DECEMBER 21, 2024

BY  Chinedu Eze

There have been several agitations from airline operators over multiple taxes imposed on flight tickets by aviation agencies, insisting that such taxes are the reasons behind the failure of many airlines in the country.

The operators decried the multiple taxation, which according to them, is fluid, confusing and exploitative, noting that when these taxes are built into the ticket, travellers tend to think that the total cost of ticket is a take home for the airlines.

Airline Operators of Nigeria (AON) at different fora have complained about the multi taxation. The operators said these taxes are stifling their operations and government seemed ambivalent in response to their call over the years.

Domestic airlines, on the average, said they pay about 35 percent to 40 per cent of a ticket cost as taxes and charges that come under the guise of statutory levies in addition to other charges.

The implemented charges range from Terminal Navigational Charges to enroute navigation charges, Over-flight charges, clearance charges, and extension charges. Even foreign airlines don’t pay enroute charges or extension charges, which the local airlines are forced to pay.

The levies are divided into aeronautical and non-aeronautical revenues and are added to charges collected from passengers as air tickets by the airlines. Twenty of the charges are paid into the coffers of the Federal Airports Authority of Nigeria (FAAN), six are paid into the Nigeria Civil Aviation Authority (NCAA) coffers, and the Nigerian Airspace Management Agency (NAMA) collects three while Bi-Courtney collects four of the charges from the airlines that operate at its terminal.

It was learn that the breakdown of aeronautic charges included aircraft inspection, which is tickets and Duty Tour Allowance (DTA) paid to the coffers of NCAA for aircraft inspection overseas. The DTA, however, depends on the country the aircraft is being inspected. Also, landing charges are divided into two; day and night. During the day, airlines pay N25 per Kg kilogramme of the aircraft weight while they are charged N37.5 per kilogramme of the aircraft at night. FAAN collects the charge from airlines (maybe this has increased).

Also, FAAN collects about N400 per weight of aircraft after 30 hours from airlines as parking charges while the agency also collects between $40 and $50 from airlines for using the AvioBridge for en-route charges, FAAN charges $70 from airlines on international routes while it collects about N3,000 for carriers on domestic routes.

AON said indigenous airlines are compelled to pay NAMA’s $75 as a charge for over-flight while it equally collects $195 from airlines that operate international or regional flights outside the country while N6,000 is remitted by indigenous airline operators for the same terminal charge. The aeronautic agency also collects clearance fees for indigenous airlines.

The operators also said that besides, N2, 500 per passenger is remitted to the purse of BASL as Passenger Service Charge (PSC) for any air traveller airlifted by airlines at the terminal.The terminal operator also collects $50 from airlines for using its Avio bridge while it collects another $50 as extended Avio bridge usage.Also, BASL collects $00.50 from operators as a check-in counter fee (as at last year).

The breakdown of the charges indicates that the NCAA collects 5 per cent of total fare from airlines as Ticket Sales Tax (TST), and another 5 per cent each as Import and Export Charges for domestic operators.

The regulatory authority also charges airlines 10 per cent each as Import and Export Royalties.

Also, FAAN collects N2,000 for domestic operations and $50 for international operations as Passenger Service Charge (PSC), and charges N12 per kilogramme as a Ports Charge.

The same agency collects N5 per kilogramme as Export Charge, N20 per kilogramme on Courier/Tarmac/ Pre-Release and N5 per kilogramme as Air Cargo.

Commenting, the Managing Director and CEO of Aero Contractors, Captain Ado Sanusi, called for a review of multiple taxes on flight ticket by aviation agencies and insisted that it is very important to streamline the payments.

“As a proposal to the federal government on these taxes, I have made several proposals. I will make one now. Let them scrap the 5 percent. Let them have a figure, one figure that airlines should be. One figure that scheduled airlines should pay. And then let NAMA have one charge. So we know we are paying NAMA and NCAA for service. And then FAAN, or we can even have one figure and then they can share among the three of them. 

“But for us to pay 5 percent, and then pay also for all the services that NCAA renders, is not good for the sustenance of airline business in Nigeria. So, I pay 5 percent of my ticket sales. And then I will pay for all the services that they will render. So if they are coming to inspect an airplane, they should pay for that. If they are going to do AOC renewal, they should pay for that. So you pay 5 percent and you pay that.

“I hope you are counting. And then you go to NAMA, you pay for enroute navigation, which I introduced (as former Managing Director) and then you pay terminal navigation.So, I think that for domestic, I think we should remove one. I think we should remove enroute and leave the terminal. I think that is that. And for FAAN, of course, we should have landing. Of course, when you land, you have to pay for it. But that can be consolidated to one tax only,” Sanusi said.

He said that the airlines have made a good presentation to the agencies and government and hoped that they would buy the recommendation of the airlines.

Sanusi said that the high taxes, the unfavourable economy have dogged at the operations of the airlines, leaving some of them in precarious state, observing that the airlines and the aviation sector cannot be insulated from the economic outlook of the country.

“You know, in any society, you cannot be more efficient than the system you operate in. So, the economic condition in the country, the aviation industry cannot operate more efficiently than the economic situation we have. So, if the economists say we are in recession, then definitely the situation of the aviation industry will be reflected in that. We are experiencing challenges in our economy, definitely there will be challenges in the aviation industry. 

“You cannot operate outside, you can’t be more efficient than the system you operate in, and we have economic challenges.So, all these issues of saying we have made progress and all that, if we are telling ourselves the truth, we have not. That is the truth, we have not. And unless we agree that we have not, and we now work towards recovering the economy and then building the aviation to have a sustainable aviation industry, I think we will just be going in a cycle and telling ourselves lies. And unfortunately, that is what is happening,” he added.

Domestic airlines have called for the review of taxes on their operations for many years and hopefully the government may begin to listen to them going forward.

DECEMBER 21, 2024

… Diaspora Nigerians leverage weak naira to fly home

Airfares on domestic routes have surged by 218 percent in six months, reflecting the combined impact of high operational costs and heightened demand for travels.

As a result of the high cost of airfares, several Nigerians have been forced to cancel their Christmas travels, with some taking to road travels to save costs.

According to the National Bureau of Statistics (NBS), the average cost of airfares in commonly-flown routes such as Lagos-Abuja stood at N89,888 in June, 2024. In December, however, the cost has jumped to N285,000, indicating a 218 percent increase over a six-month period.

A major airline listed a one-way economy ticket for the Abuja-Owerri route on December 20, 2024, at N143, 000, but this later changed to N285,800.

The Abuja-Port Harcourt route has also witnessed steep increases, with a major airline charging N285,800 for an economy ticket for a December 20 trip.

BusinessDay found that some airlines charged N114, 000 to N220, 000 for the Abuja-Lagos route for a December 20 trip, but this is likely to exceed N285,000 in the coming days, according to industry players.

Some airlines priced a one-way flight from Abuja to Port Harcourt at N237,714 on a December 20 trip, with others charging between N190,095 and N210,000 for trips on December 17 to 19, 2024.

Impact on Passengers

The sharp increases in ticket prices have left passengers grappling with the high cost of air travel, especially as the holiday season intensifies demand. Rising operational expenses and insecurity in some regions have contributed to the skyrocketing fares, making domestic air travel a luxury for many Nigerians.

The surge in airfares also coincides with the holiday season, a time of high demand for domestic flights, as many Nigerians prepare to travel for Christmas and New Year celebrations. This price hike is likely to add significant financial strain for passengers planning to travel at the end of the year.

Mabel Wuku, a civil servant in Abuja, said: “My son is getting married this weekend in Kano. Normally, I’d take a bus for N12,000. But because of the road situation and insecurity problem, I spent N95,000 on a one-way flight to Kano. That’s more than half my monthly salary,” she said.

Ezenwa Joshua, a mother of three, said: “I can’t afford this, and I can’t travel on Nigerian roads with my children to such a far destination. I can’t pay ransom to a kidnapper.”

Joseph Egbe, another frustrated traveler, criticised the government for failing to address the affordability of air travel, emphasising its importance for safety and efficiency.

“The government needs to do something about it because air travel is safer and faster. In an hour, you get to your destination, but now, the high airfare is discouraging people from flying,” he said.

Exchange Rate Effect

Commenting on the cost of airfares, Festus Keyamo, minister of aviation and aerospace development, said the exchange rate impacts every aspect of aviation, including basic maintenance such as changing a tyre bolt.

Keyamo stated that to reduce ticket prices, the government will help domestic airlines acquire aircraft at a reduced rate.

“What we are therefore doing is to ensure that we expose them to the markets across the world where they can assess aircraft on very good terms. This will impact on the prices of tickets and their cost of operation,” he said.

Diaspora Nigerians leverage weaker naira

Meanwhile diaspora Nigerians are leveraging weaker naira to fly into Nigeria for Christmas, as flights from Europe, London and the United States remain fully booked.

Some airlines have also increased capacity to accommodate the influx of air passengers this Christmas.

Delta Air Lines has started daily nonstop flights on its New York JFK – Lagos route. This began in December 2024 and will continue till February 2025.

During this period, Delta transitioned from the Airbus A330-200, which accommodated 223 passengers, to the more spacious Airbus A330-900neo, capable of carrying 281 passengers.

Mary Gbobaniyi, Delta’s head of sales for West Africa, said: “This is exciting. Adding more flights to the Nigerian market could not have been better timed. Increased capacity and a larger aircraft mean more options and an elevated experience for our customers.”

Also, United Airlines increased its service between Lagos and Washington D.C., from three times weekly to daily flights, between December 4, 2024, and February 14, 2025. This reflects a 133 percent year-over-year increase in seat numbers for this period.

This will be the first time United’s service between Lagos and Washington D.C. will operate daily and the flight remains the only night-time departure from Lagos to the U.S.

“Flights arrive Nigeria from Europe, London and America full to the brim this December period as more Nigerians come home for different reasons. December has the highest weddings as a lot of people keep their events till December so that their family members will attend,” Susan Akporaiye, managing director and CEO, Topaz Travels and Tours, said.

Akporaiye, former president of NANTA, told BusinessDay that the largest concentration of Nigerians all over the world is London, USA and Europe, noting that even though the Nigerian population in Canada is also growing, the numbers don’t match up to that of London and the United States.

She said this explains why flights coming from Europe and London are fully booked this period.

She however said the current exchange rate has made some airlines restrict Nigerian travel agents from issuing tickets in naira.

“For previous years when we experienced high traffic, sales for Nigerian travel agencies were very high. Sadly for this year, even though the flights are fully booked, the tickets are not sold in Nigeria but outside the country.

“Unlike before, it was cheaper to buy tickets from Nigeria. There is still high traffic into Nigeria, but it does not translate to business for us travel agents because of the rate of exchange that is very high,” Akporaiye said.

A one way economy class ticket from Heathrow London airport to Lagos, which costs between N800,000 to N1.3 million about eight months ago now costs an average of N2.65 million this period on Egypt Air, N3 million on RwandAir, N3.25 million on Turkish Airlines, N3.5 million on Emirates, KLM and Air France, N3.7 million on Lufthansa, and N3.9 million on Qatar Airways.

For British Airways and Virgin Atlantic that operate direct flights from London to Lagos, tickets for these airlines cost about N4.2 million and N4.6 million respectively.

Yinka Folami, chief executive officer of Travel and Logistics Centre Ltd and current NANTA president, said Nigerians come from every part of the world that they live each December as they always have this attachment to home.

“This is a high season for airlines and that’s why you find that tickets are much more expensive than they would ordinarily be.”

DECEMBER 23, 2024

By Sami Tunji

As Christmas approaches, Nigerians are grappling with a record-high transport inflation rate of 30.54 per cent in November 2024, according to the Consumer Price Index report by the National Bureau of Statistics.

This figure, the highest recorded this year, highlights the escalating cost of mobility for individuals and businesses alike.

Throughout 2024, transport inflation remained a pressing issue, consistently surpassing levels recorded in 2023.

In January 2024, the transport inflation rate stood at 25.92 per cent, a significant rise from 21.02 per cent in January 2023.

The rate stabilised somewhat during mid-year, averaging 25.63 per cent in May and June, before accelerating to 27.21 per cent in September, when there was an increase in fuel prices.

It reached a new peak in November, marking a year-on-year increase of 3.52 percentage points compared to 27.02 per cent in November 2023.

The surge in transport costs has been driven by a combination of economic and policy-related factors.

Chief among them is the removal of fuel subsidies, implemented shortly after President Bola Tinubu assumed office in May 2023.

This policy, while aimed at stabilising public finances and spurring economic growth, led to a sharp rise in petrol and diesel prices, which are critical inputs for road and public transport.

However, there have been controversies around the removal of fuel subsidies.

The PUNCH earlier reported that the Nigerian National Petroleum Company Limited requested an additional subsidy refund of N1.19tn for July 2024, citing exchange rate differentials on Premium Motor Spirit importation and joint venture taxes.

The report revealed that exchange rate differentials stood at N4.56tn as of June 2024 (due to under-recovery on petrol imports between August 2023 and June 2024), but this figure increased to N5.31tn by July 2024.

The NNPCL attributed the rise to fluctuations in foreign exchange rates and unresolved subsidy payments from previous months.

The total figure adds to concerns over the fiscal impact of subsidy payments on the Federation Account.

Exchange rate fluctuations and the rising cost of importing PMS have continued to strain government revenues, raising questions about the sustainability of the partial subsidy framework.

The naira’s depreciation has further compounded the situation, as the cost of imported spare parts and vehicles has risen sharply, forcing transport operators to pass on these expenses to consumers.

Seasonal factors have also played a role, with the festive period typically driving increased demand for travel.

Poor road infrastructure and limited alternatives, such as rail transport, continue to add inefficiencies and costs to the transportation sector, further inflating prices.

This year’s inflationary trends reflect broader economic challenges that have intensified since Tinubu’s inauguration.

Amidst the increasing cost burden on the government for petrol under-recovery, and despite promising to bring down the price of petrol during his campaign, President Bola Tinubu increased petrol price by about 505.71 per cent, from N175 in May 2023 to N1,060 in October 2024, inflicting more pains on the already impoverished Nigerians.

The PUNCH observed that the price of petrol was increased at least five times under Tinubu, with an increase in May 2023, another in June 2023, a further increase in September 2024, and two more in October 2024.

When Tinubu took office in May 2023, transport inflation stood at 23.87 per cent, according to data from the NBS.

By November 2024, it had escalated to 30.54 per cent, marking a significant rise of 6.67 percentage points or 27.94 per cent in 18 months.

There has also been a persistent increase in the inflation rate almost throughout Tinubu’s presidency.

In May 2023, Nigeria’s headline inflation rate stood at 22.41 per cent, according to the NBS.

By November 2024, it had escalated to 34.60 per cent, the highest level in nearly three decades, marking an increase of over 12 percentage points in 18 months.

The naira’s devaluation, from N769 per dollar in June 2023 to an average of N1,550 per dollar in December 2024, has significantly raised the cost of imported goods and services.

The Central Bank of Nigeria responded with aggressive monetary tightening, raising interest rates by 875 basis points in 2024.

Despite these efforts, the rising cost of living continues to strain households and businesses across the country.

Commuters face daily expenses that erode their purchasing power, while businesses, particularly small and medium enterprises, are grappling with increased logistics costs that inevitably translate to higher prices for goods and services.

Amid the rising cost of fuel and transportation, the NNPCL reduced its ex-depot price of Premium Motor Spirit, commonly referred to as petrol, to N899 per litre.

This decision, coming days after the Dangote Refinery reduced its price to N899, was confirmed by the Petroleum Products Retail Outlets Owners Association of Nigeria.

The new price indicates a reduction of N141, or 13.56 per cent, from N1,040 per litre sold to customers living in the Federal Capital Territory.

PETROAN’s National Public Relations Officer, Dr Joseph Obele, noted that the price reduction by the national oil firm was a response to the competitive impact of deregulation, which had led to increased competition in the downstream sector.

He expressed optimism that PMS prices would drop further before the end of January 2025, given the global decline in crude oil prices and the naira’s recent gain against the dollar.

Also, the National President of PETROAN, Billy Harry, said the price reduction would relieve motorists and Nigerians during the holiday season.

To ease transportation costs during the Christmas and New Year celebrations, Tinubu approved free train rides nationwide from December 20, 2024, to January 5, 2025.

The Federal Government also announced a 50 per cent slash in interstate transport fares for the Yuletide season to reduce travel expenses for Nigerians travelling to celebrate Christmas and New Year.

An MOU was signed between the Federal Government and key transport stakeholders, including the National Union of Road Transport Workers, the Road Transport Employers Association of Nigeria, the Association of Luxurious Bus Owners of Nigeria and God is Good Motors.

Under the arrangement, passengers departing from Abuja and Lagos (Oshodi) to various destinations across the country will pay only half the usual fare.

DECEMBER 23, 2024

BY  MARI YAMAGUCHI AND ELAINE KURTENBACH

TOKYO (AP) — Japanese automakers Honda and Nissan have announced plans to work toward a merger, forming the world’s third-largest automaker by sales as the industry undergoes dramatic changes in its transition away from fossil fuels.

The two companies said they had signed a memorandum of understanding on Monday and that smaller Nissan alliance member Mitsubishi Motors also had agreed to join the talks on integrating their businesses.

Honda’s president, Toshihiro Mibe, said Honda and Nissan will pursue unifying their operations under a joint holding company. Honda will initially lead the new management, retaining the principles and brands of each company. The aim is to have a formal merger agreement by June and to complete the deal and list the holding company on the Tokyo Stock Exchange by August 2026, he said.

No dollar value was given and the formal talks are just starting, Mibe said.

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There are “points that need to be studied and discussed,” he said. “Frankly speaking, the possibility of this not being implemented is not zero.”

Automakers in Japan have lagged behind their big rivals in electric vehicles and are trying to cut costs and make up for lost time.

A merger could result in a behemoth worth more than $50 billion based on the market capitalization of all three automakers. Together, Honda, Nissan and Mitsubishi would gain scale to compete with Toyota Motor Corp. and with Germany’s Volkswagen AG. Toyota has technology partnerships with Japan’s Mazda Motor Corp. and Subaru Corp.

News of a possible merger surfaced earlier this month, with unconfirmed reports saying that the talks on closer collaboration partly were driven by aspirations of Taiwan iPhone maker Foxconn to tie up with Nissan by buying shares from the Japan’s company’s other alliance partner, Renault SA of France.

Nissan’s CEO Makoto Uchida said there had been no direct approach to his company from Foxconn. He also acknowledged that Nissan’s situation was “severe.”

Even after a merger Toyota, which rolled out 11.5 million vehicles in 2023, would remain the leading Japanese automaker. If they join, the three smaller companies would make about 8 million vehicles. In 2023, Honda made 4 million and Nissan produced 3.4 million. Mitsubishi Motors made just over 1 million.

Nissan, Honda and Mitsubishi announced in August that they would share components for electric vehicles like batteries and jointly research software for autonomous driving to adapt better to dramatic changes centered around electrification, following a preliminary agreement between Nissan and Honda set in March.

Nissan has struggled following a scandal that began with the arrest of its former chairman Carlos Ghosn in late 2018 on charges of fraud and misuse of company assets, allegations that he denies. He eventually was released on bail and fled to Lebanon.

Speaking Monday to reporters in Tokyo via a video link, Ghosn derided the planned merger as a “desperate move.”

From Nissan, Honda could get truck-based body-on-frame large SUVs such as the Armada and Infiniti QX80 that Honda doesn’t have, with large towing capacities and good off-road performance, Sam Fiorani, vice president of AutoForecast Solutions, told The Associated Press.

Nissan also has years of experience building batteries and electric vehicles, and gas-electric hybird powertrains that could help Honda in developing its own EVs and next generation of hybrids, he said.

But the company said in November that it was slashing 9,000 jobs, or about 6% of its global work force, and reducing its global production capacity by 20% after reporting a quarterly loss of 9.3 billion yen ($61 million).

It recently reshuffled its management and Makoto Uchida, its chief executive, took a 50% pay cut to take responsibility for the financial woes, saying Nissan needed to become more efficient and respond better to market tastes, rising costs and other global changes.

“We anticipate that if this integration comes to fruition, we will be able to deliver even greater value to a wider customer base,” Uchida said.

Fitch Ratings recently downgraded Nissan’s credit outlook to “negative,” citing worsening profitability, partly due to price cuts in the North American market. But it noted that it has a strong financial structure and solid cash reserves that amounted to 1.44 trillion yen ($9.4 billion).

Nissan’s share price also has fallen to the point where it is considered something of a bargain.

On Monday, its Tokyo-traded shares gained 1.6%. They jumped more than 20% after news of the possible merger broke last week.

Honda’s shares surged 3.8%. Honda’s net profit slipped nearly 20% in the first half of the April-March fiscal year from a year earlier, as sales suffered in China.

The merger reflects an industry-wide trend toward consolidation.

At a routine briefing Monday, Cabinet Secretary Yoshimasa Hayashi said he would not comment on details of the automakers’ plans, but said Japanese companies need to stay competitive in the fast changing market.

“As the business environment surrounding the automobile industry largely changes, with competitiveness in storage batteries and software is increasingly important, we expect measures needed to survive international competition will be taken,” Hayashi said.

DECEMBER 23, 2024

Federal Government of Nigeria has declared public holidays to mark Christmas and New Year festivities nationwide.

The Federal Government has announced December 25 and 26, 2024, as well as January 1, 2025, as public holidays to mark Christmas, Boxing Day, and New Year celebrations, respectively.

The announcement was made by Olubunmi Tunji-Ojo, Minister of Interior, in a statement signed by Magdalene Ajani, the ministry’s permanent secretary. Tunji-Ojo extended festive greetings to Nigerians, encouraging them to use the season to reflect on the values of love, peace, and unity.

“The Christmas season is a good moment for both spiritual reflection and national renewal. As we celebrate the birth of Jesus, the Prince of Peace, let us demonstrate kindness and extend goodwill to one another, irrespective of our differences,” the statement read.

He further urged Nigerians to foster harmony and strengthen family and community bonds during the yuletide. The minister emphasised the importance of remaining committed to the peace, unity, and progress of the nation, assuring citizens of the government’s dedication to ensuring security and prosperity across the country.

Tunji-Ojo also expressed confidence in the Renewed Hope Agenda of President Bola Tinubu’s administration, which he said would drive economic prosperity and make Nigeria a global model of success.

Faridah Abdulkadiri

DECEMBER 26, 2024

By Olasunkanmi Akinlotan

United Airlines has airlifted no fewer than 175 million passengers across its routes worldwide in 2024.

This was contained in a statement made available by the airline over the weekend. The statement said the figure was a record number for the airline in one year.

The statement hinted that the airline has a unique insight into what the everyday person was interested in watching, eating, and more when travelling.

It therefore pulled together some of the top trends its passengers were watching onboard.

According to the airline, travellers were in their Eras era. On average, United saw a 25 per cent boost in demand for flights as fans filled one blank (calendar) space at a time, travelling around for the biggest concert tour of the year.

United was well-prepared to fly travellers swiftly and safely for some of the biggest demand increases during summer tour dates in Europe, including Milan and Munich, both up 40 per cent when compared to 2023.

Other travellers were also said to be in their raw dogging era. “On average, travellers spent 60 minutes watching the flight map versus other seatback entertainment options like movies, TV shows, or games.

“The most-watched TV show on board this year was… Bluey, according to the airline. This included adult and kid passengers. Top popular shows also included classics like Friends, The Office, Curb Your Enthusiasm, and The Big Bang Theory.”

The airlines also noted that the Coca-Cola versus Diet Coke debate remains strong, “as the most consumed sodas onboard ranked as 1. Coca-Cola 2. Diet Coke and 3. Seagram’s Ginger Ale.

“The Barbenheimer showdown made its way to the skies: The most-watched movie on board this year was Barbie… followed closely by Oppenheimer.”

Other popular films include Anyone But You, The Beekeeper, and Mission: Impossible – Dead Reckoning Part One.

Vodka and sparkling wine reign supreme, as passengers opted for Tito’s Handmade Vodka as their go-to alcoholic beverage, and sparkling wine was the most popular wine varietal across every cabin.

Savoury beat sweet when it came to onboard snacks, with the most popular snacks being the complimentary Summer Harvest Savoury Snack Mix and for-purchase Tapas Snackbox and Pringles.

While some speculated Millennials only book flights on their computers, United saw that approximately 1/3 of Millennials do book their United flights on United.com, though another 1/3 of Millennials book their United flights on the United app.

Overall, “more than eight million customers booked through the United App this year—a 15 per cent increase compared to last year.

“If United’s new 2025 summer destinations, like Greenland, Mongolia, and Senegal, are any indication, there are some unforgettable experiences on the horizon.”

DECEMBER 26, 2024

The International Air Transport Association has raised the alarm that over 400 airports across the world lack the capacity to meet the demand for air connectivity, according to its global airport slot guideline.

The global transport regulators added that if this continues, the number of the lagging airports will rise by 25 per cent, swelling the number of aerodromes constituting threats to global air travel freedom and economic growth to 500.

IATA made this known through its newly released white paper, a link to which was posted on its verified X handle on Thursday.

With infrastructure expansion lagging behind increasing demand, IATA has proposed stricter slot regulations to encourage airports to maximise capacity using existing resources, according to a post on the association’s X handle.

Hinting that the impending issue could grow by 25 per cent over the next decade, the association pointed out Europe, where Airports Council International Europe projects that up to 12 per cent of air travel demand will remain unmet by 2050 due to infrastructure limitations.

The position paper reads partly, “The number of airports unable to fully meet the demand for air connectivity and requiring slot coordination using the IATA Worldwide Airport Slot Guidelines has already grown to nearly 400 worldwide. If current trends prevail, this number could grow by 25 per cent over the next decade.

“An example of the severe consequences of this growing problem is evident in Europe, where Airports Council International (ACI) Europe expects that airport infrastructure will be unable to meet up to 12 per cent of demand in 2050.”

“Political constraints on large-scale airport developments, such as new runways, exacerbate the problem, potentially undermining Europe’s economic competitiveness. The Draghi report has already highlighted significant underperformance in this area.”

IATA further stated that it is therefore vital that airports deploy best practices to deliver as much capacity from existing infrastructure as possible.

According to Senior Vice President for Operations, Safety, and Security, Nick Careen, the only cure for insufficient capacity is construction, “But as long as large-scale endeavours such as building new runways or terminals remain politically out of reach in many parts of the world, we must squeeze every last unit of capacity out of the infrastructure we have.”

He added that while some airports set strong benchmarks for maximising capacity, too many fail to follow the guidance in the Worldwide Airport Slot Guidelines.

The IATA White Paper calls for stronger obligations on airports to optimise capacity, ensuring they match airlines’ efforts to maximise operational efficiency. Current slot regulations place penalties on airlines for underutilising slots but impose no equivalent accountability on airports.

Addressing the imbalance, IATA advised airports to periodically review and update capacity declarations, supported by transparent consultations to identify neglected opportunities for improvement.

The association reiterated its commitment to advocating airline and passenger interests, with its mission to represent, lead, and serve the aviation industry.

The vice president insisted that slot regulations have helped create a global air transport network “which delivers ever-increasing connectivity, consumer choice, and cheaper fares. For the slot system to continue growing these benefits, we need performance obligations on airports. Stronger regulation is needed to close the enormous gap between the best and the mediocre airports in delivering capacity. That will give better service to passengers with greater accessibility to air transport and bring more benefits to the world.

DECEMBER 26, 2024

*Passengers bemoan ‘poor’ services despite fare hike

Several travellers during this festive period are finding seamless air travel less accessible at various airports nationwide. The challenge, The Guardian observed, is not unconnected with weather disruptions, inadequate infrastructure and equipment to cope with traffic surges and chaotic scheduling on the part of operators.

The attendant pains and frustration, as expressed by stranded travellers, are causing stirs, unruly scenes and extra demands from the regulators to ease discomforts.

The airlines also have their fair share of frustration, dealing with restless and unruly passengers that further worsen the disruption. Despite the premium currently charged by airline operators and seat scarcity on most flights, The Guardian observed packaged domestic terminals in Lagos and Abuja airports.

At the Abuja Airport on Wednesday afternoon, the domestic terminal was packed to the brim and congested. A total of 12 local carriers have passengers scheduled to various destinations but are constricted to just one boarding gate.

In one instance, Ibom Air was boarding Enugu; Umzah Air to Yola; Aero Contractors and Rano Air to Sokoto; United Nigeria, Arik Air, ValueJet, and Xejet were all heading to Lagos; while Air Peace had Lagos, Ibadan and Port Harcourt destination on the cue.

“This is a total mess, to say the least,” muttered a flustered male adult passenger, who had combed the entire terminal in search of a vacant seat without luck.

Some Air Peace passengers had the loudest complaints. For instance, the airline’s flight to Port Harcourt was first delayed till noon. The rescheduling further shifted till 3.30 p.m., much to the discomfort of its checked-in passengers.

The delay was blamed on operational reasons. Via the public addressing system, the airline announced that a similar flight from Lagos to Port Harcourt had been diverted to Abuja due to weather changes.

The delayed passengers were, however, invited for some light refreshments. While this was ongoing and barely 10 minutes later, Ibom Air made a boarding call for Port Harcourt, causing a protest among Air Peace customers heading to the same destination.

An Air Peace passenger, Benedict Akinsiku, expressed frustration over the flight delay. “What am I to do with the can of Coke called refreshments? It is unbecoming of this airline to take customers for granted.

“How come Ibom Air is heading to a destination that Air Peace says is not weather-friendly? I bought this ticket at a premium price of N230,000. If there is no commensurate value for the cost, why raise the cost?” Akinsiku queried.

Another passenger, Mohammed, on the Abuja-Lagos flight had his departure time changed from 7.00 p.m. to 9.00 p.m. last Wednesday. The departure was further shifted to 9.30 and 10.30 p.m. in quick succession.

“From that 10.30 p.m., there was no communication from Air Peace. The flight was not cancelled, yet we do not know the departure time. The airline offered us nothing (refreshments), and the hunger among the passengers was out of this world. It was like a dead-end; you could not just go back to town because it was midnight, yet there was nothing about the actual departure or the time to reach your Lagos destination. We didn’t start boarding until 1.45 a.m. and arrived in Lagos at 3.12 a.m. That was a flight originally scheduled for 7.00 p.m. the previous day! Thank you, Air Peace.”

A station manager told The Guardian earlier that weather changes caused the disruptions. He said: “I understand that the weather changed suddenly (in Port Harcourt on Wednesday) while the aircraft was approaching the airport from Lagos. The operating aircraft had to divert to Abuja to land.

“Now, there are passengers on the 8.30 a.m. belt in Port Harcourt, waiting to board the flight diverted to Abuja. Meanwhile, other passengers are waiting to board the same aircraft to Port Harcourt. We are facing a serious challenge, but I will keep appealing for your patience,” the staff said.

In a statement yesterday, United Airlines notified the general public that its Lagos-Asaba flight, initially scheduled for 6.30 a.m. on Thursday, December 19, was delayed due to an unfortunate incident involving an unruly passenger.

“This individual physically assaulted a crew member after everyone had boarded and the door of the aircraft was firmly shut,” UNA’s management stated. The commotion caused by this passenger lasted a long time, and for safety reasons and by international aviation protocols, the aircraft was grounded, resulting in an hours-long delay.

“Unfortunately, this disruption may have a reverberating effect on other flights across our network and may cause more delays and cancellations. We are deeply sorry about this.

“We understand and respect our passengers’ right to express their concerns. However, it is important to emphasise that any form of physical or verbal assault against any crew member is a serious offence under international aviation laws and is strictly prohibited. Such behaviour not only endangers the safety and security of everyone on board but also disrupts the travel plans of fellow passengers,” the statement read in part.

The airline urged its passengers to use appropriate channels, such as customer service hotlines or online feedback forms, to address any issues or dissatisfaction. This ensures that concerns are handled efficiently and respectfully without compromising the safety and comfort of other passengers.

DECEMBER 27, 2024

By Matthew Atungwu

The Director-General of the Nigeria Civil Aviation Authority, NCAA, Chris Najomo, has convened a meeting with airlines’ Chief Executive Officers, amid the consistent flight delays and cancellations during the festive season.

Director of Public Affairs and Consumer Protection, NCAA, Michael Achimugu disclosed this on his X handle on Thursday.

He said that Najomo is cutting short an important assignment to meet with all the CEOs of domestic airlines in Nigeria on Friday.

Achimugu recounted an experience he had while trying to catch his flight.

“I walked into the scene this evening while trying to catch a flight myself. Passengers were really angry and threatened to become violent.

“I personally addressed them and engaged for about 20 minutes, explaining that I would confirm from the Nigerian Meteorological Agency, NiMET, if the weather was truly bad. I also explained that the airline does not have liability in the event of force majeure,” he said.

According to him, despite this, he took certain measures to address the concerns of passengers.

“I insisted that the airline provide transportation back to the Central area for all passengers. I paid for nearby accommodation (Peace Media Hotel) for a few elderly passengers who looked too weak after the lengthy wait.

“The airline agreed to pay 50 per cent compensation to the passengers and agreed to also refund those who sought a refund. “I told the passengers that they could redeem that 50 per cent by cash rather than rebate if they wanted.

“I opened my phone and let as many passengers as possible to scan the NCAA QR code for passengers complaints, and told them to contact me if the airline fails to resolve their complaints by tomorrow morning,” Achimugu explained.

The director recalled that a few days ago the NCAA announced it would enforce action against five airlines, adding that this will be the first time in more than 10 years that the Consumer Protection Department of the NCAA is taking such action.

He further stated that he had written to NiMET to begin sending daily weather reports directly to his office, which would enable me to ascertain quickly if an airline lies about weather.

Achimugu said three days ago, he voted some money from his salary to some indigent passengers owed refunds by a certain airline whose current situation is critical.