Dollar Scarcity: Foreign Airlines Slash Ticket Sales on Nigeria Routes
…unable to repatriate over $144m revenue as CBN rations forex
As the Naira crisis continues to worsen, foreign carriers operating in Nigeria have begun moves to reduce the total number of tickets they sell on Nigerian routes amid worsening dollar scarcity that has made it difficult for them to repatriate billions of Naira in ticket sale proceeds to their head offices abroad.
The development will lead to a significant reduction in the about N1tn total ticket sales over 25 foreign carriers make on Nigerian routes.
This is happening as the International Air Transport Association–the global body for international carriers–said foreign airlines operating in Nigeria had been unable to repatriate about $144m (N60bn) in ticket sales back to their home countries, calling on the Federal Government to make Forex available to the carriers to do so.
Already, United Kingdom mega carrier, British Airways, which make billions of naira in ticket sales from Nigerians annually, has issued a notice to travel agents informing them that it would be restricting ticket inventory in Nigeria due to exchange problems in the country.
The BA’s notice to travel agents, which was obtained exclusively by Sunday PUNCH, was titled, “BA notification to control inventory due to unstable exchange rate.”
The notice read, “I wish to inform you of British Airways intention to control their Global Distribution System inventory by removing all the lower classes from the GDS, leaving only the below classes to be sold and issued and we all know the cost implications to this: Economy Y, Premium Economy W; Business Class J; First Class F. This became necessary due to fluctuating and unstable exchange rate in Nigeria. I hereby implore you all to pay for and issue all pending BA bookings with you before this takes effect”
Travel agents who spoke to Sunday PUNCH said the notice, which came about a week ago, might take effect anytime soon according to BA officials in Nigeria.
The development means over 65 per cent of the total number of categories of Economy Class, Business Class and First Class tickets available for sale will be removed by BA as soon as the notice takes effect.
“We are really surprised by this move. BA is doing what some other airlines have done tactically. BA officials told us they can’t repatriate their ticket sales and this is affecting their operations. As it is now, they want to reduce the total number of tickets they sell in Nigeria with this move. Until the CBN makes dollars available to the airlines to repatriate their ticket sales proceeds, things might continue to get worse,” the chief executive officer of a leading travel agency told Sunday PUNCH on condition of anonymity to avoid possible backlash.
Meanwhile, findings showed that Virgin Atlantic had technically reduced its ticket inventory by making cheaper ticket classes available in dollars.
This, according to travel operators, will force intending buyers to patronize tickets that are available in dollars, instead of the ones available in Naira. Read more
2022 Budget: 0.43% Allocation Insufficient for Dilapidated Airport Facilities, Aviation Experts Warn
Experts have expressed concern over the allocation of N71.3 billion for capital projects for the Ministry of Aviation in the 2022 budget presented by President Muhammadu Buhari last week.
Speaking to Daily Sun, they said the amount which is approximately 0.43 per cent of the N16.39 trillion which makes up the 2022 budget is grossly inadequate as the industry was the most hit by the COVID-19 pandemic. A total of N78,992,731billion which is 0.48 per cent of the total budget was mapped out for the Ministry of Aviation out of which N71,300,182 is for capital expenditure.
During a State House briefing in Aso Villa last Thursday, the Minister of Aviation, Hadi Sirika, said that N20billion would be required for the construction of a second runway at the Nnamdi Azikiwe International Airport, Abuja. He also said that the Federal Government plans to spend N400million as working capital on a national carrier, describing it as an ongoing project.
Experts , who spoke to Daily Sun, said the funds allocated to aviation is inadequate as the sector is in dire need of human and capital development as many airports nationwide are under straits.
President of National Air Traffic Controllers Association (NATCA), Abayomi Agoro, said: “The amount is grossly inadequate to pay sufficient attention to a sector that’s worst hit by the pandemic. Our aviation agencies are being underfunded and the BASA funds needs to be reinvested in some of this important capital projects. Some airports facilities need urgent attention. For example, air navigation facilities, communication and landings aids can’t be ruled out. Now that the sector is gaining restoration, it is very important to invest in human capital development, trainings . The industry deserve more funding than less a digit appropriation.”
While the chairman of the Air Transport Services Senior Staff Association of Nigeria (ATSSSAN), FAAN branch, Danjuma Ahmed said, “Energising the industry doesn’t depends on government spending on the industry, rather it’s determined by free movement which is dependent on the opening up of the sky by countries, the only impact from the budget is capital project initiation or completion which will positively affect the supply value chain.
Airport Concession is Good When Done Right – Aero Contractors
The Chief Executive Officer, Aero Contractors, has said that the FG’s plan to concession four international airports in the country is good, urging that if done right, it will go a long way in improving Nigeria’s airport infrastructure.
Capt. Mahmood Abdullahi, Chief Executive Officer, Aero Contractors Company of Nigeria Limited, said this on Sunday, in an interview with the News Agency of Nigeria.
He urged that the concession should also ensure that the staff of the international airports are not deprived of the rightful benefits.
What the Aero Contractors CEO said
“Actually, concession is good. But, just to do it right, I don’t think people will be talking about concession. To me, there is so much burden on the federal government. FG cannot do all these things.
“If we are talking about the roads, they have been taken care of by the federal government. I think it is time for federal government to start to concession these things.
“One thing I say is doing it right. Do it in a way that the workers there are well taken care of. Once the workers there have been taken care of properly, definitely people we go for the concession.
“Because if we concession, I believe things will go very much better. Like I always say. Which terminal is the best domestic terminals in the country today? You will find out that it is MM2.
“The MM2 terminal is really good. Everything there is working. So, why? because it is private. I don’t think anything is wrong for government to concession these airports,“ he said.
He added that the federal government ought to do more in awareness to educate the citizens on the gains of concession, he also revealed that the pandemic affected the global hospitalism industry which also affected the aviation industry.
“They are the ones that are affected the most. When the global pandemic came in, the first things that happened was that they flagged up restriction,” he said.
“You know about aviation, most business of aviation is on our passengers travelling. But unfortunately during the pandemic, there was so much restriction on travelling.
“So, basically all the airlines were grounded except for the medical operators. All our craft were grounded for months without flying. We tried to get back gradually,“ he added.
He disclosed that the FG’s response to the pandemic for the sector, on several occasions, led to the approval of some waivers that were given.
“Even the FAAN MD in December granted waivers to airlines for six months window for payment which is due to FAAN.
“Also, the federal government has taken the decision to give a waiver on tasks. So whatever you import like spare parts, engines, part components; federal government had given waivers.
“All these are designed to give airlines soft landing to survive. The Federal government really responded to an extent, to the needs of the airlines,“ he said. Read more
We Are Diversifying Beyond Aviation – NIMET DG
The Director-General of Nigeria Meteorological Agency (NIMET), Prof. Mansur Bako Matazu, speaks on efforts of the agency to enhance aviation safety through regular, up-to-date weather information to guide flight plans and deepening presence in other sectors as weather affects all strata of the national economy. Excerpt:
What would you say is the major challenge confronting the Nigerian Meteorological Agency (NiMET) since you came on board?
I came on board in April this year and the Nigerian Meteorological Agency (NiMET), being a service provider especially in the aviation industry and also a weather and climate service provider in the general socio-economical arena of the country, was faced with several challenges. The major challenge I encountered immediately on arrival at NiMET was the issue of vandalization of our airport safety equipment across the country.
To reduce the risk of negative weather phenomena like low-level wind shear systems and other possible moving weather systems, NiMET installed instruments that are very sensitive and capital intensive like Doppler radar system and Runway Visual Range (RVR) across all our 24 airports. And specifically for the four major airports, we have independent weather forecast offices.
Some of these instruments have sensors installed in them. Even at airports that have perimeter fences, we have very serious challenges of vandalization and I will give an example. The Low-Level Windshear Alert System (LLWAS) has eight sensors, if more than three are down, it will not give a clear picture of the wind shear and this is a major hazard to aircraft either landing or taking off.
But, we came up with a model of integrating communities around in securing some of these installations and I can tell you since I came on board, I instituted a task team on airport operations and as part of the task team, we have our safety officers who engage the neighbouring host communities, involving them in securing equipment. We provide the communities with some incentives and welfare to help us do that.
On the other hand, we came up with an alternative method of monitoring and forecasting wind shear without using a sensor; we use a Numerical Weather Prediction (NWP) system.
we have spent a lot of money in upgrading our Numerical Weather Prediction Department with the assistance of the Weather Meteorological Organisation (WMO). Of these, we have what is called the Satellite Milecasting Facility which is giving us a diagnostic analysis on any cloud over Nigeria and we believe we can also detect the possibility or potential of any airport being affected by wind shear.
So, we are complementing these two and that is giving us very clear result. In the first phase, we are earmarking 10 airports and out of these, three have been addressed now and we are doing the other two in the next two weeks. We intend to cover the 10 airports before the end of the year and by the first quarter of next year, we are going to address the remaining airports. Read more
Obiano Seeks NCAA Approval to Open Anambra Airport
Gov. Willie Obiano of Anambra says he is seeking approval of the Nigeria Civil Aviation Authority (NCAA) to open the state’s cargo and passengers Airport for operations on Oct. 21.
Obiano disclosed this at a news conference after a tour of the airport and the International Conference Centre in Umueri and Awka respectively on Sunday.
He said that the airport was completed in 15 months and that if the regulating authority approved the request, the project would be inaugurated on Oct. 21.
According to him, the ICC and Awka township stadium will be completed and hopefully, to swear-in his successor in March 17, 2022.
The governor said that the airport had the longest runway in Africa, with the best fire fighting equipment and tallest control tower in Nigeria.
He said that the projects would put Anambra on the pedestal of economic prosperity.
He urged the people of the state to vote massively for the All Progressive Grand Alliance and its candidate, Prof. Chukwuma Soludo, for sustenance of development.
He also appealed to the media to criticise his administration constructively by reporting his projects and achievement.
Virgin Atlantic Airline Welcomes SA’s Removal from UK Red List
Virgin Atlantic Airways’ head of Middle East, Africa and Southern Asia, Liezl Gericke, said that this could not have come at a better time.
JOHANNESBURG – Virgin Atlantic Airline said that it was thrilled now that South Africa had been removed from the UK’s travel red list.
Last week, the UK lifted restrictions on travel to and from South Africa after more than nine months.
Thousands of UK tourists usually visit South Africa at this time of the year for the peak summer season.
Virgin Atlantic Airways’ head of Middle East, Africa and Southern Asia, Liezl Gericke, said that this could not have come at a better time.
“It’s been difficult. I’m thrilled to see that Virgin Atlantic has gotten through this and survived the process and we look forward now the world starting to open up. Obviously we welcome passengers back, I think that from a passenger travel perspective, you can definitely expect that people are going to be more aware of health and safety on aircraft,” she said.
Six More Airlines Implement IATA Travel Pass – Etihad Airways, Jazeera Airways, Jetstar, Qantas, Qatar Airways and Royal Jordanian join the programme.
The International Air Transport Association (IATA) announced that Etihad Airways, Jazeera Airways, Jetstar, Qantas, Qatar Airways and Royal Jordanian, will implement IATA Travel Pass in a phased rollout across the airlines’ networks. These five airlines join Emirates Airline as IATA Travel Pass implementation pioneers.
The announcement, made on the sidelines of the 77th IATA Annual General Meeting being held in Boston, follows eleven months of extensive testing by 76 airlines.
“After months of testing, IATA Travel Pass is now entering the operational phase. The app has proven itself to be an effective tool to manage the complex mess of travel health credentials that governments require. And it’s a great vote of confidence that some of the world’s best-known airline brands will be making it available to their customers over the coming months,” said Willie Walsh, IATA’s Director General.
The app offers a safe and secure way for travellers to check the requirements for their journey, receive test results and scan their vaccine certificates, verify that these meet the destination and transit requirements and share these effortlessly with health officials and airlines prior to departure. This will avoid queuing and congestion for document checks—to the benefit of travellers, airlines, airports and governments.
IATA Travel Pass is a mobile app that can receive and verify a range of COVID-19 test results and digital vaccines certificates. Currently, vaccine certificates from 52 countries (representing the source of 56% of global air travel) can be managed using the app. This will increase to 74 countries, representing 85% of global traffic, by the end of November.
IATA Travel Pass is expected to play a key role in the aviation industry’s recovery from the impact of COVID-19. A digitalized solution to manage the paperwork of COVID-19 travel health credentials will support a return to travel when borders reopen. With many governments relying on airlines for COVID-19 document checking this will be critical in avoiding queues and congestion at check-in as travel ramps up.
Sources: The Punch, Sun News, EWN, Nairametrics, Daily Trust, Air101