The construction of the new domestic General Aviation Terminal (GAT) at Lagos Airport is progressing steadily, despite criticism of the secrecy surrounding the financing and contractor selection process of the project. The Minister of Aviation could adopt more transparency in the execution of her further agenda, of which some proposals can be found here.
New General Aviation Terminal at Lagos Airport under construction
Minister of Aviation, Stella Oduah, will not enforce a ban on British Airways, Virgin Atlantic and other foreign airlines if they fail to lower their first and business class ticket fares. A thirty-day ultimatum given to the airlines to this end last month expires today.
The special Assistant on Media to the Minister of Aviation, Mr. Joe Obi, [said] that the ban can no longer take effect because the matter is now beyond the Aviation Ministry, adding that today has not yet ended. “Today has not ended. But, it is no longer a Ministry of Aviation matter as the Senate has intervened and it will be very disrespectful and prejudicial to the institution of the Senate to enforce the ban while they are still investigating the matter,” he said.
Meanwhile, the NCAA has released new guidelines for both domestic and foreign airlines:
In its ongoing tussle with the Federal Airports Authority of Nigeria (FAAN), Maevis challenged the agency to account for N42 billion revenue remitted to it between August 2008 and January 2012. Maevis also brought a charge of contempt against FAAN, claiming that the agency breached the court’s order by forcefully ejecting Maevis from Lagos airport.
This article gives a few examples of the mismanagement and fraud in the Nigerian aviation sector by ministers and various agencies over the past years.
Most Nigerians have (…) observed that for years now, substandard services seem to have become ideal in Nigeria’s aviation industry as the country cannot boast of most of the things that are normal in aviation sectors across the world. (…) Street Journal’s findings revealed that the aviation sector is in its present state mainly because of the many frauds that have bedeviled almost every agency in the ministry over the years.
Last month, new responsibilities were given to the Nigerian Airspace Management Agency (NAMA) to manage Nigeria’s airspace. The agency now also oversees the airfield lighting and bird harzard control at all airports. NAMA took over the calibration unit otherwise known as Navigational Aids Flight Inspection and Surveillance (NAFIS) from the Nigerian Civil Aviation Authority (NCAA) too. This weekend, the NCAA transferred its HS 125-700 calibration aircraft (5N-AVK) to NAMA. The Federal Government has also concluded plans to acquire an additional calibration aircraft. Nigeria still depends on ASECNA, the Senegal-based regional equivalent of the Nigerian Civil Aviation Authority (NCAA) in the Francophone West African countries to have its navigational aids (NAVAIDS) calibrated.
Installation of new airport lighting at Umaru Musa Yar’adua Airport, Katsina, in 2011.
Since this weekend, many domestic flights have been cancelled as airlines can not meet up with their scheduled flights, due to aviation fuel scarcity.
The Assistant Secretary General of Airlines Operators of Nigeria (AON), Mohammed Tukur condemned the situation saying “this is the time airline operators should be wary of what is sold to them as aviation fuel…this is the period kerosene could be sold to unsuspecting carriers in the name of aviation fuel.”
Some foreign airlines headed to Accra to refuel their aircraft, where the commodity is also cheaper.
The minister of aviation ordered British Airways and Virgin Atlantic to lower their prices or be banned from the Nigerian airspace:
The Federal ministry of Aviation has given the British Airways, Virgin Atlantic and all international airlines operating in the country a 30-day ultimatum beginning from Monday, March 26, 2012 to dismantle the regional fare imbalance between what Nigerian passengers pay for international flights and their counterparts in the West African sub-region or face an immediate ban from operating in Nigeria.
In response, the British government warned that it would take retaliatory steps against Nigerian airlines:
Reacting to the ultimatum last night, Britain said banning private airlines would amount to a “heavy-handed action that would be catastrophic.” Consequently, Britain said it would not hesitate to retaliate if the federal government goes ahead with the threat to ban after 30 days. Britain said only business and first class fares were more expensive to Nigerians than neighbouring countries because of high demand for those seats.
“It is wrong to suggest that Arik has been prevented from flying into Heathrow. Our understanding is that Arik is just unwilling to pay for the cost of renting or buying landing slots,” the British spokesman said. He added that it was something all airlines who want new slots into Heathrow needed to do.
British Airways stated that:
All of our fares are set on a sound commercial basis and remain fully competitive with other carriers in the region including Arik Air.
It may be recalled that earlier this year a panel in Nigeria set aside a $235 million fine levied against British Airways and Virgin Atlantic by the nation’s government over allegedly fraudulent fuel surcharges on tickets. The panel of experts issued a ruling that the Nigerian Civil Aviation Authority lacked the regulatory power from 2004 to 2006 to fine the airlines, the period authorities alleged the price-fixing took place.
The whole saga begun when Arik Air complained that they could not secure landing slots at London Heathrow for their Abuja-London service, after which Nigeria called for a review of the BASA-aggreement.
With regard to the complaints about price disparity, it is surprising that all the reports only focus on the prices for business and first class (with comparatively strong demand in Nigeria) rather than economy class, the operational costs at Lagos airport in relation to those in other west-African cities are not taken into account either, and finally many other airlines – domestic and foreign – charge relative high prices to/in Nigeria due to the obsolete infrastructure and high operating costs. The whole issue of high ticket prices requires a broader approach and more structural policies from the Nigerian aviation authorities, rather than targeting particular airlines by interfering in the market.
The Nigerian minister of aviation Stella Oduah announced that she is taking measures to curb regional ticket price disparity:
There are things we need to do as well to ensure that doesn’t happen; that includes the penalty that we’re going to impose on any airline that gets involved in regional imbalance, and also to know the factors that encourages that – one of which is supposedly the aviation fuel, which we will tackle. We will hedge it against international rate, so we’re using that as a benchmark price. In summary, regional price imbalance is an illegal act; its offensive and we will not encourage it. We will fight any airline that participates in that. It’s one of the major reasons that we will make sure that our airports are functional and passengers are encouraged to use our airlines and aircraft operators.
Media and public in Nigeria have repeatedly complained about the high international air fares from/to Nigeria.
In the interview the minister also commented on the new national airline that should be launched this year:
We need a national carrier that will represent who we are, that will portray us in the bright light. It will be owned by Nigerians and managed by Nigerians for Nigerians, on a commercial basis – no government involvement at all, and many companies and individuals have indicated interest in this venture.
Update:
The Federal Government has given British Airways, Virgin Atlantic and other international airlines operating into Nigeria thirty days to end ‘fare disparity’, where Nigerians pay higher for international flights than their West African counterparts. Minister of Aviation, Stella Oduah, said airlines that fail to abide by the ultimatum, which starts today March 26, would be banned from operating in Nigeria.
No new entries will be posted for the time being. Thank you for your understanding and interest in the blog.
The Federal Government decided to grant a 65% waiver to airlines operating Hajj-pilgrim flights for all charges due to the national aviation agencies.
The Nigerian Aviation (NIGAV) Awards were handed out this weekend:
Zamfara State contracted BSM International Petroleum Refinery and Petrochemicals – an indigenous company currently building a refinery in Zamfara State – to construct four helipads in the state capital Gusau. The state government is currently also building a cargo airport near Gusau.
The Nigerian Civil Aviation Authority (NCAA) has instructed airlines, agencies, and the various parastatals in the sector to train their employees in the efficient delivery of customer services to travelers. The directive, a fallout of the incessant complaints from both domestic and international air travelers, is aimed at eliminating the occasional fighting encountered at the various airport terminals between ticketing and reservation officers of airlines and air passengers.
The Economic and Financial Crimes Commission (EFCC) is investigating the disappearance of over N25 billion from the accounts of the Federal Airport Authority of Nigeria (FAAN). The sum was remitted into the agency’s account by a revenue concessionaire, Maevis, but disappeared from the accounts of the aviation agency. The FAAN earlier claimed that it never received the payments from Maevis.
The Accident Investigation Bureau (AIB) signed a contract with CAE Flightscape for the supply of a Flight Recorder Playback and Analysis Laboratory, worth $5.5 million. The equipment is used to decode Flight Data Recorders and Cockpit Voice Recorders, otherwise known as the black box. The contract also comprises ground training for AIB staff and a two-year technical support agreement.
Recently, two aircraft belonging to new operators were spotted in Nigeria. Does anyone know more about the owners (follow the links for pictures)?
A few bits of news:
The Nigerian airlines have not yet received any government support through the N500 billion bailout fund, which was allocated earlier this year. The reason for the delay is a dispute between the Ministry of Aviation, the Central Bank of Nigeria and the Nigerian Civil Aviation Authority over which agency should be responsible for the distribution of the funds.
The Federal Government of Nigeria has decided to lower the maximum age of aircraft in its airspace from 22 to 20 years. According to Aviation minister Fidelia Njeze:
we have an existing policy on the age of aircraft. Any aircrafts that will be imported into the country must not be more than 20 years old, and we have maintained that policy. None of the aircraft in our air space is above 20 years old.
If the new rule is really applied as suggested, it will affect most of the major airlines, including Arik Air, Dana Air, Aero, IRS Airlines and Overland, as well as the charter operators Kabo Air and MaxAir.
Just before the busy yuletide, the Nigerian airlines have raised their domestic fares. The price of a ticket for a one hour flight is increased from 18,000 Naira (US$120) to 20,000 Naira (US$133). According to a spokesman of the Airline Operators of Nigeria (AON) the increase is only an adjustment due to increased operational costs.
President Jonathan yesterday commissioned the Total Radar Coverage for the Nigerian Airspace (TRACON) seven years after the contract for the project was signed. The project comprises four Primary Radar located in Abuja, Kano, Lagos and Port Harcourt. TRACON also has five relay stations which serve as standalone Secondary Surveillance Radar located at Talata Mafara, Maiduguri, Numan, Obubra and Ilorin.
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