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COVID-19: IATA Calls For Urgent Emergency Support For Airlines

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COVID-19: IATA Calls For Urgent Emergency Support For Airline

Nigeria's Aviation Minister, Hadi Sirika

Nigeria’s Aviation Minister, Hadi Sirika

Geneva – The International Air Transport Association (IATA) has appealed to governments in Africa and the Middle East, as part of a worldwide campaign, to provide emergency support to airlines as they fight for survival, due to the evaporation of air travel demand as a result of the COVID-19 crisis.

“Stopping the spread of COVID-19 is the top priority of governments. But they must be aware that the public health emergency has now become a catastrophe for economies and for aviation. The scale of the current industry crisis is much worse and far more widespread than 9/11, SARS or the 2008 Global Financial Crisis.

“Airlines are fighting for survival. Many routes have been suspended in Africa and the Middle East and airlines have seen demand fall by as much as 60% on remaining ones. Millions of jobs are at stake. Airlines need urgent government action if they are to emerge from this in a fit state to help the world recover, once COVID-19 is beaten,” said Alexandre de Juniac, IATA’s Director General and CEO.

Extensive cost cutting measures are being implemented by the region’s carriers to mitigate the financial impact of COVID-19. However, due to flight bans as well as international and regional travel restrictions, airlines’ revenues are plummeting—outstripping the scope of even the most drastic cost containment measures. With average cash reserves of approximately two months in the region, airlines are facing a liquidity and existential crisis. Support measures are urgently needed. On a global basis, IATA estimates that emergency aid of up to $200 billion is required.

IATA is proposing a number of options for governments to consider. They include:

Direct financial support to passenger and cargo carriers to compensate for reduced revenues and liquidity attributable to travel restrictions imposed as a result of COVID-19.

Loans, loan guarantees and support for the corporate bond market by governments or central banks. The corporate bond market is a vital source of finance, but the eligibility of corporate bonds for central bank support needs to be extended and guaranteed by governments to provide access for a wider range of companies.

Tax relief: Rebates on payroll taxes paid to date in 2020 and/or an extension of payment terms for the rest of 2020, along with a temporary waiver of ticket taxes and other Government-imposed levies.

“Several governments in Africa and the Middle East have already committed national aid for COVID-19 including Saudi Arabia, the United Arab Emirates, Qatar, Bahrain, Egypt, Nigeria and Mauritius. Our ask is that airlines, which are essential to all modern economies, are given urgent consideration.

“This will help keep them alive and ensure airline staff – and people working in allied sectors – have jobs to come back to at the end of the crisis. It will enable global supply chains to continue functioning and provide the connectivity that tourism and trade will depend on if they are to contribute to rapid post-pandemic economic growth,“ said Muhammad Al Bakri, IATA Regional Vice President Africa, Middle East.

Africa’s air transport industry’s economic contribution is estimated at US$55.8 billion supporting 6.2 million jobs and contributing 2.6% to GDP. In the Middle East air transport’s economic contribution is estimated at US$130 billion supporting 2.4 million jobs and contributing 4.4% to GDP.

COVID-19 Effects by Region 

AFRICA:

Since the end of January thousands of passenger flights have been cancelled in Africa, this is expected to increase exponentially with the implementation of additional measures in different countries.

International bookings in Africa are down roughly 20% in March and April, domestic bookings have fallen by about 15% in March and 25% in April, according to the latest data, African airlines had lost US$4.4 billion in revenue as at 11 March 2020.   Ticket refunds have increased by 75% in 2020 compared to the same period in 2019 (01 February – 11 March).

MIDDLE EAST 

Since the end of January 16,000 passenger flights have been cancelled in the Middle East. This is expected to increase exponentially,with  the additional measures in different countries.

So far, international bookings in the Middle East are down 40% year-over-year in March and April, 30% year-over-year in May and June. Domestic bookings are down roughly 20% in March and April, 40% in May and June, according to the latest data available. Middle East airlines had lost US$7.2 billion revenue as at 11 March 2020 . Ticket refunds have increased by 75% in 2020 compared to the same period in 2019 (01 February – 11 March) .

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Private Jets Operating Commercial Services to Lose Licences – NCAA DG

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The Acting Director-General of the Nigeria Civil Aviation Authority (NCAA), Captain Chris Najomo has warned that all private jet operators operating commercial charter services risks loosing their licenses.

He gave the warning in Lagos on Friday during the media unveiling of his vision board for year 2024 tagged NCAA Project 2024.

The Ag.DG, who expressed concern over the illicit activities of illegal private jet operators in the country, said if private jets wants to operate as commercial or charter operators, they should apply for the commercial licences.

Highlighting the regulatory provisions, Najomo noted that only holders of Air Transport Licence (ATL) and Airline Operating Permit (AOP) with a valid Air Operator Certificate (AOC) are authorized to conduct charter operations.

He also stated that NCAA will cease offering services to all debtors, who have refused to payment the NCAA and federal government monies owed them, noting that almost all airlines are guilty of this.
Nigerian airlines are currently indeed to NCAA in billions of naira.

He also said the NCAA is committed towards simplified certification and licensing processes as this will ensure ease of doing business.

Najomo further stated that one of his 2024 projects is to Ensure improved staff welfare, training, retraining and reorientation of staff.

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NDLEA Arraigns SAHCO Manager, 7 Staff For Aiding Drug Trafficking

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An Assistant General Manager of Skyway Handling Company (SAHCO), Olajide Ahmed Kafidipe, and seven other staff of the company, were today, arraigned before a Lagos Federal High Court, on charges bordering of conspiracy, unlawful importation and possession of 1, 440.90 kilograms of Tramadol.

Olajide and others were arraigned before the court presided over by Justice Deinde Isaac Dipeolu, by the National Drug Law Enforcement Agency (NDLEA).

The seven staff of the company arraigned alongside Olajide were; Sanyaolu Rasheed Oladele; Musa Mutalib Opeyemi; Sanamo Alla Daniel; Anuge Evans Isibor; Mahmud Agboola Musa; Udeh Felix and Obinna Henry.

The prosecutor, Mr. Abu Ibrahim, while arraigning the SAHCO staff, told the court that all the defendants conspired with the trio of Mubarak Sarki Salami, Abdullahi Aliyu a.k.a Aboki and Anwal Monday, who also staff of the company but now at large, to commit the offences on or about October 25, 2023.

The prosecutor, Mr. Ibrahim further told the court that the Assistant General Manager of SAHCO, Olajide and other staff of the company, conspired amongst yourself to transport 1, 440.90 kilograms of Tramadol 225mg, a Narcotic, from SAHCO Import Shed.

The prosecutor also told the court that the SAHCO’s Assistant General Manager, Olajide, conspired with Sanyaolu Rasheed Oladele, and procured one Lawal Itunu Temitope, to transport the prohibited substance from SAHCO Import Shed in a Mercedes Benz Bus with Registration Number LAGOS MUS 269 YC, belonging to Platinum Pacific International Limited.

He further informed the court that another staff of SAHCO, Sanyaolu Rasheed Oladele, unlawfully possessed the said 1, 440. 90 kilograms of Tramadol 225mg, a Narcotic Analgesic.

The prosecutor told the court that the offences committed by the defendants, contravened sections 14 (b), 21 (2)(d) and 20 (1)(c) of the National Drug Law Enforcement Agency Cap. N30, Laws of the Federation of Nigeria, 2004. And punishable under sections 11 (b) and 20 (2)(b) of the same Act.

All the defendants denied the allegations and pleaded not guilty to the charges.

Following their not guilty plea, the prosecutor asked the court for a trial date and also urged the court to remand them in the custody of the Nigerian Correctional Services (NCoS), till the hearing and determination of the charge.

However, lawyers to the defendants, told the court that they have filed their clients’ bail application except that of the Assistant General Manager, Kafidipe Ahmed Olajide and Obinna Henry.

The lawyer therefore asked the court for a short date, to enable them file the bail applications for the duo.

With the development, the prosecutor, Mr. Abu Ibrahim, urged the court to remand all the defendants in NCoS’ custody till when the court will hear their bail applications.

But the trial judge, Justice Dipeolu, in his reasoning, order the operatives of the NDLEA to call their Airport Commander, to allow the defendants to be remanded in their custody till tomorrow, January 17, when their bail applications will be heard and determined.

Upon the complied with the court’s directive, which was granted by the Commander, the court ordered the remand of all the defendants in NDLEA till tomorrow, while adjourned to January 24, 2024, for the commencement of their trial.
Source: Ontimenews.com

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Tinubu Sacks Heads of Aviation Agencies, Asks EFCC to Investigate NCAA’s Financial Transactions

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In a move that has caught stakeholders in the Aviation sector unawares, President Bola Tinubu has approved the suspension, removal, and replacement of Chief Executive Officers under the Federal Ministry of Aviation and Aerospace Development

The Special Adviser to the President Media & Publicity, Ajuri Ngelale who made this known in a statement on Wednesday, said the leadership change is in line with the President’s determination to bring world class standards to Nigerian Civil Aviation in consumer protection and the promotion of the wellbeing of Nigerian passengers and other sectoral stakeholders.

Ngelale announced that the Managing Director of the Federal Airports Authority of Nigeria (FAAN), Mr. Kabir Yusuf Mohammed has been removed from office and replaced with Mrs. Olubunmi Oluwaseun Kuku as the substantive Managing Director of the Federal Airports Authority of Nigeria.

Also, the Managing Director of the Nigerian Airspace Management Agency (NAMA), Mr. Tayib Adetunji Odunowo has been removed from office and replaced with Engr. Umar Ahmed Farouk as the substantive Managing Director of the Nigerian Airspace Management Agency.

The Director-General of the Nigerian Safety Investigation Bureau (NSIB), Engr. Akinola Olateru has been removed from office and replaced with Mr. Alex Badeh Jr. as the substantive Director-General of the Nigerian Safety Investigation Bureau.

The Director-General of the Nigerian Meteorological Agency (NIMET), Prof. Mansur Bako Matazu has been removed from office and replaced with Prof. Charles Anosike as the substantive Director-General of the Nigerian Meteorological Agency.

He further noted that the Rector of the Nigerian College of Aviation Technology (NCAT), Capt. Alkali Mahmud Modibbo has been removed from office and replaced with Mr. Joseph Shaka Imalighwe as the Acting Rector of the Nigerian College of Aviation Technology (NCAT), pending the appointment of a substantive Rector, in accordance with Section 13(2) of the Nigerian College of Aviation Technology Act, 2022.

Meanwhile, Ngelale announced that the Director-General of the Nigeria Civil Aviation Authority (NCAA), Capt. Musa Shuaibu Nuhu has been suspended from office to enable the Economic and Financial Crimes Commission (EFCC) to conduct an unfettered investigation into the activities of the suspended Director-General and other senior officials in the Nigeria Civil Aviation Authority, adding that Capt. Chris Najomo assumes office as the Acting Director-General of the Nigeria Civil Aviation Authority immediately.

“Furthermore, President Bola Tinubu approves the commencement of a diligent process to be conducted by the Minister of Aviation and Aerospace Development to recruit a substantive Vice-Chancellor and other principal officers of the African Aviation and Aerospace University (AAAU).

“The President anticipates that the new leadership across this critical sector will uphold the safety, convenience, and comfort of the Nigerian people as primary and sacrosanct in all of their administrative activities.

“Due to the high cost of underperformance in the sector, the President demands the immediate establishment of world-class policy design, implementation, and regulatory frameworks to reposition the sector in alignment with his Renewed Hope Agenda.

“All of the above-mentioned directives of the President take immediate effect”, he concluded

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