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47 Airlines Have Folded up in Nigeria — Operators

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  • 47 Airlines Have Folded up in Nigeria

Airline operators on Wednesday blamed the dwindling fortunes of some airlines in the country on the harsh operating environment.

They told the House of Representatives Committee on Aviation that 47 airlines had folded up in the last 30 years owing to the unfavourable operating environment.

The Secretary General, Airline Operators of Nigeria, Capt. Mohammed Joji, who spoke on behalf of his colleagues, attributed the development to “policy formulation, policy deviation and policy contradictions on the part of the executive arm of government.”

The committee, which is chaired by Mrs. Nkiruka Onyejeocha, held a public hearing at the National Assembly on the need to rescue the airlines from imminent collapse.

“Forty-seven airlines have gone under due to policy somersault and high operating costs,” Joji said.

He stated that the Federal Government tried to address the situation in 2006 through the Presidential Task Force set up by former President Olusegun Obasanjo.

However, he noted that there had been no remarkable change in the way government agencies in the aviation sector churned out policies because the report of the task force was not implemented.

Joji said, “These include high operation costs, leading to unstable operating environment such as the Nigerian Airspace Management Agency charging dollars for domestic operators flying within the Nigerian airspace.

“It was for that reason the Presidential Task Force set up by the then President Olusegun Obasanjo submitted its report in March 2006. The published white paper approved among other things the following: government accepted the recommendation to grant zero tariff and Value Added Tax on aircraft, aircraft spare parts and ground equipment.

“Government also approved the removal of the five per cent VAT on ticket sales and cargo charges. The task force also noted that VAT is never charged on transportation in any part of the world because transportation is a basic service, which drives the economy. The task force’s recommendation can be collaborated by the VAT Decree No. 102 of 1993.”

The operators also complained that foreign airlines were enjoying certain incentives that were denied local carriers.

One of such is the approval of multiple destinations to foreign airlines, which they said had adversely affected their own operations.

Joji explained, “The Nigerian Civil Aviation Authority policy of levying operators flying on scheduled flights out of Nigeria is a punitive measure devoid of any economic sense to the airlines.

“The Federal Airports Authority of Nigeria charges the most expensive land rate in the world at N60,000 per square metre. That is more expensive than choice land in Victoria Island, Lagos, and Asokoro in Abuja.”

The Managing Director, Medview Airline, Mr. Olanrewaju Lukman, told the committee that Joji’s presentation adequately captured the feelings of the operators.

He said while the government’s plan to concede four major airports to private operators might sound appealing, it could be distorted if the process was not made transparent.

“If anything meaningful must be achieved in the proposed plan to rescue the aviation sector, then transparency must be the watchword,” he argued.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

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Transcorp Hotels Expand into Marketplace, Launches Aura to Connect People, Hoteliers, Others

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Transcorp Hotels Plc, on Thursday, announced it has launched a new digital platform, Aura, through which people can book accommodation, restaurants and experiences.

Aura, Transcorp’s first in the alternative accommodation segment, is part of the company’s asset-light model, leveraging technology to deliver true hospitality, exciting experiences, and drive shareholder value.

It’s a new dawn in the hospitality industry! I am thrilled to introduce you to Aura by Transcorp, the digital platform we are using to connect people to quality accommodation, great food, and awesome experiences,” Managing Director and Chief Executive Officer of Transcorp Hotels Plc. Dupe Olusola said.

For more than 30 years, Transcorp Hotels Plc has been at the forefront of creating a superior guest experience at our locations. Today, our commitment to innovation has offered us an opportunity to extend this beyond the hotel premises,” Olusola added.

The launch of Aura by Transcorp is one of the most significant developments in the company’s history as it seeks to transform the travel and tourism industry in Africa by focusing on three important components of travel, whether for leisure or business — where you stay, what you eat and how you spend your time. With its people-driven hospitality model, Aura is set to revolutionise travel and help remind Africans of our deep history of hospitality.

Speaking on the launch of Aura, Obong Idiong, Chief Executive Officer at Africa Prudential Plc, Aura’s technology partners, expressed his excitement. “Finding the right accommodation when you travel can be incredibly complex. Options available for the right prices are often limited, and travellers sometimes end up with accommodation that taints the travel experience. Transcorp Hotels Plc has been able to fix that with Aura and we are proud to be associated with them.”

To ensure topnotch user experience, we built a solution to drive digital transformation through the adoption of shared living spaces for the Aura business. With an advanced search algorithm powered by artificial intelligence, Aura determines the relevance of locations taking into consideration, the customers’ preferences and requirements to meet them at the point of their needs,” Idiong added.

Priscilla Adeboye, a travel enthusiast and early adopter of Aura, said the global pandemic has pushed international travel down her list. “But I still want to be able to take some time off work or spend a weekend away from home with the family. I have found incredible homes on Aura that meet my need for space and privacy.

 

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Siemens Energy Nigeria Appoints Seun Suleiman as Managing Director

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Seun Suleiman is the New Managing Director of Siemens Energy Nigeria

Mr. Seun Suleiman is the new managing director of Siemens Energy Nigeria, the company announced on Wednesday.

According to the statement released by the energy company, Suleiman will be responsible for the entire management of operations and decisions on business policies and corporate strategy.

Commenting on his appointment, Suleiman said, “It is an absolute honor to lead the business for Siemens Energy Nigeria and I look forward to delivering on the brand’s promise of excellence.

Suleiman joined Siemens Energy in 2014, bringing over 15 years’ experience and deep expertise in the private sector across Europe and West Africa.

The statement said, “He is an accomplished business strategist and success-driven leader with strong business acumen. Suleiman has also been a core member of the executive management team at Siemens Energy serving in roles as Sales Director West Africa – Service Distributed Generation Oil & Gas and Vice President Service & Digital.

“Prior to this, he also held various functional and managerial positions with ABB Ltd UK, ABBNG Nigeria, Schneider Electric Nigeria and Dresser-Rand Nigeria Ltd.

It added that Suleiman was experienced in establishing operational excellence with specific competence in the power, oil and gas sectors.

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FG Reopens Osubi Airport Warri for Daylight Operations

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FG Reopens Osubi Airport Warri for Daylight Operations

The Federal Government on Monday said the Osubi Airport in Warri has been reopened for daylight operations.

The Minister of Aviation, Hadi Siriki, disclosed this in a tweet.

The airport was closed in February 2020 over mismanagement and debt allegation involving aviation service providers and airport management.

However, Oberuakpefe Afe, a lawmaker representing Okpe/Sapeie/vaie federal constituency, recently moved a motion for the Federal Government through the ministry of aviation and relevant authorities to reopen the airport for flight operations.

On Monday, Hadi Siriki said “I have just approved the reopening of Osubi Airport Warri, for daylight operations in VFR conditions, subject to all procedures, practices and protocols, including COVID-19, strictly being observed. There will not be need for local approvals henceforth.

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