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How Non-Committal Investors Grounded Nigeria Air

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Nigeria Air Won't Be Advantageous To Nigerians

 

Facts are beginning to emerge that investors approached for the Public Private Partnership (PPP) for the Nigeria Air were yet to append their signatures to the transaction, as at the time the Nigerian Government were showing desperation to launch it, last May.

 

The Ministry of Aviation has made revelations in this regard, in a memo it presented to the ninth House of Representatives.

 

This stance was also corroborated by the Infrastructure Concession Regulatory Commission (ICRC), which specifically fingered unresolved issues, including their shareholding structure and respective functions in the Nigeria Air, in another memo to the House of Reps.

 

Recall that the lower arm of the national assembly had condemned the manner in which the former Minister of Aviation, Hadi Sirika handled the project.

 

Sirika on his part, denies any wrongdoing.

 

Instead he pointed accusing fingers at the former chairman of the House Committee on Aviation, Hon Nnolim Nnaji, for asking for five percent stake in the airline from him.

 

Hon Nnaji also denied this accusation.

 

Media outlets reported that an aircraft said to belong to Ethiopian Airlines, which was meant to hold 49 percent equity stake in Nigeria Air was hired for public relations stunt on the Nigeria Air project last May.

 

In the bid to get to the root of the matter, the House of Reps, summoned the Ministry of Aviation, who tendered a memo dated June 2, 2023, with Reference Number MCA0008/S.33/T4/22, under the signature of its Director of Planning, Research and Statistics, M. R Shehu, with explanations.

 

The memo partly read, “I am directed to refer to your letter Nos: NASS/9HR/CT.017/121 dated 31st May, 2023, and NASS/9HR/CT.017/122 dated 1st June, 2023 on the above subject and to respond to your request as follows:

 

“Full disclosure of ownership structure of Nigeria Air: The proposed ownership structure of Nigeria Air Limited is as follows: Ethiopian Airlines Group, 49 per cent, $122,500,000; The FGN, five per cent, $12,500,000; MRS Oil and Gas Company Limited, 31 per cent, $77,500,000; Skyway Aviation Handling Company Plc, 15 per cent, $37,500,000; Total, 100 per cent, $250,000,000.

 

“All PPP agreements reached and signed with Ethiopia Airline with regard to the Project: There was no PPP agreement signed.

 

“PPP agreement reached and signed with all other parties: None.”

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Aviation

Aircraft Averts Crash, After Losing Door Mid-Air in Abuja

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The Nigeria aviation community heaved a sigh of relief on Thursday, after CL60 aircraft operated by Triton Aviation lost a door mid-air, yet managed to land safely.

The incident had forced the crew to declare an emergency shortly after take-off from the Nnamdi Azikiwe International Airport, Abuja, which panicked the aviation industry.

It was gathered that the aircraft, with registration number T7-SEI and flight identification DWC052, was en route to the Murtala Muhammed Airport, Lagos, when the incident occurred at about 4:20 pm.

According to the incident report, the crew informed the air traffic control tower that a door had opened in flight, prompting the approach radar controller to direct the aircraft back to Abuja for an emergency landing.

READ MORE: Two Suspected Bandits in Police Net in Katsina

The report further showed that the aircraft took off from Runway 22 at 4:17 pm UTC. It was “about three nautical miles from the airport, climbing through 3,000 feet, when the crew transmitted a distress call: ‘Mayday, Mayday, Mayday.’”

Following the distress call, airport fire and emergency personnel, as well as the medical team, were immediately alerted and placed on standby. Fire and rescue teams were also directed to designated positions to prepare for the aircraft’s return.

The incident report stated that at about 4:29 pm UTC, while in contact with the Abuja control tower, the crew asked whether the controllers could confirm if the door was open.

“The duty air traffic controller attempted to observe the aircraft using binoculars, but could not establish the door’s condition because of the aircraft’s position. The crew was subsequently informed that the controller could not confirm the situation visually,” the report said.

The aircraft eventually landed safely on Runway 22 at approximately 4:34 pm UTC, about 14 minutes after the Mayday call.

Following the landing, the duty controller observed that the aircraft’s door was missing from the fuselage, confirming the seriousness of the incident.

The jet was subsequently taxied to the international apron extension and parked with the assistance of a marshaller.

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Aviation

Shell Endorses Regional Action Plan for Safe Helicopter Services

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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.

READ ALSO: Ikire Killings: Adeleke Establishes Commission for Coroner Inquiry by Executive Order

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.”

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Aviation

Airfares Likely to Rise as Aviation Fuel Price Spikes by 80%

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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.

ALSO READ: Shell Completes Turnaround Maintenance on FPSO, Resumes Production at Bonga

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.

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