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FX crisis: Airlines moan as fleet depletion worsens

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Fresh indications have emerged revealing that some domestic airlines’ operators may close up shop due to inability to access forex required to either return or take their aircraft outside the country for checks.

It was learnt that the country’s 12 scheduled airlines with different range of airplanes from Boeing 737 series, Airbus A320-300, A220-300, ATR, Embraer CRJ, Embraer E2, Embraer ERJ-145, Dash 8 to MD 83, among others, had suffered severe fleet depletion, leading to reduction in capacity.

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It was also gathered that the instability in exchange rate was affecting the cost of aircraft spare parts, forcing operators to constantly adjust airfares.

Stuck aircraft

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A senior member of Airline Operators of Nigeria, AON, and the Chief Executive Officer of Top Brass Aviation Limited, Captain Roland Iyayi, lamented the paucity of rex, calling for an urgent fix.

He said: “I know of a domestic carrier that has as many as 13 aircraft stuck at various maintenance facilities worldwide. The same operator, in the course of putting in bid for forex, has domiciled with the Central Bank of Nigeria, CBN, $14 million worth of naira. A year and half on, he is yet to receive the dollars.

“They have a situation where, because of this paucity or unavailability of forex, they are stuck with having about 30 per cent of their operational fleet stuck with maintenance facilities worldwide.

‘’That has depleted their fleet availability and schedule reliability. So, when you hear a lot of domestic airlines cancelling and delaying, it is not completely unconnected with the fact that they have not had FX available to be able to recover their airplanes to optimize operations.

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Unsustainable

“It is not sustainable. That is the reason a fleet of about 30 aircraft is now down to 21. Some airlines with about 10 airplanes are now down to four. What that translates to ultimately is an increase in fares because if there is no capacity and demand is higher, fares will increase. The lack of forex is a major factor in how domestic airlines fare.

“Right now, I think government should declare a state of emergency in aviation. If we continue at this rate, the fleet size of the domestic market may be reduced to as low as between 35 and 50 per cent within the next three months, meaning airfares will increase.”

Instability

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Also speaking to Vanguard, the Managing Director of Aero Contractors, Captain Ado Sanusi, said: “There is no part of the aircraft that is manufactured in Nigeria. So, whenever there is a rollercoaster of exchange rate, it translates directly to the price of spare parts being bought. ‘’That is what has translated to the number of aircraft we currently have in the country. The aircraft that are down for maintenance is a direct relationship to the exchange rate.

“If the foreign exchange could be stable, the airlines will adjust their tickets to reflect the foreign exchange. The problem lies in the rollercoaster of foreign exchange. And that is where airlines experience challenges to remain in business.

‘’However, when there is long-term stability in the FX market and the margin between the naira and dollar is not so wide, then one can plan.

Fiscal policy

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“Thank God the fiscal policy of current government is showing that we will probably have it stable between N1,400 and N1,500. If it remains, then I believe airlines can now adjust their tickets prices to reflect the exchange rate that would give them a good picture to plan ahead and make a good budget.”

VANGUARD

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Just in: Gov Soludo reveals those behind kidnapping in SE, says it’s now a lucrative biz

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… better than oil and drug peddling

Governor Charles Soludo of Anambra State on Saturday disclosed that arrested Finland-based self-acclaimed Biafra agitator, Simon Ekpa “has continued kidnapping for ransom.

Soludo said kidnapping is currently a business that is more lucrative than drugs and oil.

The governor who spoke in Awka, the state capital, said before he became governor, eight local government areas in the state were being controlled by gunmen.

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Soludo also recalled how his father was kidnapped in 2009.

 

He said: “Kidnapping is not new, my father had been kidnapped as far back as 2009. GU Okeke, Pokobros and many others have fallen victim too.

 

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“Before I assumed office, about eight local government areas were being controlled by gunmen.

“They killed policemen and collected guns, attacked and burnt down police stations and went into the bush to label themselves liberators.

We came in and went to work and cleared them and we recovered the eight local government areas that were under siege. These gangs claim to be Biafra freedom fighters. IPOB has dissociated themselves from it, but one Simon Ekpa has continued kidnapping for ransom.

 

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“Kidnapping for ransom is now the most lucrative enterprise, even more lucrative than drugs and oil. For every one naira reported as payment for ransom, five to six naira was not reported.

 

“With a culture that celebrates wealth without craft, even the kidnappers amongst us are now celebrated. Idolatry which these criminals have converted to have become the fastest growing religion in the South-East. Nothing is sacred to them anymore.”

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Just in: Obi angry over exorbitant charges by POS operators despite hardship

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Ex-governor of Anambra State and presidential candidate of the Labour Party, LP, in the 2023 general election, Mr Peter Obi has protested the level of hardship faced by the poor in Nigeria.

The former governor spoke during a visit to the Archbishop Province on the Niger and Bishop of Awka Diocese of Church of Nigeria Anglican Communion, His Grace Alexander Ibezim.

He said: “The hardship in Nigeria is too much, how can the ordinary people survive. The woman who sells pepper by the road side has to pay huge charges to get her own money. How much is her profit margin and how much will remain after paying charges?

“No country is run like that. Don’t bother to interview me on that, I will write officially to the President on this and state all these things.

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“These (POS Charges) is too much, no country is run like this,” Obi told journalists who approached him to speak on the matter.

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Oborevwori expresses sadness over Edna Ibru’s passage

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Delta State Governor, Hon. Sheriff Oborevwori, has commiserated with the Ibru family of Agbarha-Otor in Ughelli North Local Government Area of the State on the death of their wife and mother, Mrs. Edna Ibru.

Mrs Ibru, who reportedly died after a brief illness, was the wife of late Olorogun Senator Felix Ovuodoroye Ibru, first Executive Governor of Delta State.

A former Miss Nigeria, Mrs Ibru in 1964, died in London after a brief illness on Wednesday.

In a statement by the Chief Press Secretary to the Governor, Sir Festus Ahon, the governor described the demise of Mrs Ibru as sad and painful, adding that she was a loving wife and mother who supported her husband and family in all his noble endeavours.

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He said, “On behalf of the government and people of Delta, I mourn the passing of a great woman of substance, a caring mother and loving wife, Mrs Edna Ibru.

“The news of her death came to me as a shock, especially now that the family members needed her motherly and wise counsel.

“She was a woman of faith who devoted her time in supporting her husband’s political career which culminated in his election as the first Executive Governor of Delta State.”

Oborevwori prayed to God to accept the soul of the deceased and grant fortitude to the family and friends she left to bear the loss.

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