Thursday, 2 June 2016

Foreign Airlines Blocked Funds: IATA Urges Nigeria, Venezuela and others



    
The International Air Transport Association (IATA) called on governments to respect international agreements obliging them to ensure airlines are able to repatriate their revenues.
"Air connectivity is vital to all economies. The airline industry is a competitive business operating on thin margins. So the efficient repatriation of revenues is critical for airlines to be able to play their role as a catalyst for economic activity. It is not reasonable to expect airlines to invest and operate in nations where they cannot efficiently collect payment for their services," said Tony Tyler, IATA’s Director General and CEO.

Venezuela and Nigeria 

IATA monitors blocked funds globally, the sum of which exceeds $5 billion. The top two countries blocking the repatriation of airline funds are Venezuela and Nigeria.

Venezuela: Airline funds blocked from repatriation in Venezuela total $3.8 billion. Currency controls implemented in 2003 necessitate government approval to repatriate funds. By 2013, approvals were not keeping pace with the amount of funds requiring repatriation and significant airline revenue accumulated in Venezuela. The situation became critical in 2015 when only one request to repatriate funds was approved. So far in 2016 only one request to repatriate funds has been granted.

Nigeria: Total airline funds blocked from repatriation in Nigeria are nearing $600 million. Repatriation issues arose in the second half of 2015 when demand for foreign currency in the country outpaced supply and the country’s banks were not able to service currency repatriations. Nigerian authorities are engaged with the airlines and are, together with the industry, seeking possible measures to make the funds available.
"Blocked funds are a problem in a diverse group of countries, some of them undergoing significant economic challenges particularly with a fall-off in oil revenues. But one thing all five nations have in common is the urgent need for robust air connectivity that is being hampered by airlines’ difficulty in repatriating funds. Strong connectivity is an economic enabler and generates considerable economic and social benefits--something that struggling economies need more than ever. It is in everybody’s interest to ensure that airlines are paid on-time, at fair exchange rates and in full," Tyler said.

Top Five Country’s Blocking Repatriation of Airline Funds
           
Country
           

Amount US$ Million
Months Held
Venezuela
3,780     
         
16
Nigeria
591

7
Sudan
360
4
Egypt
291
4
Angola
237
7

                                                                                                                         Source: IATA

Monday, 30 May 2016

SAHCOL wins African Brand Leadership Merit Award


Prof. Samaila Mande (L) presenting the Award of African 
Best Passenger Services Handling Company of the year 2016 
to the General Manager, Corporate Communications,SAHCOL. Basil Agboarumi.


The Skyway Aviation Handling Company Limited (SAHCOL) has won the award of “African Best Passenger Handling Services Provider of the year 2016".
The award was presented to SAHCOL by the Institute of Brand Management of Nigeria (IBM), in collaboration with the African Institute of Brand Management (AFribm) at the 2016 edition of the Brand Leadership Merit Awards held at the Sheraton Hotel and Suites, Ikeja.
As the only brand selected from the Aviation sector this year, SAHCOL was picked for the award by the Brand Leadership Award’s Technical Committee  because of its recent strides and innovation in building a brand that is in tune with International best practices.
The Brand Management Institute said that the SAHCOL brand has a great story behind it, "it is an authentic, unique, value adding African brand, and has been connected with the people within and outside."
They further stated that, SAHCOL has made an outstanding contribution to the development of the continent, the economic aspirations of its citizenry and the transformation of African’s image in the International market while displaying a high standard of good corporate citizenship, social and environmental responsibilities.
The African Brand Leadership Awards, according to the organizers is aimed at celebrating Leadership, innovations and creativity in Africa. It showcases brilliant minds and institutions that are delivering positive change and shaping Africa’s future. The theme of the 2016 Congress was “Achieving Sustainable Branding in Africa: Prospects and Challenges.
The Chairman of the event, Professor Samaila Mande said in his address, that marketing productivity and resources in developing countries are fundamentally different compared to advanced countries. Therefore, branding should be done a bit differently to what is obtainable in the western world. He went on to say that the use of sophisticated technology should be employed to accelerate the levels of consumer access, bypassing many of the traditionally staged levels of advanced countries.
 He also opined that many Nigerians are highly inspirational, educated and street smart, they should hereby consider the possibility of developing local brands for the global market so as to instill national pride and serve as real alternatives to global brands.
The Skyway Aviation Handling Company Limited (SAHCOL) was prior to December 2009 a struggling establishment of the Federal Government of Nigeria, having been rescued from the ashes of the liquidated Nigerian Airways.
The fortunes of SAHCOL however took a turn for the better, after 2009, when the SIFAX Group led by its Executive Vice Chairman, Dr. Taiwo Afolabi (MON), bought over SAHCOL, in a keenly contested privatization exercise by the Nigerian Government Privatization Agency- Bureau of Public Enterprises (BPE).
Today, SAHCOL is a great brand that has won its way to the heart of the Aviation Community, delivering Aviation Ground Handling Services in line with Internationally accepted best practices, having undergone and received the highest available International and local certifications, providing equipment and facilities that matches with the very best anywhere in the world

SAHCOL was incorporated as an Aviation Ground Handling Service provider under the Nigerian Companies and Allied Matters Act of 1990. It is a Nigerian owned enterprise involved in Passenger Handling, Ramp Handling, Cargo Handling and Warehousing, Aviation security, Baggage Reconciliation, Crew bus and Executive Lounge services, and other related Ground Handling services for World best Airlines, originating within Nigeria and from various parts of the world.

“Private sector participation in all sectors will stimulate economic growth”-Olowo


In this interview, Mr. Gbenga Olowo the President of Aviation Round Table explains the role of the group and other pressing issues affecting the Nigeria’s aviation industry.

ART President, Gbenga Olowo


Ques: A lot of Nigerians are conversant with the quarterly breakfast meeting usually organized by Aviation Roundtable but do not seem to understand what ART represents. It is a pressure group, an advocacy group or a mere non-governmental organization?

Ans: Aviation Safety Round Table Initiative (ART) is an Aviation Professional Organization with unambiguous mission statement, “ To ensure the Advancement of Nigerian Aviation Industry that will consistently promote Safety and Professionalism through effective working relationship with Government and Knowledge sharing with all stakeholders.”

Ques: Many of your breakfast meetings organized in the past with recommendations made at the end but there is little or nothing achieved in terms of getting the government to implement the recommendations, does this not dampen your morale?

Ans: That is not totally correct. Our quarterly breakfast meetings (designed essentially for achieving the objective of knowledge sharing) have had a couple of the recommendations being implemented .
Our red alert warning on possible fuel contamination through tanker haulage invited NCAA and Fuel suppliers spontaneous reaction, the need to strengthen NCAA through undue political interference by reducing Aviation ministry to a junior ministry, the very many advocacy in favor of Nigerian Airlines and other aviation players have yielded very positive results .We believe in allowing superior opinion to prevail, hence we are not deterred when and where some of the recommendations are not heeded. Posterity will bear us out.

Ques: Aviation sector in Nigeria enjoys the category 1 status conferred by the US FAA just as the country has emerged with distinction from various audit exercises but the challenges still remain in terms of the operating environment, the high mortality rate of the airlines with some of them failing to last up to 10 years in the market and so on. Where have we really gotten it wrong in the sector?

Ans: Nigeria and Managers of our agencies are very very clever. We do know how to pass examinations. How I wish that translates to efficient and optimal service delivery?
Motion does not necessarily translate to Activity neither does Programme translate to Progress so says my Pastor.
Go to all the airports in the country and see how you score the toilets, passenger processing, one hour or more long traffic from airport toll gate to the terminal building without serious security process, very hot, rowdy and not too sanitized environment , so many check points unlike other civilized airports, chaotic & oven arrival halls and more. One can go on and on with long list of dissatisfaction and disaffection at our airports. Of what use therefore is passing FAA Cat 1? Thanks for passing it anyway, but please let us see the effect of the passing safe for the ability of Nigeria registered aircraft to operate to the US.
Our numerous brilliant graduates are just not employable given same scenario. It’s simply frustrating. This of course could be directly or indirectly related to the high mortality rate of our Airlines, that is, passing exams with no value added.

Ques: Do you foresee the present government changing the status quo? What should the government do to drive the sector to begin to significantly contribute to the country's Gross Domestic Product (GDP)?

Ans: Transport Minister and his aviation colleague should be tasked with delivering 1 % of the GDP by 2020 at an annual growth rate of 25 -30 %. It is presently 0.4% when small country such as Spain delivers up to 5%. A grossly under-performing  sector. Measurable task with timeline is the answer and stake holders including ART do have ways and means to achieving such deliverables.

Ques: Recently, there were concerns about the frequency of flight delays and cancellations following the report released by the NCAA which indicated that about 50 per cent of flights operated in the first quarter of 2016 were delayed, what does this portend for the sector?

Ans: Delays could be as a result of so many factors . Lately Aviation Fuel poor supply I am aware is responsible for most delays. Airlines insolvency is also contributory as purchase is now on cash and carry basis to the exclusion of former credit lines. Technical , VIP movement , late arrival if operating aircraft, weather and so on, are some other reasons but with varying remedies for passenger comfort.

Ques: In recent times, there were reports of dwindling passengers' traffic at the indigenous level. What do you think is responsible for this reduction in the number of air travellers resulting in, for instance, an airline going to Abuja with less than 50 per cent of passengers occupying the available seats?

Ans: Economic activity generally has declined 2015/2016 year on year due low government expenditure which is the highest element of our national income .
Private sector participation in all sectors will stimulate economic growth while government ensures good standards through regulation. Reverse is the case presently and so without government spending and annual budget for almost half of the year, economic activity automatically declines.

Ques: Are you in support of airlines merging their passengers?

Ans: Absolutely Yes. It is called Pooling.
 It is a process of cooperation that will remove unnecessary competition, reduce waste, and enhance yield. It should go beyond pooling of passengers to pooling of all the resources and or merger. Regrettably however, it is un-Nigerian to cooperate rather it’s me alone die alone.

Ques: Over 80 per cent of international passengers are airlifted by foreign carriers through the signing of Bilateral Air Service Agreements (BASAs) and a lot of people have called for review or abolishment of these BASAs for not being mutually beneficial, what is your take on this?

Ans: What option is there if foreign airlines do not operate the BASAs so long there are no strong Nigerian airlines to reciprocate in the face of growing demand ?
Necessary condition is 3 to 4 strong airlines parading minimum of 50 modern and operational aircrafts each. We can then begin to see the need to review the BASAs absent which will result to overfull demand situation and high prices in the market.
Nigeria Government must make deliberate effort to salvage our airlines if we are serious about reducing the pressure on Naira exchange rate as of necessity, foreign airlines must repatriate their excess of earnings or refuse to trade in Naira as it were.

Ques: Besides, it is said that foreign airlines have stopped payment of royalties to government, what's the implication of this?

Ans: Foreign airlines are logical in not paying royalty to government any longer.  It is not justifiable in the sense that they did not prevent Nigerian Airlines from reciprocating the BASAs but for lack of Nigeria’s ,capacity.
Historically, royalty was the compensation derived through commercial agreement between two designated airlines on a particular route and not government. Nigeria should therefore designate its airlines to all countries and all routes given very strong support going forward.

Ques: Do you think government should have allowed multiple entry points to these foreign airlines? You see some of them flying to four different airports and locations in the country, is this proper especially at a time when local airlines complain of dwindling passengers?

Ans: Present policy on multiple entry point into Nigeria as it is today is absolutely wrong and condemnable. It is robbery and by implication a breach of cabotage right. When will Nigeria begin to cherish its own for God’s sake ? It is absolute erosion of domestic aviation. A foreign operator should have one point of entry into Nigeria. It could be Lagos, Abuja, Kano or Port Harcourt and not all.

Ques: The debate on national carrier has been on for a while with the present government saying they want to bring back the carrier, no one really knows the plan of government in this area but from your own perspective do we need a new carrier and what model?

Ans: A new start up midwifed by government is very very positive . It is plus one and the more the merrier.
But remember Sickle cell father and Sickle cell mother will undoubtedly produce Sickle cell offsprings.
If government fails to address circumstances resulting to the high mortality in the sector these four decades , any new entrant operating under same condition will surely not succeed.
We must warn though that preferential treatment as it were for Virgin Nigeria in its earlier days will be seriously resisted by the industry. The memory  remain quite fresh.


Wednesday, 25 May 2016

Air China Introduces its First Boeing 787-9 Dreamliner


 
Interior of  B787-9
Boeing and Air China officially unveiled the airline's first 787-9 Dreamliner to the public at a grand ceremony in Beijing today. The national flag carrier is the first airline in the country to have a 787-9 enter into service.
"The 787-9 Dreamliner employs a multitude of cutting-edge technologies best represented by its electronic handling system and wide application of composite materials," said Captain Wang Yingnian, chief pilot of Air China. "As such, it enjoys clear advantages such as low fuel consumption, low emission and lower noise, which are highly aligned with the green flying idea that Air China has long been an advocate of."
This is the first of 15 Dreamliners set to join Air China's fleet.
"We are very honored that the 787-9 has joined Air China's national flag carrier fleet," said Ihssane Mounir, Boeing Commercial Airplanes senior vice president of Northeast Asia Sales, "Carrying the long term partnership between Air China and Boeing, Air China's 787-9 will provide comfort and convenience for passengers, exceptional fuel efficiency and environmental performance for the airline customers."
The 787-9 complements and extends the 787 family. With the fuselage stretched by 20 feet (6 meters) over the 787-8, the 787-9 will fly over 40 more passengers an additional 285 nautical miles (830 km) with the same exceptional environmental performance — 20 percent less fuel use and 20 percent fewer emissions than similarly sized airplanes.
The 787-9 leverages the visionary design of the 787-8, offering passengers features such as large windows, large stow bins, modern LED lighting, higher humidity, a lower cabin altitude, cleaner air and a smoother ride.
"We believe the 787-9 will become the backbone of Air China's international long-haul routes and will play an important role in supporting Air China's international development strategy," added Captain Wang.

Air China, headquartered in Beijing, is a leading provider of passenger and cargo services in China with scheduled flight routes connecting 174 cities in 40 countries and regions. Air China will use its 787-9s to ride on the wave of fast growing international passenger traffic by expanding its international network through non-stop point-to-point services.
                                                                                                                                    Source:Boeing

NBAA Presents 'Innovation' Award to Shanghai Airport President at EBACE2016



Ed Bolen, president and CEO of the National Business Aviation Association (NBAA) today presented Shanghai Airport Authority (SAA) President Jing Yi Ming with an Innovation Award honoring SAA's leadership and commitment in co-hosting the annual Asian Business Aviation Conference & Exhibition (ABACE), which has taken place in Shanghai, China since 2012.

The award was presented during the 2016 European Business Aviation Convention & Exhibition (EBACE2016), taking place May 24 to 26 at the Palexpo center and Geneva International Airport in Geneva, Switzerland.

"Mr. Jing is a champion for ABACE, and a tireless advocate for the industry in China and across Asia,” said NBAA President and CEO Ed Bolen. “The success and significance of ABACE simply would not have been possible without strong support from Mr. Jing and the SAA.”

As an example, Bolen noted that, with the SAA’s support, ABACE has featured a variety of fixed-wing androtor aircraft in the show’s aircraft display at Shanghai Hongqiao International Airport.


The 2016 event, which took place April 12 to 14, showcased the largest-ever footprint for the show’s exhibit floor, upon which 40 percent of the 165 exhibiting companies were based in the region. ABACE2016 attracted attendees from more than 50 countries. The static display, with 30 aircraft, was more diverse than ever this year, featuring the full spectrum of general aviation aircraft. 
                                                                                                                                   Source: NBAA

EBAA Chairman Honoured at EBACE2016


 
EBAA Chairman Rodolfo Baviera


The European Business Aviation Association (EBAA) and National Business Aviation Association (NBAA) presented EBAA Chairman Rodolfo Baviera the prestigious European Business Aviation Award at this year’s ongoing European Business Aviation Convention & Exhibition (EBACE2016), at the Palexpo center and Geneva international Airport in Geneva, Switzerland.

“It is no exaggeration to say that our chairman, Rodolfo, is one of the giants of this industry, and it has been a privilege and an honor to work alongside him for several years now,” said Brian Humphries, EBAA president. “This award is just a very modest token of our deep appreciation for his constant guidance and support.”

“EBAA wouldn’t be where it is today without him, that’s certain, and this award is long overdue,” said EBAA CEO Fabio Gamba.

“Rodolfo has been a steady hand as EBAA chairman, and he has been a tireless advocate for the business aviation community,” said NBAA President and CEO Ed Bolen. “His tenure has been characterized by the growth of EBACE, which is today recognized as Europe’s leading business aviation event. We thank him for his leadership, and for the many contributions to the industry he has made, not only in his role as EBAA chair, but throughout his professional career.”

Baviera was elected EBAA chairman in 2004, having served on the group’s Board of Governors since 1998. Baviera’s career in the aviation industry began when he earned a degree in political sciences at “La Sapienza” University of Rome, for which he produced a thesis paper, entitled, “A politic for the European Aeronautical Industry.”



In 1985, he created Geneva-based Bizjet SA, a company that specialized in selling pre-owned business aircraft. That same year, he became CEO of Europavia Italia SRL, an international aircraft trading company. Baviera added chairman and CEO of Eurofly Services SpA to his responsibilities in 1993, and a year later, extended his commitment to Europavia Italia SRL to include its chairmanship. Aircraft operator Eliario Italia SpA designated him chairman in 1999.

In 1998, he was appointed chairman of the Italian Business Aviation Association (IBAA), where he served until 2004; during that time, IBAA also joined the International Business Aviation Council.

Baviera was a member of the board of Aeroporti de Roma SpA between 2005 and 2006. Since 2007, Baviera has acted as chairman of Bizjet Aircraft & Helicopters Management, and executive aircraft management Srl.

Jointly hosted by NBAA and EBAA, EBACE serves as Europe’s premier showcase for business aviation, while

also providing an important venue to continue the vital dialogue between regulatory authorities, business leaders and other stakeholders.

EBACE2016 features about 60 business aircraft on static display. In addition, the convention draws a variety of manufacturers, aircraft completion specialists, sales and financing professionals and service and maintenance providers.

In addition to serving as a key industry trade event, EBACE2016 also includes a full roster of education sessions that address the latest topics of concern to business aircraft operators, including discussions about initiatives to reduce the industry's global carbon emissions, and the use of satellite-based technologies to make business aviation safer and more efficient.


Founded in 1947 and based in Washington, DC, the National Business Aviation Association (NBAA) is the leading organization for companies that rely on general aviation aircraft to help make their businesses more efficient, productive and successful. The association represents more than 10,000 companies and provides more than 100 products and services to the business aviation community, including the NBAA Business Aviation Convention & Exhibition, the world's largest civil aviation trade show.
                                                                                                                                        Source:NBAA