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Arik Airline Resumes Operations after Temporary Suspension

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7 years ago

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Airline

Arik, the airline with the largest fleet in the country, will resume full operation wednesday after tuesday’s suspension of operations due to its inability to renew its aircraft insurance.

“We have resolved the issues relating to the insurance. Our flights have resumed but our full operations will start tomorrow. Two flights are already leaving to Port Harcourt and Abuja this evening. We sincerely apologise to our clients,” Adebanji Ola, its spokesman said in a statement.

In another statement, the Group CEO, Dr. Michael Arumemi-Ikhide, apologised to its passengers and said the airline was fully committed to normal operations and minimise any unfortunate inconvenience to them.

“Where flights have been cancelled, the airline will notify passengers through SMS and in such cases, passengers will be accommodated on first available alternative flight as soon as normal flight operations resume,” he said.

The airline had tuesday afternoon announced suspension of operations owing to difficulties in getting approval for its aircraft insurance. “Arik Air, West and Central Africa’s largest airline, has alerted all air travellers of a temporary disruption to its operations, pending approval of aircraft documentation related to insurance renewal,” the airline said in statement by Ola,” adding: “we working around the clock to resolve the necessary documentation, which has been a challenge due to the long weekend holidays due to Ed-el-Kabir.”

The development left many passengers stranded at airports across the country, many of whom were returning to work after the Moslem festival.

According to international regulations, aircraft could not be allowed to fly without insurance, which is done for the total number of aircraft in the airline’s fleet.

The airline, however, said in another statement that flight operations were resuming after 16 hours of disruptions, apologising to its passengers across the country for the inconvenience the suspension of operations might have caused them, adding that it would get in touch with them to provide an update on rescheduling of their flights.

“All customers are kindly advised to contact Arik Air’s Call Centre (01-2799999), Airport or City ticket offices or visit the airline’s Website (www.arikair.com) for further updates. Passengers are also advised to check with the airline regarding the status of their flights before proceeding to the airport,” the airline said.

Arik is the third domestic operator to suspend operations since the effect of the nation’s economic downturn began to hit the aviation industry.

Aero Contractors and First Nation had suspended operations two weeks ago, citing difficulties in procuring forex for the maintenance of their fleet as their challenge.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Crude Oil

Nigeria Eyes Oil Production Surpassing OPEC Quota Amidst Positive Projections and Global Collaborations

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11 hours ago

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December 4, 2023

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crude oil

In a strategic move to exceed the OPEC-imposed oil production quotas, Nigeria, led by the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, is on a trajectory to outperform expectations.

The recent 36th OPEC and non-OPEC ministerial meeting projected Nigeria’s oil production quota at 1.5 million barrels per day (bpd) in 2024.

However, Lokpobiri revealed in a Twitter post that Nigeria currently produces 1.5 million bpd for crude and 300,000 bpd for condensate.

Addressing concerns about Nigeria’s ability to meet these targets, Lokpobiri assured, “What we are producing is much more than what is projected in the 2024 budget estimate.”

Despite discrepancies between OPEC’s projections and Nigeria’s budget estimates, the minister expressed confidence that the country would surpass the outlined targets.

Furthermore, to fortify Nigeria’s position in the global energy landscape, Lokpobiri engaged in a pivotal meeting with Baker Hughes Chairman, Lorenzo Simonelli, on the sidelines of the ongoing 28th United Nations Climate Change Conference (COP28).

Baker Hughes, a global energy technology company, expressed keen interest in sustaining and enhancing its investment in Nigeria’s oil and gas industry. Simonelli emphasized the company’s commitment to contributing to Nigeria’s energy transformation agenda and collaborating on sustainable energy practices.

Lokpobiri commended Baker Hughes for its longstanding partnership with Nigeria and affirmed the government’s commitment to creating an enabling environment for investments in the refinery sector.

The meeting set the stage for a promising collaboration that aligns with Nigeria’s objectives and contributes to global sustainable energy goals.

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Crude Oil

Oil Prices Face Downward Pressure Amid OPEC+ Uncertainty and Middle East Tensions

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11 hours ago

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December 4, 2023

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Crude oil - Investors King

Oil prices find themselves caught in the crossfire of geopolitical tensions and the aftermath of the recent OPEC+ decision on Monday.

Brent crude oil, against which Nigeran oil is priced, shed 0.9% or 73 cents settled at $78.15 per barrel at about 7 am Nigerian time while the U.S. West Texas Intermediate crude oil experienced an 0.8% decline or 64 cents to $73.43 a barrel.

“Crude seems to be under continued pressure from the OPEC+ decision. Some degree of discounting of the deeper OPEC+ cuts is justified, but as of now, the crude complex has completely disregarded them,” stated Vandana Hari, the founder of Vanda Insights, an oil market analysis provider.

Last week, oil prices suffered a slump of over 2%, fueled by investor skepticism regarding the depth of supply cuts committed to by the Organization of the Petroleum Exporting Countries and its allies, collectively known as OPEC+.

Lingering concerns about sluggish global manufacturing activity added to the pessimism.

The OPEC+ cuts, declared as voluntary on Thursday, have raised doubts about the full implementation of the proposed reductions and left investors questioning the metrics for measurement.

As the global focus shifts to the Middle East, geopolitical tensions resurface with renewed hostilities in Gaza.

Against this backdrop, three commercial vessels faced attacks in international waters in the southern Red Sea, leading to heightened concerns over potential supply disruptions.

While the resumption of the Israel-Hamas conflict injected a bullish momentum into oil prices, analysts, including CMC Markets’ Tina Teng, remain cautious.

“However, oil prices may continue to be under pressure for the time being due to China’s disappointing economic recovery and the ramp-up of U.S. production”, Teng stated.

Amid this intricate web of challenges, the specter of additional sanctions on Russia and a potential pause in sanctions relief for OPEC member Venezuela by the White House further add layers of complexity to the already delicate global oil market.

As the world watches, uncertainties persist, shaping the future trajectory of oil prices in an intricate dance of geopolitics and market dynamics.

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Commodities

Gold Hits Record High and Bitcoin Surpasses $40,000 in Asian Markets Despite Fed’s Cautious Stance

Published

16 hours ago

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December 4, 2023

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gold bars - Investors King

Gold rose to a record high of $2,135.39 per ounce on Monday during the Asian trading session while Bitcoin broke $40,000 a coin resistance levels. 

This was despite Federal Reserve Chair Jerome Powell’s cautious reminder that policymakers are not in a rush to ease interest rates.

Market analysts observed an influx of investments into gold and Bitcoin, attributing the trend to mounting expectations of Federal Reserve interest-rate cuts in the coming year.

Kyle Rodda, a senior market analyst at Capital.com in Melbourne, noted, “Markets are piling in on the rate cut bets. Gold can run higher and will do so at the earliest sign of a recession.”

The rally in these alternative assets persisted even as the dollar experienced a slight uptick, and two-year Treasuries retraced some of Friday’s robust gains.

Traders maintained their bets on a potential Federal Reserve rate cut, with swaps pricing in a full reduction by May and projecting a full point of easing by December 2024.

Powell, while stating that the central bank is ready to hike further if necessary, emphasized that policy is “well into restrictive territory.”

This surge in gold and Bitcoin comes on the heels of US stocks closing at their highest since March 2022. However, concerns linger as signs emerge that American households, after a period of exuberant spending, might be starting to pull back.

Shane Oliver, head of investment strategy and chief economist at AMP Ltd. in Sydney, cautioned that the recent rebound in shares leaves them technically overbought and at risk of a consolidation or short-term pullback.

As the global economy continues to face uncertainties, all eyes will be on key events this week, including Australian growth, Chinese inflation, and US non-farm payrolls data.

Meanwhile, the cryptocurrency market anticipates potential approval of US spot Bitcoin exchange-traded funds, adding another layer of excitement to the financial landscape.

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