Aero Suspends Operations
Aero Contractors Airlines, Nigeria’s second largest commercial carrier, has announced the suspension of its scheduled services beginning from Thursday September 1, 2016.
On Monday, August 22, 2016, the punch reported that the airline was set to lay off some of its workers as its financial crisis became worse.
The report also noted that the carrier was in talks with aviation unions on how to cut down on the number of workers in its employ, just as sources from the sector said the airline was contemplating a suspension of its flight services.
Confirming this in a statement signed by the carrier’s management on Wednesday, Aero stated that the suspension was part of the strategic business realignment to reposition the airline and return it to the part of profitability.
It stated that this business decision, which was a result of the current economic situation in the country, had forced some other airlines to suspend operations or outright pull out of Nigeria.
The airline said, “The impact of the external environment has been very harsh on our operational performance, hence the management decision to suspend scheduled services operations indefinitely effective September 1, 2016, pending when the external opportunities and a robust sustainable and viable plan is in place for Aero Contractors to recommence its scheduled services.
“The implication of the suspension of scheduled services operations extends to all staff members directly and indirectly involved in providing services as they are effectively to proceed on indefinite leave of absence during the period of non-services.”
As passengers, who had earlier booked travel tickets online stormed the ticketing counters of Aero in some airports, the airline had to swiftly announce that it would refund the payments made by the intending travellers.
Officials of the firm told our correspondent that the carrier had also agreed to refund those who may have made payments for tickets in cash for trips that were to happen on Thursday, September 1, 2016.
They stated that the airline had to suspend its operations due to issues of forex, inability to bring back some of its aircraft that were flown out for maintenance, as well as the precarious financial situation of the company, despite being taken over by the Asset Management Corporation of Nigeria.
A senior official of the carrier who spoke to our correspondent in confidence said, “I cannot give you a date as to when the suspension of the scheduled flight services will be lifted. This is because the economic parameters in Nigeria are currently so bad that one cannot plan with it.However, our rotary wing, that is helicopter service and charter operations are still operating.”
Communities in Delta State Shut OML30 Operates by Heritage Energy Operational Services Ltd
The OML30 operated by Heritage Energy Operational Services Limited in Delta State has been shut down by the host communities for failing to meet its obligations to the 112 host communities.
The host communities, led by its Management Committee/President Generals, had accused the company of gross indifference and failure in its obligations to the host communities despite several meetings and calls to ensure a peaceful resolution.
The station with a production capacity of 80,000 barrels per day and eight flow stations operates within the Ughelli area of Delta State.
The host communities specifically accused HEOSL of failure to pay the GMOU fund for the last two years despite mediation by the Delta State Government on May 18, 2020.
Also, the host communities accused HEOSL of ‘total stoppage of scholarship award and payment to host communities since 2016’.
The Chairman, Dr Harrison Oboghor and Secretary, Mr Ibuje Joseph that led the OML30 host communities explained to journalists on Monday that the host communities had resolved not to backpedal until all their demands were met.
Crude Oil Recovers from 4 Percent Decline as Joe Biden Wins
Oil Prices Recover from 4 Percent Decline as Joe Biden Wins
Crude oil prices rose with other financial markets on Monday following a 4 percent decline on Friday.
This was after Joe Biden, the former Vice-President and now the President-elect won the race to the White House.
Global benchmark oil, Brent crude oil, gained $1.06 or 2.7 percent to $40.51 per barrel on Monday while the U.S West Texas Intermediate crude oil gained $1.07 or 2.9 percent to $38.21 per barrel.
On Friday, Brent crude oil declined by 4 percent as global uncertainty surged amid unclear US election and a series of negative comments from President Trump. However, on Saturday when it became clear that Joe Biden has won, global financial markets rebounded in anticipation of additional stimulus given Biden’s position on economic growth and recovery.
“Trading this morning has a risk-on flavor, reflecting increasing confidence that Joe Biden will occupy the White House, but the Republican Party will retain control of the Senate,” Michael McCarthy, chief market strategist at CMC Markets in Sydney.
“The outcome is ideal from a market point of view. Neither party controls the Congress, so both trade wars and higher taxes are largely off the agenda.”
The president-elect and his team are now working on mitigating the risk of COVID-19, grow the world’s largest economy by protecting small businesses and the middle class that is the backbone of the American economy.
“There will be some repercussions further down the road,” said OCBC’s economist Howie Lee, raising the possibility of lockdowns in the United States under Biden.
“Either you’re crimping energy demand or consumption behavior.”
Nigeria, Other OPEC Members Oil Revenue to Hit 18 Year Low in 2020
Revenue of OPEC Members to Drop to 18 Year Low in 2020
The United States Energy Information Administration (EIA) has predicted that the oil revenue of members of the Organisation of the Petroleum Exporting Countries (OPEC) will decline to 18-year low in 2020.
EIA said their combined oil export revenue will plunge to its lowest level since 2002. It proceeded to put a value to the projection by saying members of the oil cartel would earn around $323 billion in net oil export in 2020.
“If realised, this forecast revenue would be the lowest in 18 years. Lower crude oil prices and lower export volumes drive this expected decrease in export revenues,” it said.
The oil expert based its projection on weak global oil demand and low oil prices because of COVID-19.
It said this coupled with production cuts by OPEC members in recent months will impact net revenue of the cartel in 2020.
It said, “OPEC earned an estimated $595bn in net oil export revenues in 2019, less than half of the estimated record high of $1.2tn, which was earned in 2012.
“Continued declines in revenue in 2020 could be detrimental to member countries’ fiscal budgets, which rely heavily on revenues from oil sales to import goods, fund social programmes, and support public services.”
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