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Air Passengers May Rise to 7.8 Billion in 2036

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aviation
  • Air Passengers May Rise to 7.8 Billion in 2036

The International Air Transport Association (IATA) has announced that it expects 7.8 billion passengers to travel in 2036, a near doubling of the four billion air travelers expected to fly this year.

The world body said the prediction was based on a 3.6% average Compound Annual Growth Rate (CAGR) noted in the release of the latest update to the association’s 20-year air passenger forecast.

“All indicators lead to growing demand for global connectivity. The world needs to prepare for a doubling of passengers in the next 20 years. It’s fantastic news for innovation and prosperity, which is driven by air links. It is also a huge challenge for governments and industry to ensure we can successfully meet this essential demand,” said IATA’s Director General and CEO, Alexandre de Juniac.

IATA said the biggest driver of demand would be the Asia-Pacific region, noting that the region would be the source of more than half the new passengers over the next two decades.

At this point, China would displace the United States as the world’s largest aviation market (defined as traffic to, from and within the country), IATA added, noting that this has moved two years closer since last year’s forecast.

“We now anticipate this will occur around 2022, through a combination of slightly faster Chinese growth and slightly reduced growth in the US. The UK will fall to fifth place, surpassed by India in 2025, and Indonesia in 2030. Thailand and Turkey will enter the top ten largest markets, while France and Italy will fall in the rankings to 11th and 12th respectively.

The world air transport body said a number of risks to the forecast had been identified, remarking that maximising the potential benefits of aviation growth would depend on current levels of trade liberalisation and visa facilitation being maintained.

“If trade protectionism and travel restrictions are put in place, the benefits of air connectivity will decline as growth could slow to 2.7 percent, meaning 1.1 billion fewer passenger journeys annually in 2036. Conversely, if moves towards liberalisation increase, annual growth could be more than two percentage points faster, leading to a tripling in passengers over the next 20 years,” IATA said.

The agency said planning for growth will require partnerships to be strengthened between the aviation industry, communities and governments to expand and modernise infrastructure. Runways, terminals, and ground access to airports will come under increasing strain.

It noted that innovative solutions to these challenges, as well as to the baggage and security processes, cargo handling, and other activities, will also be needed. And air traffic management needs urgent reform to cut delays, costs and emissions.

“Increasing demand will bring a significant infrastructure challenge. The solution does not lie in more complex processes or building bigger and bigger airports but in harnessing the power of new technology to move activity off-airport, streamline processes and improve efficiency. Through partnerships within the industry and beyond, we are confident that sustainable solutions for continued growth can be found,” said de Juniac.

The aviation industry has adopted a robust strategy to reduce its environmental impacts, particularly its carbon emissions. “No industry has done more to meet its environmental obligations than aviation. Our tough targets to achieve carbon-neutral growth from 2020 and to cut our CO2 emissions to half-2005 levels by 2050 are backed by a comprehensive strategy. Our immediate aims are to work with governments to increase the production of sustainable aviation fuels, and to deliver air traffic management efficiencies, which promise significant emissions savings. And from 2020, a Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) will play a major role in meeting our carbon-neutral target,” said de Juniac.

Overland Airways Resumes Asaba-Abuja Flights

Overland Airways, Nigeria’s frontline carrier has announced the start of its flight services from Abuja to Asaba, Delta State from October 31, 2017. The Asaba-Abuja fights, according to the airline, would operate three times a week, Tuesdays, Thursdays and Sundays at 12:00 p.m.; while the Abuja-Asaba flights will operate at 10:30a.m. on Tuesdays, Thursdays and Sundays.

The flight services will be operated with Overland Airways globally renowned ATR turboprop aircraft with superior technological design for unmatched performance on short-distance flights in terms of economic reliability, safety and comfort.

Overland Airways is Nigeria’s longest-serving most consistent scheduled commercial airline providing uninterrupted flight services in Nigeria over the past 15 years. With expanding routes including Lagos, Ilorin, Asaba, Abuja, Dutse, Minna, Bauchi, Jalingo, Akure and Ibadan, Overland Airways looks to begin regional flights in West African soon.

Overland Airways fills the gap in flight connectivity between Asaba and Abuja, thereby easing the inconvenience of passengers face on the route and providing strong support to the economy in Delta State and surrounding regions.

According to Chief Executive Officer (CEO), Overland Airways, Capt. Edward Boyo, the economic recovery in the nation requires strong commitment among all stakeholders to reinvigorate the economy.

He said: “More so, the accelerated development of the economy of Delta State is strategic to the development of the economies of various regions in the country especially the South-East and South-South regions, which makes air transport an important element for the development Delta State.

“Delta State is endowed with great human and other resources which should be carefully harnessed by both the government and the private sector. Overland Airways is dedicated to creating new high-value for the indigenes and visitors to Delta State by providing our trademark excellent, reliable, safe and comfortable air services to Asaba.

“We understand the value of investments and easy access into hinterland economies like Delta State. And we are confident of driving sustainable social and economic development in Delta State as Overland Airways supports the easy movement of investors, tourists, traders and business people to and from Delta State and the adjoining regions such as Onitsha across the Niger. We are in partnership with the people of Delta State. And this is a partnership that works.”

The Chief Operating Officer of Overland Airways, Mrs. Aanu Benson, said: “Overland Airways performed the first-ever flight which opened Asaba Airport in 2011 as a foremost partner in the economic transformation of Delta State, and in celebration and support of the enterprising people of ‘The Big Heart’ State. The launch of the Asaba-Abuja flights demonstrates the renewed bonding Overland Airways brings to the people of Delta State and its environs, underlain by Overland Airways’ characteristic people-oriented flight services.”

“With a modern fleet of 10 aircraft, superior technical and management capabilities as well as unmatched commitment to the sustainable development of Nigeria’s remote economies and airports, Overland Airways is one of the best airlines in the world today. And this is another plus for Delta State and its environs.”

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Business

New Website Unveiled by FG for Pay-Later CNG Conversion to Cut Transport Costs

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The federal government has unveiled a website that offers a pay-later option for commercial and private car owners looking to convert their petrol-powered vehicles to Compressed Natural Gas (CNG).

This was in response to the incessant increase in transportation fares following the removal of the fuel subsidy.

According to the Presidential Compressed Natural Gas Initiative (PCNGi) the initiative will help ease transportation costs and encourage more transporters to embrace CNG.

In a post on X, the National Orientation Agency (NOA) revealed that this initiative ensures a hassle-free experience for CNG users through an easy online application and a quick approval process.

“Switching to Compressed Natural Gas (CNG) is now more accessible than ever. With flexible payment plans tailored to fit your budget, transitioning from petrol to CNG has never been smoother or more affordable. These payment options allow you to convert your vehicle now and pay later with affordable monthly installments at competitive rates.” NOA stated.

The installment payment option aims to achieve the federal government’s projection of a 30-40% fare reduction as more motorists adopt this initiative.

In addition to the distribution of 2,000 CNG-powered tricycles among youths in the transportation sector across Nigeria, the pay-later option is intended to encourage more people to adopt CNG, thereby providing affordable mobility options.

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Nigerians Fear Increase in Fake Products as NAFDAC Officials Commence Indefinite Nationwide Strike

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There are indications that fake producers of consumables and other items across the country may have a field day following an industrial action embarked upon by workers of the National Agency for Food and Drug Administration and Control (NAFDAC).

Investors King gathered that the nationwide strike which started on Monday is indefinite and nationwide.

The decision of the staff of the agency to down tools followed the expiration of a 14-day ultimatum issued to their management.

The decision to shun work was confirmed after a congress of NAFDAC staff convened on Friday, October 4, 2024 over unresolved issues.

The striking workers, under the directive of the Senior Staff Association of Statutory Corporations and Government-Owned Companies (SSASCGOC) have been instructed to withdraw all services and vacate offices.

They were also ordered to remove personal belongings as the strike began.

The demands of the staff include a review and re-evaluation of the 2024 promotion examination results, which currently reflect a pass rate of just 35%.

The union is pushing for a minimum benchmark of 80% for this year and future exams. Another key demand is the settlement of salary arrears for employees hired in 2022 among others

In a statement signed by Secretary of the Association, Ejor Michael, the union accused NAFDAC management of ignoring their grievances, calling the inaction insufferable.

The staff have vowed to continue the strike until all demands outlined in their communiqué are met.

NAFDAC, which plays a critical role in regulating Nigeria’s food, drug, and pharmaceutical industries, is expected to face significant operational disruptions as a result of the industrial action.

Before now, there had been public outcry over the increase in fake products as Nigerians called out the agency and tasked it to be more proactive.

They expressed fear that there is a tendency that manufacturers of fake products would have ample opportunities to saturate the markets with dangerous products as those who would tackle them are now on strike.

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27.75% Interest Rate Painful but Necessary – CBN Gov Cardoso

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Interbank rate

The Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso, has described the recent increase in the Monetary Policy Rate (MPR) to 27.25% as a painful but necessary move.

Cardoso made this known in Lagos, during his address to members of the Harvard Club of Nigeria on the topic: “Leadership in Challenging Times: Restoring Credibility, Building Trust, and Containing Inflation”.

Investors King reported that on September 24, 2024, the apex bank announced another increase in its Monetary Policy Rate (MPR) from 26.75 percent to 27.25%

The decision was reached during the Monetary Policy Committee (MPC) meeting chaired by the CBN Governor.

However, while delivering his speech in Lagos, the CBN boss sympathized with borrowers highlighting the pain the new interest rate will heap on them.

According to Cardoso, the bank’s decision to raise the interest rate was a bold move to reduce excess money in circulation and control inflation effectively.

He emphasized the need for Nigeria to look beyond short-term comfort and strive to secure long-term stability.

Cardoso reaffirmed the CBN’s commitment to rebuilding public trust in the institution.

He said, “Our decision to raise the Monetary Policy Rate (MPR) to 27.25% was a bold move. Higher interest rates, while painful for borrowers, are necessary to curb excess money in circulation and control inflation.

Leadership is about making hard choices to secure long-term stability over short-term comfort in moments like these 

“Leading through challenging times means avoiding the temptation to take on too many initiatives. The Central Bank must focus on its core mandate—price stability. It is easy to become distracted by various political and economic pressures, but as a leader, one must prioritise.”

“Trust is the currency of central banking. If the public loses trust in the institution, the efficacy of its policies diminishes. 

“Our decision to implement the Electronic Foreign Exchange Matching System (EFEMS) is rooted in this understanding.  

“By enhancing transparency and providing more accurate oversight of forex transactions, we send a strong signal that the CBN is serious about fair and efficient markets.”

Meanwhile, The Manufacturers Association of Nigeria (MAN) had criticized the interest rate hike by the Central Bank of Nigeria (CBN).

The Director General of MAN, Mr. Segun Ajayi-Kadir, made the association’s position known in a statement titled ‘Reaction of MAN on the Report of MPC Meeting on September 23-24, 2024’.

MAN noted that with the higher interest rate, the cost of production will increase.

According to him, the impact of the increase goes beyond the manufacturers, it will stifle investment opportunities.

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