visitors' experience of the site,” she added.

Similar caps will be imposed for other popular archaeological sites, Mendoni said. The decision for the Acropolis followed consultations with tour and cruise operators, and was delayed due to Greece's June 25 general election, she added.

More than 3 million people visited the site last year, according to Greece's statistical authority.

Greek authorities closed access to the Acropolis and other ancient sites during midday hours last month at the height of a heat wave that also caused huge wildfires across the country. They also installed awnings as sun protection for people lining up to see the Acropolis’ 5th century B.C. temples. Mendoni said those steps would be repeated, if necessary.

The Associated Press

AUGUST 02, 2023

(Reuters) - American Airlines said on Wednesday that it is in talks with planemakers Airbus and Boeing over a new narrowbody jet order, at a time when airlines rush to order more aircraft amid a travel boom.

Bloomberg News earlier reported that the airline was in talks with the companies to order at least 100 jets, citing people familiar with the matter.

"We are talking to Boeing and Airbus about our narrowbody aircraft needs for the latter half of this decade and beyond," American said in a statement.

Airbus, when contacted by Reuters, said "we have no comment on our confidential commercial talks, which may or may not be happening."

Boeing did not immediately respond to a request for comment.

Industry sources told Reuters that the talks were at an early stage and no decision was imminent.

"Due to the young age of our aircraft, our fleet replacement needs are very limited. Therefore, we expect aircraft capex for the next several years and likely through the end of the decade to average about $3.5 billion per year," American said during an investor call last month.

The Bloomberg report added that the deal size could top 200 jets, with commitments for future purchases.

According to the report, the airline, whose negotiations have been under way for several months, is considering Boeing's 737 Max and Airbus's A321neo to replace its 737-800, A319 and A320 single-aisle models later this decade.

(Reporting by Nathan Gomes in Bengaluru, Tim Hepher in Paris and David Shepardson in Washington, DC; Editing by Milla Nissi and Shailesh Kuber)

AUGUST 02, 2023

BARCEL, Portugal — Spain received 37.5 million international tourists in the first half of 2023, a 24% increase from the same period last year, the government announced Wednesday.

The figure is lower than for the same period in 2019, the year before the COVID-19 pandemic, when 38 million tourists arrived. But officials say the numbers are a sign that international tourism has rebounded strongly since the health crisis.

Visitors from Britain topped the tourist list, totaling some 8 million, followed by some 5 million tourists from both France and Germany.

Spain is heavily dependent on tourism, which accounts for 12% of gross domestic product.

The northeastern region of Catalonia, including Barcelona and the Costa Brava, was the most visited area.

The Associated Press

AUGUST 03, 2023

The Federal Airport Authority of Nigeria (FAAN) has suspended with immediate effect airport car hire services at Nnamdi Azikiwe International Airport in Abuja.

The suspension is a result of an unresolved factional dispute amongst the car hire operators which has been affecting airport car hire service operations.

A spokesperson for FAAN, Director, Abdullahi Yakubu-Funtua, in a statement, advised the general public and all airport users to use secured alternative means of transportation or E-hailing services in and out of the airport.

He said the Management of FAAN regrets any inconvenience the suspension may cause passengers, airport users, and the general public.

He stated that normal Car Hire Services will resume as soon as their differences are resolved.

Yakubu-Funtua he added that FAAN remains committed to her core values of safety, security, and comfort.

AUGUST 03, 2023

(Bloomberg) -- JetBlue Airways Corp., Alaska Air Group Inc. and other US carriers expected the post-pandemic travel boom to send ticket prices soaring this summer. Instead, they’re getting battered.

Travelers are showing an unusually strong preference for international trips, forcing domestic-focused carriers to discount prices. At the same time, many of them are facing higher costs from new labor contracts, flight disruptions and inflation. 

As a result, JetBlue has slashed its yearly outlook. Southwest Airlines Co. and others have signaled they’re under pressure — a reversal from a few months ago when industry leaders promised high demand would endure. While domestic ticket sales may pick up again in a few months, with holidays encouraging people to take trips closer to home, it’s still been a tough reality check and a sign the end-of-lockdown travel frenzy is cooling for some.

“If you don’t cater to premium, if you can’t bank on loyalty and if you don’t fly internationally, this year’s third quarter is likely to disappoint,” Jamie Baker, a JPMorgan Chase & Co. analyst, said in a report. 

There are a number of reasons why travelers have become especially enamored with trips abroad. In particular, looser Covid-19 restrictions mean for the first time in years Americans can visit far-flung destinations without expensive tests and the threat of lengthy quarantines.

The shift has been larger than the industry expected, and occurred after plans to boost available seats were already in motion. That’s weighed on prices. US round-trip fares are down about 11% compared with 2022 and 2019, and will remain slightly below 2019 levels until the winter holidays begin and carriers are able to boost fares as demand increases, according to booking app Hopper.com.

Adding to the pressure, Frontier Group Holdings Inc., a major discount carrier, is increasing capacity by 23% this quarter, compared to a year ago. 

Lower Expectations

The tougher environment was a major reason JetBlue slashed its adjusted profit outlook to between 5 cents and 40 cents a share, from its earlier outlook of as much as $1. It also said it won’t earn as much this quarter as analysts had estimated. 

Fares that were “really strong” through June have declined from record levels in 2022, Alaska Airlines said last week, but remain above pre-pandemic prices. It forecast revenue this quarter will be flat to up 3%, with a midpoint below Wall Street’s expectations. 

“It’s not that people aren’t traveling, it’s just on the domestic system fares have come in lower than everyone in the industry had expected,” JetBlue Chief Executive Officer Robin Hayes said on a call this week.

Southwest shares tumbled the most in almost a year on July 27 after it warned that higher-than-expected costs would pressure earnings. The Dallas-based carrier this week offered a buy one, get one 50% off fare deal for the first time. The three-day sale was for travel in August and September.

Spirit Airlines Inc., the largest deep discount carrier, on Thursday missed Wall Street’s second-quarter earnings expectations and said in a statement that it would generate total revenue this quarter of $1.3 billion to $1.32 billion, well below the average analyst estimate of $1.52 billion.

 “The current setup is simply not favorable to a domestic focused airline,” Spirit CEO Ted Christie said on a call. The executive blamed a “dramatic” demand shift to long-haul international markets not served by the airline and weather-related challenges, adding circumstances are unlikely to change in the near future.

In April, the airline had “sold-out flights every day” to Cancun, Mexico, but conditions are now completely different, Spirit Chief Commercial Officer Matt Klein said. “Demand just fell off” starting in June, he told analysts.

The differences between their fortunes and that of global carriers is stark. United Airlines Holdings Inc. and Delta Air Lines Inc. each said they would earn more this quarter than analysts expected. The companies, along with American Airlines Group Inc., all improved their full-year forecasts. 

Investors appear to be rewarding the global carriers as well, with United shares increasing 40% this year through Wednesday, Delta 36% and American 25%. Alaska and JetBlue are up more modestly, while Southwest has slipped slightly and Frontier has dropped 18%.

Temporary Dip

Hayes and others have tried to soothe investor worries by suggesting the dip in demand could be temporary. Though they’ve stopped short of promising sales will improve after summer vacation season ends.

“We actually believe a lot of the demand is going to spill into the fall, and therefore, we have not made an assumption that this environment changes before we get into the heart of winter,” Frontier Chief Executive Officer Barry Biffle said Tuesday. “Although I do know that once we get to January, February, it’s a heck of a lot better to be in Florida than it is in most parts of Europe.”

And Wall Street isn’t betting on a rebound. Helane Becker, a TD Cowen analyst, said she was skeptical that domestic demand at JetBlue would recover sufficiently by year-end, and reduced her full-year adjusted earnings outlook for the carrier.

Views by the airlines that demand will swing back “may ultimately prove correct,” Conor Cunningham, a Melius Research analyst, said in a report. “But near-term, as industry capacity is set to ramp and fare sales become increasingly more common, fear on fares will only intensify.” 

(Updates with Spirit Airlines executive comments starting in 13th paragraph.)

AUGUST 05, 2023

BYABID HABIB

The carrier is set to be managed by Ethiopian Airlines.

•  Nigeria Air is set to commence operations in October under the management of Ethiopian Airlines, aiming to be the country's national airline.
•  The airline will be owned 49% by Ethiopian Airlines, 46% by Nigerian private investors, and 5% by the Nigerian Government.
•  Obstacles, such as opposition from local carriers and the denial of an Air Operators Certificate, have delayed the airline's launch in the past.

Nigeria Air is set to commence its flight operations later this year in October under the management of Ethiopian Airlines. While the country is home to many airlines, Nigeria Air is set to be the country's national airline.

Nigeria Air

While the carrier is set to commence operations in October, the airline was first introduced five years ago, in 2018, during the Farnborough International Airshow. As reported by Within Nigeria, the new airline will be owned 49% by Ethiopian Airlines, 46% by Nigerian private investors, and 5% by the Nigerian Government.

Ethiopian Airlines have been brought into the operation on a management contract in order to replicate their own successful business model of operations into Nigeria Air's operations and make it a successful airline. The carrier will commence operations with a fleet of eight aircraft. Of these aircraft, six will be narrowbody aircraft, while the remaining two aircraft will be widebody.

Earlier this year, the carrier took delivery of its first aircraft, which is a Boeing 737-800 with retrofitted wingtips from Ethiopian Airlines, on May 26th. At the time, however, the plan was to try and commence operations by May 29th.

It is worth noting that, on May 27th, just a day after arriving in Nigeria, the aircraft returned to Ethiopia and has continued operation for Ethiopian Airlines ever since.

The airline's aim is to operate flights within the domestic market and to international markets in order to provide air connectivity for the citizens of Nigeria.

Obstacles in the way

While clearly a lot of work has been done towards trying to get Nigeria Air operational, it has previously been severely slowed down by various obstacles which kept delaying its operation commencement.

In fact, in October 2022, other local carriers in Nigeria were opposed to Ethiopian Airlines taking a majority stake in the airline that is set to be the national airline of the country.

The Airlines of Nigeria (AON) had insisted that Ethiopia is an economic rival, and thus, a 49% stake in Nigeria's national airline could potentially increase Ethiopian Airlines' influence in the domestic market and the Nigerian economy. The CEO of Air Peace went as far as to state that Ethiopian Airlines would try and destroy the competition among the Nigerian carriers.

Another major obstacle the startup faces is obtaining its Air Operators Certificate (AOC) which was denied to the airline earlier this year in May by the Nigerian Civil Aviation Authority (NCAA). The denial of the AOC was following a lawsuit from the AON. The airline will not be issued the AOC until it can demonstrate its safety.

The delay was not helped by Azman Air, Air Peace, and United Nigeria Airlines launching a court case, through the AON, against Nigeria Air regarding the involvement of Ethiopian Airlines as a foreign majority stakeholder.

Ultimately the court ruled in favor of the AON and issued an order to the NCAA Director General, which stopped him from issuing the AOC for Nigeria Air. The order additionally prohibits the Director General from taking any further actions with regard to launching the new carrier.

Do you think Nigeria Air will succeed in commencing operations in October as planned? Let us know your thoughts in the comment section.

AUGUST 05, 2023

Environmentalists, business moguls and financial experts have called on African leaders to adopt the United Nation Global Development Plan in order to ensure increased sustainable trade and investment opportunities to fast track an equitable economic development and prosperity in Africa.

This demand formed the crux of the discourse at the second edition of the Global Sustainability Conference series recently organized by CleanCyclers Africa and held in the House of Lords, United Kingdom.

With this year’s theme tagged, “Sustainable Trade and Investment Opportunities in Africa – the PPP Approach”, the forum attracted various notable speakers and panelists not just from Nigeria and Africa, but across the world. 

According to the convener and founder of CleanCyclers, Otto Canon, sustainable development is a process which improves the ability of countries to sustain a strategic plan to address the needs of today without jeopardizing the future generation, as we as to tackle common challenges and address shared goals.

Otto said, “How is the world faring so far? How is Africa faring so far? Sustainable trade and investment opportunity is a plan we should achieve by 2030 but so far, I think we have a long way to go. 

“There are loads and tons of unanswered questions to that regard and to do justice and respond to some of these questions, we have carefully selected some of the finest professionals and experts from their various sectors in the industry.”

Some of the notable speakers at the event include Kristin Sharpe who delivered the welcome address while the keynote speech was taken by Mrs Tuma Adama Gento-Kamara.

A special presentation on the Great Green Wall was delivered by the project coordinator, Jenovive Chinyere, the Chief Executive Officer Dream West Africa and another presentation by Titi Horsfall, Head, Diplomatic Corps, Permits & Licenses and Federal Parastatals, Nigeria LNG Limited who is also a writer, novelist & poet.

The first panel session was moderated by Canon Otto FRSA, and it had speakers like Viscount Lord Waverley, UK Parliament – MPs and Lords, Owen Omogiafo, President/Group CEO of Transnational Corporation (Transcorp), Dr. Olori Bove-Ajavi, President The Borderless Trade Network and Ibrahim Adejuwon Odumboni, MD/CEO Lagos Waste Management, Nigeria. 

The panelists expressed their pleasure in participating in such an important discussion forum, and highlighted some of their strides in their various works. 

The president of Transcorp Group, Owen Omogiafo, went on to mention a series of projects and programs her organization has executed. She emphasized more on the fact that they don’t just focus on profits alone, but also on the planet and people. 

She explained that their corporate social responsibilities are not taken for granted at all, adding that Transcorp has set discounted schools for children across the various geopolitical zones in Nigeria and they’ve supported several entrepreneurs across the country. 

The second panel session touched on “Understanding the Opportunities in Real Estate Investment in Africa: Strategies to Accelerate Africa’s Growth” and was moderated by Ezekiel Solesi.

The speakers were Hon. Atty. Dr. Samora P. Z. Wolokolie, Deputy Minister for Fiscal Affairs, Ministry of Finance and Development Planning Republic of Liberia; Dr. Oluwatosin O. Olatujoye, GCEO Zylus Group, Nigeria; Kenneth Raydon Sharpe, CEO, Westprop Holdings Zimbabwe; Dr. Tinashe Manzungu, Board Director Africa Business Council (ABS) and Mr. Akerele Ajewole, CEO, Gidi Real Estate Ltd.

AUGUST 07, 2023

BY  Sami Olatunji, Damilola Aina, Lilian Ukagwu and Funmi Fabunmi

• Lagos-London fares 49% higher than Accra-London, 162% higher than Cotonou-London

• Nigeria Air project stalls, airfares skyrocket over foreign exchange shortage

Nigerians have spent about $4.66bn on foreign air travels in 15 months, according to findings by The PUNCH.

Data obtained from the Central Bank of Nigeria showed that the amount was sold to foreign airlines between the first quarter of 2022 and the first quarter of 2023.

Foreign airlines buy foreign exchange from the CBN to enable them to repatriate their ticket sale proceeds to their various home countries. About 25 foreign airlines currently operate into Nigeria

A breakdown of the CBN data showed that $496.44m was sold to foreign airlines in Q1 2022; $1.03bn in Q2 2022; $1.36bn in Q3 2022; $887.17m in Q4 2022; and $890.3m in Q1 2023. The figures indicate an increase of 79 per cent between Q1 2022 and Q1 2023.

The PUNCH observed that the highest amount was recorded in Q3 2022, with about $1.36bn.

Despite the amount sold to the carriers, foreign airlines have been struggling to repatriate their funds.

In March, the International Air Transport Association, the top global trade association of international airlines, appealed to the Nigerian government to allow international airlines to repatriate their funds trapped in the country.

IATA said airlines’ trapped funds in Nigeria rose to $743.7m in January from the $662m recorded last December.

“For over a year, Nigeria has been the country with the highest amount of airline-blocked funds in the world,” the IATA said.

Since the amount increased from $450m in May 2022, to $464m in July of the same year, the trapped funds have been linked to some of the higher fares on Nigerian routes.

Fares

The PUNCH also observed that it is more expensive to fly from Nigeria than other West African countries like Ghana and the Benin Republic.

Findings by one of our correspondents showed that passengers flying via Turkish Airlines from the Murtala Muhammad Airport in Lagos to Heathrow Airport in London paid $3,295 for a one-way economy ticket while passengers from Cotonou International Airport in Benin Republic paid $1,256 for a one-way economy ticket to London, representing 162.3 per cent difference in air ticket price.

Comparison between Lagos-London flight and Accra-London flight showed a  49.6 per cent difference in air ticket price. Lagos passengers paid $3,295 compared to $2,202 paid by Ghanaians on the same date and airline.

Also, an economy flight ticket from Lagos to Toronto was pegged at $2,737 while Benin to Toronto was put at $2,018, representing 35.6 per cent increase compared with Accra to Toronto at $2,546, representing 7.5 per cent.

Checks on Turkish Airlines indicate that the Lagos-New-York one-way economy ticket costs $3,689 while Benin to New York was pegged at $2,493. Accra to New York trip was put at $2,562.

Meanwhile, a Lagos-Dubai flight was put at $944, while Cotonou-Dubai ticket was priced at $693. Accra-Dubai was put at $848.

Meanwhile, the Nigerian Civil Aviation Authority, the aviation industry regulator, recently released a three-month report on the activities of local and international flights.

NCAA report

In its report, the NCAA noted that the 25 international airlines which operated within the reviewed period had 24 flights cancelled, with 9,087 baggage delayed/ missing.

Of this figure, the report said 7,942 baggage were found. Also, about 39 per cent of international flights (inbound and outbound) which operated in Nigeria between January and March were delayed.

According to the report, of the 3,073 international flights operated within the aforementioned period, 1,193 flight schedules across 25 airlines were delayed.

The 30-page report revealed 870,776 passengers (375,700 inbound and 495,076 outbound ) passed through the nation’s international airport wing between January and March.

A review of cancelled flights showed that out of 1,114 international flights operated in January, seven were called off. In February, 13 out of 887 scheduled flights were cancelled—the highest recorded in the period under review, while only four of 1,072 operated flights in March were cancelled.

The report showed that Lufthansa recorded the highest number of cancelled flights, with six of its 147 operated flights terminated in the first quarter of this year. Qatar Air followed with four, while Asky and Rwanda Airlines had three cancelled flights each, among others.

During the period under review, the NCAA noted that it received 27 complaints from international operations and nine cases were resolved.

“However, most of the cases were resolved after follow-up and additional backlog from the previous months,” the report said.

Experts react

Experts have expressed concern over higher fares on Nigerian routes as the Nigeria Air project continues to face delays.

The controversial national carrier project has faced legal hurdles amid corruption allegations. The Federal Government has yet to invite the former Minister of Aviation, Hadi Sirika, to answer questions on the project.

Following the CBN forex reforms, air fares have increased by over 50 per cent on Nigerian routes. Airfares which used to be priced at 460/dollar, now went for 743/dollar as of Friday.

Meanwhile, the Chief Executive Officer, Centurion Security, Group Capt John Ojikutu, however, emphasised the need for Nigeria to establish three flag carriers in order to compete with international airlines.

He argued that the move would help to reduce capital flight and increase the country’s share of passenger traffic.

He said,”What we need to do is to establish at least three flag carriers to compete with international airlines that make an average of 30 flights daily to Nigeria. We should strive to make or reciprocate at least 30 per cent, if not 50 per cent, of the daily flights. This will enable us to share 20/30 per cent of the passenger traffic.”

He added, “The exchange rate has not necessarily made the figure high but the airfare is equally high. If foreign airlines can get forex at the official exchange rate, the airfare would not be as high as it is today. There is very little the government can do than to designate flag carriers among the domestic airlines to compete with the foreign airlines”

Also, a travel expert, Benard Bankole, highlighted several factors contributing to the foreign exchange shortage.

He said, ““First of all Nigeria is an import dependent country, which means that we will always have shortage of FX. Now, there is the balance of trade which we’ve not been able to do. For on our crude oil, we’re not producing enough and we’re not exporting enough.”

Bankole, who is also the CEO Finchglow Holdings Limited, however said the absence of a national or flag carrier was not a hindrance.

He noted that Air Peace, a local carrier, has been assigned numerous routes.

“However, the key concern is whether these airlines possess the capacity to effectively manage the additional foreign routes they request,” he added.

A airline expert and pilot, Capt. James Daniel, emphasized the need for Nigeria to reciprocate its Bilateral Services Agreement.

The Bilateral Air Services Agreement is based on reciprocity. Now, if foreign airlines have 20 rotations into Nigeria, then Nigerian carriers should have same into their countries. But unfortunately, Nigerian carriers are not exercising these privileges according to the BASA; so the foreign carriers have a monopoly and that is why the prices of tickets are so astronomical.”

The Head of Research at Zenith Travels, Mr Olumide Ohunayo, said Nigeria needed strong airlines to compete against foreign carriers.

 He said, “The Fly Nigeria Act did not see the light of day. Coming back to the issue at stake, it’s inevitable, the capital flight will continue until we build airlines that can compete, and meet the standards that international airlines can partner with. You cannot say until you have a national carrier, it is better to have flag carriers, the more the merrier. We must encourage our airlines to go out and move beyond single ownership. They must open up ownership and management to support this then we can now start talking about the Fly Nigeria Act.

He added, “The fares are high now because the demand is still very high, Nigerians travel a lot, we always have a reason to travel. The supply right now is meeting the demand, so we need to increase supply.”