Travel agencies in Nigeria embrace merger-NANTA Vice President

The travel industry in Nigeria has started going the way of other countries of the world in terms of consolidation. Taking the lead is the travel consultants popularly known as travel agencies. Confirming the step at the weekend to Aviationages, Mr. Yinka Ladipo  of Dart Logistics who is also the Vice President, Lagos Zone of the National Association of Nigerian Travel agencies, NANTA said it is true that the travel agencies in Nigeria are embracing merger to form stronger operations .  “It is actually true. Consolidation is a necessity with the way the airlines are coming with all kinds of policies.  For example,  the removal of commission called The zero per cent commission era. It very difficult for agencies to survive under the zero per cent commission era . But before now it was the commission we receive from the airline that we use in taking care of our overheads and all our expenses. The consolidation is necessary. Without the consolidation it will be very difficult to survive in the business. For the numbers of agencies we have, if an agency stands alone it tends to lose a lot.

Four major players in the business Dees Travels, Finchglow Travels, Quantum and Touchdown have merged to set the ball rolling. The NANTA Vice President Lagos Zone also confirms this merger by the travel agencies mentioned. “Just as you have mentioned, It is no longer secret that these travel agencies have come together to form one.  With the trend we are witnessing of the consolidation, at the end of the day we might likely have just 15 travel agencies in Nigeria in years to come ”-he said.

Expatiating further, he said : “Consolidation is when two, three or more agencies as possible come together to relate with the airlines. For instance, Let me say five agencies coming together the sales per billing period (Per Billing Period is every two weeks), we have a sale of some million naira. I have a sale of 150, C have a sale of 170, by the time we put our sales together instead of me standing alone with my N150 million sales. When we all come together with our sales, we can actually give an airline N700 million sales per month. We can meet with the airline and negotiate our discount percentage. The airline can say it will  pay 10 per cent while we ask for 15 percent. At the end of the day we agree at 10 per cent. We will have something to show for it instead of collecting 5 per cent on individual sales. With the consolidation thing, everybody will benefit because the five of us coming together we have a good deal. Other smaller agencies that do not have as enough volumes as we do can come under us and start buying the tickets through us. Instead of just collecting service charge, when you buy from us, you will get discounts. You will realise that the N700 million giving to the airline every month can increase to N1 billion in two, three months down the line. At the end of the day, it is a win-win situation for all the stakeholders: the agencies, airlines and the passengers because the passengers will pay less ”.

Explaining on possible impediment, Mr. Ladipo said before you can go into consolidation, you need to go in with the people of like-minds. It is a business of trust because there is a lot of money involve. “There are more advantages than disadvantages. The issue of credit sales is a major problem. As much as possible, the agencies involve in this merger must reduce rate of credit sales even though we cannot do without it. We need to reduce the duration since we pay airlines every two weeks. The agencies involve will still maintain their names, IATA number, code. It is only the trading name with the airlines that will change because all the agencies involve in consolidation will trade with one agreed name”. -said he

In order to carry other member along Mr. Ladipo said sensitization is underway. “We are going to organise a seminar where we will invite experts to explain all the issues. The consolidation thing is on in South Africa and it is successful in Kenya. We intend to bring experts from either of the two countries. We intend to bring in financial experts, legal experts, tax experts. We will use this medium to explain, encourage and persuade existing members and non-members to be part of this wonderful idea”-He expressed.

Encouraging domestic airline operators in Nigeria, Mr. Ladipo said the airlines need to sit together and look at what will work for them that they might have more to gain coming together than standing alone.

Second AfBAA Regional Symposium a resounding success

Add L to R Ms Poppy Khosa- Director General of the South African Civil Aviation Authority, Madam Hind El Achachabi- Chair of International Relations for AfBAA, Tarek Ragheb – Founding Chairman AfBAA, Rady Fahmy – Executive Director AfBAA.  caption

The African Business Aviation Association held its second AfBAA Regional Symposium 2014 in Johannesburg 14 -15 September and welcomed leading international industry figures from the full spectrum of the Business Aviation sector. Discussions were kicked off following a keynote address from the Honourable Ms. Poppy Khoza, Director General of the South African Civil Aviation Authority. She stressed the importance of meetings that encouraged growth in Business Aviation commenting that it can be a major catalyst for development. “The CAA has a role to play defining the growth to ensure it can be leveraged to maximum effect,” she said adding that liberalisation is a key issue, as an open skies approach on the continent would encourage evolution. She added that a number of factors were critical for the future of the sector including aircraft financing, capacity development, and safety stating, “safety and security must not be a barrier to aviation growth but it (aviation) mustn't grow at expense of them either.”

AfBAA’s Founding Chairman, Tarek Ragheb echoed much of Khosa’s presentation as he made his welcome speech outlining four pillars -  aircraft finance, safety and training, advocacy, in addition to data and analysis - that would framework AfBAA activity for the next year. He also stressed the need to advocate on behalf of the industry particularly to the government and regulatory bodies and encouraged stakeholders in the industry to take up this mantle too. Advocacy remains at the heart of AfBAA activity and Ragheb stressed this would continue to be the case arguing that tackling smaller issues one at a time would be the way forward.

Demonstrating the Association’s commitment to increase the financing options available to the African buyers of Business Aviation Ragheb announced that AfBAA, successfully mentored a $290 million fund for Africa-based citizens to purchase Brazilian products. “Aircraft formed the central focus for this fund and we anticipate this will support new aircraft purchases in the region”. The Association is already in discussion with other such agencies to extend this opportunity.

International guest of honour Senior Vice President of the Export Import Bank of the United States, Robert Morin added to this thread as he spoke about how business aviation stimulates economic growth and unlocks opportunities. In proving the point he stated that his bank had provided over $7 billion for African aviation. Education at all levels needs to take place Morin stated and U.S. aircraft manufacturers must work with the ExIm bank to maximize it as a sales tool. Echoing a number of delegates’ thoughts he commented that partners are needed in Africa to make things happen and was pleased to acknowledge Investec and Air Finance as the banks newly appointed ‘qualified advisor’ partners in Africa. The ExIm bank has traditionally focused on financing aircraft, but Morin stated that in recent years the institution has begun to finance services and infrastructure such as MROs and FBO’s as long as the products involved link with the USA.

Underpinning the fact that all businesses need statistics to create strategy for growth Ragheb announced that JETNET IQ had developed, in association with AfBAA, original data about the current position of African Business Aviation. Responding to the constant demand for African data and statistics AfBAA commissioned JETNET IQ to collate the information. The quantitative data, available to AfBAA members only, highlights detailed information about the state of Africa’s Business Aviation fleet, details about purchasing intentions, aircraft usage, age of fleet, and the challenges to growth. Rolland Vincent of JETNET IQ also chose the symposium as a launch pad for a new survey, which will aim to bolster the original information with further details from leading stakeholders and AfBAA members.  This intensified research, which will explore the future of African Business Aviation, is to be readied for the AfBAA Rendezvous, open to AfBAA members only, which will be held in Angola in February 2015.

Demonstrating the effectiveness of AfBAA’s advocacy as an Association the operator’s panel began with Nuno Pereira of Angolan-based FBO and maintenance company Bestfly thanking the Original Equipment Manufacturers (OEMs) for responding to the role for improved support on the continent. Notably since the call for support went out at the AfBAA Regional Symposium 2013 the major OEMs have improved the availability of spares and access to maintenance knowledge as it was noted that one of the biggest challenges to sales was assuring owners that their assets would be secure in Africa. The improved maintenance, repair and overhaul offering, wider implementation of Safety Management Systems and an increased number of experienced aircraft management companies has served to support greater sales across the continent. 

In the spirit of advocacy and building on Ms. Khosa’s comments regarding liberalization the suggestion was made to begin to develop regional open skies between allied countries rather than try to join the whole continent at once. “The journey of a million miles starts with a single step and by approaching the concept of open skies with a regional approach we may just make this possible,” added Ragheb. Five key points were outlined for AfBAA to focus on that would support this concept. Improving ease of access to over-flight clearances between countries, creating systems that enable more efficient access to landing permits, consistency of document acceptance including insurance and airworthiness papers at all African airports, and a consistent call through the meeting of more understanding from and education of local CAAs.

The final pillar that the symposium agreed should be a focus for the next twelve months was the need to increase safety and training on the continent. The safety panel suggested that AfBAA needs to design a clear-cut objective for safety and devise a means for communicating its efficacy to regulators. Acknowledgement was made that there are safety methods in place, but that a formulated approach would support continent wide uptake. In response a new AfBAA Training and Safety Committee dedicated to improving the understanding of these areas was launched. In support of this a free Safety Management Systems workshop, offered in conjunction with Litson & Associates, welcomed twelve attendees at the South African Aviation and Aerospace Defence show in Waterkloof. Lengthy discussions also discussed the importance of training and having consistent standards across the continent for safety, operational process and training standards.  Once again a call was made to engage with the regulatory bodies to help them better understand the differences between commercial and business aviation to underline the importance of these elements. 

In rounding up the two-day event Rady Fahmy, Executive Director AfBAA,  stated that AfBAA continues to build momentum with a growth in membership and that it is gaining strength from increased participation from the members. “We are here to share the success, knowledge, and challenges of our colleagues and to use these as a means of shaping AfBAA’s future. The success of this symposium, which has been attended by a significant number of industry leaders of the highest calibre, demonstrates how interested stakeholders are in sharing their knowledge and experience. We have a framework for the future and this is enriched by the practical experience of our members. We must use this to maximise the significant potential the continent of Africa holds for the Business Aviation sector. We continue to encourage participation and look forward to the next Regional Symposium the details of which will be announced in the very near future,” he concluded.

Arik Air recommences Banjul operations

 

Arik Air aircraft

Since the much dreaded Ebola Virus Disease (EVD)  is  contained in Nigeria,  Arik Air after suspending their operations to Banjul, The Gambia is now recommencing operation back on the route. According to a statement from the airline, “Arik Air, West Africa’s largest commercial carrier resumes flight services to Banjul, Gambia from Wednesday, October 1, 2014.

Arik Air will now be operating three weekly flights from both Lagos and Abuja to Banjul via Accra (Ghana) on Wednesday, Friday and Sunday. With this new schedule, Arik Air is allowing the Banjul route to sell three market segments on one operated flight (i.e. Banjul-Accra + Banjul-Lagos + Banjul-Abuja vice versa).

Outbound flight departs Lagos at 5:00 pm (local time), arrives Accra at 5:00 pm (local time) and leaves Accra for Banjul at 8:00 pm. From Abuja, the outbound flight departs at 6:10 pm (local time), arrives Accra at 7:00 pm (local time) and leaves for Banjul at 8:00 pm.”

Arik Air’s Managing Director, Mr Chris Ndulue commented:

“We are pleased to resume flight operations into Banjul after the brief period of suspension due to the Ebola Virus Disease episode. The safety and security of our passengers and crew is always the airline’s top priority. As such, we are working with local and international health authorities to safeguard the health and well-being of our guests and staff as we resume operations into The Gambia”.

SKYJET AVIATION DISPLAYS GULFSTREAM’S G280 IN LAGOS …Now Authorized Rep. for Viking

 

Gulfstream's G280 interior

The newly appointed commercial sales representative of the Gulfstream, Skyjet Aviation Services Limited will be displaying  one of Gulfstream products, G280 in Lagos this week.

According to the Director of Aircraft Sales, Bruce Fullerton, “we ( Skyjet and Gulfstream ) will be bringing a Gulfstream 280 Lagos. It will be on display on Friday and Saturday, September 12 and 13 at the EAN Aviation hangar. “

The Gulfstream G280 has established itself as the super-midsize class leader in performance and economy.

According to Gulfstream website,   “a newly designed long, sleek wing and high-thrust engines increase range and speed, yet fuel economy is so well maximized the G280 has earned best-in-class fuel efficiency.

The PlaneView280 cockpit incorporates state-of-the-art flight and navigation systems while autothrottle and autobraking set new standards for aircraft control and handling. The Gulfstream G280 is an aircraft so powerful and aerodynamic it redefines the performance and capabilities of super-midsize business aircraft. And the interior? Light, quiet and exquisitely comfortable―everything one would expect from Gulfstream.”

On another note, Skyjet Aviation has also been named Authorized Sales Representative for Canadian Viking.

According to the Director of Aircraft Sales, Bruce Fullerton , “SkyJet has also been appointed the Authorized Sales Representative for Viking products. The Canadian Viking is a first tier original equipment manufacturer (OEM) specializing in de Havilland aircraft products.”

 Viking is the type certificate holder for the DHC-2 Beaver,DHC-2T Turbo Beaver, DHC-3 Otter, DHC-6 Twin Otter, DHC-4 Caribou, DHC-5 Buffalo and DHC-7 Dash 7 aircraft.

Viking has 30 years of experience with de Havilland products.  In 2006, Viking accepted the transfer of the type certificates for seven legacy de Havilland aircraft.

FAAN deploys shuttle buses at Lagos airport

 

 

FAAN shuttle buses

Transportation between the local and international terminal of Murtala Muhammed Airport Lagos, recently received a boost with the deployment of four shuttle bus to ply the route.

According to a statement by the General Manager Corporate Communications of the Federal Airports Authority of Nigeria, FAAN , Yakubu Dati, the 30-seater shuttle buses were deployed by FAAN in partnership with Skyplus Contracts and Logistic Limited. 

"FAAN’s General Manager Commercial, Mr. Tayo Adewakun, who unveiled the buses on September 1, 2014, at the car park of MMA’s Domestic Terminal 1, said the deployment of the vehicles was not to compete with regular car hire operators but to ease the movement of transit passengers from domestic to international terminals and vice versa.

Accompanied by other commercial staff of the Authority, Mr. Adewakun disclosed that the buses would pick passengers from DT1 and drop them at MM2 and international wing without stopping on the road. He added that the shuttle bus would not pick any passenger on the road but at DT1 and MMIA. The buses would only drop passengers at MM2.

Speaking during the launching of the shuttle bus, the Managing Director of Skyplus Contract and Logistics, Mrs Shobayo said she was motivated into partnering with FAAN because of her experience as a frequent flyer."-the statement confirmed

 

Shobayo noted that the deployment of the shuttle buses would bridge the gap between the local and international airport terminals, adding that getting a drop for passengers on transit was always risky. She commended FAAN’s management for the accelerated approval given to her company for the shuttle service.

The shuttle buses are fully air-conditioned with enough room legs for the comfort of passengers. They also have luggage compartments where passengers’ luggage could be accommodated.

Emirates partners Arik Air sign Memorandum of Understanding

From left, Chris Ndulue, Arik Air’s Managing Director, and Adnan Kazim, Emirates Divisional Senior Vice President, Planning, Aeropolitical and Industry Affairs,

sign the MoU at Emirates Group Headquarters in Dubai.

Arik Air and Emirate have entered into a partnership that will be beneficial.

 According to a press statement made available through Arik Air, the West Africa’s leading airline (Arik Air) and Emirates airlines have signed a Memorandum of Understanding (MoU) to develop and expand their existing commercial relationship and explore further areas of co-operation.

“Emirates and Arik Air currently have a one-way interline agreement, whereby Emirates passengers are connected throughout Nigeria and West Africa via Arik Air’s current domestic and regional network.

The MoU was signed yesterday by Adnan Kazim, Emirates Divisional Senior Vice President, Planning, Aeropolitical and Industry Affairs, and Chris Ndulue, Arik Air’s Managing Director, at Emirates Group Headquarters in Dubai”-the statement confirmed.

“Both Emirates and Arik Air have expressed interest in exploring ways to expand on our existing commercial relationship and to look at different areas in which we can cooperate that will be mutually beneficial to both airlines, including seamless connectivity for our customers on our respective networks. We also intend to explore the potential of code share arrangements as passenger traffic flows mature between both parties’ networks,” said Mr Kazim.

“Arik Air is delighted to partner with Emirates. Both airlines share a similar vision of convenience and safety for our customers. While Arik Air is happy to open its network in Nigeria and West Africa to Emirates passengers, we are excited at the vast worldwide network of Emirates being made available to Arik Air’s passengers. The invaluable cooperation between the two airlines offers a lot of synergy to both airlines in achieving their objectives,” added Mr Ndulue.

Emirates and Arik Air will also explore other areas of cooperation for the future, including frequent flier programmes, passenger and cargo handling.

It will be of note that Arik Air commence Abuja-Dubai route while Emirate begin

Nigerian Arik Air is the largest airline in Western and Central Africa and has developed and successfully operates an extensive domestic route network in Nigeria, and regionally across Western Africa from its twin hubs in Lagos and Abuja, and to Johannesburg in South Africa and intercontinentally to New York and to London from its Lagos hub.

Emirates is one of the world’s leading international airlines and flies to more than 140 destinations in 81 countries across six continents. It operates the world’s largest fleet of Boeing 777 aircraft and Airbus A380s.