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Taxes, Infrastructure, Others Top IATA Agenda at AACO

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iata-agenda

By Modupe Gbadeyanka

The International Air Transport Association (IATA) has highlighted four priorities in the Middle East and North Africa (MENA) which must be addressed for aviation to deliver maximum economic and social benefits.

These issues are sufficient and affordable infrastructure capacity (including air traffic management), aligned with user needs; curbing the spate of unprecedented increases in taxes and charges over the last year; aligning consumer protection regulations with global standards; enhancing security efforts and infrastructure in MENA reflects the foresight of Governments in the region to capture aviation’s economic and social benefits.

It was gathered that passenger demand in MENA is set to expand by 4.8 percent each year on average over the next 20 years, to become a market of 400 million passengers in 2035.

If that demand is met, the number of jobs supported by aviation in the region will grow from 2.4 million to 3.9 million over the same period. And aviation’s contribution to regional GDP will increase from $157.2 billion to $359.5 billion.

“Aviation is the business of freedom. Its success generates prosperity. A safe, secure, efficient and sustainable air transport industry contributes to the welfare of nations. Strengthening aviation, in partnership with governments, pays huge social and economic dividends.

“Airlines in MENA face very different business challenges. But whether building or protecting competitiveness, cost-efficient infrastructure, global standards, reasonable costs and secure operations are critical,” said Alexandre de Juniac, IATA’s Director General and CEO, during his opening remarks at the Arab Air Carriers Organization (AACO) 49th Annual General Meeting in Casablanca, Morocco.

De Juniac urged the region to address four key areas:

Infrastructure: “Infrastructure in MENA reflects the foresight of Governments in the region to capture aviation’s economic and social benefits. However to keep this competitive advantage, continuous consultation is needed so that capital expenditure aligns with industry growth, required service levels and acceptable costs,” said de Juniac.

De Juniac also sounded a note of caution on infrastructure privatization and urged governments to effectively balance public and private interests. “The desire to harness commercial discipline in managing airports is understandable. But, despite many airport privatizations around the world we have not seen any outcomes that have truly met expectations. It’s important to learn from experiences elsewhere, especially ensuring that any privatization is driven by real user consultation throughout the process,” said de Juniac.

De Juniac also called for cooperation to modernize air traffic management (ATM) in the region. “Studies show that the average ATM delay in the Gulf is 29 minutes with the potential to double by 2025. Without an increase in the overall efficiency of the ATM systems in the region through improved airspace design, MENA’s world-class hubs will be compromised with gridlock. We appreciate the many programs that are in progress – including the GCC Air Navigation Committee, the Middle East ATM Enhancement Program and others. But we must drive these efforts even harder to achieve a real breakthrough,” said de Juniac.

Rising costs: IATA urged cooperation to reverse unprecedented rises in taxes and charges – about $700 million in extra costs in 2015 alone. “Every dollar that a passenger spends in the region creates jobs and spreads prosperity. And every dollar collected in taxes or charges is an incentive for travelers to go elsewhere. A low cost structure is a key component of the region’s success—particularly in the Gulf,” said de Juniac.

Consumer Protection Regulations: IATA urged global standards to guide the proliferation of consumer protection initiatives in the region. Regulators in Saudi Arabia, Oman, Qatar, Jordan and the Arab Civil Aviation Commission are in various stages of activity in this regard. De Juniac called on governments in the region to keep the global standards and recommended practices arrived at through the processes of the International Civil Aviation Organization (ICAO) at the core of any developments.

Security: Security is a global issue. Keeping aviation secure is integral to a state’s responsibility for national security as highlighted in a UN Security Council Resolution earlier this year. Challenges include insider threats, landside exposure at airports, overflight of conflict zones, and cyber security. “Security is clearly a government responsibility. To stay a step ahead of those who would do aviation harm, intelligence gathering by governments and information sharing among governments and with industry is essential. Industry also plays a vital role in supporting their efforts. It’s a top priority for IATA and we will become even more active,” said de Juniac.

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

Travel/Tourism

Verve, Providus Bank Unveil Travel Card for Tourists, Others

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ProvidusVerve Travel Card

By Aduragbemi Omiyale

A travel card designed for tourists, business visitors, Diaspora returnees has been launched by Verve in partnership with Providus Bank.

Known as the ProvidusVerve Travel Card, the Naira-based travel card will allow inbound travellers to enjoy a smooth, secure, and convenient payment experience throughout their stay in Nigeria. It was powered by Verve’s secure.

Created to support the surge of tourists, expatriates, business visitors, conference delegates, and returning diaspora expected during the festive Detty December season, the ProvidusVerve Travel Card enables seamless payments for transportation, hotels, dining, shopping, entertainment, and everyday essentials nationwide.

The card also works on select global merchant platforms that accept Verve, including Netflix, Google Play, and other digital services, ensuring travellers enjoy uninterrupted access to familiar services.

The ProvidusVerve Travel Card eliminates the hassle of sourcing naira or converting foreign currency on arrival. It enables instant, secure transactions, reduces reliance on cash, and supports compliance with the cashless policy of the Central Bank of Nigeria (CBN).

It also mitigates the risks associated with carrying physical cash such as loss, theft, or fraud, offering a safe, regulation-aligned option for both online and in-person payments.

“The ProvidusVerve Travel Card is a timely solution for inbound travellers seeking reliability, security, and simplicity while navigating Nigeria.

“Together with Providus Bank, we have created a product that eliminates the friction traditionally associated with accessing local payments.

“Whether for tourism, business, or festive activities, this card ensures a smooth financial experience from the moment visitors land,” the Vice President for Issuing and Acquiring Management for Africa at Verve International, Mr Paul Ohakim, stated.

On his part, the Divisional Head for Product Management and Solution Delivery at Interswitch, Mr Ademola Adeniran, described the partnership as a reflection of “Verve’s commitment to designing products that respond to real user needs.”

“The ProvidusVerve Travel Card supports everyday experiences — from booking rides and hotels to shopping, streaming, and dining. It provides inbound travellers with a secure, compliant, digital-first way to experience Nigeria without financial barriers,” he added.

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FG May Sell Dana Air Assets to Repay Debts

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DANA Airlines

By Adedapo Adesanya

The Minister of Aviation and Aerospace Development, Mr Festus Keyamo, has disclosed that the federal government may recover and sell the assets of Dana Air to refund passengers and travel agents whose funds remain trapped following the suspension of the airline’s operations.

The Minister disclosed this in Abuja on Tuesday at the Ministry’s fourth quarter stakeholders’ engagement to enhance governance for effective service delivery in aviation.

Speaking at the event themed “leveraging public feedback to drive excellence in aviation services, the Nigeria Civil Aviation Authority (NCAA) will be directed to probe why funds trapped by the airline are yet to be refunded.

He revealed that the authority suspended the operations of the airline as a matter of choice between safety and disaster.

“For Dana, the problem is that it was a choice between safety and disaster. So we didn’t take the commercial thing as priority. The priority was safety, and we all looked at the damning reports that we had met on the table.

“It was a decision of the NCAA to suspend them, but I pushed them to say, look, these are the reports we are seeing on the table about safety record, about lack of standards that put the lives of Nigerians at risk. If they continue flying, I don’t know whether most of us will be here. Many of us would have been victims of one of those flights. God forbid.”

According to him, “I have asked Najomo (NCAA director general) to dig deep to find out how those passengers and agents will be refunded. He has to dig deep on that.

“One solution will also be that if that same individual or those entities are trying to come back to aviation under any guise, whether to go and register a new AOC or use any business within the aviation sector, they have to go and settle their debts first.

“We should look at their assets. There are assets that are still available. Let them sell their assets. Let’s cannibalize their revenue and pay people. Let’s find a way to go after their assets and get money to pay Nigerians who are owed.

“NCAA should do that because they can’t get away with it.”

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NCAA Slams N5m Consumer Protection Infraction Fine on Qatar Airways

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Qatar Airways

By Adedapo Adesanya

The Nigerian Civil Aviation Authority (NCAA) said it has imposed a N5 million penalty on Qatar Airways for consumer protection violations.

The announcement was made on Wednesday by the NCAA’s Director of Public Affairs & Consumer Protection, Mr Michael Achimugu, on X, adding that there may be other sanctions depending on how the airline treats other cases.

“Glad to announce that, today, the NCAA has sanctioned @qatarairways to the tune of five million naira being penalty for consumer protection-related infractions. In addition, the letters of investigation (LOI) written to the airline over other cases may lead to further sanctions if not treated satisfactorily,” Mr Achimugu wrote.

The fine followed an incident when a Nigerian passenger was accused by a Qatar Airways cabin crew member of sexual harassment during boarding in Lagos for a flight to the United States via Doha, Qatar.

The allegation was only reported in Doha, where the passenger was arrested, detained for 18 hours, fined, and compelled to sign a document written solely in Arabic.

Qatar Airways allegedly refused to continue his journey, forcing him to purchase another ticket at considerable financial and reputational cost.

The NCAA said it invited Qatar Airways’ country manager to a meeting over the incident, but he failed to attend, sending subordinates instead.

“I understand that some countries do not have advanced aviation consumer protection regulations like Nigeria does. In certain cases, some countries don’t even have any. This creates a situation where airlines operating out of those countries (mostly national carriers) act with disdain towards consumer protection enforcement in Nigeria.

“This is not a situation that we would accept here. It is against the law for ANY Airlines not to respond to the NCAA. It is against the law to provide false information to the NCAA. It is against the law to fail to comply with the provisions of Part 19 of the NCAA Regulations 2023,” Mr Achimugu said in an earlier post.

In September, the NCAA accused Qatar Airways of mistreating Nigerian passengers and failing to comply with consumer protection regulations under Part 19 of the NCAA Regulations 2023.

The regulator then threatened stiff penalties against the airline for repeatedly disregarding its directives.

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