Mounting debts worry airlines, discuss N22bn repayment plans with NCAA – Newstrends
Connect with us

Aviation

Mounting debts worry airlines, discuss N22bn repayment plans with NCAA

Published

on

Airlines owing the Nigerian Civil Aviation Authority a total of N22bn have held a meeting with the agency on reconciliation and plans for payment.

The Director-General, NCAA, Captain Musa Nuhu, said this when the House of Representatives Committee on Aviation led by Nnolim Nnaji paid him a visit on Wednesday.

Apart from the devastating effects of COVID-19 on businesses, airlines say the recent rise in naira-to-dollar rate has exposed them to more financial needs.

Except workers’ salaries and ticket sales, everything other thing in the aviation business is denominated in dollars.

A chief operation officer of one of the local carriers said the major worry was the high cost of maintenance.

For instance, according to him, the C-check, which is required every 18 months, now costs an average of $2m per commercial aircraft.

On the meeting with airlines, Nuhu said, “Under your guidance, we have carried on that agreement that we had. We had a meeting with the operators on the issue of the debt collection and agreed to notify each airline on the level of debt that they have.

 “We will sit down with them and do the reconciliation. We will then implement a payment plan. We do not expect everyone to pay all their money at a go because of the difficulties in the industry and economic downturn.”

He said the agreement would be a win-win for all parties at the end of the day.

Minister of Aviation, Hadi Sirika, had in November given the total debt airlines owed the agency over a period of 10 years as N22bn.

Experts have said unless the Federal Government bail out the airlines and give them a special forex window, airfares might continue to rise and become unaffordable for the travelling public in the festive season.

It was observed last week that many of the local airlines had raised their fares by about 100 per cent due to high exchange rate that hit N500 to $1 at the black market.

This has seen an average one-hour economy class seat of N33, 000 rise to N75, 000 over the counter of some airlines. And average return trip variants also climbed to N121, 000 from about N60, 000 two weeks ago.

Advertisement
1 Comment

You must be logged in to post a comment Login

Leave a Reply

Aviation

Why FG stepped down merger of NCAA, NAMA – Keyamo

Published

on

Festus Keyamo, Minister of Aviation and Aerospace Development

Why FG stepped down merger of NCAA, NAMA – Keyamo

In a significant policy shift, President Bola Tinubu has decided to halt the proposed merger of the Nigeria Civil Aviation Authority (NCAA) and the Nigerian Airspace Management Agency (NAMA), as recommended by the Steve Oronsaye report.

This announcement was made by the Minister of Aviation and Aerospace Development, Festus Keyamo.

Keyamo revealed that the aviation industry was also granted an exemption from the foreign travel ban imposed on federal government officials last year.

The ban, which took effect in April, was implemented to curb the escalating costs of travel expenses incurred by Ministries, Departments, and Agencies (MDAs) of the government.

The memo released last year stated: “Considering the current economic challenges and the need for responsible fiscal management, I am writing to communicate Mr Presideni’s directive to place a temporary ban on all publicly funded international trips for all federal government officials at all levels, for an initial period of three months from 1st April 2024.

“All government officials who intend to go on any publicly funded international trips must seek and obtain Presidential approval at least two weeks before embarking on any such trip, which must be deemed necessary”.

The Minister disclosed the reasons for the exemption in Abuja at the 25th anniversary celebration of the Nigeria Civil Aviation Authority (NCAA).

READ ALSO:

On the merger of NCAA and NAMA, he said: “From modest beginnings, we have witnessed remarkable transformations in our sector, ranging from enhanced supervisory measures and policies formulation, safety and security oversight, robust legislative and regulatory frameworks, advancements in air traffic management, development, expansion and certification of airports, accurate meteorological services, timely accident investigations, manpower development, and indeed, the growth of indigenous airlines.

“These achievements have not come without challenges. However, with the efforts of past administrations and the total support of the present administration under the dynamic leadership of His Excellency President Bola Tinubu through the Renewed Hope Agenda and the five focus areas of the ministry, we have overcome challenges and reached new heights.

“NCAA is a child of God, and despite turbulent waters and attempts sometimes to kill the NCAA, the NCA has survived 25 years. And I’m sure you know that any child that is born at the age of 25, of course, is undoubtedly an age of maturity.

“The Oronsanye reports also recommended the merger of NCAA and NAMA. And so that was also another attempt to kill the NCAA. That report was passed from Jonathan’s government to Buhari’s government, and then to the present government.

“It was one of the first items we considered in this government. So the Oronsanye reports came up that day, and the president went on and on, considered every item in the Oronsanye report, and asked the council to vote. And for each item, they would listen to the ministers and so the president came to the merger of NCAA and NAMA as one body.

“I raised my hand, I spoke for about five minutes and because we have a wonderful president who listens to good counsel and good arguments, after I finished speaking, he said, an item dropped, the merger of NCAA and NAMA would not remain”.

On the reasons for the exemption, he said: “It is a fact that the aviation sector remains a pillar of national development, facilitating trade, tourism, investment, and cultural exchange. Whilst it is yet to realize its true potential in terms of contribution to our nation’s Gross Domestic Product (GDP), we must renew our commitment to ensuring a more progressive, sustainable, inclusive, innovative, and prosperous aviation industry.

“This necessitates the continuous adoption and integration of emerging technologies, enhancing infrastructure, and investing in human capital development to keep our skies safer and secure and attain cohesive and efficient air transportation services.

“The President directed that foreign travels should stop, except in exceptional circumstances. Last year, there was a memo around March that said it was for three months, and the President, because of his desire to ensure that we are frugal in our spending; there was another memo again in December reiterating that memo last year we should cut down on foreign travels, except by direct presidential approval.

“But let us also give particular thanks to Mr. President, because despite that memo, since last year, he has made an exception for the aviation industry. I wrote a memo to him after that directive on behalf of the entire agency that says; Sir, we respect your directive; yes, we need to be frugal because the Nigerian people have also tightened their belts in the face of the economic reforms that are taking place. However, because of the safety of this sector, Sir, we need to make some exceptions for this sector. And the President graciously granted this for the aviation sector”.

 

Why FG stepped down merger of NCAA, NAMA – Keyamo

Continue Reading

Aviation

Lagos govt, Summa Group sign MoU for Lekki airport construction

Published

on

Lagos govt, Summa Group sign MoU for Lekki airport construction

An international construction company, Summa Group, has been assigned the task of developing the Lekki-Epe International Airport.
This came the Lagos State government signed a memorandum of understanding (MoU) with the construction firm.

Lagos State Governor, Babajide Sanwo-Olu, announced the agreement in a post on X on Saturday.
The governor described it as a major step toward enhancing connectivity, fostering economic growth, and attracting international investment to the state
“We signed a Memorandum of Understanding (MoU) with the internationally acclaimed construction company, Summa Group, to develop and construct the much awaited Lekki-Epe International Airport,” the post reads.
“This groundbreaking initiative is an essential part of our vision to improve connectivity in Lagos, stimulate economic growth, and draw in global investments.”
The governor said the airport would ease travel, and create new opportunities for residents and businesses across the state.

On October 7, 2022, the Lagos government announced plans to construct a new airport in the Lekki-Epe axis of the state.
Jubril Gawat, senior special assistant (SSA) to the governor on new media, said the project was expected to begin in 2023 and would be constructed on 3,500 hectares of land.
He said the master plan and aeronautical designs were in place, while studies were underway to determine strategies, funding, and other considerations, after which the project will be taken to the marketplace.
The airport, expected to cater to a minimum of five million people yearly, will be constructed in partnership with local and foreign investors.
Sanwo-Olu, on January 25, 2024, said the state was preparing for the project’s groundbreaking.

Continue Reading

Aviation

Just in: FG grounds Max Air after Kano airport incident

Published

on

Just in: FG grounds Max Air after Kano airport incident

The Federal Government has announced the suspension of Max Air operations, following an incident involving its aircraft at the Mallam Aminu Kano International Airport on Tuesday night.

A Max Air B734 aircraft, with registration marks 5N-MBD, experienced a tyre burst on landing at about 10:51pm.

However, all 53 passengers on board were evacuated safely.

This incident was the third involving a Max Air plane in just three months.

The Nigeria Civil Aviation Authority (NCAA) confirmed the incident in a statement.

The statement said the NCAA would provide support to the Nigerian Safety Investigation Bureau (NSIB) which had launched an investigation into the occurrence.

Director of Public Affairs and Consumer Protection, Michael Achimugu, stated that the cause of the incident could only be established after the NSIB’s investigation.

READ ALSO:

Achimugu announced that Max Air would suspend its domestic flight operations for three months, effective midnight, January 31, 2025. During this period, the NCAA will conduct a thorough safety and economic audit on Max Air.

He said, “The safety audit will entail a re-inspection of Max Air’s organization, procedures, personnel and aircraft as specified by Part 1.3.3.3(b) of the Nigeria Civil Aviation Regulations, while the economic audit will critically examine the financial health of the airline to guarantee its capability to sustain safe flight operations.

“The resumption of Max Air’s domestic flight operations will be predicated on the satisfactory completion of this audit.

“The NCAA is aware of the inconvenience this action may cause intending passengers of Max Air. However; the safety and well-being of passengers is paramount. Thus, the NCAA appeals for patience and understanding while it ensures the protection of passenger rights.”

 

Just in: FG grounds Max Air after Kano airport incident

Continue Reading

Trending