Connect with us

Aviation

Who Will Liberate Air Travelers From the Grip of Nigerian Airline Operators?

Published

on

On 26th May 2023, at the twilight of President Mohammadu Buhari’s government, the core investor, Ethiopian Air, and the other investors (Federal Government inclusive) in the national carrier, Nigeria Air
unveiled the model aircraft for Nigeria,

The aircraft was an Ethiopian Air aircraft a Boeing 737-800 with registration number ET – APL. This unveiling generated a frenzy across the country based on hugely distorted stories that made the round to give the airline and the then Minister Sen. Hadi Sirika a bad name just to kill the airline, which would no doubt be a liberator of local and international Nigerian air travelers.

Justification for a National Carrier

The national carrier will reduce annual capital flight from Nigeria to the tune of hundreds of millions of dollars by carrying a chunk of the over two million international passengers; Floating a National Carrier will enable Nigeria to gain optimal benefits from the BASA Agreements; improve national image and prestige; National Carrier will be carried out using PPP concept; and the National carrier will be expected to form alliance and/or Joint Venture with other airlines to increase reach and number of routes (code-share flights).

Also, the National Carrier may introduce competition leading to fare drop and better services; it will also generate employment for Nigerians; it will have a multiplier effect on the economy through the establishment of support services such as tourism and hospitality services and the national carrier is essential for the development of a hub.

The Gang Up Against Nigeria Air

Some of the distorted stories on Nigeria Air and Sirika led by the Airlines Operators of Nigeria (AON) included that; the FG launched the airline for scheduled operations even when the Air Operators Certificate (AOC) had not been issued by the regulator, the Nigerian Civil Aviation Authority (NCAA). They also claimed the process leading to Ethiopian Air emerging as the core investor was shrouded in secrecy and that ET was handed 49 percent majority equity for free as they wouldn’t be making any financial commitments.

This is even when Sen. Sirika had clarified that Nigeria Air had been previously unveiled but hasn’t been launched for flight operations.

He also clarified that the business had a total of $250 million in initial investments from all partners. Out of this ET should pay about $125.5 million being 49 percent equity in the deal after the shareholders’ agreement is signed. Every other investor will pay its equity value. It is only the 5 percent of government equity that will be in kind for rentals, and services. Don’t forget the FG has been spending money on the project thus after computation, if it is above 5 percent, they get a refund, if it is less, the FG will upscale its services to 5 percent, the ex-minister clarified recently.

They also accused Hadi Sirika to have squandered N85 billion on Nigeria Air thus, should be invested for alleged corruption, an accusation that turned out to be completely false as the ex-minister public said less than N3 billion was approved for Nigeria Air in seven years and not all the funds had been expended.

Prof. Obiora Okonkwo, the Spokesman, for AON had claimed in a statement that “As indigenous operators, we are happy and grateful to the NCAA for saving us from this punishment by resisting the pressure from Minister Hadi Sirika to grant an AOC to Nigeria Air without going through the due process.”

However, the Ex-Minister had told Nigerians and indeed the global aviation community during the stakeholders’ meeting on March 23rd, 2023, and at the May 26th model aircraft unveiling event that the regulatory process to obtain an AOC for Nigeria Air was still being followed strictly and the NCAA wasn’t on any pressure to circumvent the rules. That much the NCAA had confirmed at all the stakeholders’ meetings.

The AON had also claimed that the Ministerial Committee on the Establishment of a National Carrier recommended the establishment of a National Carrier that is private sector-driven with minimum government involvement. As soon as that recommendation was jettisoned every other thing about Nigeria Air was engulfed in secrecy. ICRC in a recent regulatory report debunked that claim.

Sirika also told Arise TV that the procurement was advertised in Nigerian papers and the Economist of London. There was a bidders’ conference and the members of AON participated. Air Peace participated. The regulators were there. Everything was hosted on the websites of both the Federal Ministry of Aviation and the ICRC. ET won the bidding, so where is the secrecy? Hadi asked. We had eight stakeholders’ conferences where Nigeria Air was discussed. AON members were present and some even made presentations during the stakeholders’ conferences.

“The ICRC provided the required guidance for the implementation of the project in line with the requirements of the ICRC Establishment Act 2005 and the National Policy on PPPs. Following the guidance provided,” it said.

The ICRC said after 10 weeks of advertisement, only the Ethiopian Airlines consortium submitted a bid and that the project proceeded to the negotiation stage, based on Section 5 (a) of the ICRC Establishment Act 2005.

The section states that if after advertisement in accordance with Section 4 of this Act only one contractor or project proponent applied or submits a bid or proposal, or only one contractor or project proponent meets the prequalification requirements, the ministry, agency, corporation, body may undertake direct negotiation without competitive bidding for any contract to be entered into, pursuant to Section 1 of the Act.

It continued, “The consortium was thereafter requested to meet and resolve all their issues and present a common position for the purpose of negotiations and executing the PPP agreement with the government. They were unable to resolve their issues and sign the shareholder’s agreement as requested.

Ethiopian Airline has 49 percent; MRS Oil and Gas Limited, 15 percent; SAHCO, 15 percent; Federal Government, five percent while 16 percent had yet to be allotted

Recall that AON had gone to court seeking to stop the floating of the airline citing unfair competition and that ET will shortchange Nigeria.

Sirika however revealed that the prior discussions on the structure was that all the crew, pilots, engineers, and cabin crew must be Nigerians once they are competent. On the management of the airline, it is the shareholders that will be decided who gets what. But the company will be operated within the law.

On AON’s claim that ET will be handed 15 years tax holidays for Nigeria Air, the ex-Minister had told Arise T V that it has been rescinded. It will operate and enjoy the same tax parameters as local airlines.

We have supported local airlines. 50 percent of local airlines came on board during our tenure. We have removed some taxes like customs duties and VAT on aircraft and spares. We have given them a bailout and more, this is unprecedented.

Industry analysts have hailed the choice of Ethiopian Airlines as the core investor because of their competence and capacity.

They said with the national carrier, the local airfare will reduce significantly as there will be effective competition with the local carriers who have held passengers, hostage.

“Ethiopians are masters of the game. They have been in business for over 77 years. They also posted profit during COVID when most airlines posted losses. In 2022 they posted a profit of $1bn. Once the AOC is ready, they will hit the ground running” Mr. David Akwu, an Economics analyst reechoed what the ex-minister had consistently said.

He also the gang up by some local airlines shows they don’t want to innovate and run their business in a cost-efficient and profitable manner.

“The Nigerian airlines need to retool their business model, finances, and corporate governance. Corporate governance in Nigerian airlines is zero hence the high mortality rate of local airlines” he stated.

(economyfootprints)

Continue Reading

Aviation

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

Published

on

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.

 

Continue Reading

Aviation

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

Published

on

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)

Continue Reading

Aviation

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

Published

on

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.

Continue Reading

Archives

Categories

Meta

Advertisement
Advertisement
Advertisement

Trending