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FG Approves N5bn Bailout Funds For Airline Operators

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Hadi Sirika N5bn Bailout

By Adedapo Adesanya

The federal government has approved the sum of N5 billion as a bailout for airline operators and other business owners in the aviation sector to cushion the effects of COVID-19 on the country’s aviation industry.

The announcement was made on Monday, November 2 by the Minister of Aviation, Hadi Sirika.

The Minister said the sum of N4 billion has been approved as a bailout for airline operators and an additional N1 billion for other business owners in the aviation sector.

Mr Sirika said the government’s decision to offer the bailout was based on recognition of the pivotal role of the aviation sector to the Nigerian economy.

The Minister made the announcement when he appeared at the Senate for a public hearing in respect of the repeal and the reenactment of the laws establishing the Nigerian Civil Aviation Authority (NCAA), Nigerian Airspace Management Agency (NAMA), Accident Investigation Bureau (AIB).

Others include the Nigerian College of Aviation Technology (NCAT), Nigerian Meteorological Agency (NIMET) and the Federal Airports Authority of Nigeria (FAAN).

The announcement by the Minister comes after the Senate Committee on Aviation called on the federal government to bail out airlines to cushion the effect of COVID-19.

However, the Chairman of the Senate Committee on Aviation, Mr Smart Adeyemi, emphasised that the amount for the proposed bailout is inadequate for airlines who are battling to survive.

The aviation and the tourism sectors were among the most hit by the contagion, which still has no cure, though efforts are ongoing to produce a vaccine.

In Nigeria, in order to curb the spread of the virus, the federal government shut down the airspace, making it impossible for airline operators to operate, though only for essential services.

The restriction was only lifted some weeks ago but the sector is still struggling to return to the pre-COVID-19 era. Some passengers are yet to fly since airlines were permitted to run.

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

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Travel/Tourism

Emirates Forward Bookings Remain Robust on Strong Customer Demand

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Emirates forward bookings

By Modupe Gbadeyanka

The Chief Commercial Officer of Emirates, Mr Adnan Kazim, has said the airline’s forward bookings have remained robust amid a strong customer demand, spurring the company to ramp up its operations across continents.

According to him, in the past months, the airline has planned and executed the rapid growth of its network operations, reintroducing services to five cities, launching flights to one new destination (Tel Aviv), and adding 251 weekly flights onto existing routes and continuing the roll-out of service enhancements in the air and on the ground.

It was disclosed that Emirates has continued to scale up its A380 operations with the reintroduction of the iconic double-decker across its network: Glasgow (from 26 March), Casablanca from (15 April), Beijing (from 01 May), Shanghai (from 04 June), Nice (from 1 June), Birmingham (from 1 July), Kuala Lumpur (from 01 August), and Taipei (from 01 August).

“Emirates is working hard on several fronts – to bring back operating capacity as quickly as the ecosystem can manage while also upgrading our fleet and product to ensure our customers always enjoy the best possible Emirates experience.

“So far, four of our A380 aircraft have been completely refurbished with our new cabin interiors and Premium Economy seats, and more will enter service as our $2 billion cabin and service enhancement program picks up pace,” Mr Kazim added.

He noted that in the coming months, established routes to Europe, Australia and Africa would be served with more Emirates flights, while in East Asia, more cities are seeing route restarts.

Emirates had upcoming route enhancements by regions, including in Europe,  Australia and New Zealand, East Asia, as well as in Africa which covers Cairo: from 25 to 28 weekly flights by 29 October; Dar es Salaam: from 5 flights a week to daily flights starting 01 May and Entebbe: from 6 flights a week to daily flights starting 01 July.

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Mozambique Okays Visa Exemption for 28 Countries, Snubs Nigeria

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visa exemption

By Kestér Kenn Klomegâh

A number of African countries are focusing on promoting extensively inbound tourism. They are luring potential external investors to the tourism industry.

The latest in the southern African region is Mozambique, which has approved a visa exemption for 28 countries for tourism and business.

As the Council of Ministers approved the decree in mid-March, the exemption applies to visitors holding ordinary passports and allows for a 30-day stay, renewable to an additional 60 days.

The model adopted by the Mozambican government is similar to the United States visa waiver program in the sense that it requires travellers to register on a platform for pre-screening at least 48 hours before travelling and to pay a processing fee of MZN-650 (equivalent £8.50).

In the list released, Nigeria, which prides itself as the giant of Africa and the largest economy on the continent, was missing.

The approved countries for this programme are Belgium, Canada, China, Denmark, Finland, France, Germany, Ghana, Indonesia, Israel, Italy, Ivory Coast, Japan, The Netherlands, Norway, Portugal, Russia, Saudi Arabia, Senegal, Singapore, South Korea, Spain, Sweden, Switzerland, Ukraine, United Arab Emirates, the United Kingdom and the United States.

The visa exemption is a follow-up to the launch of a platform last December that allowed prospective visitors to apply for an electronic pre-authorization to travel into the country. The introduction of e-visas has seen an increase of over 30 per cent in the number of travellers entering the country compared to the same period in the previous year.

The e-visa platform commits the country to respond to applications within five days, but general feedback places an average response at 24 hours, and the few issues reported are usually created by users not uploading the required documentation.

 President Filipe Jacinto Nyusi, since August 2022, has taken steps containing 20 reform measures aimed at delivering to visitors and potential investors a path for a more competitive and more accessible country. Mozambique, with an approximate population of 30 million, is one of the 16-member Southern African Development Community.

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Foreign Airlines Unable to Repatriate $743.7m from Nigeria

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foreign airlines trapped funds

By Adedapo Adesanya

The International Air Transport Association (IATA) has said that foreign airlines’ blocked funds in Nigeria have risen to over $743.7 million.

In a letter dated March 14, 2023, and signed by the Area Manager for West and Central Africa, Dr Samson Fatokun, it was disclosed that the blocked funds rose from $549 million in December 2022 and $662 million in January to $743.7 million.

IATA noted that for over a year, Nigeria had been the country with the highest amount of airlines’ blocked funds in the world.

According to the association, the increasing backlog of international airlines’ blocked funds in Nigeria is a potential threat to foreign direct investment into the country and could affect the operations of airlines leading to job losses.

While appealing to the Minister of Aviation, Mr Hadi Sirika, to intervene in resolving the issues, the association also called on President Muhammadu Buhari to clear all airlines blocked funds before leaving office.

Meanwhile, at a meeting with the IATA and foreign airlines operators in Abuja to discuss the issues, Mr Sirika said the issue of blocked funds sits with the Central Bank of Nigeria and is not what the ministry can handle alone.

He urged international airline operators to be very considerate when dealing with the issues bearing in mind the effects of COVID-19 and the recession the country had experienced.

Recall that in August 2022, IATA’s Regional Vice-President for Africa and the Middle East, Mr Kamil Alawahdi, expressed his disappointment with Nigeria over the amount of airline money blocked from repatriation by the Nigerian government, which was around $464 million then.

“IATA is disappointed that the amount of airline money blocked from repatriation by the Nigerian government grew to $464 million in July.

“This is airline money, and its repatriation is protected by international agreements in which Nigeria participates. IATA’s many warnings that failure to restore timely repatriation will hurt Nigeria with reduced air connectivity are proving true with the withdrawal of Emirates from the market,” he said.

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