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

Air Peace gets court order to answer queries on aircraft operations

Published

on

Air Peace gets court order to answer queries on aircraft operations

A Lagos State High Court has ordered Air Peace to respond to questions brought by the Foundation for Investigative Journalism in a libel suit No. LD/ADR/4833/23 filed by the airline on October 12, 2022, regarding its aircraft operations from Lagos to Anambra State.

Air Peace insisted that it followed safety standards and practices in accordance with relevant regulations and policies.

It questioned the FIJ’s interrogations of its aircraft and flight operations, calling them “scandalous and irrelevant” to the libel case.

FIJ was dissatisfied with Air Peace’s responses to the queries and filed an application to compel them to adequately explain the objections.

Justice Kudiarat Jose upheld the argument of FIJ, represented by its counsel, Abimbola Ojenike and Jesulayomi Oyelami of Slingstone LP, stating that the questions requesting the details of the first two aircraft designated to convey passengers were relevant to the facts in issue, related to the defendant’s case, and capable of proving that the defendants were correct.

As a result, the court ordered Air Peace to respond to questions 1, 4, and 7 of the defendant’s interrogation within seven days of receiving the order.

The questions are: ‘Provide a comprehensive description and specification of the aircraft 5N-BUL initially scheduled for the operation of Flight P47336 on October 12, 2022. The description should include the make, year, engine type, and service information, including the most recent aircraft maintenance checks conducted prior to Flight P47336 on October 12, 2022, particularly but not limited to any faults or repairs on the systems.’

READ ALSO:

The airline is also to: ‘Provide comprehensive specifications of the technical issues discovered in the course of operation of Flight P47336 and the circumstances that led to the change of the aircraft from 5N-BUL to 5N-BQQ.’

The court also ordered the airline to: ‘Provide the comprehensive descriptions and specifications of the aircraft 5N-BQQ initially onboard the passengers for the operation of Flight P47336 on October 12, 2022.

‘The description should include make, year, engine type, and service information, including the most recent aircraft maintenance checks conducted prior to Flight P47336 on October 12, 2022, particularly but not limited to any faults or repairs on the systems.

The claim was deferred until May 23, 2024, for additional proceedings.

In October 2022, FIJ stated that passengers on an Air Peace flight from Lagos to Anambra escaped death after the engine failed three times at the takeoff point.

According to FIJ, the aircraft was supposed to take off at 11 a.m. but was delayed for two hours when the airline’s management announced that the jet originally booked for the Anambra flight had suddenly acquired an issue.

“The engine stopped three times, and there was no explanation until passengers asked to be allowed to leave the plane. The captain only gave a vague explanation when the passengers expressed their concerns. He said the DAC or something similar to that went off on us,” FIJ had quoted one of three sources as saying.

“This was supposed to be a substitute plane as the first couldn’t be used for technical reasons. If this lackadaisical attitude continues, I fear they may record a crash soon. If we had flown today, we likely would have crashed.”

Air Peace then filed legal action against FIJ, seeking N50 million in damages, N250 million in aggravated damages, and N5 million in legal fees.

Air Peace gets court order to answer queries on aircraft operations

Continue Reading

Aviation

Safety: NCAA to audit all domestic airlines, says Aviation minister

Published

on

Safety: NCAA to audit all domestic airlines, says Aviation minister

Minister of Aviation and Aerospace Development, Festus Keyamo, has said the Nigerian Civil Aviation Authority (NCAA) will carry out a comprehensive audit on all local airlines over safety concerns.

This is coming after a runway incursion incident in which Dana Air’s plane carrying 83 passengers with six crew members skidded the runway at the Lagos airport leading to diversion of flights

The operations of Dana Air were immediately suspended and NCAA directed to commence a comprehensive audit on the airline.

Keyamo spoke on the general audit of all domestic airlines on Thursday when he appeared on Channels TV Politics Today programme.
He said beyond the suspension of Dana Airlines and the ongoing audit of the airline, all other carriers in the country would be audited to guarantee the safety of passengers and the health of the civil aviation industry.

The directive to suspend the operations of the Dana Air was contained in a letter issued and endorsed by the NCAA Acting Director General, Chris Najomo, in Abuja.

It is the second time within two years that the NCAA would suspend the airline’s operational licence over safety violations.

It said the latest action was based on “elevated safety concerns” posed by the airline.

“As a precautionary step, and in accordance with Sec 31 (7) of the Civil Aviation Act 2022, the Authority has imposed a suspension on your Air Operator Certificate (AOC) with effect from 24″ April, 2024 at 23:59 to allow for a thorough safety and economic audit,” the letter partly read.

The NCAA also stated, “The safety audit will entail a re-inspection of your organisation, procedures, personnel, and aircraft as specified by Part 1.3.3.3 of the Nigeria Civil Aviation Regulations, while the economic audit will critically examine the financial health of your airline to guarantee its capability to sustain safe flight operations.”

Continue Reading

Aviation

FG suspends Dana Air for comprehensive audit

Published

on

FG suspends Dana Air for comprehensive audit

The Federal Ministry of Aviation and Aerospace Development has ordered the suspension of Dana Air flight operations.

This came about 24 hours after the airline’s runway excursion incident at the Murtala Muhammed International Airport in Lagos.

The directive was passed on Wednesday to the Nigerian Civil Aviation Authority to be effected.

A letter signed by the ministry’s Permanent Secretary, Dr Emmanuel Meribole, addressed to the NCAA said recent incidents involving Dana Air had raised concerns about the safety and financial viability of the airline’s operations.

It said the suspension would not be lifted until comprehensive audits on the Dana Air’s fleet had been conducted.

It stated that the audit would include safety protocols, maintenance procedures and financial health.

It stressed that the move to suspend the airline was aimed at ensuring the safety and well-being of Nigerians.

The statement reads, “As the supervisor overseeing our nation’s aviation safety and regulatory compliance, it has come to the Honourable Minister’s attention that recent incidents involving Dana Airline have raised serious concerns regarding both the safety and financial viability of their operations.

“In light of these incidents and with the paramount priority being the safety and well-being of our citizens and travelers, the Honourable Minister has directed that you immediately initiate the suspension of Dana Airline’s fleet until a comprehensive audit can be conducted. This audit should encompass all aspects of safety protocols, maintenance procedures, and financial health to ensure full compliance with our aviation regulations.

“The recent incidents have underscored the urgency of this matter, and it is imperative that swift and decisive action be taken to safeguard the interests of all stakeholders involved.”

Continue Reading

Trending

Skip to content