Aviation
International travels disrupted as Air France, Lufthansa pilots commence strike
JOHANESBURG–Air France (AF) is facing its most disruptive pilot strike since 1998 and Deutsche Lufthansa AG (LHA) is bracing for another walkout tomorrow as both carriers confront worker resistance to sweeping overhauls aimed at cutting costs.
At Air France, a unit of Air France-KLM Group, 60 percent of pilots walked out today over plans to expand low-cost operations with flight crews paid less than at the main carrier. At Lufthansa, which has suffered a series of one- and three-day strikes over retirement benefits this year, pilots flying long-haul aircraft from Frankfurt will halt work tomorrow.
The strikes at Europe’s two biggest airlines threaten to undermine efforts by management to bring costs in line with discount competitors including Ryanair Holdings Plc (RYA), which has just bought new aircraft that it says will help cut fares even more. Both carriers have lost money on short-haul operations for years and are moving more business to cheaper subsidiaries, a step contested by employees concerned about their future.
“Short-haul operations of both airlines are in quite a lot of trouble and they’re having to cut costs quickly,” said Robin Byde, an analyst at Cantor Fitzgerald.
Air France today expects to cancel 52 percent of services on the first day of an action due to run through Sept. 22, and 60 percent may remain grounded tomorrow. The dispute will cost 20 million euros ($26 million) a day in revenue, it said.
Essential Trips
“We’re telling people who don’t absolutely have to travel to postpone their trip,” Air France Head of Operations Catherine Jude said yesterday in a briefing at the carrier’s Paris Charles de Gaulle airport base.
Pilots are staging the walkout as Air France-KLM Chief Executive Officer Alexandre de Juniac seeks to end decades of short-haul losses. Former Dutch charter unit Transavia will be further expanded into France with a fleet that could double in size, the company said last week, confirming plans that unions say will prompt job losses and pay cuts at the main airline.
While Lufthansa’s pilots formally say the the strikes only target retirement benefits, the number of contested points has increased, including higher wages and the carrier’s plans to set up low-cost operations also on long-haul routes.
Lufthansa pilots in April staged a three-day walkout, their first since 2010, forcing the airline to cancel 3,900 flights and trimming profit this year by 60 million euros, with bookings taking about six weeks to recover.
No Substitution
Since then, there was a walkout at the company’s Germanwings low-cost arm on Aug. 29 and at Lufthansa’s main Frankfurt hub on Sept. 5. Each lasted six hours, causing a total of 334 services to be canceled. Lufthansa also canceled about 140 flights to and from Munich on Sept. 10 when the pilots walked out at the carrier’s second German hub. So for the year, the total number of flights canceled is 4,400 flights.
For the French carrier, this week’s action could have the biggest effect on travel since an eight-day strike 16 years ago over the French government taking the airline public. That dispute involved 3,000 pilots and forced 75 percent of flights to be scrapped at a cost equivalent to $166 million now.
While Air France in more recent, smaller strikes has limited the cancellations mainly to short flights, the ability to cope with the walkout is limited this time, and pilots “who fly one aircraft can’t be substituted for another,” Air France’s Jude said, declining to give a breakdown of likely long-haul and short-haul cancellations.
Discount Expansion
Air France’s SNPL union wants pilots across the company to be paid the same wages and to have the same working conditions. Jean-Louis Barber, the labor group’s president, said last week that it was still open to negotiating even as the strike loomed.
De Juniac said Sept. 11 that if pilots don’t accept the company’s strategy, the expansion of Transavia’s French unit may be put on hold. Flights could be added through a new Transavia Europe division that might be based elsewhere.
Strikes are among the reasons that Lufthansa gave a profit warning earlier this year, and Air France-KLM Group may well be forced to revise its own outlook, already pared downward from 2.5 billion euros in Ebitda in July, according to a note published this morning by Raymond James Euro Equities in Paris
Yet short-term hits may be necessary as companies play hardball with unions in seeking to drop costs, said Cantor Fitzgerald’s Byde.
“It’s not just about the cost base, but about market opportunities,” he said in an interview. “The future of the airlines is in question and I can’t see management backing down.”
BLOOMBERG-
In a bold step to strengthen Akwa Ibom’s position in Nigeria’s aviation industry, Governor Umo Eno announced the addition of two new Bombardier CRJ900 aircraft to the fleet of the state-owned airline, Ibom Air, on Friday.
The two aircraft, registered as 5N-CED and 5N-CEE, mark a milestone in the state’s commitment to strategic investment, with the governor stressing that the acquisitions were fully funded by state resources without loans from financial institutions.
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At a welcoming ceremony attended by local officials and residents, Governor Eno emphasized his administration’s mission to drive revenue-generating ventures for Akwa Ibom rather than relying on debt.
He called the move a step toward breaking the cycle of government investments that only serve to pay off loans, vowing that the state’s funds would go towards projects that bring returns to the people.
The governor challenged Ibom Air to turn a profit by 2025, stating that the airline’s management should ensure routes in and out of Uyo remain dependable to prioritize the needs of Akwa Ibom travelers.
“As long as I remain governor, we will continue to use state funds for the benefit of all, not for private gain,” he said, noting that his administration aims to ensure that public investments deliver real value to the state.
Governor Eno also provided updates on several ambitious state projects, including an 18-story commercial complex underway in Lagos and an upcoming 4-star hotel in Abuja, both designed to generate revenue for Akwa Ibom.
Plans for an international market in Ikot Ekpene and the phased opening of a new terminal at the Victor Attah International Airport were also announced, with the airport terminal set for partial operation by December and full activation in early 2025.
Speaker of the Akwa Ibom State House of Assembly, Udeme Otong, commended Eno’s financial management, highlighting that the administration has avoided seeking loans over the past 18 months despite launching significant development projects.
Ibom Air’s Chairman, Pastor Imoabasi Jacob, expressed appreciation for the state’s investment in the airline, which has seen its fleet grow to nine aircraft.
Jacob credited the governor’s support with enabling Ibom Air to boost flight capacity, meeting demand on popular routes such as Uyo-Lagos-Abuja.
Captain Mfon Udom, CEO of Ibom Air, stated that the expanded fleet will improve efficiency and allow the airline to scale up its operations in time for the Christmas travel season.
Udom also noted that the airline anticipates the delivery of nine additional Airbus planes, which will further strengthen Ibom Air’s market presence.
Traditional leaders, including HRM Edidem Ita Edet Okokon III of Okobo Local Government Area, lauded the governor’s leadership, pledging continued support from the traditional institutions.
Anie Essienette, Group Manager for Marketing and Communications at Ibom Air, noted that demand for the airline’s services has surged nationwide, with the new CRJ900 aircraft helping meet this increasing need while the airline awaits further fleet expansion.
Nigeria’s Minister for Aviation and Aerospace Development, Festus Keyamo is of the view that there’s no cause for alarm over the approval of a private airstrip for a religious organisation, which attracted the attention of the House of Representatives.
He took to his verified handle on micro-blogging site, X, on Friday morning to shed light on the subject, and explained that it could be a great source of revenue for Federal Government.
Keyamo asserted that the issue was raised by an honourable member at plenary, out of ignorance, but was “unanimously referred to the Aviation Committee to look into.”
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Keyamo expressed confidence that by the time his Ministry was done enlightening them, “they will be satisfied”.
He added that “the privates air strip owners pay the Federal Government handsomely for these services.”
Keyamo wrote, “I think this is not correct. The House of Reps. as a body did not call on the Minister to revoke the license of any private airstrip.
“I think what happened is that someone moved a motion in that regard and it was unanimously referred to the Aviation Committee to look into it.
“Whilst the intention of the Hon. Member who moved it is very patriotic, it was based on a complete lack of knowledge of the aviation sector.
“By the time we explain to them how private air strips work and the processes they undergo by our agencies before the final approval, they will be satisfied.
“The responsibility of the owners of private air strips is just to build the runway and terminal building. But after they build the control tower in particular, it is completely handed over to the Federal Government through NAMA (Nigerian Airspace Management Agency) which is in complete control of the entire airspace in Nigeria. An MOU is usually signed with NAMA in this regard before the airstrip is approved for operations.
“It is NAMA that provides the Air Traffic Controllers and Engineers in ALL AIRPORTS and AIRSTRIPS IN NIGERIA. And the privates air strip owners pay the Federal Government handsomely for these services.
“No object flies into Nigeria without the prior clearance by NAMA and without filing a clear flight plan, eg, where it is taking off from and where it intends to land.
“And I have recently directed that all aircraft coming into the country MUST first land at our international airports where they would be properly processed and checked before they make their local flights into whatever airport or airstrip they intend to go. So, it is COMPLETELY AND TOTALLY impossible for any private airstrip owner to just jump on an aircraft and fly in and out of the country through that facility. The Federal Government does not permit that. You will not be cleared for take off or landing without prior request and authorisation.
“I thank the Member for his patriotism, but I wish he contacted us first to explain to him before rushing to move such a motion.
“I attach herewith for public consumption the NAMA Act that gives exclusive control of the Nigerian airspace to the Federal Government through NAMA.”
The NNPC Ltd has clarified that beyond the three bodies found in the ill-fated helicopter operated by East Winds Aviation that crashed on Thursday in Port Harcourt, no other bodies have been recovered.
This was contained in a statement in Abuja on Sunday by the Chief Corporate Communications Officer, NNPC Ltd, Olufemi Soneye.
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“The Company further notes that intensified search and rescue operations for the remaining bodies along with relevant authorities is still ongoing.
“Once again, our hearts and prayers are with family members of this unfortunate incident,” the statement added.
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