Tag: Airlines

  • FG To Sanction Foreign Airlines Selling Tickets In Dollar

    FG To Sanction Foreign Airlines Selling Tickets In Dollar

    The federal government has directed the Nigeria Civil Aviation Authority (NCAA) to sanction international airlines said to be refusing to sell tickets in naira.

    The Minister of Aviation, Senator Hadi Sirika, announced this on Wednesday while fielding questions after the Federal Executive Council (FEC) meeting presided over by President Muhammadu Buhari at the Presidential Villa, Abuja.

    Sirika said intelligence reports indicated that some of the airlines are refusing naira and charging their ticket fares in dollars in violation of the country’s laws, adding that NCAA had been mandated to deal with any of such airlines wilfully breaching the laws.

    According to him, some of the airlines have also blocked local travel agencies from accessing their websites for transactions.

    He said the foreign airlines had made over $1.1 billion from Nigeria from 2016, which could have been retained in the country if they were local airlines.

    The minister said the airlines remitted over $600 million to their home countries in 2016 while over $265 million had also been released this year out of about $484 million due to them.

    He said the government is trying to keep the airlines happy by ensuring that their money does not pile up again, stating that while the country needs their services, the airlines need the Nigerian market.

    Sirika also cautioned them to refrain from using the social media to press home their demands but to rather use the diplomatic channels.

  • Emirates Restores Flight Operations To Lagos

    Emirates Restores Flight Operations To Lagos

    Emirates Airlines has restored its flight operations to Nigeria’s commercial capital of Lagos 

    The company announced this in emails sent to its customers

    “We are pleased to inform you that effective from 11th September 2022, we will reinstate operations of our flights,” Emirates said on Wednesday.

    “Inbound flights from Dubai to Lagos (EK783) and outbound flights from Lagos to Dubai (EK784) will recommence from Sunday, 11th September 2022.

    “Lagos flights after 30th September 2022 will be advised in due course.”

    Wednesday’s reinstatement came two weeks after the United Arab Emirates (UAE) carrier suspended flight operations, citing its inability to repatriate its earnings in foreign exchange from Nigeria.

    “We have had no choice but to take this action, to mitigate the continued losses Emirates is experiencing as a result of funds being blocked in Nigeria,” the airlines said in a letter addressed to the Minister of Aviation, Hadi Sirika.

    “As of July 2022, Emirates has US$85 million of funds awaiting repatriation from Nigeria. This figure has been rising by more than $US10 million every month, as the ongoing operational costs of our 11 weekly flights to Lagos and 5 to Abuja continue to accumulate.”

    The Emirates’ move followed concerns raised by the International Air Transportation Association (IATA) over the issue. IATA had said foreign airlines’ funds trapped in Nigeria rose from $450 million in May to $464 million in July.

    While the Federal Government said Nigeria was having a forex exchange crisis and thus could not meet some responsibilities, including revenue repatriation by foreign airlines, it later bowed to pressure and released $265 million to the airlines.

    The IATA lauded the step, noting that it would boost foreign airlines’ to continue their service in Nigeria.

  • CBN Releases $265m To Airlines

    The Central Bank of Nigeria (CBN) has released the sum of $265 million to airlines operating in the country to settle outstanding ticket sales in an apparent move to check a brewing crisis in the country’s aviation sector.

    A breakdown of the figure released on Friday indicates that the sum of $230 million was given as special Forex intervention while another sum of $35 million was released through the Retail SMIS auction.

    Confirming the release, the Director, Corporate Communications Department at the CBN, Mr. Osita Nwanisobi, said the CBN Governor, Godwin Emefiele, and his team were concerned about the development and what it portends for the sector and travelers as well as the country in the comity of nations.

    Nwanisobi reiterated that the Bank was not against any company repatriating its funds from the country, adding that what the Bank stood for was an orderly exit for those that might be interested in doing so.

    With Friday’s release, it is expected that operators and travellers as well will heave huge sighs of relief, as some airlines had threatened to withdraw their services in the face of unremitted funds for the outstanding sale of tickets.

  • House resolves airlines’ strike dispute

    House resolves airlines’ strike dispute

    The leadership of the House of Representatives has resolved the issues that led the Airlines Operators Association of Nigeria (AOAN) to threaten to shut down flight operations across the country.

    At a meeting that lasted over three hours at the National Assembly on Monday, the House leadership, led by Speaker Femi Gbajabiamila secured the commitment of the Nigerian National Petroleum Corporation (NNPC) to, in the interim, make available 6 million litres of JetA1 (aviation fuel) available to the aviation fuel marketers chosen by the AOAN.

    As part of the resolutions, it was agreed that as a long term solution, the airline operators must commence, as soon as possible, the process of securing a license for the importation of aviation fuel to avoid suspicion over the landing cost of the product and other associated logistic issues.

    The Midstream and Downstream Petroleum Regulatory Authority was also mandated to, as much as possible, grant waivers that do not touch on the security and safety of the country for importers of the products.

    Stakeholders present at the meeting included the representatives of the Federal Ministry of Petroleum Resources, Ministry of Aviation, Central Bank of Nigeria (CBN), NNPC, Midstream and Downstream Petroleum Regulatory Authority, the Nigerian Civil Aviation Authority (NCAA), Nigerian Airspace Management Authority (NAMA) as well as the AOAN, among others.

    At the meeting which took off on a rocky note, Speaker Gbajabiamila had warned that it was incumbent on the Chief Executive of agencies of government and the private sector to honour the invitation of the House on issues of national importance.

    This happened after the representative of the governor of CBN was asked to excuse himself from the meeting by the Speaker, who emphasised that the importance and sensitivity of the meeting required the presence of the CBN governor due to the importance of the issues at stake.

    The CBN governor, Godwin Emefiele, who eventually walked into the meeting abput 15 minutes later, gave reasons why he had to be represented before his eventual arrival.

    In his remarks, Speaker Gbajabiamila said the nation was at a crucial moment as the shutdown by the airline operators amounts to a potential shutting down of the country. “We cannot sit here and watch this happen.

    “That is why the presence of the CBN governor is very important because his role is very critical to the resolution of this issue”

    The Speaker recalled that certain resolutions that included the sale of aviation fuel at N500 per litre and the granting of aviation fuel import license to the operators was arrived at during the last meeting with the stakeholders while requesting an update on the implementation of the resolution.

    The leadership of the House also inquired from the NNPC about the status of the 25,000 tons of ATK approved for the airlines as a palliative in addition to the availability of the product to the airlines for about three months.

    Also, the leadership opined that functional refineries should be able to address some of the challenges being faced while asking for the status of the refineries undergoing renovation.

    Responding, NNPC GMD, Mele Kyari assured that the three months supply of Jet A1 to the chosen marketers by the AOAN is assured while emphasizing that the price of the product cannot be guaranteed because it is globally market-driven.

    “We will make appropriate allocations to the three marketers chosen by the operators and the other,” Kyari said.

    On his part, the CBN governor, Emefiele also noted that though the apex bank has no control over the flow of the dollar, he however assured that no operator would be denied facilities by the banks as long as they are creditworthy.

    While appreciating all the stakeholders for the efforts put in at resolving the issue at stake, the Speaker said, “Rounding up on a positive note, I appreciate the airline operators for being nationalistic in calling off the strike as I hope that the outcome of this meeting will usher in a lasting solution to these challenges of Jet A1 bearing in mind that there is a laissez-faire economy of demand and supply”.

  • Stakeholders Reach Agreement To Prevent Shut Down Of Airlines

    Stakeholders Reach Agreement To Prevent Shut Down Of Airlines

    Aviation jet A1 fuel is to be sold at N500 within the next three days to prevent airlines from shutting down.

    This is according to the Group Managing Director of the Nigerian National Petroleum Corporation, Mele Kyari after a meeting with marketers, regulators and operators in the aviation industry.

    The meeting, which was presided over by the Deputy Speaker of the House of Representatives, Ahmed Wase, was in continuation of the investigation over the scarcity and high cost of aviation fuel, which has led to an increase in air fares.

    Mr Kyari said a better pricing mechanism is to be put in place within the next three days to arrive at an acceptable price.

    He added that airline operators will be granted license to import aviation fuel.

  • We rejected 90% of airlines’ applications for expatriates – FG

    We rejected 90% of airlines’ applications for expatriates – FG

    The federal government says it rejected about 90 percent of the applications by airline operators for expert quotas in their business.

    Hadi Sirika, minister of aviation, disclosed this in his office in Abuja.

    According to the minister, the rejection was basically to ensure that Nigerians are prioritised for such jobs, particularly when there are qualified citizens who could deliver on the positions.

    Commenting on the need to preserve jobs in the sector for Nigerians, the minister said his ministry has set up a policy in conjunction with the federal ministry of interior that Nigerians who have the same competency and proficiency as foreigners will be given preference for highly-skilled jobs.

    “In other words, if you bring an A380 aircraft, A350 or a B737 Max, if there is a Nigerian captain who is proficient and competent by his licence to fly, that Nigerian will be considered first,” Sirika said.

    “Government is not going to lord it on Nigeria Air how they operate, but we are warning the owners of Nigeria Air that Nigerian jobs are paramount. And this is also for every single airline.

    “Daily, I receive applications from airlines, Air Peace, Ibom Air, Max Air, Azman, a lot of them, they apply daily to have expert quotas to bring in people.”

    Sirika said when the airlines apply to the ministry of interior, the application will be forwarded to his desk and he would send it to the Nigerian Civil Aviation Authority (NCAA), “for it to advise us whether the person for that job is not available in Nigeria before I will sign my signature”.

    “And I can guarantee you that 90 percent of the applications are rejected. And this policy will be strengthened so that Nigerians will get jobs,” he said.

    The minister said the federal government had been receiving applications from airlines to bring in airplanes into Nigeria on a daily basis. He said all requests by the airline operators has been granted since he assumed office.

    “We will support every single airline in the country. Since I became minister, there is no one who applies to bring in aircraft and I have refused, not one. And they come in daily,” he said.

    “And since I became minister, there are about 20 applications by an aircraft company and I haven’t refused anyone yet. And I don’t think I would have refused any.

    “This is because it means growth of our industry, jobs for our people, service for the country, and as social democrats, it is the people that matter.”

    The minister said the government has been guiding airline operators on the kind of aircraft to deploy for profitability.

    According to him, the profit margin in the airline business is meagerly and as such, operators must use airplanes that consume less fuel and deliver efficient services.

    Sirika expressed hope that within the next few quarters, aviation will return as the fastest-growing sector of the Nigerian economy.

  • With 5% ownership by the government, Nigeria Air starts operations in April 2022

    With 5% ownership by the government, Nigeria Air starts operations in April 2022

    The proposed national carrier will begin flight in April next year, the Minister of Aviation, Hadi Sirika, has announced.

    The development came three years after the Federal Government announced plans to establish a new national carrier, following the liquidation of the Nigerian Airways in 2003.

    At the end of a virtual Federal Executive Council meeting presided over by the President, President Muhammadu Buhari at the Presidential Villa, Abuja, on Wednesday, Sirika told State House correspondents that the Federal Government would own not more than five per cent equity stake in the national airline.

    According to him, Nigerian entrepreneurs will own 46 per cent shares while international strategic partners will own 49 per cent stake.

    The minister said his ministry presented two memoranda which were approved by FEC.

    “The next one also is the approval of the outline business case for the establishment of the national carrier and this is the sixth time the memorandum appeared before Council. The sixth time, we got lucky to be passed by the Council.

    “The structure of the proposed airline; the government will be own not more than five per cent. So, five per cent is the maximum equity that the government will take, then 46 per cent will be owned by Nigerian entrepreneurs. So, if you add that, it’s 51 per cent.”

    Sirika noted that 49 per cent stake would be held by strategic equity partners that would be sourced during the procurement phase.

    He added, “This airline, if started, within the first few years will generate about 70,000 jobs. These 70,000 jobs are higher than the total number of civil servants that we have in the country. Its importance has been well discussed, so; I’ll not go back to it. You had discussed it separately also on various fora as to the need for it.”

    Speaking about the second memo, the minister said, “Today in Council, civil aviation presented two memoranda. The first one is approval for the award of contract for the provision of Automated Civil Aviation Regulatory Equipment, including software support and training, which will be located in Nnamdi Azikiwe International Airport.

    “In summary, this is a software that will allow all of the activities of civil aviation regulation to be done electronically on one platform, including payments, including follow-ups on personnel licensing, the medicals, the economic regulation of airlines, safety regulation of airlines and all other businesses within the envelope of civil aviation will be monitored by this single software.

    “It is called ‘the truth machine’ in Europe because all of the truth of the regulation of civilisation will appear on this platform. It’s extremely important software that the world has now come to terms with.”

  • Airlines halt China flights as virus toll hits 132

    Airlines halt China flights as virus toll hits 132

    Foreign airlines began suspending flights to and from China on Wednesday as global fears mounted over a coronavirus epidemic that has killed 132 people and infected nearly 6,000.

    The announcements came hours after countries began airlifts to evacuate foreigners trapped in Wuhan, the quarantined central Chinese city of 11 million people at the epicentre of the health emergency.

    A growing number of governments, including the United States, Britain and Germany, have in recent days advised their citizens to avoid non-essential travel to China over concerns about the viral outbreak.

    China has itself urged its citizens to delay trips abroad, with at least 15 countries having confirmed cases of the disease.

    The United Arab Emirates reported the first known case in the Middle East on Wednesday.

    British Airways was the first major airline to announce a total suspension of flights to and from China, citing the travel advice of the foreign office.

    “We apologise to customers for the inconvenience, but the safety of our customers and crew is always our priority,” BA said in a statement on Wednesday.

    Indonesia’s Lion Air Group, Southeast Asia’s biggest carrier by fleet size, then said it would halt services to and from China from Saturday “until further notice”.

    In Myanmar, the three airlines that have routes into neighbouring China also said those flights would also be suspended from Saturday.

    Cathay Pacific also cut flights, citing low demand and the Hong Kong government’s response plan against the virus.

    And in one of the most dramatic measures, the tiny Pacific nation of Papua New Guinea announced Wednesday that travellers from Asia would not be allowed in.

    However many other airlines said they were continuing their China services.

    – Foreigners escape –

    China has taken other extraordinary measures to try and stop the disease spreading, including bans on tour groups travelling overseas, suspending schools and extending the Lunar New Year holiday.

    Authorities also last week imposed transport bans in and around Wuhan in an unprecedented quarantine effort, leaving more than 50 million people shuttered in their homes.

    “This is the first day since the lockdown that I’ve had to go out,” a man in his 50s told AFP on the mostly deserted streets of the industrial city on Wednesday.

    “I have no choice because I need to buy food today.”

    Japanese nationals airlifted from the epicentre of China’s deadly viral epidemic speak to reporters in Tokyo
    Thousands of foreigners have been among those trapped in Wuhan, which has become a near ghost-town with car travel banned and residents staying indoors.

    Countries have scrambled for days to try and get their citizens out of Wuhan safely, but have faced huge logistical, medical and bureaucratic hurdles.

    A US charter flight left Wuhan on Wednesday with about 200 Americans on board, including consulate staff.

    Another 200 people were aboard a Japanese flight which landed in Tokyo on Wednesday morning.

    Medical professionals were on the plane to carry out checks but officials said they had no legal basis to forcibly quarantine people who have not tested positive for the virus.

    The spread of the coronavirus
    They would instead be asked to remain at home and avoid crowds until the results of the tests were known.

    Other countries were planning more stringent quarantine measures, with Australia to evacuate its citizens from Wuhan and temporarily house them on an island normally used to detain asylum seekers.

    France said it would keep its returnees in a holding facility in Paris for 14 days — the estimated incubation period for the virus.

    – Highest priority –

    Meanwhile, the virus continued to spread and kill in China.

    The number of confirmed cases across the country climbed to 5,974, while the death toll nationwide jumped 26 to 132.

    The scale of the deepening crisis was emphasised with the total number of infections on the Chinese mainland exceeding that of the Severe Acute Respiratory Syndrome (SARS) outbreak in 2002-03.

    SARS, another respiratory coronavirus, went on to claim nearly 800 lives around the world, with most of those fatalities in mainland China and Hong Kong.

    The virus is believed to have originated in a wild-animal market in Wuhan, where it jumped to humans before spreading across China
    The virus is believed to have originated in a wild-animal market in Wuhan, where it jumped to humans before spreading across the country as the peak travel period for Lunar New Year festivities got under way.

    The World Health Organization said Tuesday it would send urgently dispatch international experts to China “to guide global response efforts”.

    Until Tuesday, all reported cases overseas had involved people who had been in or around Wuhan.

    But Japan and Germany then reported the first confirmed human-to-human transmission of the illness outside China. Vietnam is investigating another case.

    Germany now has four confirmed cases, all of them employees at a Bavarian firm recently visited by a Chinese colleague, health officials said.

    The US asked China on Tuesday to step up its cooperation with international health authorities over the epidemic.

    Washington had offered China assistance three times so far without success, Health and Human Services Secretary Alex Azar told reporters.

    – Economic pain –

    The virus has rattled global markets and started to dent an already-slowing Chinese economy.

    Japanese automaker Toyota said Wednesday it would keep its plants in China closed until at least February 9 in part due to government guidelines.

    Apple was closely watching the outbreak in China, home to the firm’s third-biggest consumer market and much of its supply chain, chief executive Tim Cook said.

    Global coffee chain Starbucks said it expected a significant earnings hit after closing more than half of its stores across China.