Nigeria’s Aviation News Headlines for Friday September 23, 2016
Friday is here! It‘s been a great week and I
see better days ahead. Please find today’s headlines below and follow the links
to access the stories in full.
Airlines to Post Record $40bn Profit in 2016 – IATA
- As airlines benefit from fall in oil price
- Nigerian carriers in dire straits
The International Air
Transport Association (IATA) Thursday said global airlines are expected
to post record profits of almost $40 billion this year, but warned the
sector faced threats from terrorism, a sharp rise in oil prices and
protectionism.
IATA’s Chief Executive
Officer, Alexandre de Juniac, who took the reins at the International
Air Transport Association on September 1, also called on Southeast Asian
nations to invest in infrastructure to cope with surging demand for air
travel in the fast-growing region.
Despite this positive
outlook, it is not clear that Nigerian airlines would be part of this
largesse considering that the country’s airlines are in dire straits
with some of them just bouncing back from suspension of flights.
Only two airlines, Arik and Medview currently operate international controlling just a fraction of the market.
The former Air
France-KLM chief executive told the group’s symposium in Singapore that
collective net profit for the airline industry worldwide would hit $39.4
billion, up from $35.3 billion in 2015.
NCAA Moves to Salvage Ailing Nigerian Airlines
The Nigeria Civil Aviation Authority
(NCAA) has commenced discussions with the federal government on the
possibility of reducing the cost of aviation fuel through local refining
of the product. The NCAA is also pushing for the practicability of
granting the oil marketers and airlines the concession for lower
exchange rates.
The move was sequel to the challenges
confronting Nigerian airlines due to the high cost of aviation fuel and
exchange rate, which have made it difficult for the operators to carry
out major maintenance checks overseas and acquire aircraft spares.
It is feared that the high exchange rate
may force Nigerian airlines to ground their operations as it is
becoming increasingly difficult for them to buy aviation fuel, import
aircraft parts and carry out compulsory checks, which are largely done
overseas.
Aviation industry sources hinted that in
the next few months, the refineries would start refining petroleum
products. It was gathered that the NCAA and the Minister of State for
Aviation, Senator Hadi Sirika have made a special appeal to the managers
of the refineries that Warri Refinery be dedicated to Jet A1 refining.
Also, the NCAA is seeking a reduction in
taxes paid by the airlines, aside a review of the charges leveled on
airlines, and has secured waiver on taxes airlines pay on importation of
aircraft parts in addition to the waiver on tariffs.
Specifically, the NCAA is said to be
pushing for a zero tax on imported aircraft parts, a development, which
would save the airlines huge amounts of money.
‘How Aviation Sector can Bail Nigeria out of Recession’
Chairman of the Airline Operators of Nigeria (AON), Captain Nogie Meggison
Chairman of the Airline Operators of Nigeria (AON), Captain Nogie Meggison, in this interview with The Guardian calls for a review of policies and operating environment to revive the industry and the economy at large. Excerpts:
There is general apprehension about the aviation sector at this time. What are your fears as an operator?
First of all, I’m a pilot, an aviator, CEO of an airline, chairman of Nigerian Airlines Association and patron of the unemployed pilots’ union. When you see Nigerians out of jobs like today and standing on the roadside, it gives you cause for concern. Or when you sit in front of a television set or read in a newspaper to see any part of the economy going through hardship and at the brink of collapse, it will raise your antenna, as a Nigerian that wants things to work. Unfortunately, aviation is part of the country and Nigeria, as declared by the Minister of Finance; we are now officially in recession.
The issue for recession is not the recession itself, but how you want to come out of it, so that you can be a Victor at the end of the day. How do you want to get out of the recession as soon as possible? That is the question we should be talking about. And how do you manage the economy and the sector during this time of recession so that it does not blow out and completely collapse the system. Will Nigeria recover again? I will say yes. But how deep do we want to go down before we recover and how fast do we want come out of this mess?
http://guardian.ng/business-services/how-aviation-sector-can-bail-nigeria-out-of-recession
Sanusi: Nigerian Airlines have World’s Lowest Aircraft Utilisation
Deputy
Managing Director, Arik Air, Captain Ado Sanusi has pointed out key
things the government should do to help Nigerian airlines sustain their
operations.He spoke with Thisday Excerpts:
What do you think government can do now to help the airlines?
The airlines are facing multiple
challenges. These challenges include high cost of operation in the
country, which is caused by high cost of aviation fuel, high cost of
getting foreign exchange and multiple taxes from the parastatals. So if
you are going to make the operating environment conducive for airlines,
they must address these issues.
They must look at how they can bring the
high cost of Jet A1 to something comparable within the region. We can
take the Ghana model. Katoka Airport, Accra, Ghana has announced they
want to reduce the price of Jet A1 by 25 percent. They will cut some
taxes and make it 25 percent cheaper within the region.
Jet A1 is major component that increases
the cost of operation so if you bring down the cost of the product, it
will bring down the cost of operation. Then the cost of getting foreign
exchange; now this is not the first time the federal government is
looking at the industry and allocating foreign exchange according to
industry needs.
Turkish Airlines
Forecasts Recovery, Growth for Sector
 |
| photo credit: google.com |
…Launches report on
Nigeria
Current challenges
facing the Nigerian aviation sector notwithstanding, Turkish airlines’ experts
have reinstated confidence in the Nigerian market and its ability to survive
present economic recession.
The experts,
following a review of developments in the last couple of months, said that the
market remains viable with enormous potential for growth.
Naira Falls to N436/$ on Parallel Market as Dollar Scarcity Worsens
 |
| photo credit; google.com |
• Nigeria needs $15bn to stabilise, says Dangote
• Lagos, Kaduna top list of most indebted states
• Lagos, Kaduna top list of most indebted states
The naira fell to an all-time low of N436 to the dollar on the parallel market yesterday, as against N428 to the dollar from the previous day, as the perennial scarcity of the greenback in the market took a turn for the worse.
The effect of the dollar shortage was
also felt on the interbank FX market where the spot rate of the naira
also depreciated to N313.07 to the dollar thursday, from N310.08 to a
dollar the previous day.
This is just as Nigeria’s external reserves fell further to $24.759 billion as of September 21, 2016.
The situation on the parallel market was attributed to the refusal by banks to sell dollars to Bureau de Change (BDC) operators.
The situation on the parallel market was attributed to the refusal by banks to sell dollars to Bureau de Change (BDC) operators.
The President, Association of Bureau de
Change Operators of Nigeria (ABCON), Mr. Aminu Gwadabe, said none of his
members were able to access dollars from banks as directed by the
Central Bank of Nigeria (CBN).
2016 Hajj: Saudi Authority commends Nigerian Pilgrims
Hajj. AFP PHOTO / MOHAMMED AL-SHAIKH
A Saudi minister in charge of Hajj on Thursday commended Nigerian pilgrims to this year’s pilgrimage for their discipline and comportment at the airport in Jeddah.
Abdullah Marghalani, who is the Assistant Deputy Minister, Ministry of Hajj and Umrah Affairs, made the commendation when he received the Chairman, National Hajj Commission of Nigeria (NAHCON), Alhaji AbdullahI Mohammed, in his office at King Abdulaziz International Airport, Jeddah.
He said since the start of the operation, he had not received any information of any misbehaviour by any Nigerian pilgrim.
The minister also commended the dedication and hardwork of officials of the commission at the airport, adding that their action had contributed to the smooth flight operation being experienced in the homebound journey. “Both your pilgrims and staff have been cooperating with us in the task of delivering seemless service at the airport,’’ Marghalani said.
The official pledged to continue to work closely with the officials to ensure smooth operation.
Comments
Post a Comment