The following warnings occurred:
Warning [2] Undefined array key "avatartype" - Line: 783 - File: global.php PHP 8.0.30 (Linux)
File Line Function
/global.php 783 errorHandler->error
/showthread.php 26 require_once
Warning [2] Undefined array key "avatartype" - Line: 783 - File: global.php PHP 8.0.30 (Linux)
File Line Function
/global.php 783 errorHandler->error
/showthread.php 26 require_once
Warning [2] Undefined variable $awaitingusers - Line: 16 - File: global.php(844) : eval()'d code PHP 8.0.30 (Linux)
File Line Function
/global.php(844) : eval()'d code 16 errorHandler->error
/global.php 844 eval
/showthread.php 26 require_once
Warning [2] Undefined array key "mybb" - Line: 1952 - File: inc/functions.php PHP 8.0.30 (Linux)
File Line Function
/inc/functions.php 1952 errorHandler->error
/inc/functions_indicators.php 41 my_set_array_cookie
/showthread.php 629 mark_thread_read
Warning [2] Undefined property: MyLanguage::$ratings_update_error - Line: 5 - File: showthread.php(732) : eval()'d code PHP 8.0.30 (Linux)
File Line Function
/showthread.php(732) : eval()'d code 5 errorHandler->error
/showthread.php 732 eval
Warning [2] Undefined array key "additionalgroups" - Line: 7162 - File: inc/functions.php PHP 8.0.30 (Linux)
File Line Function
/inc/functions.php 7162 errorHandler->error
/inc/functions_user.php 844 is_member
/inc/functions_post.php 406 purgespammer_show
/showthread.php 1070 build_postbit
Warning [2] Undefined array key "profilefield" - Line: 6 - File: inc/functions_post.php(474) : eval()'d code PHP 8.0.30 (Linux)
File Line Function
/inc/functions_post.php(474) : eval()'d code 6 errorHandler->error
/inc/functions_post.php 474 eval
/showthread.php 1070 build_postbit
Warning [2] Undefined array key "showimages" - Line: 741 - File: inc/functions_post.php PHP 8.0.30 (Linux)
File Line Function
/inc/functions_post.php 741 errorHandler->error
/showthread.php 1070 build_postbit
Warning [2] Undefined array key "showvideos" - Line: 746 - File: inc/functions_post.php PHP 8.0.30 (Linux)
File Line Function
/inc/functions_post.php 746 errorHandler->error
/showthread.php 1070 build_postbit
Warning [2] Undefined array key "threadprefix" - Line: 4 - File: showthread.php(1168) : eval()'d code PHP 8.0.30 (Linux)
File Line Function
/showthread.php(1168) : eval()'d code 4 errorHandler->error
/showthread.php 1168 eval
Warning [2] Undefined array key "threadprefix" - Line: 4 - File: showthread.php(1168) : eval()'d code PHP 8.0.30 (Linux)
File Line Function
/showthread.php(1168) : eval()'d code 4 errorHandler->error
/showthread.php 1168 eval
Warning [2] Undefined array key "threadprefix" - Line: 4 - File: showthread.php(1168) : eval()'d code PHP 8.0.30 (Linux)
File Line Function
/showthread.php(1168) : eval()'d code 4 errorHandler->error
/showthread.php 1168 eval
Warning [2] Undefined array key "threadprefix" - Line: 4 - File: showthread.php(1168) : eval()'d code PHP 8.0.30 (Linux)
File Line Function
/showthread.php(1168) : eval()'d code 4 errorHandler->error
/showthread.php 1168 eval
Warning [2] Undefined array key "threadprefix" - Line: 4 - File: showthread.php(1168) : eval()'d code PHP 8.0.30 (Linux)
File Line Function
/showthread.php(1168) : eval()'d code 4 errorHandler->error
/showthread.php 1168 eval
Warning [2] Undefined array key "threadprefix" - Line: 4 - File: showthread.php(1168) : eval()'d code PHP 8.0.30 (Linux)
File Line Function
/showthread.php(1168) : eval()'d code 4 errorHandler->error
/showthread.php 1168 eval
Warning [2] Undefined array key "threadprefix" - Line: 4 - File: showthread.php(1168) : eval()'d code PHP 8.0.30 (Linux)
File Line Function
/showthread.php(1168) : eval()'d code 4 errorHandler->error
/showthread.php 1168 eval
Warning [2] Undefined array key "threadprefix" - Line: 4 - File: showthread.php(1168) : eval()'d code PHP 8.0.30 (Linux)
File Line Function
/showthread.php(1168) : eval()'d code 4 errorHandler->error
/showthread.php 1168 eval
Warning [2] Undefined array key "invisible" - Line: 1506 - File: showthread.php PHP 8.0.30 (Linux)
File Line Function
/showthread.php 1506 errorHandler->error
Warning [2] Undefined variable $threadnotesbox - Line: 30 - File: showthread.php(1533) : eval()'d code PHP 8.0.30 (Linux)
File Line Function
/showthread.php(1533) : eval()'d code 30 errorHandler->error
/showthread.php 1533 eval
Warning [2] Undefined variable $addremovesubscription - Line: 79 - File: showthread.php(1533) : eval()'d code PHP 8.0.30 (Linux)
File Line Function
/showthread.php(1533) : eval()'d code 79 errorHandler->error
/showthread.php 1533 eval
Warning [2] Undefined variable $forumjump - Line: 86 - File: showthread.php(1533) : eval()'d code PHP 8.0.30 (Linux)
File Line Function
/showthread.php(1533) : eval()'d code 86 errorHandler->error
/showthread.php 1533 eval



Guest Join UsHey Guest,
Welcome, Join our awesome community where you can discuss on various topics :-
Some point about your community
Some point about your community
Some point about your community
Some point about your community
Some point about your community
Some point about your community
Some point about your community
Much More.. or Create an Account


{myadvertisements[zone_1]}
Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
Driving recovery pills for the aviation industry
#1
Driving recovery pills for the aviation industry
August 13, 2020


[/url][Image: Aviation-468x375.png]
[url=https://thenationonlineng.net/wp-content/uploads/2020/08/Aviation.png]





A month after domestic flights resumed operations, statistics on passenger traffic continues to plummet, fueling symptoms of collapse for airlines. But, there are more headaches for carriers struggling to navigate around increasing cost of operations for aircraft, the threat of shutdown by pilots and engineers, fluctuations in the exchange rate and multiple aeronautical charges. KELVIN OSA-OKUNBOR writes that timely injection of bailout packages promised by the government will get airlines out of the woods.

 

THESE are not the best of times for operators in the aviation sector as combined factors of COVID -19-induced fear of flying and rising cost of operations continue to threaten the sustainability of air transport business.

Statistics from regulatory agencies indicate a steady decline in passenger traffic on routes operated by scheduled carriers since domestic flights resumed operations on July 8, 2020.

Though the government staggered the reopening of airports to make way for phase implementation of new travel protocols, commercial activities at airports are yet to attain a peak.

To put it simply, domestic carriers are in dire straits in an industry where the bust and boom circle of airlines is becoming an interesting study for airline economists.

Aviation analysts adduce poor turn out of passengers to the low disposable income of Nigerians yet to recover from the throes of hardship triggered by the lingering pandemic.

Airlines, whose major business is to ferry passengers from point to point are the major hit in the dip in load factor as they are forced to deplore aircraft on major routes without a corresponding number of passenger on board.

But, the problem of indigenous carriers is beyond low passenger traffic as they continue to navigate rising costs of operations, including multiple charges by aviation agencies.

Besides the Passenger Service Charge (PSC), which was recently increased from N1, 000 to N2, 000 by the Federal Airports Authority of Nigeria (FAAN), airlines are now paying more for Jet A1, otherwise known as aviation fuel.

Besides PSC, airlines in Nigeria are buffeted with multiple charges including, ground rent, en-route navigational charges, terminal charges, ticket sales charge, apron levies, fuel surcharge, Value Added Tax (VAT) on tickets sold and other charges.

These multiple charges, operators say, constitute a clog to the wheel of progress of many carriers which, within 10 years of set up roll this aircraft to the graveyard.


Experts say indigenous carriers may be in for tougher times unless the government comes to their rescue by implementing the bailout package it promised during the outbreak of COVID -19 as a stimulus package to airlines already tottering on the brink of collapse.

Signs of early recovery for the carriers do not appear underway as regulatory statistics indicate further dip in passenger traffic.

The development, a source at the Nigerian Civil Aviation Authority (NCAA) hinted has prompted airlines to scale down the operators to cut losses.

Investigations by The Nation indicated that since July when domestic flights resumed operations, airlines have reduced operational capacity to 20 per cent of their capacity as against over 120 daily flights by leading carriers pre- COVID -19 era.

A source close to Air Peace said the carrier has reduced its flights from 120 daily to just 20 flights on account of the sharp drop in passenger traffic on its major routes.

Other carriers, including AeroContractors and Arik Air, it was learnt, have also reduced their flights to cut losses.

Aviation analyst and Chief Executive Officer of Aglow Aviation, Mr. Tayo Ojuri attributed dip in passenger traffic to non-opening of international flights.

He said the sector could rebound when international flights resume soon, with possibility to contribute over 30 per cent feed into domestic traffic.

In the interim, he said the government should assist airlines to keep their operations afloat because airlines play a major role in the national economy as catalysts for movement of persons, goods and services.

Promises of stimulus package

In the wake of airports closure in March 2020, Minister of Aviation, Hadi Sirika said the government had packaged a stimulus plan to save indigenous carriers from collapse.

The windfall, according to the minister, was not going to be the direct release of cash but other interventions that will assist airlines to cushion the losses they incurred in the period there were no flights.

The promise by the government to indigenous carriers, Sirika said, was some form of intervention to cushion the devastating effects of the COVID -19 pandemic. The assistance, he said, was consistent with global practices to save a critical sector from imminent collapse.

But, a few months after the declaration nothing has happened.

 Other interventions

Investigations by The Nation revealed that besides the declaration by Sirika, the government had designed a bailout package of N27 billion for the restart of flights, which, till date, is yet to be implemented.

The N27 billion packages, it was learnt, was intended as a cushion for payroll grant to support airlines, aviation ground handlers, caterers, provision of single digit interest loans with a long-term repayment plan, deferred payment of taxes and filing dates.

A source hinted that the proposed intervention by the government was also pushing to ensure the removal of Value Added Tax from airline tickets, provision of COVID -19 tests for passengers and crew, waiver of airport rent fees to airport operators.

 Experts’ view on package

Though nothing is considered too much to get the aviation industry out of the woods, President, Aviation Safety Round Table Initiative (ASRTI) Gbenga Olowo described the grant proposed by the government as paltry.

He said it would do little to address the losses incurred by airlines and other players in the sector.

Olowo, nevertheless, said Nigerian aviation industry need timely intervention as governments of other countries have done to assist their air transport sector from the challenges thrown up by the COVID-19.

He advised government to consider airlines as a priority in the identified projects the intervention was meant to address.


[Image: start-load?deviceType=mobile]

Executive Chairman Airline Operators of Nigeria (AON), Captain Nogie Meggison said there was no better time to assist indigenous carriers than now.

The boss of the umbrella body of indigenous carriers urged the Federal Government to intensify action on the implementation of a stimulus package for the beleaguered sector.

Meggison said such stimulus grant or palliatives to domestic carriers as cushioning measure post-COVID -19 should be channelled through the Central Bank of Nigeria (CBN) to ameliorate the pangs airlines were experiencing.

He said: “We call on the Central Bank of Nigeria to implement the one year moratorium on principal repayments of intervention loans it plans to give out to airlines. The bank should also reduce the interest rate from nine per cent to five per cent for one year and create an N50 billion target facility to cushion the impact of the virus on airline business post-COVID-19.

“We insist that without government offering stimulus package and incentives to domestic carriers mitigating the impact of the pandemic on our operations and the business would not have achieved much effect.

“It will not be out of place for government to include deliberate sourcing of loans, grants, tax waivers, special foreign exchange windows and rates, reduction of airport taxes or surcharge for airlines.

“We would appreciate the government if it could consider other options, including approving corporate loans through the Central Bank of Nigeria and waiver of some of the charges to guarantee the survival of airlines and avoid over 100,000 direct job losses post-COVID-19.”


Continuing, Meggison said: “What we are asking for is not unprecedented. For instance, in the United States of America, airlines are seeking a $50 billion bailout. As part of its response, an Emergency Stimulus Package Bill was passed by the US Senate and House of Representatives which reduced interest rates to 0.25 per cent. Also, the bill granted their airlines tax credit for their losses during the pandemic.

“Our government can do the same by granting the above-stated reliefs to Nigerian airlines as a way of assisting them to recover from their losses during this very difficult time.

“We are aware that Russia, the United States, Canada, Britain and other countries have come up with one support or another for their airlines and Nigeria will not be at default, if it looks at options of supporting the industry.

Also, Chief Executive Officer (CEO) Belujane Konzults, Mr Chris Aligbe, said the government should cushion the severe effects of COVID-19 on the aviation sector.

Aligbe canvassed a loan of less than five per cent paid over 15-20 years for airlines.

Gale of a sack of pilots, engineers

As operators wait for action from government to inject the stimulus package, matters are getting to a head forcing airline owners to erase jobs.

Three carriers: Air Peace, Bristow Helicopters and AZMAN Air eased out over 170 pilots from their organisations.

Air Peace sacked over 69 pilots in a move calculated to put the carrier on the path of sustainability.

Citing reasons for the right sizing, Air Peace said it took the painful, but rightful decision in the circumstances the airline has found itself as a result of the devastating effects of the COVID-19 pandemic on its operations and financial health.

Industry analysts, however, described as normal the erasure of jobs in airlines, saying global carriers were embarking on the steps to save their organisations from the collapse in the face of zero-revenue propelled by COVID -19 restrictions on flights.

A pilot, Captain Idris Yuba said there was nothing unusual about airlines asking professionals to step aside to keep the business afloat.

He said:” As at today, all the airlines, including Air Peace, considered to be the biggest in Nigeria are struggling in the face of traveller apathy.

“The carriers are seriously hit after they resumed flights in July because of COVID-19 induced challenges not limited spike in operating costs which continues to increase for aviation fuel, aircraft lease rentals, aircraft maintenance, fluctuating exchange rate, insurance premiums and other obligations to aviation agencies, caterers, feelers, banks and many others.

“Imagine, an airline such as Air Peace with over 120 flights then has come down to about 20. Yet it has a workforce of over 3, 000 and multiple taxes that are not easing out. The airlines are all closer to the brink than when they started.

“Sadly, airline owners are grappling with industrial relations issues such as the insensitivity of aviation workers, especially the pilots and engineers who pose a grave challenge to the survival of the airlines.

“While many of their counterparts worldwide were getting laid off, local pilots are insisting on regular pay despite the obvious. This sheer irresponsibility pilots and aircraft engineers union and recent threats to shut down the entire industry is sickening. If all carriers shut down, without help from the government, how do Nigerians move around?”

Threat of industry shutdown

Meanwhile, National Association of Aircraft Pilots ad Engineers (NAAPE) last week threatened to ground the operations of airlines because of the sack of pilots and engineers by three carriers, namely Air Peace, AZMAN Air and Bristow Helicopters.

The body urged the airlines to reverse the sack of its members as failure to do that will lead to the withdrawal of services across airlines.

Its President, Abednego Galadima said the association has been pushed to the wall with the unilateral decision by the airlines to sack pilots under the pretence of the COVID-19 pandemic.

 

 

 
Reply
{myadvertisements[zone_3]}


Possibly Related Threads...
Thread Author Replies Views Last Post
  Pension industry fund assets rise to N12.29tr Edoman 1 1,436 11-15-2021, 06:07 AM
Last Post: JoshuaAlison
  Aviation sector quakes under huge debts Edoman 0 797 11-26-2020, 01:52 PM
Last Post: Edoman
  Aviation sector quakes under huge debts Edoman 0 813 11-23-2020, 08:54 AM
Last Post: Edoman
  Aviation unions lock out Minister Edoman 0 696 10-16-2020, 01:45 PM
Last Post: Edoman
  Shipping industry to expand digital transformation with $38.4 billion investment Edoman 1 1,498 10-05-2020, 08:53 AM
Last Post: iqbal12
  International Flights Resume On 29th August 2020 -Hadi Sirika, Aviation Minister Edoman 1 897 08-17-2020, 09:43 PM
Last Post: Edoman
  CBN approves N50b revival fund for Textile Industry Edoman 0 835 07-22-2020, 12:18 PM
Last Post: Edoman
  International Flights may resume before October – Minister of Aviation, Hadi Sirika s Edoman 0 778 07-21-2020, 06:14 PM
Last Post: Edoman



Users browsing this thread: 1 Guest(s)

{myadvertisements[zone_2]}

About contripeople

Contripeople forum description.

              Quick Links

              User Links

              Advertise