Air Peace Sacks Pilots to Remain in Business

Image

By Dipo Olowookere

In order to remain in business and be able to fly its numerous passengers to their various destinations, the management of Air Peace has taken a “very painful but rightful decision” to sack some of its members of staff, including pilots.

In a statement issued on Monday, the airline operator said the present global health crisis has badly affected its operations and was threatening its finances, making it unable to meet some of these obligations, including payment of salaries.

According to the firm, “The pandemic has hit every airline worldwide, so badly that it has become very impossible for airlines to remain afloat without carrying out an internal restructuring of their costs.

“Anything short of what we have done may lead to the collapse of an airline as could be seen in some places worldwide during this period.”

It therefore, stressed that, “In order to protect the continuity of the majority of the existing jobs and the possibility of creating new ones in future, the survival of the airline is of paramount importance.”

But it promised that, “When everything comes back to normal, those pilots affected today will have a place to come back to in future, if they so wish.”

In the statement, Air Peace noted that the decision to reduce its workforce “was taken for the greater good of the company and its almost 3000 workforce, the affected pilots inclusive.”

“The airline cannot afford to toe the path of being unable to continue to fulfil its financial obligations to its staff, external vendors, aviation agencies, maintenance organisations, insurance companies, banks and other creditors.

“Hence, the decision to restructure its entire operations with a view to surviving the times,” it added.

“Therefore, we decided to review the salaries being paid to all staff. The new salaries reflect a 0-40 per cent cut of the former salary depending on the salary grades of every staff.

“Even after the cuts, it was obvious that for us to be able to sustain our operations and survive the times, some jobs must inevitably have to go,” it explained.

“Our salaries have always been paid even before the end of the month in the last five years.

“So, we love all our staff. This decision is inevitable under the circumstances we find ourselves,” Air Peace said.

Share
Related Stories
Image
31-January-2024

Airline Operators, CBN Clash Over FX Backlog Settlement Claims

By Adedapo Adesanya There is a disagreement between the Central Bank of Nigeria (CBN) and foreign airline operators regarding the claims by the former that it has completed the payment of foreign exchange (FX) backlogs trapped in the country. The CBN on Tuesday said it has completed the payment of all verified forex liabilities to foreign airlines with the injection of an additional $64.44 million into the sector, noting that the total amount disbursed to the aviation sector was $136.7 million, contradicting the widely reported backlog of over $700 million the operators said is trapped in the country. A few

Image
26-January-2024

Lagos Mulls Establishment of State Controlled Airline

By Adedapo Adesanya Lagos State is considering the establishment of a state-controlled airline for passenger operations. The Governor of the state, Mr Babajide Sanwo-Olu, disclosed the plan on Thursday at the Lagos West Senatorial District People’s Town Hall Meeting, noting that the state is preparing to commence the construction of its airport in Lekki. According to a statement by the state government, a former permanent secretary and retired auditor general for local government in Lagos, Mr Muhammed Hassan, submitted that the state was ripe to own an airline. In his response, Mr Sanwo-Olu noted that the plan had been in

Image
12-September-2023

FG Inaugurates Lagos-Ibadan Rail Corridor to Decongest Apapa Port

By Adedapo Adesanya The Minister of Transportation, Mr Saidu Alkali, inaugurated the first cargo movement from the Lagos-Ibadan rail corridor during his first official tour of the rail corridor on Tuesday. This effort is expected to decongest the Apapa port as shippers moved 92.28 per cent of Nigeria’s total exports and 60.77 per cent of imports through the facility in the first quarter of 2022 (Q1’22), according to the latest available data. The Minister kicked off the tour at the Ebute Meta station before proceeding to Apapa for the launch, then travelled to Ibadan using the 157 km rail corridor.

Image
30-November-2023

Yuletide: Emirates Gives Air Travel Guidance to Passengers

By Modupe Gbadeyanka Customers of Emirates Airlines have been advised to plan their travel carefully this December, as departure numbers peak throughout the festive month, including over the UAE National Day and Christmas period. In a statement, the airline operator urged passengers to arrive at the airport up to 3 hours before a flight and take note of their boarding time to ensure they reach the departure gate on time. It noted that travellers could take advantage of a wide array of check-in and baggage drop options from Emirates City Check-In & Travel Store, to newly refurbished First and Business

More Stories
Image
06-March-2021

Stocks Lose N17bn as Investors Await Fresh Triggers

By Dipo Olowookere All seems not to be well with Nigerian stocks at the moment as investors are looking forward to that positive news item that could trigger the return of the bulls. In the past days, the market has struggled for survival as the bears have become more brutal and unforgiving. On Friday, the Nigerian Stock Exchange (NSE) further lost 0.08 per cent, deepening the year-to-date loss to 2.33 per cent at the close of trading activities for the week. Business Post observed that the gains printed by insurance (0.78 per cent) and industrial goods (0.55 per cent) sectors

Image
19-July-2017

CBN Extends Support to Skye Bank after N100b Intervention

By Modupe Gbadeyanka One of the financial institutions earlier reported to be struggling, Skye Bank, has had its guarantees extended by the Central Bank of Nigeria (CBN) for another year. According Reuters, the apex bank will continue to help the lender stay afloat after its initial N100 billion capital injection. Skye Bank, in a statement, noted that the central bank was still considering its recapitalisation proposal. However, it has appointed advisers to guide it on a recapitalisation process. CBN designated Skye Bank as one of Nigeria’s systemically important banks due to the size of total deposits it holds after it

Image
13-April-2018

Nigerian Breweries Vows to Deliver Good Returns on Investment to Shareholders

By Modupe Gbadeyanka Managing Director of Nigerian Breweries Plc, Mr Jordi Borrut Bel, has assured shareholders of the company of good returns on their investment. Mr Borrut Bel gave this assurance at a media briefing held on Wednesday in Lagos. The company’s chief executive noted that the Nigeria’s foremost brewer was confident of making investors smile as part of its commitment to the management’s ‘Winning with Nigeria’ strategy. According to him, the 2017 financial statements of Nigerian Breweries showed that the strategy was yielding results. “When all factors are considered, our results have been positive and creditable over the years.

Image
02-March-2018

Winner of €20000 Henrike Grohs Art Award Emerges March 6

By Dipo Olowookere Tuesday, March 6, 2018, has been fixed for the day to announce winner of €20000 Henrike Grohs Art Award. Already, Em’kal Eyongakpa from Cameroon, Georgina Maxim from Zimbabwe and Makouvia Kokou Ferdinand from Togo have been shortlisted for the award, which was conceived by the Goethe-Institut and the Grohs family. The winner will be awarded on March 13 in Abidjan. Em’kal Eyongakpa is an intermedia artist who approaches the experienced, the unknown, as well as collective histories through a ritual use of repetition and transformation. His recent ideas draw from indigenous knowledge systems and aesthetics, ethnobotany, applied

Image
02-August-2019

Edo to Commence Planting on Sobe Maize Farm Next Week

By Modupe Gbadeyanka Governor Godwin Obaseki of Edo State has inspected land preparation for the cultivation of a 725-hectare maize farm project located in Sobe, Owan West Local Government Area of the state. Mr Obaseki said the project would be fully mechanised with the support of the Nigerian Incentive-Based Risk Sharing System for Agriculture Lending (NIRSAL). While addressing newsmen after inspecting the maize farm, the Governor said the state government has secured funding from the Central Bank of Nigeria (CBN) to run the project. He expressed satisfaction with the progress of work done and availability of inputs for the farmers

Image
24-July-2019

CBN to Review Banks’ Loan-to-Deposit Ratios Monthly

By Modupe Gbadeyanka Governor of the Central Bank of Nigeria (CBN), Mr Godwin Emefiele, has disclosed that from October 2019, the loan-to-deposit ratios of commercial banks in the country would be subjected to monthly review. Earlier this month, the apex bank chief gave lenders till September 30, 2019 to increase their loan-to-deposit to a minimum of 60 percent. Yesterday, Mr Emefiele, while addressing newsmen in Abuja after a two-day Monetary Policy Committee (MPC) meeting, said after the expiration of the deadline, the CBN will consider reviewing the LDR if the 60 percent is not met. He said at the moment,

Image
31-May-2021

Weekly Investment in Nigerian Stocks Drops to N9.5bn

By Dipo Olowookere Investment in Nigerian stocks declined last week to N9.5 billion from N11.5 billion in the preceding week just as the All-Share Index and market capitalisation declined by 0.18 per cent to close at 38,256.95 points and N19.940 trillion respectively. Data from the Nigerian Exchange (NGX) Limited showed that similarly, all other indices finished lower with the exception of premium, pension, insurance and oil/gas indices, which appreciated by 0.96 per cent, 0.16 per cent, 1.01 per cent and 0.85 per cent respectively, while the ASeM index closed flat. A total of 1.0 billion shares were traded in 17,577

Image
07-December-2017

Overnight Rate, T-Bills Yields Fall on Absence of OMO Auction

By Dipo Olowookere For the third consecutive day, the Central Bank of Nigeria (CBN) failed to conduct its regular sale of treasury bills through the open market operations (OMO). The last OMO auctioning by the central bank was on Thursday, November 30, 2017, and no sale was done that day despite receiving N61 billion worth of subscriptions from traders. Since the beginning of this week, after the resumption from the public holiday observed last Friday, the apex bank has not conducted any OMO auction. This consequently dropped the average yields of T-bills at the market. At the close of business

Ad
Ad
Recent Stories
Image
01-March-2024

Nigeria Wants Share in $350bn Global Outsourcing Market

By Aduragbemi Omiyale The global outsourcing market is estimated to be worth about $350 billion and Nigeria is looking to take a slice of it to address the rising unemployment rate in the country. Before 2023, the National Bureau of Statistics (NBS) put the unemployment rate at about 33 per cent, but in its revised edition, the agency said the rate grew to 5.0 per cent in the third quarter of last year. The outsourcing market is becoming the new oil market and Nigeria, which prides itself as the largest economy in Africa because of its population size of over

Image
01-March-2024

Lokpobiri Charges New NCDMB Council on Growth of Nigeria’s Energy Sector

By Adedapo Adesanya  The Minister of State for Petroleum Resources (Oil), Mr Heineken Lokpobiri, has charged the newly inaugurated fourth Governing Council of the Nigerian Content Development and Monitoring Board (NCDMB) to continue advancing the country’s oil and gas industry. The NCDMB Governing Council is set up under the Nigerian Oil and Gas Industry Content Development (NOGICD) Act and draws membership from representatives of select institutions connected with the energy sector. The fourth NCDMB Governing Council would be chaired by Mr Lokpobiri, while the Executive Secretary of NCDMB, Mr Felix Omatsola Ogbe, would serve as the Secretary. Others are the

Image
01-March-2024

How to Protect Your Crypto From Scams, Hacks

In 2023, it is estimated around $2 billion was lost by investors to scams, rug pulls and hacks. Although the technology is becoming more secure and stable and many users are more aware of the tricks used to steal assets, there are still ways for thieves to extract your crypto if you aren’t careful.   Experts at Smart Betting Guide have provided a guide on the best ways to keep your crypto safe in 2024.  1. Do not store your password and seed phrase on the Cloud   For many people, the best and most convenient way to access crypto is through

Image
01-March-2024

FX Crisis: Nigeria May Slam $10bn Fine on Binance

By Adedapo Adesanya The Nigerian government may be considering a $10 billion fine on Binance, a crypto exchange platform, amid a crackdown on crypto platforms in desperate moves to restore the nation’s battered foreign exchange (FX) market. This information was disclosed by Mr Bayo Onanuga, who is the Special Adviser on Information and Strategy to President Bola Tinubu, in an interview with the British Broadcasting Corporation (BBC) on Friday morning. According to the President’s aide, this was necessary as the Nigerian government believes Binance profited substantially from its “illegal transactions” in the country while the nation suffered huge losses. Mr

Image
01-March-2024

Business Confidence in Nigeria Falls in February Amid Rise in Input Costs

By Modupe Gbadeyanka Business conditions in Nigeria slowed to 51.0 in February 2024 from 54.5 in January 2024, as price pressures intensified in the private sector at an unprecedented pace in over a decade of data collection, the Stanbic IBTC Bank Purchasing Managers’ Index (PMI) has revealed. A statement from the lender disclosed that the improvement in business conditions was the weakest since the recovery in the private sector began last December. It stated that input costs surged higher in the period under consideration as a result of higher fuel prices and exchange rate weakness, which drove up material costs.

Image
01-March-2024

Harvard Business School Introduces Tony Elumelu Foundation Case Study

By Modupe Gbadeyanka A case study to spotlight the role of celebrated African businessman, Mr Tony Elumelu, in transforming the development agenda on the continent through his Tony Elumelu Foundation (TEF) has been introduced by the Harvard Business School. The case study, launched on Thursday, February 29, 2024, will critically look into how the former banker is catalysing entrepreneurship in Africa through his Africapitalism approach. At its unveiling before a class of graduate students at Harvard Business School, Mr Elumelu said, “TEF is creating economic hope and opportunity for African entrepreneurs. We know that entrepreneurship is the solution to youth

Image
01-March-2024

Unlisted Securities Remain in Negative Territory by 1.36%

By Adedapo Adesanya Correction at the NASD Over-the-Counter (OTC) Securities Exchange continued as it recorded a 1.36 per cent loss on Thursday, February 29. The bourse lost N21.34 million of its value during the trading session to close at N1.542 trillion compared with the preceding day’s N1.564 trillion and the NASD Unlisted Security Index (NSI) went down by 15.74 points to end the day at 1,138.05 points versus Wednesday’s 1,153.79 points. Yesterday’s decline was influenced by Aradel Holdings Plc, which further suffered further profit-taking, causing its price to drop N98.25 to close at N2,401.75 per share versus the preceding session’s

Image
01-March-2024

Naira Firms to N1,595/$1 at NAFEX, Weakens to N1,500/$1 at Black Market

By Adedapo Adesanya The Naira ended a tumultuous February as it recorded a price appreciation f 0.09 per cent or N14.40 against the US Dollar on Thursday, February 29, in the Nigerian Autonomous Foreign Exchange Market (NAFEM). Data obtained from the FMDQ Securities Exchange showed that the value of the local currency closed at N1,595.11/$1 during the session compared with the preceding day’s N1,609.51/$1. Also, the Nigerian currency improved its value against the Pound Sterling in the official market yesterday by N20.34 to close at N2,046.19/£1 compared with the preceding session’s N2,066.53/£1 and strengthened against the Euro by N16.5 to

Image
01-March-2024

Oil Down as US Inflation Signals Weak Crude Demand

By Adedapo Adesanya  Oil was down on Thursday as inflation data in the United States implied a softening of the world’s biggest economy that could weaken crude demand. Brent futures went down by 6 cents to $83.62 a barrel and the US West Texas Intermediate (WTI) futures depreciated by 28 cents to $78.26 a barrel. The US Federal Reserve’s preferred inflation gauge, the US Personal Consumption Expenditures (PCE) index, showed January inflation in line with economists’ expectations. The index rose 0.3 per cent last month, the Commerce Department’s Bureau of Economic Analysis said. Data for December was revised lower to

Image
01-March-2024

Local Stock Market Rebounds, Closes Last Day of February 0.68% Higher

By Dipo Olowookere The last trading session of February 2024 at the Nigerian Exchange (NGX) Limited ended on a positive note as it rebounded by 0.68 per cent after the interest rate hike scare. The growth posted on Thursday was triggered by bargain-hunting in financial stocks, especially those selling at cheaper prices after the sell-offs in the past few sessions. However, profit-taking persisted in the other sectors of the bourse, with the energy, and consumer goods indices closing lower by 0.33 per cent, and 0.18 per cent, respectively. Business Post reports that the banking space rose by 6.14 per cent,