Connect with us

Business

Emirates, Kenya Airways Suspend Abuja Operations

Published

on

Emirates Airlines
  • Emirates, Kenya Airways Suspend Abuja Operations

Dubai-based Emirates Airlines and Kenya Airways have announced the suspension of their flights to the Nnamdi Azikiwe International Airport, Abuja, Nigeria’s capital, in the face of the economic downturn in the country, foreign exchange scarcity, and the shrinking passenger traffic on international routes.

Emirates, one of the biggest foreign airlines operating in Nigeria, said it would stop flights effective October 22, while the East African carrier, Kenya Airways, has also announced that it would suspend flights to and from Abuja with effect from November 15, 2016 as part of its restructuring and loss-saving measures.

In this regard, Emirates was said to have written to the Minister of State, Aviation, Senator Hadi Sirika, over its intention to stop flights from Abuja, indicating its inability to buy FX.

The letter was said to have been received by the Permanent Secretary, Ministry of Transportation.

The airline was reported to have said, if after weeks off the Abuja suspension, no drastic change happens, Emirates would also suspend Lagos operations indefinitely and with that exit the Nigerian market.

Emirates like many major international carriers operating in Nigeria, has huge sums for ticket sales with the banks, which it has not been able to repatriate.

About two months ago, foreign airlines’ funds trapped in the Central Bank of Nigeria (CBN) was put at $900 million but the federal government granted the airlines access to FX at a concessionary exchange rate to enable them repatriate about 50 per cent of their ticket sales.

Besides the huge funds trapped in Nigeria, the recession has led to a reduction in passenger traffic, forcing the foreign airlines to reassess the logistics of operating from Nigeria with low load factors.

Emirates Airline has also threatened to stop its flights into Africa if the economic downturn on the continent worsens.

The president of the airline, Tim Clark, stated this in Dubai yesterday at an International Air Transport Association (IATA) forum.

Clark said foreign airlines flying to Africa now refuel abroad because jet fuel supplies had become more expensive and scarce in some African countries.

“In certain African countries, the currencies have really gone down, so we’re reflecting on a number of these to look at where it’s just not worth for us to travel,” Clark said.

He added that Emirates’ load factor – a measure of capacity utitlisation – for the rest of 2016 and 2017, would probably be in the mid-70s to low-80s in percentage terms.

Clark, however, said there would be some peaks and troughs in that time.

About a month ago, Emirates started tanking fuel from Accra, Ghana because of the scarcity of jet fuel in Nigeria.

Other foreign carriers were also forced to refuel at different locations outside the country before flying to Nigeria.

The airlines’ media office in Lagos confirmed the suspension of Abuja flights, stating: “Emirates can confirm that it’s suspending its four times weekly service between Abuja, Nigeria and Dubai with effect from 22nd October 2016.

“The decision was made after a review of the airline’s operations to ensure the best utilisation of its aircraft fleet for its overall business objectives. The airline continues to serve Nigeria with a daily flight to and from Lagos.”

In a related development, the federal government after the recent shake up at the Federal Airports Authority of Nigeria (FAAN), yesterday announced the appointment of two new directors to help the organisation realise its new set goals.

The new directors are Mrs. Nike Aboderin, who was made Director, Finance and Accounts (DFA), and Mr. Sadiku Abdulkadir Rafindadi, appointed as Director, Commercial and Business Development (DCBD).

The agency said Mrs. Aboderin is a Fellow of the Chartered Institute of Bankers of Nigeria (FCIB). She holds an M.Sc degree in Banking and Finance from the University of Lagos.

“Mrs. Aboderin possesses over 23 years experience in the financial services industry, which has exposed her to both public and private exploits at different institutions including multinationals.

“She is also an Advanced Management Programme (AMP) graduate of the Lagos Business School.

“In addition, she holds a post graduate certificate in Global Strategic Management (GSM) from the Harvard Business School, Boston, USA. She is married with children,” FAAN said in a statement signed by its acting General Manager, Public Affairs, Mrs. Henrietta Yakubu.

The agency added that Rafindadi is a 1985 graduate of Economics of the University of Pittsburgh. He also holds an MBA in Finance from the Clark Atlanta University, USA.

“He attended Kaduna Polytechnic, where he obtained a certificate in Management Studies. Mr. Rafindadi is a seasoned amiable manager who started his career as a young officer and rose to the pinnacle through diligence and commitment.

“Until his current appointment, Rafindadi worked in several management capacities in different institutions, including Phoenix Investment Services and British Petroleum. He is married with children,” FAAN said.

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

Continue Reading
Comments

Company News

Guinness Nigeria Postpones Spirits Importation Exit, Extends Deal with Diageo

Published

on

Guinness - Investors King

Guinness Nigeria Plc has announced a delay in its plan to halt the importation of spirits as it extended its agreement with multinational alcoholic beverage company Diageo until 2025.

The decision, communicated through a corporate notice filed with the Nigerian Exchange Limited on Tuesday, cited a longer-than-expected transition period for separating its business from Diageo’s.

Initially slated for discontinuation in April 2024, the importation of premium spirits like Johnnie Walker, Singleton, Baileys, and others under the 2016 sale and distribution agreement with Diageo will now continue for an additional year.

The extension comes as the process of business separation between Guinness Nigeria, a subsidiary of Diageo, and Diageo itself faces unexpected delays.

In October, Guinness Nigeria had announced plans to cease importing spirits from Diageo, a move aimed at reducing its foreign exchange requirements.

However, the separation process has encountered unforeseen hurdles, necessitating the extension of the importation agreement.

The notice, signed by the company’s Legal Director/Company Secretary, Abidemi Ademola, highlighted the ongoing efforts by Guinness Nigeria and Diageo to implement the separation, originally scheduled for completion by April 2024.

The extension underscores the complexity of disentangling the businesses and ensuring a smooth transition.

Guinness Nigeria reaffirmed its commitment to the long-term growth strategy, aligning with Diageo’s decision to establish a new, wholly-owned spirits-focused business.

Despite the delay, both companies remain dedicated to managing the importation and distribution of international premium spirits in West and Central Africa, with Nigeria as a key hub.

The postponement comes amid challenges faced by Guinness Nigeria, including significant exchange rate losses, which amounted to N49 billion in the 2023 half-year operations.

Despite these setbacks, the company remains optimistic about its future prospects in the Nigerian market.

Continue Reading

Business

Private Sector Warns: Interest Rate Hike to Trigger Job Cuts and Inflation Surge

Published

on

Private employers

As the Central Bank of Nigeria (CBN) announced a hike in the Monetary Policy Rate (MPR) from 22.75% to 24.75%, concerns have been raised by the private sector regarding the potential ramifications on job stability and inflationary pressures.

The move, aimed at curbing inflation and stabilizing the exchange rate, has prompted apprehension among business operators who fear adverse effects on the economy.

Representatives from the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) and the Nigerian Association of Small Scale Industrialists have voiced their worries over the increased difficulty in accessing affordable credit.

They argue that the higher interest rates will impede the private sector’s ability to borrow funds for expansion and operational activities.

This, they fear, could lead to a reduction in business investments and subsequently result in widespread job cuts across various sectors.

The Lagos Chamber of Commerce and Industry (LCCI) acknowledged the necessity of the interest rate hike but emphasized the potential negative consequences it may bring.

While describing it as a “price businesses would have to pay,” the LCCI highlighted the current fragility of the economy, exacerbated by various policy missteps.

They cautioned that the increased cost of borrowing could stifle entrepreneurial activities and discourage expansion plans critical for economic growth and job creation.

Experts have echoed these concerns, warning that the tightening monetary conditions could exacerbate inflationary pressures and hinder economic recovery efforts.

With inflation already soaring at 31.70%, the rate hike could further fuel price hikes, especially in essential goods and services, thus eroding the purchasing power of consumers.

However, CBN Governor Yemi Cardoso defended the decision, citing the imperative to address current inflationary pressures and ensure sustained exchange rate stability.

He emphasized the need to restore the purchasing power of ordinary Nigerians and expressed confidence that the economy would stabilize by the end of the year.

Despite assurances from the CBN, stakeholders remain cautious, calling for a more nuanced approach that balances the need for price stability with the imperative of fostering economic growth and job creation.

As businesses brace for the impact of the interest rate hike, all eyes are on the evolving economic landscape and the measures taken to mitigate its effects on livelihoods and inflation.

Continue Reading

Business

Breaking Barriers: Transcorp Hotels CEO Shares Journey from Crisis to Success

Published

on

Dupe Olusola

Dupe Olusola, the Managing Director/CEO of Transcorp Hotels Plc, reflects on her remarkable journey from navigating the depths of a global pandemic to achieving unprecedented success in the hospitality industry.

Appointed in March 2020, amidst the onset of the COVID-19 pandemic, Olusola found herself at the helm of a company grappling with the severe economic fallout and operational challenges inflicted by the crisis.

Faced with a drop in occupancy rates from 70% to a mere 5%, Olusola and her team were confronted with the daunting task of steering Transcorp Hotels through uncharted waters.

Undeterred by the adversity, they embarked on a journey of transformation, leveraging creativity and resilience to navigate the turbulent landscape.

Implementing innovative strategies such as introducing drive-through cinemas, setting up on-site COVID-19 testing facilities, and enhancing take-away services, Transcorp Hotels adapted to meet the evolving needs of its guests and ensure continuity amidst the crisis.

Embracing disruption as a catalyst for growth, Olusola fostered a culture of collaboration and teamwork, rallying her colleagues to overcome obstacles and embrace change.

Through unwavering determination and a commitment to excellence, Transcorp Hotels emerged from the pandemic stronger than ever, breaking profit and revenue records year after year.

“It’s indeed been a great opportunity to learn and relearn, to lead and to grow. When you see success stories, remember it’s a journey with twists, turns, ups and downs but in the end, it will all be okay”, she said.

Olusola’s leadership exemplifies the power of adaptability and perseverance, inspiring her team to transcend limitations and chart a course towards unprecedented success.

As Transcorp Hotels continues to flourish under her stewardship, Olusola remains steadfast in her dedication to driving innovation, fostering growth, and breaking barriers in the hospitality industry.

Continue Reading
Advertisement




Advertisement
Advertisement
Advertisement

Trending