Aviation
AIC battles FAAN over concession agreement
By Oyise OGHENE
LAGOS: The airport environment was thrown into a state of pandemonium and free for all as the nation witnessed yet another war yesterday, now between the A.I.C Limited owned by Chief Harry Akande and FAAN over the construction of A.I.C Hilton Hotel at the Murtala Muhammed International Airport, Lagos.
Biztellers was at the Murtala Muhammed International Airport, (MMIA), Lagos and gathered that the situation at the VIP car park where the tussle between both parties were going on, officials of A.I.C Limited chased out FAAN officials from the landed property which was concessioned to it to build the A.I.C Hilton Hotel in 1998.
It was further gathered that FAAN had illegally broke into the landed property by destroying the fence and the gate house sited by A.I.C Limited on the land against court interlocutory injunction given by Justice R.O. Nwodo on the 18th, February 2002 restraining FAAN from taking possession of the land as well as disturbing A.I.C Limited’s workers or contractors whenever they want to carry out their construction work.
Biztellers also reports that after chasing out the officials of FAAN off the land, A.I.C officials erected the fence that was hitherto broken by FAAN which gave the agency the opportunity of using the land as a VIP car park for some days now.
Speaking to Biztellers, General Manager, Administration and Business Development, Chief Niyi Akande who spoke on behalf of the International Business mogul who was also present at the site, Chief Harry Akande said that A.I.C Limited got a bid from FAAN on the 17th, February 1998 to build an A.I.C Hilton Hotel in a concession agreement spanning for 50 years but added that FAAN came all of a sudden to disrupt the project while the construction work of the hotel was in progress which was against the initial agreement entered into by both parties.
According Chief Akande, since then both parties had been in the Federal High Court which ruled in favour of A.I.C Limited restraining FAAN from taking over the landed property adding that in the arbitration headed by Justice Friday Esun, he also awarded a fine to FAAN to pay A.I.C Limited 46 million dollars for lost of profit and income that A.I.C had suffered for the hotel that should have been built and opened ten years ago.
He said ’’By bid that was dated 17th, February 1998, FAAN gave us a 50 years lease on this land stretching all the way down for the construction of our international 5 star hotel that will be connected to the airport terminal, this portion is where it is supposed to link the terminal and we have been in peaceful concession since that time. But at a time when FAAN decided to determine the lease, we challenged it at the Federal High court, you know they chased our men off the site around 2000, 2001, so we went to court and at the Federal High Court Justice R.O. Nwodo gave an interlocutory injunction that FAAN or its servants or its agents should not disturb, harass or eject A.I.C Limited people, our workers or contractors from the site and that was even in May 2002 and that has been subsisting subject to us going to arbitration’’
‘’We went for arbitration and the arbitration ran from 2002 which was just decided about two years ago. It was done by late Justice Friday Esun, he gave an award which he said that FAAN was wrong to have prevented A.I.C from building the hotel and FAAN was wrong for disturbing and harassing A.I.C on the site, so he gave a fine against FAAN that they should pay A.I.C about 46 million dollars for lost of profit and income that A.I.C had suffered for the hotel that should have been opened ten years ago’’ he stressed.
According to Chief Akande, ‘’FAAN officials came in last week, broke the fence and then destroyed our gate house and they came in and started clearing the land and ask people to come in to park their cars which is a criminal bridge of law, so we have blogged the place so that they cannot take out that truck because that will serve as evident in court’’
When contacted at the time of filing this report, General Manager Corporate Communications, FAAN, Mr. Yakubu Dati said that he was aware of the situation pointing out that, he was going to issue a statement to that effect to lay bare the side of FAAN on the on-going dispute between the agency and A.I.C Limited.
Aviation
Shell Endorses Regional Action Plan for Safe Helicopter Services
Shell Nigeria Exploration and Production Company Limited (SNEPCo) has welcomed efforts to promote safe helicopter services across Africa in a proposed Regional Action Plan (RAP).
The plan, according to a company statement, is the highlight of a workshop organised in Lagos within the week by the Aviation subcommittee of the International Association of Oil and Gas Producers (IOGP) in partnership with London-based safety advocacy group, HeliOffshore.
Biztellers reports that the two-day Offshore Helicopter Industry Safety Workshop (OHISW) with the theme “Developing a Regional Action Plan,” followed on from a similar session last year which SNEPCo sponsored.
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It also provided administrative and logistical support for this year’s conference which was sponsored by ExxonMobil. SNEPCo, which pioneered Nigeria’s deepwater production at Bonga in 2005, relies on helicopter shuttles for operations and supports the workshop as part of its contributions towards safe services in Nigeria.
In an address at the opening session delivered by General Manager Contracting and Supply Chain, Charles Oranyeli, Managing Director SNEPCo, Ronald Adams said: “By developing a regional action plan, we can move beyond dialogue to alignment, ensuring that the safety leadership, industry standards, and collaborative approaches championed last year are embedded in a common roadmap for collective improvement. The most effective solutions will come not from isolated efforts, but from partnership, standardization, and coordinated action across the region.”
The workshop was attended by more than 80 representatives from oil and gas companies, the Nigerian Content Development and Monitoring Board (NCDMB), the Nigeria Civil Aviation Authority (NCAA), the Nigerian Safety Investigation Bureau (NSIB), helicopter operators and original equipment manufacturers.
The event concluded with participants deciding action items for the proposed Regional Action Plan including Search and Rescue (SAR) initiatives, implementation of IOGP Report 690 standards and establishment of formal industry leadership forums.
The IOGP has been active for over 50 years, supporting its more than 90 members around the world to promote “excellence in safe, efficient and sustainable energy.”
Aviation
Airfares Likely to Rise as Aviation Fuel Price Spikes by 80%
The Airline Operators of Nigeria (AON) has declared that airlines operating in Nigeria have come under financial pressure following a sharp increase in the price of Jet-A1, also known as aviation fuel.
According to the group, the price of aviation fuel, has surged to about N1,800 per litre in many parts of the country, from about N1,000 per litre two weeks ago. This amounts to almost an 80 per cent increase within a short period.
Aviation fuel remains the largest cost component in airline operations, accounting for about 30 to 35 per cent of total operating expenses.
Industry stakeholders have linked the latest spike to the ongoing conflict in the Middle East, which has pushed up global energy prices.
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Speaking on Channels Television on Friday, the spokesperson for the Airline Operators of Nigeria, Prof Obiora Okonkwo, said the surge had placed airlines under severe financial strain.
According to him, most carriers have so far refrained from immediately transferring the additional cost burden to passengers, despite the pressure on their operations.
“Two weeks ago, we were getting Jet-A1 at about N1,000 per litre, which today is about N1,800, and even more in some stations. We have experienced an increase of about 80 per cent. That’s quite a spike,” Okonkwo said.
He explained that airlines were currently absorbing the losses in order to avoid worsening the economic burden on the travellers.
“We are not in a business where you can easily adjust your ticket price. Right now what we are doing is that we are bleeding. We are taking the blow. We are selling tickets at very non-profitable prices. We are losing a lot of money,” he said.
Okonkwo warned that the situation might not be sustainable if fuel prices continue to rise without government intervention.
“Obviously, adjustments will be expected anytime soon. But again, we are very sensitive to the economic situation of Nigerians and our travellers,” he added.
He noted that developments in the global oil market, particularly the recent release of reserve crude oil, could influence fuel prices in the coming weeks.
Okonkwo also urged the Federal Government to explore engagement with the Dangote Refinery as part of efforts to stabilise aviation fuel supply locally.
“We were more hopeless in a situation where there was no refinery in Nigeria in the last two years. Now that we have a refinery, we are hopeful that we can find a solution around it,” he said.
According to him, if the spike persists, some airlines may struggle to continue absorbing the losses associated with the rising cost of aviation fuel.
Meanwhile, the AON spokesperson also reacted to the decision by the Federal Competition and Consumer Protection Commission to sanction about five airlines over alleged price fixing.
Okonkwo said while the commission has regulatory powers, the aviation sector remains deregulated, making coordinated price fixing unlikely.
“There is no meeting of airlines where they agree to fix prices. Fixing prices would mean operating as a cartel, and that is not the case,” he said.
He explained that airline ticket pricing varies widely because different aircraft types attract different operating costs.
“Each airline determines its fares based on its own operational costs,” he said.
Okonkwo added that airlines must also demonstrate financial viability to regulators as part of the conditions for maintaining their operating licences.
“At every point in time, you must prove to the regulators that you are financially viable and capable of sustaining operations,” he said.
He urged regulators to take into account the fragile nature of the aviation industry when making policy decisions affecting airlines.
Aviation
Bird Strike Hinders Air Peace Lagos–Port Harcourt Flight
An Air Peace flight from Lagos to Port Harcourt has suffered a disruption, after the aircraft was affected by a bird strike on arrival at the Port Harcourt International Airport.
The airline made the disclosure on Thursday in a statement signed by its spokesperson, Osifo-Whiskey Efe.
He added that the incident necessitated safety checks on the affected aircraft and the deployment of another aircraft to convey passengers on subsequent flights.
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“We deeply empathise with passengers affected by this unforeseen incident and are working diligently to minimise disruptions,” Efe said.
The latest incident adds to the growing challenge of bird strikes faced by local airlines.
In December 2025, Air Peace disclosed that it recorded 49 bird strikes across Nigeria between January and September, stressing that even a single strike could ground an aircraft for weeks.
Chairman and Chief Executive Officer of the airline, Allen Onyema, had said on Arise TV that bird strikes constituted a major operational challenge, often leading to costly repairs and serious disruptions to flight schedules.
“One bird strike could cripple your aircraft for the next month. At that moment, there is no two ways about it. These bird strikes often lead to costly delays and serious disruptions in flight schedules,” he said.
He added that losses from such incidents compound other challenges facing Nigerian airlines, including heavy taxation and operational constraints.






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