Connect with us

Aviation

Jet Airways set to conclude $334million deal with Etihad

Published

on

NEW DELHI – Jet Airways(JET.NS) expects to conclude a $334 million stake sale to Abu Dhabi’s Etihad by the year-end, the Indian airline said, one day after posting a record quarterly loss.

Jet, which has lost money in the past six years, is awaiting approvals from the Competition Commission of India (CCI) for the deal and is on course to complete the transaction during this quarter, Chief Financial Officer Ravishankar Gopalakrishnan said.

An Etihad spokesman declined to comment, after Jet’s earnings announcement on Wednesday, on whether Jet’s quarterly loss would have any impact on the deal. The stake sale, cleared by the cabinet this month, is meant to help Jet break out of a pattern of losses in the domestic airline business.

jet airwaysThe net loss widened to 8.91 billion rupees in the three months ended September 30 from 997 million rupees a year earlier.

An economic slowdown also meant lower yields, a gauge of the average fare paid per kilometre flown, Jet said on Wednesday.

A fall in the value of the rupee, the high cost of fuel and an increase in fees at some airports also led to the loss, said India’s second-biggest carrier by domestic market share.

The loss in the fiscal second quarter is the biggest ever for Jet, the first of India’s airlines to publish earnings for the quarter, according to data compiled by Thomson Reuters from company filings. It reported a net loss of 7.1 billion rupees in the September quarter of 2011.

Despite the sector’s current problems, deep-pocketed foreign players such as Singapore Airlines (SIAL.SI), AirAsia Bhd (AIRA.KL) and Etihad have been lured to the country by longer-term growth prospects.

The Indian government expects passenger air traffic to almost triple during the current decade.

SYNERGY

Etihad’s $334 million deal for a 24 percent stake in Jet is the first investment by a foreign carrier in an Indian airline since the country last year changed rules to help channel capital into a sector.

“The synergy between the two airlines in terms of commercial cooperation and the kind of cost synergies that we will achieve will be significantly increasing the profitability for the airlines in the coming quarters,” Jet’s Gopalakrishnan said.

Jet shares fell as much as 6.4 percent in Mumbai trading on Thursday to their lowest level in about seven weeks, before paring losses to trade about 2 percent down by 0911 GMT.

High costs of jet fuel and aggressive pricing as competition increases will likely hurt airlines’ finances in the coming quarters, analysts say. Jet paid 8 percent more for fuel from a year earlier, it said.

Income from operations rose marginally to 37.88 billion rupees in the quarter ended September from 37.55 billion rupees a year earlier, Jet said, while expenses jumped nearly a fifth to 48.51 billion rupees.

Some of its aircraft sat idle, accounting for 1.2 billion rupees in losses.

All players in India’s five-player airlines market are losing money with the exception of unlisted IndiGo, the biggest Indian carrier by local market share.

Kingfisher Airlines (KING.NS), once the No. 2 carrier, has not flown in a year for want of cash. India’s three listed airlines stocks – Jet, Kingfisher and SpiceJet (SPJT.BO) – are the worst performers this year among 85 global airline stocks studied by Thomson Reuters StarMine.

Etihad is investing another $150 million in Jet’s frequent flyer programme and has spent $70 million to buy Jet’s three pairs of Heathrow slots through a sale and leaseback agreement, as part of the deal, which was first agreed in April.

Etihad will also support Jet with up to $150 million of foreign currency loans. The Indian carrier’s debt at the end of September was about $1.9 billion.

– REUTERS

1 Comment
0 0 votes
Article Rating
Subscribe
Notify of
1 Comment
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
บาคาร่าเกาหลี

105093 675543I think this internet site contains some very excellent information for every person : D. 282377

Aviation

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

Published

on

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.

Continue Reading

Aviation

Bird Strike Hinders Air Peace Lagos–Port Harcourt Flight

Published

on

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.

ALSO READ: Rivers’ CJ Declines Setting Up Panel for Fubara’s Impeachment

“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.

Continue Reading

Aviation

HURIWA Saddened at 131% Surge in Air Peace, United Nigeria Airfares to Southeast

Published

on

With the firm belief that it is both sadistic and absolutely despicable, the recently announced outrageous hike in airfares to South East from Abuja to Lagos for Yuletide of 2025 by over 131 percent by Air Peace and United Nigeria Airlines, the owners have been asked to immediately have a rethink and review backward these harsh, toxic and unfriendly airfares targeting Igbo passengers exclusively.

Making the charge to the chairmen of Air Peace and United Nigeria airlines, Mr. Allen Ugochukwu and Mr. Obiora Okonkwo, the prominent civil rights advocacy group, Human Rights Writers Association of Nigeria (HURIWA) expressed anger that these businesses whose proprietors are Igbo by birth are fond of making it so difficult for hundreds of thousands of Igbo passengers residing outside of the South-East to travel home on Christmas festivities.

The rights group say that for many years now, because Air Peace and United Nigeria Airlines are monopolies and then Igbos have the tradition exclusively in Nigeria of going home to South East from all over the globe during Yuletides, these few airlines have decidedly fixed toxic ticketing airfares for Igbos whereas northerners who also travel during their religious festivities of salah are not subjected to such exploitative treatments.

The HURIWA accused the two airlines of price fixing, which is anti-competition just as the Rights group said it is giving these two Igbo-hating airlines to review backward their toxic and discriminatory airfares within ten working days from today or it will petition the federal government publicly funding consumer rights body[Federal Competition and Consumer Rights Commission) in Abuja.

The HURIWA wonders if these Igbo owners of private airlines known for making their planes available to government for free during emergencies are in a conspiratorial plots with haters of Igbo land who are unhappy at the convivial and happy atmospheres in the South East during Yuletide, just as the rights group has appealed to Igbo governors to immediately intervene and urge Mr. Allen Ugochukwu and Mr Obiora Okonkwo to treat the Igbo just as they treat for instance northern Muslims who also migrate home to northern Nigeria from around the globe during their Muslim festivities because what is good for the goose, is good for the gander.

The HURIWA said that if Air Peace Airlines have gotten involved in many humanitarian efforts of airlifting Nigerians from outside of our shores for free, it becomes of the Airline ought not to maltreat their clients of Igbo extraction.

The HURIWA quoted from the business official website of Air Peace in which it described its latest humanitarian effort to be an addition to a growing list of interventions by Dr. Allen Onyema and Air Peace.

Quoting Air Peace website, HURIWA stated that Air Peace said thus: “In 2019, the airline airlifted 503 Nigerians free of charge from South Africa amidst xenophobic attacks. During the COVID-19 pandemic in 2020, Air Peace conducted multiple repatriation flights. In 2022, the airline flew Nigerian evacuees out of war-torn Ukraine. In May 2023, Dr. Onyema again deployed Air Peace aircraft to evacuate 277 stranded Nigerians from Sudan.

As the rescued women prepare to begin a new chapter, supported by medical care and reintegration efforts, one truth stands out: Air Peace is more than just an airline — it is a bridge of hope for Nigerians in crisis, and a national symbol of empathy, courage and service,” HURIWA conclusively quoted Air Peace.

The HURIWA therefore strongly condemns the two airlines for hiking and fixing unaffordable airfares indiscriminately against Igbo passengers, even as the festive season draws near, Air Peace and United Nigeria Airlines have raised their return ticket fares to N677,000, a move that could add financial strain on travellers. The rise in airfares reflects the high demand expected during the holiday rush.

Key Points

Air Peace and United Nigeria increase return ticket fares to N677,000 for the yuletide season.

Airfares on routes to the South-East, including Enugu and Anambra, experience the highest surge.

Ibom Air offers comparatively cheaper tickets, with return fares at N381,600.

Air Peace’s one-way fare for December to January peaks at N350,500.

United Nigeria will also charge N350,500 for select routes between December 11 and the end of the year.

Northern routes, including Lagos-Kano, face smaller increases, with fares starting from N106,900.

Experts predict even higher airfares, with one-way tickets possibly reaching N500,000.

The rise in flight prices signals the start of a challenging holiday travel season, with airfares higher than usual due to increased demand. Travelers must be prepared for the surge, with some routes seeing even higher fare projections.

ALSO READ: NNPCL, Partners Ink 20-year 1.29bscf/d Feedgas Supply Deals

The HURIWA is hereby warning the two airlines to withdraw their price fixing malpractices against Igbos or else the Rights group would seek justice and redress for the millions of Igbos who would return home for the 2025 Yuletide from the Federal Competition and Consumer Rights Commission and the National Human Rights Commission of Nigeria. The HURIWA threatened to drag the two airlines to the Nigerian President through the Honourable Minister of Aviation and Transportation.

Continue Reading

Copyright © 2022. Biztellers, powered by Alphaxristi.

1
0
Would love your thoughts, please comment.x
()
x