Aviation
U.K. Airport Authority Plans Tighter Regulation at Heathrow, Gatwick
LONDON — The U.K. Civil Aviation Authority said Friday it plans to tighten regulation at Heathrow and Gatwick, London’s two busiest airports, from April 2014 to ensure their prices are competitive and service standards remain high.
The airports watchdog said Heathrow and Gatwick will require licenses from April which should facilitate greater regulatory scrutiny of the prices the privately-held airports charge airlines and the services they provide passengers.
The CAA said Heathrow must cut prices by 1.5% a year between 2014 and 2019, reversing a decision it had made last October to allow average prices to rise in line with inflation. The regulator justified the move by saying the outlook for traffic at Heathrow, the world’s busiest international hub by passenger numbers, is better than it was a few months ago while the airport is also able to raise fresh capital more cheaply than before.
Heathrow Chief Executive Colin Matthews said the CAA’s settlement was “draconian.”
For Gatwick, the regulator said it is sticking with its original plan to let the airport raise average prices in line with inflation because the airport has to compete more fiercely with rivals to attract airline customers.
The CAA’s tough approach is the latest in a long-standing effort to promote competition among London’s airports as politicians debate how best to increase capacity in southern England’s choked air space. Heathrow, which operates at close to full capacity, and Gatwick are each lobbying for the right to add an extra runway ahead of the final recommendation from a government-appointment commission due in 2015.
Airlines have for years lobbied for a reduction in charges at Heathrow, which they say are significantly higher than those at other international airports. A group representing the airlines that fly from Heathrow had requested a 9.8% cut in its average prices in the latest regulatory review, whereas Heathrow Airport Holdings, the operating company in charge of the London hub, had called for an increase of 4.6% above the rate of inflation as measured by the retail prices index.
The CAA said requiring Heathrow and Gatwick to have licenses is aimed at ensuring that, as well as competitive prices, the airports are addressing issues such as cleanliness, queuing times, seating availability and providing timely traveler information.
Heathrow and Gatwick will have to put in place robust plans to ensure they are better prepared for disruption and can manage it effectively when it does occur, the regulator said. Gatwick apologized to customers last month after storms caused power cuts at the airport on Christmas Eve, disrupting travel for thousands of passengers.
“Today’s decisions are good news for air passengers. They will see prices fall, whilst still being able to look forward to high service standards, thanks to a robust licensing regime,” said CAA head Deirdre Hutton.
“London’s airports have benefited from substantial investment over the past decade, which has created world-class facilities for passengers. But prices have risen substantially in that time, with service quality sometimes failing to match the standards passengers have every right to expect,” she added.
Heathrow said the CAA’s decision will squeeze its finances. The airport will have to reduce operating costs by more than £600 million ($987.41 million) while finding more than £100 million in extra revenue from other sources such as shops and car parks and assuming significant growth in passenger traffic.
“We will review our investment plan to see whether it is still financeable in light of the CAA’s settlement,” Heathrow’s Mr. Matthews said.
The regulator said there will be no additional regulation at Stansted as the airport doesn’t have substantial market power. “This means the airport will not be economically regulated by the CAA from April 2014 onwards,” the CAA said.
– WALLSTREET JOURNAL
An Abuja-Accra flight experienced technical difficulties mid-air on Friday, forcing it to return to Abuja, shortly after departure.
The Nigerian Safety Investigation Board (NSIB) made the disclosure in a statement, adding that it has launched investigation into what it described as a serious accident.
Director, Public Affairs and Family Assistance, NSIB, Bimbo Olawumi Oladeji stated that preliminary investigations revealed the aircraft experienced an engine number two indication issue.
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It was gathered that the aircraft, with registration number 5NKAL which was operating a flight from the Nnamdi Azikiwe Airport, Abuja (DNAA), to Kotoka International Airport, Accra (DGAA).
She explained that four persons were onboard when the incident occurred. The crew immediately requested for a diversion back to Abuja due to the engine indication.
Oladeji added that the crew managed to safely land the aircraft at Abuja Airport at 18:16 UTC.
There were no injuries reported, and all individuals on board are safe.
Nigeria has acquired 12 pre-owned Alpha Jets from the French Air Force as part of efforts to enhance the operational capacity of the Nigerian Air Force (NAF).
The deal, facilitated through SOFEMA, a French military and aeronautics company, was announced by Olusegun Dada, Special Assistant to President Bola Tinubu on via X on Thursday.
He said, “All the 12 aircraft are ready for shipping.”
The Alpha Jet, a product of Franco-German collaboration, is a versatile military aircraft designed for light attack and advanced training missions.
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Equipped to carry bombs, rockets, and missiles, the aircraft also features a gun pod for close air support.
The NAF already operates 11 Alpha Jets, but this latest procurement signals a significant boost to its fleet.
Dada also confirmed that the Air Force is expecting 24 M-346FA light attack aircraft, ordered during the administration of former President Muhammadu Buhari.
The first batch of these Italian-made aircraft is expected to arrive early next year.
Air Chief Marshal Hasan Abubakar, the Chief of Air Staff, described the acquisitions as a testament to President Tinubu’s commitment to bolstering the armed forces.
“This renewal of our aircraft fleet reflects the government’s commitment to ensuring the safety and security of Nigerians,” Abubakar said.
The announcement comes on the heels of President Tinubu’s three-day state visit to France, where he met with French President Emmanuel Macron.
The visit, which took place from November 27 to November 30, highlighted deepening ties between the two nations.
To ensure the sustainability of its expanding fleet, the Air Force has proposed establishing a local maintenance hub.
Speaking in October, Abubakar noted that six units of the M-346FA aircraft were already in production, with the initial batch of three expected to be delivered in early 2025. The full fleet is projected to arrive by 2026.
“These developments underscore the importance of creating a domestic support system for the long-term upkeep of our aircraft,” Abubakar added.
As the holiday season draws near, Aero Contractors has introduced a minimum ticket price of N80,000 for all local flights.
The move, which will last until January 2024, aims to ease the financial burden on Nigerians amid the high cost of living.
Ado Sanusi, Managing Director of Aero Contractors, made the announcement on Tuesday during a press briefing, describing the fare reduction as a gesture to help Nigerians celebrate Christmas and the New Year without the stress of steep ticket prices.
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Sanusi said, “We understand the economic hardship Nigerians are facing, especially with high ticket prices, and we know the holiday season is nearby.
“In the spirit of Christmas, Aero Contractors has introduced what we call pocket-friendly Christmas prices. These fares, starting at N80,000, will apply to all our destinations, allowing Nigerians to travel without excessive costs.”
As of Tuesday afternoon, an economy class ticket from Lagos to Abuja was priced at N99,643, while business class tickets were being sold for N189,167.
Sanusi further explained that the initiative was designed to make it easier for families to reunite during the holidays.
“This is a way for us, as an organization with a long history of serving Nigerians, to give back to our loyal customers. We want to make it possible for families to meet their loved ones during this festive season without worrying about exorbitant travel costs,” he added.
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