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Nigerian Airlines deny fixing base fares and lament a $60 million loss due to bird strikes and flight cancellations

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By Derrick Bangura

The Airline Operators of Nigeria (AON) has denied establishing the base rate for economy airline tickets at N50,000 after passengers claimed that the sudden increase in fares suggested collusion on the part of the association.

The operators also claimed that by 2021, they will have lost $60 million (N24 billion) due to bird strikes alone. The funds were utilized to replace their aircraft engines, which had been wrecked by a bird hit.
In addition, they said canceled flights due to lack of night landing facilities at some airports, known as sunset airports, cost them over N20 billion in 2021.

However, indications showed that air travelers have started shunning the airports as airlines have been recording low passenger traffic due to high fares.

Speaking during a media conference, in Lagos, on Wednesday, the Vice President of AON and Chairman/CEO of Air Peace, Allen Onyema said the N50, 000 ticket price had always been in the airlines’ systems in the last five years, adding that airlines only adjust ticket cost based on their operational costs.

Onyema said what the airlines did was to work out the unit cost per seat, which he said determined their basic ticket price.

Onyema who was representing the President of AON pointed out that the cost of aviation fuel was increased by over 200 percent, with over 100 percent depreciation in the exchange rate in the last two years, while ground handling companies had increased their rates by over 300 percent, yet the cost of air ticket remained below $100.

“People have asked us how we maintain our planes with the fares we charge. In as much as we are rendering services, our business must be sustained. The repair of just one aircraft engine can take everything an airline makes in one month. The airline business is not profitable,” Onyema added.

He said that no airline loves to delay flights but factors beyond the airlines’ control cause flight delays.

Some of the causes of flight delays he mentioned included bird strikes, airport apron congestion, lack of space for check-in of passengers, poor airport infrastructure, air traffic flow control, bad weather, and unruly behavior of passengers.

Onyema said that bird strike incidents in Nigeria were on the increase despite efforts by the Federal Airports of Authority of Nigeria (FAAN) to stem it, thus forcing airlines to ground aircraft that should be operating and losing huge revenue.

He, therefore, called on the concerned authorities to provide airport equipment to help reduce bird strikes in Nigeria.

The AON said it strongly objected to the multiple designations granted to foreign carriers such as Qatar Airways and Ethiopian Airlines by the federal government.

“Designating foreign airlines to multiple airports in Nigeria impede the growth of domestic airlines and the aviation sector. All foreign airlines put together do not provide 10 percent of jobs provided by the smallest airline in Nigeria.

“Multiple designations granted foreign airlines would lead to job losses and domestic airlines closing shops,” Onyema added.

Meanwhile, THISDAY investigations have confirmed a low turnout of passengers at the airports since Monday, following the hike in airfares to N50, 000.

This meant that one-way tickets would cost over N50, 000 and might increase to N80, 000 to N90, 000 per ticket.

This was confirmed by some protocol personnel who spoke to THISDAY at the domestic wing of the Lagos airport.

They revealed that the increase in fares has reduced passenger traffic at the airport.

“You have to know that the minimum ticket you can buy now is N50, 000. In the last two days, I have sold tickets as high as N85, 000; some N75, 000 and some N70, 000. But the traffic is dropping fast. I am sure that if passenger traffic continues to drop, airlines will be forced to bring down their fares,” the source who pleaded to remain anonymous said.
THISDAY met with a passenger who flew from Abuja to Lagos on Wednesday and revealed that the majority of the seats on the plane that took him there were empty.

“I was shocked that there were so many empty seats at that time of day, the first flight from Abuja.” The airlines must recognize that there is no money in this country. The middle class is the one who flies. “If they avoid plane travel, the money bags will be unable to sustain their operations,” he stated.

A spokeswoman for one of the big airlines confirmed to THISDAY that passenger traffic has decreased and that he was concerned that it would continue to decline.

Business

ACCI moves to promote business connections, balance work-life

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ACCI moves to promote business connections, balance work-life

The Abuja Chamber of Commerce and Industry (ACCI), is taking innovative steps to enhance professional relationships and promote a healthy work-life balance.

The President of ACCI, Dr Emeka Obegolu, said this in a statement on Tuesday in Abuja.

Obegolu said ACCI was committed to creating environments where professionals could connect beyond the confines of traditional boardrooms.

He said the upcoming “Business Meets Golf’’ Tournament epitomises this vision.

“Scheduled for Oct. 18 to Oct 19 at the IBB Golf Club, the tournament will gather industry leaders, top executives, and key decision-makers for a unique networking experience.

“This two-day event aims not only to strengthen business ties but also to foster partnerships that can drive economic growth.

“The ACCI’s initiative reistates the importance of maintaining a balance between professional achievement and personal well-being.

“By encouraging corporate cultures that prioritise relaxation and self-care, the Chamber acknowledges that such balance is vital for productivity and overall success,” he said.

According to Obegolu, the event will feature a range of activities designed to facilitate both business engagement and relaxation.

“Highlights include a Business-to-Business (B2B) cocktail on the first day, followed by the golf tournament and additional networking opportunities on the second day.

“The tournament will culminate in an awards ceremony recognising outstanding golfers among the participants.

“‘Business Meets Golf’ exemplifies our dedication to fostering innovative networking opportunities.

“We aim to create spaces for meaningful discussions that can lead to impactful collaborations,” Obegolu said.

The ACCI boss said in addition to promoting business connectivity, the council aimed to restate the importance of relaxation and a balanced lifestyle.

Obegolu said through events like this, the Chamber continued to play a pivotal role in supporting trade and industry in Nigeria while driving sustainable growth within the private sector.

He said to raise awareness about this landmark event, ACCI was partnering with the News Agency of Nigeria (NAN) and Media Trust Limited, to ensure broad visibility and engagement from leading brands.

The Abuja Chamber of Commerce and Industry (ACCI), is taking innovative steps to enhance professional relationships and promote a healthy work-life balance.

The President of ACCI, Dr Emeka Obegolu, said this in a statement on Tuesday in Abuja.

Obegolu said ACCI was committed to creating environments where professionals could connect beyond the confines of traditional boardrooms.

He said the upcoming “Business Meets Golf’’ Tournament epitomises this vision.

“Scheduled for Oct. 18 to Oct 19 at the IBB Golf Club, the tournament will gather industry leaders, top executives, and key decision-makers for a unique networking experience.

“This two-day event aims not only to strengthen business ties but also to foster partnerships that can drive economic growth.

“The ACCI’s initiative reistates the importance of maintaining a balance between professional achievement and personal well-being.

“By encouraging corporate cultures that prioritise relaxation and self-care, the Chamber acknowledges that such balance is vital for productivity and overall success,” he said.

According to Obegolu, the event will feature a range of activities designed to facilitate both business engagement and relaxation.

“Highlights include a Business-to-Business (B2B) cocktail on the first day, followed by the golf tournament and additional networking opportunities on the second day.

“The tournament will culminate in an awards ceremony recognising outstanding golfers among the participants.

“‘Business Meets Golf’ exemplifies our dedication to fostering innovative networking opportunities.

“We aim to create spaces for meaningful discussions that can lead to impactful collaborations,” Obegolu said.

The ACCI boss said in addition to promoting business connectivity, the council aimed to restate the importance of relaxation and a balanced lifestyle.

Obegolu said through events like this, the Chamber continued to play a pivotal role in supporting trade and industry in Nigeria while driving sustainable growth within the private sector.

He said to raise awareness about this landmark event, ACCI was partnering with the News Agency of Nigeria (NAN) and Media Trust Limited, to ensure broad visibility and engagement from leading brands.

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Nigeria Customs modernisation project to check extortion of traders

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The Trade Modernisation Project (TMP) of the Nigeria Customs Service (NCS), will check the extortion of traders by facilitating the comprehensive tracking of their goods from the beginning of the trade process until delivery.

This is through its Unified Customs Management System(UCMS), a software that would be deployed to monitor all stages of the transactions by traders.

The News Agency of Nigeria(NAN) reports that the TMP is the automation of the business processes of the NCS, to simplify and enhance the experience of stakeholders in the trade value chain.

It is also aimed at making it easy to obtain export and import clearances, and in paying duties and obtaining release of goods.

NAN further reports that the customs modernisation project, which has three phases, is a 20-year concession agreement.

It was signed on May 27, 2023, between the Federal Government of Nigeria, represented by the NCS Board, and The Trade Modernisation Project Ltd.

Chief Superintendent of Customs, Usman Abba, Head, Business Analyst for the project, told NAN in an interview on Thursday in Abuja that by using the software traders would be able to know when and where there were hitches in their transactions for redress.

Abba said the system would eliminate fraudulent intent and expose those who take advantage of clients who cannot properly track their goods with the current system to extort them.

“This is the platform where the trader has access and is able to track all the stages of transactions and know where the challenge or exactly the issue is until the goods are delivered,“ he said.

He said that the service had received numerous reports of agents attempting to extract additional funds from their clients, by falsely claiming that their goods had not been cleared by customs when the process had already been completed.

According to him, the software, which will soon be inaugurated, is designed to have information on all transactions, including payments and goods clearance, to enable the trader to act as required.

He added that other agencies were also being integrated into the system to examine goods according to their constitutional mandates

On the current stage of the development of the software, Abba said that all internal systems had been completed, and final touches were being done on stakeholder integration.

NAN reports that the TMP is targeting to generate more than 250 billion Dollars in revenue over the 20-year concession.

The project is aimed at bringing Nigeria to par with the rest of the world in the deployment of technology to facilitate international trade.

It would also assist the Federal Government in achieving economic diversification by facilitating easier cross-border trading.

(NAN)

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SMEDAN introduces business pitch competition to enhance financial literacy

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SMEDAN introduces business pitch competition to enhance financial literacy

SMEDAN introduces business pitch competition to enhance financial literacy

The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), has introduced a business pitch competition known as “SMEDAN Speed Pitch”.

The Director-General of SMEDAN, Charles Odii, in a statement, said the initiative was designed to enhance financial literacy and provide small businesses with opportunities to access funds for growth.

Odii said the participants would receive training and support to develop and clearly articulate unique business innovations, viability, and potential to unlock opportunities.

According to him, this will include private investments in the country and across the globe.

He said: “The first edition of the pitch competition will take place on May 1, at the Eko Convention Center in Lagos as part of the Nano Micro Small and Medium Enterprises (NMSME) Engagement Series.

“It will be hosted by Ms Jennifer Adighije, the Senior Special Assistant to the President on Entrepreneurship and Innovation/Digital Economy.

“This initiative is part of SMEDAN’s ‘GROW Nigerian’ strategy, which focuses on boosting local production.

“It does this by providing Small and Medium Enterprises (SMEs) with financial and non-financial resources, including markets, knowledge, mentorship, and tools, to grow sustainably and spread prosperity.’’

Odii said to participate in the first edition, businesses must be female-owned, registered, and in operation for at least three years.

He said: “Applications will open on April 24 and close on April 27.

“Shortlisted applicants will undergo a test to determine the top five performers who will get the chance to present their pitch at the main event in Lagos.

“The winner will receive a prize of one million naira for workforce support, procurement of work tools, and business expansion.

“ Runners-up will receive 300,000 and 200,000 respectively, along with free Business Development support.”

On how to apply, the Director-General urged applicants to upload a three-minute video pitch to social media.

Odii said: “Introduce yourself in the video and showcase your product/service and the problem it solves, and make a case for why you should be enlisted.

“Follow and Tag SMEDAN’s official pages (@smedaninfo, use the hashtag #SMEDANSpeedPitch), and remember that the application deadline is April 27.

“For pitch criteria, you must possess a clear vision and concept, understanding of the target audience, unique selling proposition (USP), short-term and long-term goals and utilisation of the prize (money).

“The judging criteria will include, clarity, market potential, innovation and differentiation and presentation skills.”

(NAN)

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