“Accordingly, Your Excellency is respectfully requested to reschedule the foundation laying ceremony of the Osun State Airport pending the resolution of the petitions and selection of a mutually agreed date. Please, accept the assurances of the Honourable Minister’s highest regards.”
Aviation
Airfare increase: FG probes domestic airlines
The Federal Government has begun investigations into the latest increase in airfares by domestic airlines and the alleged collusion by the airlines in the fare fixing arrangement.
Price-fixing is a practice whereby rival companies come to an illicit agreement not to sell goods or services below a certain price.
A report by The Punch indicated that efforts are currently ongoing to unravel reasons for the sudden hike in airfares by all domestic carriers, as the airlines, aside from Green Africa Airways, raised the airfare for a one-hour flight in economy class to as high as N50,000.
This amounts to over 60 per cent hike in the domestic airfare, as the rate was hitherto between N26,000 and N30,000 a few weeks ago.
It quoted an email allegedly sent by a domestic carrier to its travel agents stating that all airlines had effected the same increase in airfares.
This is said to be suggestive of a unanimous decision by domestic carriers to engage in price fixing.
The email read in part, “This is to update you that effective today, February 18, 2022, the airline’s ticket fares have been reviewed with the least fare at N50.000 only across all our routes.
“This has become necessary in view of the current hike in prices of aviation related materials, services, and exchange rate.
“It is worth noting that all other airlines have also effected same fare increase. We crave your understanding and support to sell our stated fares.”
Executive Vice-Chairman/Chief Executive Officer of the Federal Competition and Consumer Protection Commission, Babatunde Irukera, said the FCCPC was aware of the latest concern in the aviation sector.
He was quoted as saying the commission had commenced investigations into the issues raised by both passengers and other concerned observers in the aviation sector.
He said, “We’ve been engaging the Nigerian Civil Aviation Authority on that. Firstly, it is against the law for competitors to coordinate and come together to discuss or agree on price. That is forming a cartel.
“But an announcement in itself will not be sufficient evidence of the cartel. You need to investigate and discover if there is such cartel. Now the articles we’ve read seem to suggest that they agreed as an airline association. But we haven’t seen an evidence of that.
“And because cartel is criminal and will involve monetary penalties, it requires evidence to clear every doubt. So we need to find the evidence if that’s what happened, for instance, one airline has said to us, ‘no, we were never part of any announcement’.”
Irukera added, “They said others increased airfares and they saw an opportunity to increase their own, which was part of market forces. So it is now for us to gather the evidence to narrow it down to a violation of law, to at least show that it was a coordinated conduct.”
He said the commission would issue a public statement on the development soon, adding that the FCCPC was currently “gathering evidence to see at what point in their systems did the airlines changed their fares.”
Irukera said, “This is to see if there was any coordination or if was a response to what another airline did or not. So the short answer to this is that any coordinated conduct or agreement with respect to price among competitors is a violation of law and the FCCPC strongly rejects that and will pursue it.
“However, in this case we are gathering information at this point to find the evidence or the lack thereof.”
Aviation
Nigeria’s rail revenue drops 4% to N2.2bn in three months
Nigeria’s rail revenue drops 4% to N2.2bn in three months
Revenue generated from rail transport fell by 4.7 percent year-on-year (YoY) to N2.19 billion in the third quarter of 2024 (Q3’24), from N2.3 billion in the corresponding period of 2023, Q3’23.
The National Bureau of Statistics, NBS, disclosed this yesterday in its Rail Transportation Data for Q3’24.
The breakdown of the revenue shows N1.7 billion was received from passengers while N412.57 million was collected on goods/cargo, and N51.85 million received from the movement of goods/cargo through pipelines. It also generated N34.77 million from income line categorized as ‘Other Receipts’.
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The Bureau also said that 743,205 passengers travelled through the rail system during the period.
It stated: “In Q3’24, a total of 743,205 passengers travelled via rail system relative to 594,348 reported in the corresponding quarter of 2023, indicating a growth rate of 25.05 percent.
“The volume of goods/cargo transported via rail in Q3 2024 stood at 96,401 tons compared to 69,003 tons recorded in Q3 2023.
“In the quarter under review, the Nigerian Railway Corporation (NRC) reported an additional volume of goods/cargo transported via pipeline which stood at 7,320 tons, lower than 12,960 tons in Q3 2023.
“In terms of revenue generation, N1.7 billion was received from passengers during the reference period, showing an increase of 13.83 percent from the N1.49 billion recorded in the same quarter of the previous year”.
Nigeria’s rail revenue drops 4% to N2.2bn in three months
Aviation
JUST IN: Six crew members escape unhurt as Cargo plane crash-lands in Abuja
JUST IN: Six crew members escape unhurt as Cargo plane crash-lands in Abuja
A cargo plane operated by Allied Air made an emergency landing at Abuja’s Nnamdi Azikiwe International Airport due to a malfunctioning landing gear.
The aircraft, bearing registration number 5N-JRT, experienced the failure on Wednesday at 10:00 am with six crew members on board.
“Fortunately, no casualties were recorded,” a source familiar with the incident said.
“Crew members were quickly evacuated and are undergoing medical evaluations at the 063 Nigerian Air Force medical unit.”
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“Emergency responders swiftly secured the crash site, cordoning off the area under Military Airport Commandant supervision.”
The source revealed that the airport’s runway is temporarily closed, causing flight delays.
Airport authorities, including the Nigerian Civil Aviation Authority, are working to remove the aircraft and inspect the runway for potential damage.
This incident occurs three months after a Port Harcourt helicopter crash claimed three lives.
JUST IN: Six crew members escape unhurt as Cargo plane crash-lands in Abuja
Aviation
FG stops Adeleke’s move to relocate Osun Airport to Ede
FG stops Adeleke’s move to relocate Osun Airport to Ede
The federal government has suspended the relocation of the Osun State International Airport project from Ido-Osun to Ede, following widespread controversies and protests.
Governor Ademola Adeleke had announced that the foundation-laying ceremony for the new airport would be held on December 16, 2024, in Ede, his hometown.
The event was to feature key dignitaries, including Ministers of Works and Aviation, David Umahi and Festus Keyamo.
However, the proposed relocation drew sharp criticism.
The Ido-Osun community staged protests, condemning the move as nepotistic and undemocratic.
Critics argued that the relocation prioritised personal interest over public good.
In defence, the Osun state government cited encroachment on the Ido-Osun airport land, the presence of gullies, and the inadequacy of the runway as reasons for the decision.
In a letter dated December 6, 2024, signed by the Permanent Secretary of the Federal Ministry of Aviation and Aerospace, Dr. Emmanuel D. Meribole, and addressed to Governor Adeleke, the ministry directed the state government to suspend the project indefinitely.
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The letter, obtained exclusively by The Nation, stated: “Re: Invitation as a Special Guest of Honour at the Foundation Laying Ceremony of the Osun State International Airport. I wish to refer to your letter Ref. No. 5.12/19/1/Vol.VI/188 dated 21st November 2024 on the above subject and to respectfully request Your Excellency to suspend the foundation laying ceremony of the Osun State International Airport until the issues regarding the petitions over the existing airstrip/airport are resolved and to harmonize the state’s efforts with that of the federal government.”
This development marks a significant setback for Governor Adeleke’s administration amid ongoing disputes over the airport’s future.
“Your Excellency may wish to note that the airstrip is a federal project that is captured in the Ministry’s 2024 Appropriation. We also note that you have made arrangements to expand the airstrip to an international airport. In addition, there is a petition indicating there is an existing airstrip where funds have been expended and the need to use the site for the present airstrip instead of a new site.
“The federal government is mandated to ensure judicious use of funds to curtail wastage of resources. As this Airstrip Project is a collaboration between state and federal governments, we must be in synch before the project takes off.
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