Aviation

How Aviation Sector Grew Under Hadi Sirika in 8 Years

Published

2 years ago

June 30, 2023

The Nigerian aviation sector is tipped by Embraer in a 2020 report to experience the biggest growth in Africa in the next decade and more. The report estimated that Nigeria’s aviation sector has a prospect for an over $7.2 billion (over N3.3trn) annual Grosso Domestic Product Growth (GDP).

“With the implementation of open skies, according to a study on SAATM by Embraer (2020), in 2038, using traffic forecasts and economic impact estimates from ICAO, Nigeria’s aviation industry would contribute some $1.3 billion to GDP. That number would rise to $7.2 billion when factoring in the induced and indirect catalytic effects of tourism. Aviation could generate 800,000 jobs of which 60,000 would be directly associated with airline operations” the report indicated.

Also, a recent aviation sector study for Nigeria by International Air Transportation Association (IATA) in June 2020, showcases the significant contribution of air transportation to the National economy, by providing 241,000 jobs (direct and indirect) and a contribution of $1.7 billion to the National economy.

The FG projects that with the successful implementation of the roadmap projects, the overall goal is to grow the Aviation sector’s contribution from the current 0.6% to 5% (approximately $14.166 billion).

Thus, ahead of these reports, since 2015, the federal government of Nigeria deliberately began concrete implementation of open skies or The Single African Air Transport Market (SAATM) and Nigeria’s Aviation Roadmap. These policies were actively piloted by the immediate past Minister of Aviation, Sen. Hadi Sirika, and abled by President Muhammadu Buhari.

The Aviation Roadmap is chiefly to build tangible and intangible aviation infrastructure to unlock the over N3 trillion aviation annual economy and reposition even for greater growth.

The key components of the aviation roadmap according to the policy document include: Establishment of a National Carrier, Development of Agro-Allied /Cargo Terminals § Establishment of Maintenance, Repairs, and Overhaul (MRO) Centre, Establishment of an Aviation Leasing Company (ALC), Development of Aerotropolis (Airport Cities), Establishment of an Aviation & Aerospace University, and Concession of five International Airports (Abuja, Lagos, Enugu, Kano, and Port Harcourt.

Others include; the upgrade of NCAT into an ICAO Regional Training Centre of Excellence, the Designation of Four International Airports as Special Economic Zones, the Introduction of Policies on Remotely Piloted Aircraft, Adherence to Employment Policies on the Enforcement of Expatriate Quota, and the upgrade of AIB to a Multimodal Accident Investigation Agency – Nigerian Safety Investigation Bureau (NSIB).

After about eight years of sustained implementation of the roadmap and implementation of other enablers in the aviation sector, the aviation sector witnessed unpreceded growth in spite of the Nigerian economy experiencing a recession twice within the period.

Hadi Sirika Receiving the OBC Certificate from the former ICRC DG Engr. Chidi Izuwa
Giving a scorecard of the aviation sector recently, Hadi Sirika said “We have successfully debunked the claim that aviation doubles every 15 years. Currently in Nigeria, the number of airports including those currently being developed has doubled, the passenger number has doubled, other entrepreneurship including catering and ground handling has blossomed, the number of airlines and jobs has multiplied” he said adding that even the 2020 global pandemic could push back Nigeria’s aviation industry growth.

A cursory look at the roadmap deliverables showed that Nigeria Air, the most talked a bit item on the roadmap is about 90 percent completed. The due process on the project by the regulator Infrastructure Concession and Regulatory Commission (ICRC) has returned a clean bill of health, the outline business case approved, the core investor and other investors unveiled, the full business case is being developed for FEC to approve and the Air Operator Certificate (AOC) has passed the second stage of procurement at the Nigerian Civil Aviation Authority (NCAA).

“Nigeria Air has the strategic direction, with a solid business plan for the next ten years and a start-up budget of 250 million US dollars. The Nigerian Government only invests 5% into this start-up funding (12.5 million US dollars), in line with its 5% share in Nigeria Air. By the transparent and structured PPP process the Government has ensured a clear ownership structure, including the leading African airline, with a secured start-up budget which gives Nigeria Air a solid financial foundation” said Prof. Tilmann Gabriel, a researcher on African Aviation.

The benefit to be derived from the establishment of the national Carrier are; reduction of capital flight from Nigeria; gain of the optimal benefit of BASA and SAATM; development of an Aviation hub; contribution to the GDP; facilitate hospitality and tourism; facilitate growth and development of the Nigerian Agricultural Sector; and create jobs around the Agro-Cargo Terminals.

Designation of five International Airports (Lagos, Abuja, Enugu Kano & Port Harcourt) as Special Economic Zones. Mr. President approved the designation of the Four International Airports as Special Economic Zones on 17th May 2021. The next step is the commencement of Implementation processes with NEPZA is ongoing. The Benefits of Special Economic Zones are i. more efficient and business-friendly trade environment with less bureaucratic red tape because of the associated fiscal incentives and packages; ii. attract world-class international and local Airlines/Companies into the Nigeria Aviation Industry; iii. attract investment incentives which include; Investment Policies and Protection, General Tax Based Incentives, Sector Specific Incentives, Tariff Based Incentives, and Export Incentives; iv. attract Foreign Direct Investment (FDI) and generate employment opportunities and human capital development, thus stimulating the overall improvement of the Nigerian Aviation Industry; v. improve the overall ease of doing business in Nigeria and more.

Airports to be Concession are as follows: – Murtala Muhammed International Airport (MMIA) Lagos: a. Old International Terminal – Terminal and Ramp b. New International Terminal – Terminal, Ramp, Car Park c. Cargo Terminal – Ramp – Nnamdi Azikiwe International Airport (NAIA), Abuja, Port Harcourt International Airport (PHIA), Port Harcourt and Mallam Aminu Kano International Airport (MAKIA), Kano a. Old International and Domestic Terminal – Terminal, Ramp, Car Park b. New International Terminal – Terminal, Ramp c. Cargo Ramp. (To be developed). The current position is that Negotiation with preferred bidders on-going. Draft Full Business Case (FBC) finalized and the FG is targeting a completion period – 2nd quarter, 2023.

Establishment of An Aviation Leasing Company (ALC) An Aviation Leasing Company which would be private sector-driven will be established to address the challenges of limited access to capital and high cost of funds. The ALC will provide leasing opportunities for Nigerian and African airlines in order to boost fleet size, and alleviate the problem of aircraft leasing and high insurance premium charges. The current status is that a Full Business Case (FBC) has been completed and a certificate of compliance issued by the ICRC. And awaiting FEC approval. Project to commence operation by the 2nd Quarter, 2023 based on the projection.

Establishment of a Maintenance, Repair & Overhaul (MRO) Centre. The establishment of a private sector-driven Maintenance, Repair, and Overhaul (MRO) Centre is critical for the diversification and repositioning of the Aviation Industry as it provides aircraft repairs, overhaul, and maintenance services. Experts say currently this facility does not exist in the whole of West and Central Africa. MRO is therefore a necessary requirement to facilitate the development of the aviation industry.

The proposed facility will have the capacity to serve both Narrow and Wide Body aircraft maintenance requirements and will be located in Abuja. The Full Business Case (FBC) has been completed and a certificate of compliance was issued by the ICRC, which was subsequently approved by FEC.

Development of Aerotropolis (Airport Cities). The FG anticipates that the development of Nigeria’s major commercial airports and surrounding communities into efficient, profitable, and self-sustaining commercial hubs through increased private sector participation and Foreign Direct Investment (FDI) will create jobs and grow the local industry. The project will be structured as a Public Private Partnership (PPP) arrangement where the private partner will be required to design, develop, finance, and maintain the Aerotropolis during the agreed period.

The Aerotropolis will contain the full complement of commercial facilities that support airlines and aviation-linked businesses. Other components of the project include the development of hospitality and tourism-oriented real estate assets; and ancillary support infrastructure. Currently, the land has been acquired, and the process for the selection of a preferred partner has commenced.

Development of Cargo/Agro-Allied Airport Terminals ..2 To take advantage of the high-value agricultural products potential of Nigeria, the need arose to develop dedicated Cargo/Agro-Allied Terminals and ancillary infrastructure in each of the six (6) geographical zones of the country to facilitate the movement of fresh produce by air. The terminals will be established via a Design, Build, Operate, and Maintain model of Public Private Partnership (PPP). The proposed terminals will have facilities such as a dry Cargo Terminal Warehouse; a Perishable Cargo Terminal with Cool Chain Storage; climate chambers for storage and handling of temperature-sensitive products including Pharmaceuticals and Bonded Warehouses. The procurement phase is ongoing and the selection of the preferred partner is ongoing with a target of the second quarter of 2023 as a completion target.

The establishment of Aerospace University. The school is tipped to arrest of the dearth of high-level management cadre in the Aviation Industry. it will also promote Aviation Research and Development. Already the concept note has been presented to NUC for their consideration. African Aviation & Aerospace University (AAAU) courses to commence 2nd Quarter 2022.

Commenting on the aviation roadmap Prof. Tilmann Gabriel said “The Buhari Government had promised a new aviation industry which the future of Nigeria can rely on. It took hard work by the many involved, driven by a Minister of Aviation never tired of pushing this Buhari strategy in the last seven years.”

Also commenting Prof. Mansur Bako Matazu, the Director-General, of the Nigerian Mereological Agency (NiMet) said one of the components of the roadmap is the creation of an Aviation and Aerospace University which is already happening.

He also said the roadmap is providing incentives for professionals to stay. “This will curtail the mass exodus of professionals for our great industry with all the huge potentials” he stated.

He also said the roadmap has yielded partnerships with other countries and these have helped to improve the industry.

According to the DG with the roadmap implementation, most of the agencies now have their specialized training centers including NiMet.

“We now operate two accredited schools where we offer Diplomas in Meteorology and Climate Change. We will soon upscale to HND other short-term courses.:

Prof. Matzo also said “The roadmap has encouraged entrepreneurship and innovation. These components could impact reduction in brain drain and most of these have been captured by the roadmap implemented by the Federal Ministry of Aviation: he stated adding that all aviation stakeholders were a part of the development of the document.

Aviation

Money Laundering: Air Peace Boss Indicted in the US for Obstruction of Justice

Published

6 months ago

October 13, 2024

Nats Odaudu

They are mere allegations that’d be cleared – Air Peace

A statement by the US Attorney’s Office in the Northern District of Georgia has confirmed the indictment of Allen Onyema, Chief executive officer of Nigeria’s largest airline, Air Peace for obstruction of justice in his long-standing money laundering case.

The Statement:

Press Release

CEO of Nigerian Airline and Co-Defendant Indicted for Obstruction of Justice

U.S. Attorney’s Office, Northern District of Georgia

ATLANTA – Allen Onyema, the Chairman, CEO, and founder of Air Peace, a Nigerian airline, has been charged in a superseding indictment with obstruction of justice for submitting false documents to the government in an effort to end an investigation of him that resulted in earlier charges of bank fraud and money laundering. Ejiroghene Eghagha, the airline’s Chief of Administration and Finance, was also charged for participating in the obstruction scheme, as well as in the earlier bank fraud counts.

“After allegedly using his airline company as a cover to commit fraud on the United States’ banking system, Onyema, along with his co-defendant, allegedly committed additional crimes of fraud in a failed attempt to derail the government’s investigation of his conduct,” said U.S. Attorney Ryan K. Buchanan. “The diligence of our federal investigative partners revealed the defendants’ alleged obstruction scheme, making it possible for the defendants to be held accountable for their aggravated conduct of attempting to impede a federal investigation.”

“These cases represent the continued commitment of the Drug Enforcement Administration to identify and hold accountable those who engaged in fraud and money laundering,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division.

“Allegedly, Onyema and his accomplices fraudulently used the U.S. banking system in an effort to hide the source of their ill-gotten money,” said Assistant Special Agent in Charge Lisa Fontanette, Internal Revenue Service – Criminal Investigation Atlanta Field Office. “Today’s superseding indictment is indicative of the dedication IRS-CI special agents and our law enforcement partners have, as part of the Organized Crime Drug Enforcement Task Forces, to neutralize threats to the United States from criminal organizations.”

“The charges announced today demonstrate the criticality of diligence and truth in criminal justice proceedings,” said Steven N. Schrank, Acting Special Agent in Charge, Homeland Security Investigations Atlanta that covers Georgia and Alabama. “HSI and our partners are committed to pursuing those who seek to exploit our nation’s financial system and any efforts to cover up illegal activity.”

According to U.S. Attorney Buchanan, the superseding indictment, and other information presented in court: Onyema, a Nigerian citizen and businessman, is the CEO and Chairman of Air Peace, a Nigerian airline founded in 2013. Between 2010 and 2018, Onyema travelled frequently to Atlanta, where he opened several personal and business bank accounts. More than $44.9 million was allegedly transferred into his Atlanta-based accounts from foreign sources.

Beginning in approximately May 2016, Onyema, together with Eghagha, allegedly used a series of export letters of credit to cause banks to transfer more than $20 million into Atlanta-based bank accounts controlled by Onyema. The letters of credit were purportedly to fund the purchase of five separate Boeing 737 passenger planes by Air Peace and were supported by documents such as purchase agreements, bills of sale, and appraisals. The documents purported to show that Air Peace was purchasing the aircraft from Springfield Aviation Company LLC, a business registered in Georgia.

However, the supporting documents were allegedly fake – Springfield Aviation Company LLC was owned by Onyema and managed on his behalf by a person with no connection to the aviation business, and Springfield Aviation never owned the aircraft. The company that allegedly drafted the appraisals did not exist. Eghagha allegedly participated in this scheme as well, directing the Springfield Aviation manager to sign and send false documents to banks and even using the manager’s identity to further the fraud. After Onyema received the money in the United States, he allegedly laundered over $16 million of the proceeds of the fraud by transferring it to other accounts.

In May 2019, upon discovering that he was under investigation in the Northern District of Georgia for bank fraud, Onyema and Eghagha allegedly directed the Springfield Aviation manager to sign a key business contract, but also specifically told her to not date the document. In October 2019, Onyema allegedly caused his attorneys to present that same contract, now falsely dated as being signed on May 5, 2016 (prior to the bank fraud that began in 2016), to the government in an effort to stop the investigation and unfreeze his bank accounts.

Allen Ifechukwu Athan Onyema, 61, of Lagos, Nigeria, and Ejiroghene Eghagha, 42, of Lagos, Nigeria, were indicted on November 19, 2019, on one count of conspiracy to commit bank fraud, three counts of bank fraud, one count of conspiracy to commit credit application fraud, and three counts of credit application fraud. Additionally, Onyema was charged with 27 counts of money laundering, and Eghagha was charged with one count of aggravated identity theft. On October 8, 2024, they were both charged in a superseding indictment alleging an additional count of obstruction of justice and one count of conspiracy to obstruct justice. The case is criminal action number 1:19-CR-464.

Members of the public are reminded that the indictments only contain charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.

The Drug Enforcement Administration, Internal Revenue Service Criminal Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Federal Aviation Administration, Department of Commerce, and Department of Treasury are investigating this case.

Assistant U.S. Attorneys Garrett L. Bradford and Christopher J. Huber are prosecuting the case.

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

Mere Allegations – Air Peace

Meanwhile, Air Peace insists that its CEO Allen Onyema will be cleared of money laundering charges filed against him by the US.

Nigerian airline Air Peace has reaffirmed the innocence of its Chairman and CEO, Dr. Allen Ifechukwu Onyema, and Chief of Finance and Administration, Mrs. Ejiro Eghagha, following the expansion of legal charges by the U.S. Department of Justice (DOJ).

The management of the airline said they are confident that both executives will be exonerated, emphasising that these are still mere allegations with the case ongoing in court.

This came as the U.S. attorney’s office for the Northern District of Georgia filed a superseding indictment against Air Peace CEO Allen Onyema and Ejiroghene Eghagha, accusing them of submitting false documents in an effort to obstruct an ongoing federal investigation into their alleged financial crimes, adding new charges to the 2019 case that originally accused Onyema of money laundering involving more than $20 million.

Ryan Buchanan of the US attorney’s office said, “After allegedly using his airline company as a cover to commit fraud on the United States’ banking system, Onyema, along with his co-defendant, allegedly committed additional crimes of fraud in a failed attempt to derail the government’s investigation of his conduct,”

However, in a statement released on Sunday addressing public concerns, Air Peace stressed that both Dr. Onyema and Mrs. Eghagha remain innocent until proven otherwise, saying that the airline’s legal team is fully engaged and working relentlessly to ensure that justice prevails.

The statement read, “These charges levelled against our post-holders are part of an extended legal process stemming from earlier accusations of financial misdeeds that date back several years.

While the charges have been expanded, it is essential to emphasize that both Dr. Onyema and Mrs. Eghagha remain innocent and these are mere allegations, and the case is still in court. Our legal team is fully engaged with the matter and is working tirelessly to ensure that justice prevails. We remain confident that, through due process, the truth will be revealed, and our CEO and co-defendant will be exonerated.”

The company then reiterated that Dr. Onyema and his legal representatives have consistently cooperated with the relevant authorities throughout the legal process.

Air Peace then assured the public that despite the expanded charges, its daily operations, safety standards, and commitment to quality service remain unaffected.

“We want to reassure the public that these legal proceedings will not impact the safety, reliability, or day-to-day operations of Air Peace. The dedication and focus of our staff remain steadfast as we continue to provide you with the best aviation experience in Nigeria and beyond,” the statement added.

The airline expressed gratitude to its customers for their continued trust and support during this period, reassuring them of its unwavering dedication to maintaining the highest standards in aviation.

Aviation

Pilot Dies Mid-air flying Turkish Airlines Plane from US to Turkey

Published

6 months ago

October 9, 2024

Nats Odaudu

By Ojone Grace Odaudu

A Turkish Airlines pilot has died after becoming ill on his own flight from Seattle on the north-west coast of the United States to Istanbul in Turkey.

Captain Ilcehin Pehlivan, 59, collapsed mid-air and a second pilot and co-pilot took over the controls, an airline spokesman said on X.

“When first aid to our captain on the plane was unsuccessful, the cockpit crew… decided to make an emergency landing, but he died before landing,” Yahya Ustun explained.

The Airbus A350 plane landed in New York and plans were then made to fly the passengers on to Turkey from there, he added.

Flight TK204 took off from Seattle shortly after 19:00 Pacific Time on Tuesday evening. The pilot appears to have got into trouble over the Canadian territory of Nunavut, before his colleagues took over and headed for John F Kennedy airport.

The plane landed in New York about eight hours after leaving Seattle.

Mr Pehlivan had flown with Turkish Airlines since 2007 and had been given a regular health check in early March, which found no health problem that might affect his job, the airline said.

Turkey’s air traffic controllers’ association, TATCA, said he had served the aviation community for many years and offered its condolences to his family, friends and colleagues.

The cause of the pilot’s death has not been released. Pilots have to undergo medical exams every 12 months, while those aged over 40 have to renew their medical certificates every six months.

In 2015, an American Airlines pilot aged 57 collapsed and died during an overnight flight from Phoenix to Boston.

The first officer took over and made an emergency landing in Syracuse.

At the moment, two pilots are required to be in the cockpit of a large commercial plane at all times.

However, the EU’s aviation safety agency says technology is being developed to enable a single pilot to operate large passenger planes during the cruise phase of a flight. Such a move would allow other members of the cockpit to rest, although the agency stressed there needed to be measures to ensure safety and to respond to crew becoming “incapacitated”.

The European Cockpit Association and other pilots’ groups have joined forces to challenge the initiative, arguing that reducing the crew at any time would gamble with safety on board.

(BBC)

Aviation

Hard Time Awaits Airport Rule Breakers, with Establishment of Magistrate Courts

Published

8 months ago

August 18, 2024

Nats Odaudu

The Managing Director, Federal Airports Authority of Nigeria (FAAN) Mrs Olubunmni kuku has announced plans to establish magistrate courts in airport premises across the country to swiftly address violations of airport rules and anti-touting regulations.

The move is aimed at ensuring a safer and more comfortable environment for genuine airport users.

The MD FAAN, made the announcement during a meeting with heads of security agencies at the Nnamdi Azikiwe International Airport (NAIA) in Abuja.

The meeting was convened to brief airport stakeholders on recent developments, outline the authority’s strategic goals, and discuss ways to enhance passenger experience and facilitation.

Mrs. Kuku identified the presence of touts and loitering by members of the public as a major challenge to providing a comfortable experience for genuine airport users.

“There are people who have absolutely no business being at the airport, and they continue to create issues for us,” she said.

“We have an anti-touting taskforce, and as it is, we are going to start the prosecution onsite of those engaging in these illicit activities or loitering around the airport environment and harassing passengers. This doesn’t happen elsewhere around the world, and the airport should be a safe space.”

The MD/CE also addressed the issue of car hire operators violating processes and protocol, warning that such behavior would no longer be tolerated.

She emphasized the need to reduce manual baggage search at the international wing of the airport, proposing a process where baggage would be screened by machines, and security officials would view the contents in real-time, only pulling aside luggage that requires secondary screening.

Mrs Kuku said, “We have to streamline our efforts. We need to improve processes at the airport. This is the 21st century, and we must keep up with the times”.

She also announced that the Terminal C of the NAIA would be ready for use by December 2024, with plans to develop more international routes to take advantage of the underutilized International Terminal.

NAIA Military Airport Commander, Air Force Group Captain Abbas Hashim, thanked the MD/CE for convening the meeting and called for more regular meetings and better cooperation between the agencies and FAAN.