Connect with us

Markets

Airport Closure: Helicopter Shuttle Halted Over Poor Patronage

Published

on

helicopter
  • Helicopter Shuttle Halted Over Poor Patronage

Operators of helicopter shuttle services between the Nnamdi Azikiwe International Airport, Abuja and the Kaduna International Airport only operated for about two days since the closure of the NAIA on March 8 this year due to “very low patronage”.

The helicopter operators had announced their readiness to provide interested passengers with shuttle operations between the two airports following the closure of the NAIA to scheduled and chartered jet flight services.

But they stated that this did not last more than two days after the Abuja airport was closed, adding that helicopter shuttle services for passengers of scheduled flights were halted despite the lifting of the ban on the services by the Federal Government.

On March 13, The punch reported the ban on helicopter shuttle services by the National Security Adviser, Babagana Munguno, on the grounds that the airspace in Abuja was controlled.

But on March 15, the Federal Government lifted the ban, as the Minister of State for Aviation, Senator Hadi Sirika, declared that helicopters were free to fly between Abuja and Kaduna.

However, despite the clearance given to the helicopter shuttle service providers, it was learnt that the operators did not resume as expected due to very low patronage.

An official of Bristow Helicopters, one of the key operators in the helicopter value chain, told our correspondent that the company had to “drastically scale down shuttle services between Abuja and Kaduna due to very low traction on the route.”

On whether it was only Bristow Helicopters that halted operations on the route, the source, who spoke to our correspondent in confidence, replied, “I’m speaking on a general term for both Bristow and other helicopter services. There is no helicopter shuttle between Abuja and Kaduna as we speak.

“We initially had arrangements to provide shuttle between Kaduna and Abuja but we did not get any traction at all. In fact, there was an arrangement with about four helicopter charter companies who wanted to provide shuttle between Kaduna and Abuja. Now, all they are providing is just full charter service.”

It was also learnt that passengers who insisted on travelling by air out of Abuja only had the option of going through Minna using Bristow Helicopters.

This, however, was mainly for travellers heading to Lagos as they were meant to join the company’s jet from Minna.

Another official of Omni-Blu Helicopters told our correspondent that the operators of helicopter shuttle services had earlier placed adverts, thinking that the closure of the NAIA would result in a boom for shuttle business operations between Abuja and Kaduna.

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.

Crude Oil

Oil Posts 2% Gain for the Week Despite India Virus Surge

Published

on

Crude Oil - Investors King

Oil prices steadied on Friday and were set for a weekly gain against the backdrop of optimism over a global economic recovery, though the COVID-19 crisis in India capped prices.

Brent crude futures settled 0.28% higher at $68.28 per barrel and U.S. West Texas Intermediate (WTI) crude advanced 0.29% to $64.90 per barrel.

Both Brent and WTI are on track for second consecutive weekly gains as easing restrictions on movement in the United States and Europe, recovering factory operations and coronavirus vaccinations pave the way for a revival in fuel demand.

In China, data showed export growth accelerated unexpectedly in April while a private survey pointed to strong expansion in service sector activity.

However, crude imports by the world’s biggest buyer fell 0.2% in April from a year earlier to 40.36 million tonnes, or 9.82 million barrels per day (bpd), the lowest since December.

In the United States, the world’s largest oil consumer, jobless claims have dropped, signalling the labour market recovery has entered a new phase as the economy recovers.

The recovery in oil demand, however, has been uneven as surging COVID-19 cases in India reduce fuel consumption in the world’s third-largest oil importer and consumer.

“Brent came within a whisker of breaking past $70 a barrel this week but failed at the final hurdle as demand uncertainty dragged on prices,” said Stephen Brennock at oil brokerage PVM.

The resurgence of COVID-19 in countries such as India, Japan and Thailand is hindering gasoline demand recovery, energy consultancy FGE said in a client note, though some of the lost demand has been offset by countries such as China, where recent Labour Day holiday travel surpassed 2019 levels.

“Gasoline demand in the U.S. and parts of Europe is faring relatively well,” FGE said.

“Further out, we could see demand pick up as lockdowns are eased and pent-up demand is released during the summer driving season.”

Continue Reading

Commodities

Lagos Commodities and Futures Exchange to Commence Gold Trading

Published

on

gold bars

With the admission of Dukia Gold’s diversified financial instruments backed by gold as the underlying asset, Lagos Commodities and Futures Exchange is set to commence gold trading.

According to Dukia Gold, the instruments will be in form of exchange-traded notes, commercial papers and other gold-backed securities, adding that it will enable the company to deepen the commodities market in Nigeria, increase capacity, generate foreign exchange for the Nigerian government to better diversify foreign reserves and create jobs across the metal production value chain.

Tunde Fagbemi, the Chairman, Dukia Gold, disclosed this while addressing journalists at Pre-Listing Media Interactive Session in Lagos on Thursday.

He said, “We are proud to be the first gold company whose products would be listed on the Lagos Futures and Commodities Exchange. The listing shall enable us facilitate our infrastructure development, expand capacity and create fungible products.

“This has potential to shore up Nigeria’s foreign reserve and create an alternative window for preservation of pension funds. A gold-backed security is a hedge against inflation and convenient preservation of capital.”

“As a global player, we comply with the practices and procedures of London Bullion Market Association and many other international bodies. Our refinery will also have multiplier effects on the development of rural areas anywhere it is located,” he added.

Mr Olusegun Akanji, the Divisional Head, Strategy and Business Solutions, Heritage Bank, said the lender had created a buying centre for verification of quality and quantity of gold and reference price to ensure price discovery in line with the global standard.

Continue Reading

Crude Oil

Oil Nears $70 as Easing Western Lockdowns Boost Summer Demand Outlook

Published

on

Crude oil

Oil prices rose for a third day on Wednesday as easing of lockdowns in the United States and parts of Europe heralded a boost in fuel demand in summer season and offset concerns about the rise of COVID-19 infections in India and Japan.

Brent crude rose 93 cents, or 1.4%, to $69.81 a barrel at 1008 GMT. U.S. West Texas Intermediate (WTI) crude rose 85 cents, or 1.3%, to $66.54 a barrel.

Both contracts hit the highest level since mid-March in intra-day trade.

“A return to $70 oil is edging closer to becoming reality,” said Stephen Brennock of oil broker PVM.

“The jump in oil prices came amid expectations of strong demand as western economies reopen. Indeed, anticipation of a pick-up in fuel and energy usage in the United States and Europe over the summer months is running high,” he said.

Crude prices were also supported by a large fall in U.S. inventories.

The American Petroleum Institute (API) industry group reported crude stockpiles fell by 7.7 million barrels in the week ended April 30, according to two market sources. That was more than triple the drawdown expected by analysts polled by Reuters. Gasoline stockpiles fell by 5.3 million barrels.

Traders are awaiting data from the U.S. Energy Information Administration due at 10:30 a.m. EDT (1430 GMT) on Wednesday to see if official data shows such a large fall.

“If confirmed by the EIA, that would mark the largest weekly fall in the official data since late January,” Commonwealth Bank analyst Vivek Dhar said in a note.

The rise in oil prices to nearly two-month highs has been supported by COVID-19 vaccine rollouts in the United States and Europe.

Euro zone business activity accelerated last month as the bloc’s dominant services industry shrugged off renewed lockdowns and returned to growth.

“The partial lifting of mobility restrictions, the expectation that tourism will return in the near future, and the lure of the psychologically important $70 mark are all likely to have contributed to the price rise,” Commerzbank analyst Eugen Weinberg said.

This has offset a drop in fuel demand in India, the world’s third-largest oil consumer, which is battling a surge in COVID-19 infections.

“However, if we were to eventually see a national lockdown imposed, this would likely hit sentiment,” ING Economics analysts said of the situation in India.

Continue Reading

Trending