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Fake Visas Cost RwandAir Over N8b on Lagos-Dubai Route



  • Fake Visas Cost RwandAir Over N8b on Lagos-Dubai Route
  • Carrier May Withdraw New A330 From Nigeria 

Fake entry visas carried by Nigerians travelling to Dubai, the United Arab Emirates, has cost an African carrier, RwandAir, a penalty in excess of $20 million (N8 billion) in the last six months.

The fake visas, coupled with fictitious online bookings, are considered as infractions that warrant penalty by international aviation rules guiding the Global Distribution System (GDS), and borne by the conveying airline.

A GDS is a network operated by a company that enables automated transactions between travel service providers (mainly airlines, hotels and car rental companies) and travel agencies. Multiple reservations also attract multiple charges against the airline.

For every passenger that arrives in Dubai without valid visa or forged papers and ultimately turned back at the port of entry, the airline pays a penalty of $30,000 (N1.2million) for the Advance Debit Memo (ADM) issued per passenger.

Also, the airline is considering the withdrawal of its new Airbus 330-200 that was recently deployed to the Lagos route over low patronage, as recession is making it difficult to fill the 240-passenger capacity aircraft.

Recall that the Kigali-based airline is one of the foreign carriers making waves on the continent, with heavy reliance on Nigeria for its market. With Nigeria supplying the lion share of its total passenger supply for 2015, the airline had deployed two new A330-200s to the Lagos routes.

Plans were in the offing to bring in the third aircraft this December for the passengers heading to China, India and other countries.A Sales Executive of RwandAir, Henry Aaron, said it was regrettable that the airline had paid $20 million from July till date for the mistakes the airline knows nothing about.

Aaron said the penalty imposed on the airline was due to the “smart activities” of its passengers and their cohorts in Dubai, who are playing all gimmicks to outwit the airline’s clearance to board.

Aaron explained that there are some “smart guys” in Dubai processing working visas for wiling Nigerians. At the point of booking, the visas are genuine, but would have been cancelled from the system and become fake before the passenger reached Dubai airport.

“It is a smart move. Once it is cancelled, the person has no way of entering. As an airline that has carried the passenger on a one-way ticket, for every case like that, we are charged $30,000 for each passenger. I also have to fly the person back to Nigeria for free. That is the problem,” he said.

While the problem is not peculiar to RwandAir, the airline is having more of the effect as a foreign airline and co-competitor on the UAE market.Emirates and other UAE airlines also face similar problems, although at minimal rates, but as home grown airlines, they will always find their way around without paying penalties.

Aaron added that the airline even introduced an Okay-To-Board clause to curb the challenge, but Nigerians still found their way around it. “Okay-To-Board issue simply means that we collect your visa and working permits 48 hours before you board and present them to your employer in Dubai to okay before we allow you board. It is working but our Nigerian guys are so good.

“What they do is that they would look for someone in the organisation, tip the person to issue and monitor the permit without the knowledge of the employer. Some hours before the plane is due to arrive; they would extract the permit and cancel the visa. It becomes a problem for us and we are paying heavily for it,” he said.

The airline in the last five years of operations in Nigeria, had been having the problem, which escalated this year.The National President of the National Association of Nigerian Travel Agencies (NANTA), Bankole Bernard, said that the challenges faced by RwandAir were unfortunate, but would be addressed when travel agencies and airlines cooperated.

Aaron disclosed that the airline had suffered a lot of losses in the last few months paying ADM to the GDS. “At the end of the day, we don’t really have profit to take home just because we are paying for errors not made by us but by our travel partners that are making the mistake ignorantly.

Between July and October, we have been paying close to $20million to various GDSs as penalties,” adding that profit margin in aviation is very slim, as at the best of time, it ranges between four and six per cent.

To cut down on the losses, he said that the airline is introducing $5 (N2000) on each segment of its online bookings. Lagos-Dubai return ticket for instance, that is, Lagos-Kigali, Kigali-Dubai, Dubai-Kigali and Kagali-Lagos, will all attract $20 (N8000).

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

Crude Oil

Crude Oil Pulled Back Despite Joe Biden Stimulus



Oil 1

Crude Oil Pulled Back Despite Joe Biden Stimulus

Crude oil pulled back on Friday despite the $1.9 trillion stimulus package announced by U.S President-elect, Joe Biden.

Brent crude oil, against which Nigeria’s oil is priced, pulled back from $57.38 per barrel on Wednesday to $55.52 per barrel on Friday in spite of the huge stimulus package announced on Thursday.

On Thursday, OPEC, in its latest outlook for the year, said uncertainties remain high in 2021 with the number of COVID-19 new cases on the rise.

OPEC said, “Uncertainties remain high going forward with the main downside risks being issues related to COVID-19 containment measures and the impact of the pandemic on consumer behavior.”

“These will also include how many countries are adapting lockdown measures, and for how long. At the same time, quicker vaccination plans and a recovery in consumer confidence provide some upside optimism.”

Governments across Europe have announced tighter and longer coronavirus lockdowns, with vaccinations not expected to have a significant impact for the next few months.

The complex remains in pause mode, a development that should not be surprising given the magnitude of the oil price gains that have been developing for some 2-1/2 months,” Jim Ritterbusch, president of Ritterbusch and Associates, said.

Still, OPEC left its crude oil projections unchanged for the year. The oil cartel expected global oil demand to increase by 5.9 million barrels per day year on year to an average of 95.9 million per day in 2020.

But also OPEC expects a recent rally and stimulus to boost U.S. Shale crude oil production in the year, a projection Investors King experts expect to hurt OPEC strategy in 2021.

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Crude Oil

OPEC Says Uncertainties Remain High in 2021



Nigeria's economic Productivity

OPEC Says Uncertainties Remain High in 2021

The Organization of the Petroleum Exporting Countries (OPEC) on Thursday said global uncertainties remained high going forward in 2021 but kept its oil demand forecast unchanged.

In the cartel’s latest oil outlook for 2021, oil demand is expected to increase by 5.9 million barrels per day year on year to 95.9 million barrels per day. The prediction was unchanged from December’s assessment.

However, OPEC and allies, said: “Uncertainties remain high going forward with the main downside risks being issues related to COVID-19 containment measures and the impact of the pandemic on consumer behavior.”

“These will also include how many countries are adapting lockdown measures, and for how long. At the same time, quicker vaccination plans and a recovery in consumer confidence provide some upside optimism.

Crude oil rose to $57 per barrel this week after incoming US President Joe Biden announced it would inject $1.9 trillion stimulus into the world’s largest economy.

But the recent rally in the commodity and stimulus announcement is expected to boost US crude oil output and disrupt OPEC+ production cuts strategy for the year.

The 2021 supply outlook is now slightly more optimistic for U.S. shale with oil prices increasing, and output is expected to recover more in the second half of 2021,” OPEC said.

Still, OPEC, in its forecast “assumes a healthy recovery in economic activities including industrial production, an improving labour market and higher vehicle sales than in 2020.”

“Accordingly, oil demand is anticipated to rise steadily this year supported primarily by transportation and industrial fuels,” the group said.

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Crude Oil

Brent Crude Oil Rose to $56.25 Per Barrel




Brent Crude Oil Rose to $56.25 Per Barrel

Oil price surged following the declaration of Joe Biden as the President-elect of the United States of America last week after Trump’s mob invaded Capitol to disrupt a joint Senate session.

Also, the large drop in US crude inventories helped support crude oil price to over 11 months despite the second wave of COVID-19 crushing the world from Asia to Europe to America.

Brent crude oil, against which Nigerian Crude oil is priced, rose to $56.25 per barrel on Friday before pulling back to $55.422 per barrel on Monday during the London trading session.

Experts attributed the pullback to the rising number of COVID-19 cases in Asia with about 11 million people already locked down in Hebei province in China.

Covid hot spots flaring again in Asia, with 11 million people (in) lockdowns in China Hebei province… along with a touch of FED policy uncertainty has triggered some profit taking out of the gates this morning,” Stephen Innes, chief global market strategist at Axi, said in a note on Monday.

China, the world’s largest importer of crude oil, has joined the United Kingdom and others declaring full or partial lockdown to curb the second wave of COVID-19.

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