Wednesday, September 10, 2008

Sasha's helicopter seized by school!!


A prestigious school in Nigeria has refused to let a helicopter, rented by a singer, take off after it landed on their Lagos playing field.

Nigerian hip-hop star Sasha was trying to go shopping in a nearby upmarket suburb, police told the BBC.

But the school said she did not ask for permission to land and is reportedly asking for $100,000 (£56,772) before it will release the helicopter.

Lagos, Nigeria's commercial capital, is very congested with traffic.

Helicopters are becoming a more popular way for Lagos's rich to get around, correspondents say.

Sasha, also known as Yetunde Antonia Alabi, is one of Nigeria's best-known female hip-hop stars.

The principal of the British International School in Lagos, Howard Bullock, told the BBC the matter was "being resolved" and would not comment further.

Shopping trip

Local media reported that the pilot had first landed at the University of Lagos and in the grounds of Cadbury Nigeria's head office, before finally coming to rest in the British International School nearly two weeks ago.

The pilot did not land at his intended destination, the Shoprite supermarket, because of construction work, Nigeria's The Punch newspaper reported.

The Director-General of the Nigerian Civil Aviation Authority (NCAA), Harold Demuren, told Nigeria's This Day newspaper the matter was being resolved.

"Yes, it happened. The helicopter landed in a wrong place and the school is holding on to the helicopter. But after the State Security Service and the NCAA cleared the chopper everything is being resolved," he said.

The police said they were not investigating the matter further.

"It was established that this was not a criminal matter and left for the school to sort out with aviation authorities," police spokesman Frank Mbah told the BBC News website.

Sometimes it can take six hours to get from the mainland to the islands in the lagoon where Lagos' upmarket areas are.

In recent weeks a major bridge to Lagos Island has been closed for repair, making traffic even worse.- courtesy BBC NWS


Monday, August 18, 2008

Virgin Nigeria: Matters Arising


Virgin Nigeria Airways (VNA) has been in the news for all the wrong reasons since the start of the year. It has been fighting a battle with the Federal Government for months trying to stop a directive instructing the airline to move its domestic operations from the Murtala Muhammed International Airport (MMIA) to the domestic terminal of the same airport. Citing security reasons, among others, the Ministry of Transportation has gone to great lengths to use its federal might intimidating the airline and even got as far as using security operatives to destroy VNA’s lounge in the airport. That act was barbaric and says a lot about our way of doing business and encouraging private sector participation in the key segments of the economy.
The airline argued its case as best as it could drawing attention to a Memorandum of Mutual Understanding executed between itself and the Federal Government when it was established four years ago which provides for the establishment of a hub at the MMIA from which it can conduct all its operations. But investigations have shown VNA had a weak argument in that regard. No clause in the MMA provides or gives it permission to carry out all its operations from the international airport(s). Instead it is an attached letter signed by Richard Branson, owner of Virgin Atlantic and Isa Yuguda who was then the Minister of Aviation, which permitted the airline to use the “relevant international terminals in Nigerian airports for all the airline’s operation.” Unfortunately, the said letter was not an addendum to the MMA, nor was it ever referred to in the agreement, and may therefore be deemed non-binding.
However, VNA did not stop at that. It embarked on a campaign to run down the domestic terminal of the Murtala Muhammed airport, complaining that it was unsafe; unsuitable for certain wide bodied aircraft; unsuitable for the direction of its aircraft when taxing for landing and take off; and will compel its passengers transiting from local to international flights and vice versa to travel landside between the terminals to complete their journey (this entails leaving one terminal building completely via road transportation to access the other terminal building). To buttress its point it cited some IATA report, which has since been disputed by the same body.
The strategy to run down the domestic terminal proved very unpopular and drew the ire of the Nigerian public and commentators who felt a local airline should not run down the new terminal built and managed by a local private sector firm, Bi-Courtney Aviation Services Limited. By local standards, the domestic terminal is probably the best airport the country has to offer. Added to this, the reluctance by VNA and one or two other airlines to move to the domestic terminal was certain to jeopardise its (MMA2) revenue stream and ability to meet its financial obligations to the banks that financed its construction, on the one hand, and the Federal Government, on the other hand, under a 35-year concession agreement.
To restrain the government from forcefully removing the airline from the airport, VNA also went to a Lagos High Court but its case was thrown out in February this year. The airline has since gone on appeal, without getting an injunction barring the government from forcibly removing it from MMIA. That case is still pending at the Appeal Court. But after a couple of months, the Federal Government lost its patience and issued a final directive two weeks ago instructing the airline to move, failing which its operation will be grounded in totality. VNA attempted to whip up sentiments a second time around with Branson the billionaire businessman, whose airline Virgin Atlantic owns a 49 per cent stake in VNA, weighing in on the spat and criticising the Nigerian government for lack of adherence to contracts.
Following the most recent face-off culminating in the eventual cessation of VNA flights from MMIA for four days, and several millions in lost revenue, the airline relented last week and grudgingly moved its local flights to the domestic terminal. But VNA’s troubles are far from over. The airline has an even bigger battle for survival, completely unrelated to which airport its flights should take off and land.
In spite of controlling 35 per cent of the aviation industry’s passenger traffic in the country and its dominance on key routes such as Lagos and Port Harcourt and Lagos and Abuja, the airline since it commenced flights in 2005 has consistently posted losses, resulting in an accumulated deficit of N16.057 billion in February 2007, up from N6.535 billion in 2006. Worse still, Virgin Atlantic which gave it international leverage and acceptance has been under pressure for almost a year from Singapore Airlines to dispose of its stake in VNA. Singapore Airlines acquired a 49 per cent stake in Virgin Atlantic from the Virgin Group for £600.25 million in 2000. The Asian airline has, however, been concerned that Virgin Atlantic entered into a loss making venture which is impacting on its bottom line and ability to consolidate its business with other potential flying partners.
This could not have come at a worse time for VNA. The global aviation industry has been plagued by rising operating costs brought on by high oil prices. The recent open skies agreement between Europe and the US on transatlantic flights between both continents, has also served to change the competitive dynamics of the aviation industry. The global economic crunch has not helped matters either. Most airlines have seen a drop in their premium passenger traffic (business and first class passengers) which has always been the bread and butter of the business. As a result, several airlines are adopting stringent cost cutting measures and in the process of consolidating their businesses, in order to access new routes and add on revenue streams that will make them profitable in the long run.
In order to reduce its exposure to VNA, Virgin Atlantic is in the process of selling 42 per cent of its stake through a $25 million private placement. The transaction which is being handled by Afrinvest as Issuing House and Underwriters, will be secured by the executed Share Purchase Agreement between VNA and Virgin Atlantic, as well as a board resolution from the latter authorising the sale of its shares to institutional and individual investors. In addition, Afrinvest is in the process of assisting VNA raise a N20 billion contingency line of credit to provide immediate refinancing of a $100 million bond, overdraft and other facilities extended to the firm by UBA Plc that will be securitised by the assets and accounts of VNA.
It is apparent that VNA is in dire need of a lifeline for it to survive. The airline can still leverage on the growing number of passenger traffic on domestic and regional routes currently estimated at 2 per cent of the population. But it has to put the fiasco of the Lagos international airport firmly behind it in order to move forward constructively. The Nigerian economy is still expanding at a rapid pace in spite of poor economic management at the centre. And most of the real growth is being recorded in the non-oil sector dominated by agriculture, the services sector, real estate, transportation and logistics.
What this means is that there is still considerable potential to capture additional passengers as the volume of business grows internally and on the sub-continent. But to do that it may have to refocus its strategy by not trying to compete with the likes of Virgin Atlantic, British Airways, or even South African Airways on long haul flights, but by becoming a low cost, short haul carrier extensively covering the country and the rest of the West African region. VNA’s emphasis has been on making the international airport in Lagos a major hub. Now that this has failed, perhaps its should divert its attention to the Nnamdi Azikiwe Airport, Abuja where a lot of passengers can fly in from abroad and transit to other parts of the country and West Africa. It is uncertain what has become of its orders for 10 Embraer aircraft from Brazil, but if the orders are still in the pipeline, they would be the perfect fit for short haul domestic and regional flights.
VNA, three years ago, started a revolution in the Nigerian aviation industry that compelled other local airlines to offer more professional services, become more efficient and upgrade their facilities, especially in the area of communications. The successful subscription Virgin Atlantic’s shares through the private placement, Virgin Atlantic’s continuing involvement through a technical services agreement (TSA), the injection of fresh capital, and adoption of a reinvigorated strategy that works should see it moving assuredly into the black. – courtesy This Day

Friday, August 8, 2008

Dana Airlines Begins Operation in Nigeria today



dana air

Dana Airlines, the newest airline company in the aviation sector of Nigeria has taken delivery of 3 Boeing McDonnell Douglas 83 aircraft (ex Alaska) in California, USA, as it commence operation from the MMA2 Terminal in Lagos on Friday, 8th, August 2008.

The company has also signed an agreement with Iberia Maintenance to help maintain its fleet of aircraft daily in order to ensure perfect delivery of services.

The company also plan to construct a multi-million naira aircraft maintenance hanger in Lagos where enough space would be provided for all its aircraft activities and has made bookings for another 10 Boeing MD83’s in addition to its aircraft before the end of this year.

Mr. Jacky Hathiramani, Managing Director of Dana Airlines, said the company is making provision for offices in Lagos, Abuja, Port Harcourt, Kano, Enugu, Calabar, Benin and Katsina and will begin operation with the triangular routes of Lagos, Abuja and Port Harcourt.

Dana Airlines is a part of the Dana Group of companies, a conglomerate based in Nigeria since 1981.

coutersy Nigerian Bulletin

Wednesday, July 30, 2008

BA to merge with Spanish airline


British Airways ended months of speculation by announcing it was to merge with long-term Spanish partner Iberia.

Although both airlines will retain their identities, the deal - still to be approved by shareholders - will effectively create a giant new European airline.- courtesy press association

Nigerian air passengers pay fares worth N25bn yearly to British Airways


Air passengers in the country pay over N25 billion as airfares to British Airways annually. This is coming on the heels of the announcement by Arik Air that it is set to start flight operations into the United States of America February 2009.

Minister of state 1, air transportation, Felix Hyat, disclosed Tuesday at the signing of N35 billion aircraft facility agreement between Arik and a consortium of banks at Arik Air centre.

Hyat said the economy was losing such a huge sum to just one airline, while Nigerian airlines were not being encouraged, urging Nigerians to support its indigenous airlines to reduce capital flights and indigenous airlines allowed to grow.

The minister however urged the Nigerian carriers to compensate air passengers by bringing down airfares as soon as they begin to enjoy patronage, assuring the business community that the Federal Government was determined to see through private participation in the aviation industry.

"We will protect the investment that has been brought into the country."

Meanwhile, chairman of Arik, Joseph Arumemi-Johnson, disclosed that apart from starting the London route in November, it would also start operating into the US in February 2009.

Arumemi-Johnson assured Nigerians that it was time for air passengers to start travelling in comfort as against what was being offered on the routes presently.

"We are changing the whole game, it is time for Nigerians to travel in style, our seats are not going to be narrow, it would be roomier, we will also sell our culture to the rest of the world."

Monday, June 16, 2008

Aviation agencies to begin relocation to Abuja


The Federal Government has ordered the relocation of all aviation agencies to the Federal Capital Territory, Abuja, with effect from today.

The order for the relocation was contained in a letter that was circulated in Lagos last Friday.

In the letter, agencies like the Nigerian Civil Aviation Authority (NCAA), The Federal Airports Authority of Nigeria (FAAN), Nigerian Airspace Management Agency (NAMA) and Accident Investigation Bureau (AIB), are to relocate to Abuja for their operations forthwith.

COURTESY TRIBUNE

What our industry looks like



Nine domestic airlines in Nigeria sell 24,740 seats daily at 17 airports in the country. The airlines, which have a pool of about 60 aircraft, include Aero Contractors, Arik Air, Associated Air, Bellview Airlines, Capital Airlines, Chanchangi Airlines, IRS Airlines, Overland and Virgin Nigeria Airways.

They ply Lagos , Ibadan , Akure , Benin City, Warri, Enugu , Owerri, Port Harcourt , Calabar, Bebi, Ilorin , Abuja , Kaduna , Kano , Sokoto, Maiduguri and Yola routes.

The airlines involved operate aircraft types such as Beechcraft 1900D, Fokker 50 and Fokker 100, Embraer 125, Bombardier CRJ 200 and Bombardier CRJ 900, Bombardier Q300, Boeing727-200, Boeing 737-200, -300/-400/-700 and -800 series.

He further stated that the carriers have combined total daily flights of over 270 with Arik Air operating 94 flights to 14 destinations, followed by Virgin Nigeria with 49 flights to 11 destinations; Aero, 44 flights to seven destinations and Chanchangi 23 flights to five destinations. Others are IRS with 14 flights to four destinations; Bellview, 10 flights to three destinations; Overland and Capital six flights each to three destinations respectively while Associated Air operates six flights to one destination.

Statistics show that Arik Air operates the largest fleet with 20 aircraft which include Four B737-700, two B737-800, two B737-300, two Fokker F50, two Hawker 850XP, three Bombardier Q300, four Bombardier CRJ 900 and one Bombardier CRJ 200 while Aero has nine aircraft comprising two Boeing 737-400, two Boeing 737-300 and five Bombardier -300. - courtesy, Leadership