News

FX crisis: Airlines moan as fleet depletion worsens

Published

3 months ago

June 17, 2024

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.

May 29 Tinubu Special: One year of teetering on edge of hope
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

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.

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

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

“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

News

Ecoparl: Speaker Ibrahima Reaffirms Parliament’s Dedication to Regional Unity

Published

5 hours ago

September 18, 2024

Gloria Ikibah

By Gloria Ikibah

The Speaker of the Economic Community of West African States (ECOWAS) Parliament, Rt. Honourable Memounatou Ibrahima, restated that the parliament remains committed to ensuring the unity and integration of the people within the subregion.

According to Speaker Ibrahima, the Parliament will continue to use parliamentary diplomacy to engage countries that are considering leaving the bloc due to political challenges, such as Burkina Faso, Mali, and Niger, as a result of military coups they experienced.

The Speaker stated this when she led a delegation of the ECOWAS Parliament on a working visit to the President of the Nigerian Senate, Senator Godswill Akpabio, on Wednesday in Abuja.

She highlighted that while countries may break formal cooperation, the people of the region remain interconnected, adding that the Parliament, as representatives of these people, will work to maintain the unity.

Ibrahima expressed gratitude to the Nigerian Senate for supporting ECOWAS by providing necessary facilities for their plenary sessions, even as she discussed the socio-political challenges facing the region, as well as how parliamentarians can contribute more to address these issues.

She said: “We strengthen parliamentary diplomacy, because we know that the countries might break cooperation but we cannot separate the population. The population always live together and we as representatives of the people, we are doing our best so that this living together will continue to be reality and even made better.

“We came to thank him for all the facilities that the senate has been providing to the ECOWAS Parliament to facilitate the holding of our sessions here in Abuja. We also discussed on the socio-political situation in the community. We also discussed on the ways parliamentarians can make more contributions on the various issues and the challenges that we are experiencing in ECOWAS”.

The President of the Senate,

Senator Akpabio, who was represented by his Deputy, Senator Barau Jubril, commended Ibrahima’s leadership and her efforts in using parliamentary diplomacy to foster cooperation within ECOWAS, especially in light of the challenges posed by countries considering an exit from the bloc.

He noted that since Speaker Meimounatou assumed office, she has deployed enormous parliamentary diplomacy to bear not only on the level of cooperation with institutions in the region but also on those that have expressed the wish to quit the regional block.

Naijablitznews.com reports that Senator Jubril is the First Deputy Speaker of the ECOWAS Parliament.

He said: “Since she was elected the Speaker of the ECOWAS Parliament, she has been up and doing in terms of giving leadership to the parliament. It is in that regard that she is here trying to chart a better course for the parliament to make sure that she brings parliamentary diplomacy to bear in terms of our cooperation not only with those who are within the community as we speak but also even those who are attempting to leave the community.

“It is in that respect that she is here, and what she is doing is commendable. She has come to strengthen her idea and initiative of making the parliament stronger and more effective”.

News

Air Force Begins Moving Electoral Materials For Edo Guber Election

Published

7 hours ago

September 18, 2024

Kayode Sanni-Arewa

By Kayode Sanni-Arewa

The Nigerian Air Force (NAF) has began airlifting the sensitive election materials for the Independent National Electoral Commission (INEC) to Benin, Edo State, ahead of the upcoming governorship election scheduled for September 21, 2024.

This was disclosed on Wednesday by the Deputy Director, Public Relations and Information, Group Captain Kabiru Ali.

The operation is part of the NAF’s efforts to ensure the timely and secure delivery of materials necessary for a smooth electoral process.

This development reinforces the collaboration between NAF and INEC to facilitate logistics and ensure a peaceful election in Edo State.

The Chief of the Air Staff, Air Marshal Hasan Bala Abubakar, had previously reiterated NAF’s commitment to providing airlift support for the swift movement of electoral materials during a meeting with INEC Chairman, Professor Mahmood Yakubu.

This airlift operation is a crucial aspect of NAF’s constitutional responsibility to provide Military Aid to Civil Authority, underscoring the force’s dedication to supporting democratic processes in Nigeria. With the election just days away, the NAF’s timely intervention will help ensure the successful conduct of the governorship elections in Edo State.

Governor Godwin Obaseki of Edo State had earlier accused the Inspector General of Police, Kayode Egbetokun, of working with the All Progressives Congress (APC) to hunt the Peoples Democratic Party (PDP) members and supporters in the state and force them into hiding ahead of September 21 governorship election.

Obaseki, who made the allegation when a delegation led by the former Head of State, Abdusalam Abubakar, met with him to get the governor and his party to sign peace accord, said that the IGP had made nonsense of his (Obaseki’s) role as the chief security officer of the state.

The governor had said that the police chief obtained a warrant to arrest 60 members and supporters of PDP in Edo and that the IGP sent an armed “gang” of policemen who invaded the state, attacked PDP members, shot at a local government chairman and arrested 10 persons who are currently being detained in Abuja without charges.

Asked by the former head of state if his party would sign the peace accord, Obaseki said, “The person who is supposed to enforce the peace accord is now an active participant in creating a destructive environment.

“We are now in a situation where from the Inspector General’s office, there are armed gang policemen who came into Edo State, invaded, arrested and took away PDP members.

News

“Dancing gives me abundant joy and peace of mind”-Gov Adeleke

Published

7 hours ago

September 18, 2024

Kayode Sanni-Arewa

By Kayode Sanni-Arewa

The Governor of Osun State, Ademola Adeleke, has given reasons why he loves dancing.

The ‘Dancing Governor’, as he is fondly called, revealed this on Wednesday while responding to a tweet on X.

An X user, @Iwogoke, while praising the governor, stated that Adeleke has been busy fulfilling his electoral promises to the people of Osun State, while his political opponents believe he is only good at dancing.

Iwogoke tweeted, “I’m not flattering you, Your Excellency, your opponents think you can only dance but while they are busy shouting and calling you ‘Dancing Governor’, you are busy fulfilling your electoral promises to the people.”

Responding to the tweet via his verified X account, Adeleke explained that he loves dancing because it brings him joy.

Speaking further on his love for dancing, Adeleke highlighted that while dancing brings him immense happiness, his greater fulfilment comes from delivering the dividends of democracy to the people of Osun.

Outlining his administration’s efforts to enhance the state’s infrastructure, he noted that primary health centre rehabilitation is underway in at least 200 out of the 332 wards across Osun State, adding that road construction projects are also progressing in every local government area.

He wrote, “Dancing gives me joy, but delivering on my electoral promises and providing the dividends of democracy to the good people of Osun gives me even greater joy. Rehabilitation of primary health centers is ongoing in at least 200 out of 332 wards, and road construction is progressing in every Local Government!”