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US shuts direct flights from Lagos as bilateral window closes - BUSINESSDAY

SEPTEMBER 03, 2024

BY   

Nigeria has lost the United States Category One status as the country’s airlines failed to operate directly to the country for two years.

The new United States Federal Aviation Administration (USFAA) law says that the failure of any country’s airlines to operate directly to the US for two years or vice-versa would lead to the loss of the Category One Status.

With this removal, Nigerian airlines, including those planning to commence direct flights from Lagos, cannot operate directly to any city or airport in the US until the country is re-audited and re-certificated by the US Federal Aviation Administration (FAA) and returned to its former status.

Nigeria gained the USFAA CAT One Status in August 2010 after a rigorous exercise that spanned about five years, but due to the combined factors of drop in standards and the failure of some Nigerian airlines to operate directly to the US for seven years, some stakeholders said the country lost the rating.

“With the situation, the chances for Nigeria airlines to operate direct flights to the United States may be slim. It may not be as bright as it was about three years ago, but there is no gloom as it is not downgrading. Downgrading only comes after the audit and that is what we need. We need to call the FAA back for a re-audit,” Olumide Ohunayo, industry analyst and director of research at Zenith Travels, told BusinessDay.

Ohunayo explained that before now, Nigeria had no reasons to call the FAA for an audit since local carriers were not operating or had no intention of operating into the US.

He noted that calling the FAA to audit when there was no airline operating the route or positioned to operate the route would have been tantamount to wasting the time of everyone involved.

He said now that Nigerian carriers are showing interest in flying into the US, the country’s aviation regulators would have to do the re-audit with the international body.

“I think we should just prepare for the audit and that will come when we have an airline that is ready to start flying into the US. We need to ensure we work assiduously to retain the Category One when we get it and not be downgraded.

“It is an opportunity to quickly look at the areas of interest, and begin to address key concerns before they come for the audit. The airlines that want to be positioned for this will also be preparing themselves, knowing full well that if they don’t use it, they will not only lose their certification but also their slot,” Ohunayo said.

There are 83 countries either in Category One or Two in the updated list of USFAA.

Egypt, Ethiopia, Rwanda, Morocco, and South Africa are African countries on the FAA Category One list. The countries on the Category One list are said to meet the International Civil Aviation Organisation (ICAO) standards.

Other countries in the Category One Status include: Argentina, Aruba, Azerbaijan, Bahamas, Belgium, Bermuda, Bolivia, Brazil, Canada, Domin­ican Republic, Ecuador, El Sal­vador, France, Germany, Israel, Italy Ireland, Kuwait, Japan, Jordan, Panama, Portugal, Phil­ippines, Romania, Samoa, Sam Marino, Poland, Suriname, Taiwan, Ukraine, United Arab Emirates (UAE), United King­dom UK), Uzbekistan, and Vietnam, among others.

The only five countries on Category Two are: Venezuela, Thailand, Russia, Organisation of Eastern Caribbean States and Bangladesh.

Arik Air, the only Nigerian on the Lagos-New York route, had, on February 3, 2017, suspended operations to the US, a few days before its takeover by the Asset Management Corporation of Nigeria (AMCON).

Local airlines may see their plans to launch flights to the two cities hampered until the re-audit and recertification process is carried out and successful, experts say.

However, two United States carriers, United Airlines and Delta Air Lines, still operate direct flights to Nigeria from their bases.

John Ojikutu, industry expert and the CEO of Centurion Aviation Security and Safety Consult, told BusinessDay that Nigeria’s status loss is expected against the background of the recent International Civil Aviation Organisation (ICAO) report.

“I warned the regulatory authority last year that the International Civil Aviation Organization (ICAO) and the US FAA/ Transportation Security Administration (TSA) are watching the happenings in our airports and airspace. The ICAO grading is far lower than the FAA/TSA grading, so when ICAO scored us a fail in its audit report, what do you expect from the FAA/TSA?

“I remember saying that the prospect of any airline planning flights to the US would be doomed if we fell down from Category One. This is not the first time we have fallen down. Nigeria Airways fell down too in 1992 and the US directed that Nigeria Airways must route through Dakar for the rescreening of all onboard passengers, baggage and cargo, otherwise no entry to the US,” Ojikutu said.

NCAA explains US decision

Meanwhile, the Nigeria Civil Aviation Authority (NCAA) has explained why Nigeria was removed from the USFAA CAT 1 International Aviation Safety Assessment programme (IASA).

In a statement by Chris Najomo, acting director- general, Civil Aviation, said the first time Nigeria attained Category One status was in August 2010, noting that U.S. Federal Aviation Administration (FAA) conducted another safety assessment on Nigeria in 2014.

He said a further safety assessment was conducted on Nigeria in 2017, after which Nigeria retained its Category One status.

“However, with effect from September, 2022, the U.S. Federal Aviation Administration (FAA) de-listed Category One countries who, after a 2-year period, had no indigenous operator providing service to the U.S. or carrying the airline code of a U.S operator. Also removed from the Category One list were countries who the FAA was not providing technical assistance to based on identified areas of non-compliance to international standards for safety oversight.

“No Nigerian operator has provided services into the United States using a Nigerian registered aircraft within the 2-year period preceding September, 2022 so it was expected that Nigeria would be de-listed as were other countries who fell within this category. Nigeria was, therefore, de-listed since 2022 and was duly informed of this action in 2022,” he said.

He stated that the de-listing of Nigeria has absolutely nothing to do with any safety or security deficiency in the NCAA’s oversight system.

He noted that Nigeria has undergone comprehensive ICAO Safety and Security Audits and recorded no Significant Safety Concern (SSC) or Significant Security Concern (SSeC) respectively.

Ethiopian Airlines says it has stopped flights to Eritrea - REUTERS

SEPTEMBER 04, 2024

Dawit Endeshaw and Giulia Paravicini

ADDIS ABABA, Sept 3 (Reuters) – Ethiopia’s state-owned carrier Ethiopian Airlines said it has suspended flights to neighbouring Eritrea, citing unspecified difficult operating conditions.

Eritrea had previously said it would suspend all Ethiopian Airlines flights at the end of this month.

Flights from Ethiopia to Eritrea had resumed in 2018 after two decades, following a peace deal and resumption of diplomatic relations between the two neighbours that earned Ethiopia’s Prime Minister Abiy Ahmed a Nobel peace prize a year later.

Five diplomats told Reuters the suspension was a tangible signal that the relationship between Asmara and Addis had soured significantly, but said the risk of conflict resuming was unlikely for now.

The two countries had previously severed ties in 1998, when a two-year war between the two nations started over their disputed border.

Eritrea fought alongside Ethiopia in a war that erupted in November 2020 against regional forces from Ethiopia’s Tigray region, but relations soured once again after Asmara was excluded from the peace talks that ended that conflict two years later, and because some of its troops remain in Tigray.

“Ethiopian Airlines regrets to inform its valued customers travelling to/from Asmara that it has suspended its flights to Asmara effective Sept.3 … due to very difficult operating conditions it has encountered in Eritrea that are beyond its control,” Ethiopian Airlines said in a statement late on Monday.

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The airline said it would try to rebook affected passengers on other airlines at no additional cost or offer refunds, but did not give more details on the conditions it was referring to

Eritrea Information Minister Yemane Gebremeskel did not immediately respond to a request for comment.

Ethiopian Airlines is ranked the largest in Africa by revenue and profit by the global industry body International Air Transport Association.

(Reporting by Dawit Endeshaw in Addis Ababa and Giulia Paravicini in Nairobi; Writing by George Obulutsa; Editing by Lincoln Feast.)

Top 10 richest states in Nigeria 2024 - NIGERIAN TRIBUNE

SEPTEMBER 04, 2024

by Alausa-Issa Zainab

As you know, Nigeria has many natural resources in abundance. Each state has been able to generate income for development and economic growth through these resources. However, the richest states in Nigeria contribute significantly to the nation’s overall wealth. 

The list below is based on GDP (Gross Domestic Product) and ranked by BudgIT.

1. Lagos

Lagos state is in Southwest Nigeria and is the most populous in Africa. It was actually the capital of Nigeria before it was moved to Abuja. Lagos has been the major financial hub of the country and one of the foremost in Africa. With over twenty million people, Lagos is one of the fastest-growing cities in Africa and the center for commerce, entertainment, education, technology, tourism, art, and fashion. The GDP of Lagos is over 41 trillion Naira. 

2. Rivers

Rivers State is in the Southern part of Nigeria. It shares borders with Akwa Ibom, Abia, Bayelsa, and Delta. The state’s capital, Port Harcourt, is the commercial center of the Nigerian oil industry. Rivers, as the name implies, has several rivers and is also one of the fastest-growing states in urbanisation and infrastructure. As one of the richest in Nigeria, it has seaports, silica refineries, clay, glass sand, and natural gas apart from crude oil. The GDP of Rivers State is over 7 trillion Naira.

3. Akwa Ibom

The name “Akwa Ibom” is derived from “Qua Iboe river”. It is close to Rivers, Cross River, and Abia state. The economy of the state thrives with the production of natural gas,  crude oil and farm produce such as fishing, plantain, yam, and cocoyam. Also, tourism is a sector that is very beneficial to the state economically as it attracts investors. The current GDP of this state is about 7 trillion Naira.  

4. Imo

 Imo state is in the southeastern part of Nigeria. It shares borders with the states of Rivers, Anambra, and Abia. “Imo” originates from “Imo River,” which flows along the state’s eastern border. Imo is blessed with many natural resources, including crude oil, natural gas, zinc, lead, rubber, mahogany, bamboo, limestone, and palm oil. It has over one hundred fifty oil wells dispersed in different locations within the state. Imo state’s GDP is over 7 trillion Naira. 


5. Delta

Delta State is in the south-south geopolitical zone of Nigeria. One of the most essential features of the state is the “River Niger” that flows through the borders of the state. Delta is one of Nigeria’s richest and most developed states, with low extreme poverty. The state is blessed with solid minerals such as kaolin, silica, rocks, and limestone — they are all used as raw materials for ceramics, bottles, glass, brick, and chalk production. Not only these, but Delta state is also one of the largest producers of petroleum products in Nigeria. Its GDP is about 6 trillion Naira. 

Read Also: Top 8 cleanest states in Nigeria 2024

6. Anambra 

Anambra State is located in the southeastern part of Nigeria. Onitsha and Nnewi are the state’s commercial hubs. The latter is known to be one of the automobile centers in Nigeria. As mentioned earlier, these cities boost the state’s internal revenue. Constant innovations by inventing new things added to the economic growth of Anambra. Agriculture is also a significant contributor; maize, yam, rice, palm oil, and cassava are grown in the state. Communities in the river areas engage in fishing. The GDP of this state is over 5 trillion Naira.

7. Ondo

Ondo state is in southwest Nigeria. It is a Yoruba land rich in cocoa, tobacco, cotton, timber, kernels, and rubber. Even though Ondo is an oil producing state, agriculture is still the backbone of its economy; cocoa is one of the major exports. Others are cassava, oil palm, runner, and mango. Ondo state has abundant limestone, silica, clay, bitumen, and granite. The GDP of the state is over 5 trillion Naira.

8. Ogun 

Ogun is one of the most industrialised states after Lagos and one of the richest in southwest Nigeria. Apart from mining, agriculture is the most important in the economic sector. The state is a producer of kola nuts, palm kernels, palm oil, rubber, cocoa, cassava, yam, rice, banana, and maize. Others are phosphate, gravel, timber, and limestone. The GDP of Ogun state is about 5 trillion Naira.

9. Bayelsa

Bayelsa state is located in the south-south region of Nigeria. It was created out of Rivers State. The state has natural gas, crude oil, silica sand, and clay. The location where the first oil was discovered in Nigeria is called “Oloibiri,” which is currently Bayelsa. The state also has the largest gas reservoir. Its GDP is over 4 trillion Naira.


10. Niger

Niger State is in North-central Nigeria. It is named after “River Niger.” Nigeria’s major power stations are the Shiroro Dam and Kainji Dam, which are in this state. The state is rich in mineral resources, power, and agriculture, which are the bedrock of the economy. Niger’s GDP is also over 4 trillion Naira.

China to ‘revitalise’ ageing railway linking Zambia, Tanzania - REUTERS

SEPTEMBER 04, 2024

Bernard Orr and Beijing newsroom

BEIJING, Sept 4 (Reuters) – China, Tanzania and Zambia signed an initial agreement to rehabilitate a decades-old railway aimed at improving the rail-sea transportation in resource-rich East Africa, Chinese state media said on Wednesday.

President Xi Jinping witnessed the signing of the memorandum of understanding on refurbishing the 1,860 kms (1,156 mile) Tanzania-Zambia Railway Authority (TAZARA) railway with the Tanzanian and Zambian presidents, who were in Beijing attending the Forum on China-Africa Cooperation, according to the state-run Xinhua news agency.

The single-track TAZARA railway was built between 1970 and 1975 through an interest-free loan from China, offering a cargo transport route from Zambia’s copper and cobalt mines to the sea on Tanzania’s coast that bypasses South Africa and the former state of Rhodesia.

Commercial operations of the line, derided by some Western governments at the time as the “bamboo railway”, began in 1976. The multi-year project had involved the construction of two dozen tunnels and hundreds of bridges by tens of thousands of Chinese and African workers.

“China is willing to take this summit as an opportunity to make new progress in the revitalisation of the Tanzania-Zambia railway, cooperate to improve the rail-sea intermodal transport network in East Africa, and build Tanzania into a demonstration zone for deepening high-quality China-Africa Belt and Road cooperation,” said Xi, according to state media.

Earlier this year, the World Bank approved $270 million in financing to help improve connectivity between neighbours Tanzania and Zambia and boost regional trade.

In February, China proposed to spend $1 billion to rehabilitate the rail line through a public-private partnership model.


(Reporting by Bernard Orr and Ryan Woo; Editing by Kim Coghill and Michael Perry)

Virgin Atlantic begins Accra-London flight - PUNCH

SEPTEMBER 05, 2024

By Olasunkanmi Akinlotan

Virgin Atlantic has announced its re-launch of daily flights between Accra and London Heathrow.

According to a statement issued by the airline on Monday, the Accra-London flight will commence in May 2025.

It stated that the new service was designed to meet the growing demand for travel between Ghana and the UK, which hosts the third-largest Ghanaian diaspora globally.

The airline further noted that passengers would benefit from connections through London to Virgin Atlantic’s extensive US route network, including destinations such as New York, Boston, Washington DC, Miami, and Los Angeles.

“Starting on May 1, 2025, the daily flights will be operated using a mix of Airbus A330-300 and A330-900 Neo aircraft. These planes will feature Virgin Atlantic’s Upper Class, Premium, Economy Delight, Classic, and Light cabins, along with an onboard social space.

“The route is also expected to be a strong cargo corridor, with the airline offering 30 tonnes of capacity per flight for goods such as fresh produce between Ghana and key markets in the UK and US,” the airline asserted.

Virgin Atlantic stated that it would be offering three cabin classes.

“Passengers can enjoy complimentary food and drink, over 300 hours of entertainment, and a fully connected Wi-Fi fleet.

 “Upper-class passengers benefit from fully flat beds, a private security channel at London Heathrow, access to the Virgin Atlantic Clubhouse, and a Revivals lounge.

 “In 2024, Virgin Atlantic was recognised as Britain’s only Global Five Star Airline by APEX for the eighth consecutive year and holds a five-star rating from Sky Trax,” it added.

Commenting on the development, the Chief Commercial Officer of Virgin Atlantic, Juha Jarvinen, said, “The UK is home to the third largest Ghanaian diaspora in the world, and we see huge opportunities to connect friends, relatives, and businesses with our new service, as well as providing much-needed competition and choice on the Accra to London route.

 “We look forward to launching in 2025 and reminding Ghanaians of the iconic Virgin Atlantic brand and award-winning experience delivered by our amazing people,” it averred.


Air cargo demand rises by 13.6% – IATA - PUNCH

SEPTEMBER 05, 2024

By Olasunkanmi Akinlotan

The total global air cargo tonne-kilometres increased by 13.6 per cent compared to the same period in 2023, the International Air Transport Association has said.

African airlines saw 6.2 per cent year-on-year demand growth for air cargo in July, the lowest of all regions and its lowest recorded figure in 2024.

 This was contained in a recent statement by IATA.

 IATA noted that this was the eighth consecutive month of double-digit growth, with overall levels reaching heights not seen since the record peaks of 2021.

The global regulator hinted that capacity, measured in available cargo tonne-kilometres, increased by 8.3 per cent compared to July 2023, when it stood at 10.1 per cent for international operations.

IATA said that this was largely related to the growth in international belly capacity, which rose 12.8 per cent on the strength of passenger markets and balancing the 6.9 per cent growth of international freighter capacity.

It noted that the increase in belly capacity was the lowest in 40 months, whereas the growth in freighter capacity was the highest since an exceptional jump was recorded in January.

Commenting on the development, IATA’s Director-General, Willie Walsh, explained that air cargo demand hit record highs year-to-date in July with strong growth across all regions.

The air cargo business, he emphasised, continued to benefit from growth in global trade, booming e-commerce and capacity constraints on maritime shipping.

 “With the peak season still to come, it is shaping to be a very strong year for air cargo. And airlines have proven adept at navigating political and economic uncertainties to flexibly meet emerging demand trends,” he added.

Direct flights between Tunisia, Nigeria expected by 2026 - VANGUARD

SEPTEMBER 05, 2024

……as both countries aim to strengthen bilateral relations

By Favour Ulebor, Abuja

To strengthen bilateral relations between Tunisia and Nigeria, the Ambassador, Republic of Tunisia to Nigeria, Moshen Antit, has said direct flights between Tunisia and Nigeria are projected to begin in 2026.

He said this during a press briefing with journalists on Wednesday in Abuja.

He said the introduction of direct flights is crucial for facilitating closer business, political, and cultural interactions, adding that Improved air connectivity is expected to ease travel for both business people and tourists, thereby strengthening economic and diplomatic relations.

Mohsen said, flights between Nigeria and Tunisia are primarily operated by non-African airlines,and the only African airline to offer a direct link recently is Morocco’s Royal Air Maroc, which launched a flight between Abuja and Casablanca in June 2024.

According to him, the  initiative aims to improve accessibility and foster stronger economic and cultural ties between the two nations; adding that the plan is still in development, as both countries are committed to working together to ensure its successful implementation.

He said “So we are in North Africa, you are in the West, but the distance is not too far because we are obliged today to take two flights in order to move to Tunisia. So it’s very contradictory. It’s very contradictory; So this has to change.

“And we are working on an airline, of course, between Tunisia and Nigeria in order for our affairs and our relationship to be more effective. So I dealt with the same question with President Tinubu when I met him in April 2024 about this question; and we convinced one another, that an air flight is compulsory to make the two peoples nearer to one another.

“So it’s scheduled to be effective in 2026, but we should work hard in order to make sure that Nigeria is part and parcel of this project with Tunisia, Nigeria will not be the only flight of course to be added to to the web of flights, but we should work together to concretize it.” he said.

Moshen said a delegation made up of more than 20 businessmen will come to Nigeria in Abuja for the organization of a multisectoral economic forum, which falls within the framework of keenness to strengthen bilateral relations between the two brotherly countries in the economic and investment fields.

He said, “The Tunisian delegation that will participate in the forum is the first of its kind and in its size. They will come from Tunisia to Nigeria; Tunisia wants to develop the relationship with the countries of Western Africa. I mean, this region is very important, and Nigeria is making what we call the biggest country in this region, the richest one, and the biggest economy in Africa, if we would say.

“This is, of course, due to human potential in this region and significant economic potential and favorable climates for investment and attracting businessmen to our country, and vice versa, of course, to attract businessmen from Nigeria to Tunisia or from Tunisia to Nigeria. This event will also be an opportunity, because it’s the first in its kind, to make up a mixture and an assembly of Nigerian and Tunisian businessmen assembled together, meeting together in the same place, in the accreditation country, which is Nigeria, to move away from, I mean, virtual relationship with which the world of affairs today and industry and investment were accustomed to.

“Today, it’s better, of course, to deal face to face, to organize B to B meetings between businessmen in both countries is to deal with weighted input from one or output from one another, which will in itself be one of the main assets to enhance investments between the two brotherly countries.The potential of the two parts is really enormous. The Nigerian and Tunisians are convinced today that in many economic sectors and fields, they will be completing one another in a spirit of brotherhood and common good faith. So this is in general, of course, the basis of the relationship or international relations as far as Tunisia and Nigeria are concerned;”  Moshen said.

US Delists Nigerian Carriers from Flying Directly to Any of Its Destinations - THISDAY

SEPTEMBER 05, 2024

•NCAA: Nigerian airlines can fly to US with leased aircraft 

•Insists delisting not due to safety concerns 

•Arik Air says its takeover downgraded Nigeria’s aviation industry

BY  Chinedu Eze

Nigeria has been delisted from the United States Federal Aviation Administration (FAA) Category One Status (USFAA CAT 1) International Aviation Safety Assessment Programme (IASA). This means that no Nigerian registered carrier can operate to any US destinations until Nigeria returns to the status.

Nigeria was delisted because no Nigerian registered airline had operated to the US for about seven years and according to the new FAA regulation, a Category One status country that failed to operate to US after two years will be delisted from the status.

Category One Safety Status means that the country certified by the status has met US safety standard to operate flights to the US, which includes compliance with the International Civil Aviation Organisation (ICAO) standards.

To designate and certify a country worthy of Category 1 Status, FAA inspectors will assess the country’s civil aviation authority and determine its licences and oversees air carriers in accordance with ICAO aviation safety standards.

The airlines from the assessed state may initiate or continue service to the United States in a normal manner and take part in reciprocal code-share arrangements with US carriers, as long as that country maintains the safety standard that earned it the certification.

Nigeria gained the USFAA CAT 1 Status in August 2010 after a rigorous exercise that spanned about five years, but due to the failure of any Nigerian airline to operate directly to the US for seven years, the country was delisted.

FAA’s International Air Safety Assessment (IASA) programme determines whether a country and its airlines will be allowed to fly into the US.

Reacting to the report, Director General of the Nigeria Civil Aviation Authority (NCAA), Captain Chris Najomo, in a statement, explained that the decision taken by USFAA had nothing to do with safety.

Najomo stated, “To operate into the United States of America, Nigeria, like most countries, must satisfactorily pass the IASA Programme and attain Category 1 status. Upon attaining this status, Nigerian airlines would be permitted to operate Nigerian registered aircraft and dry-leased foreign registered aircraft into the United States, in line with the existing Bilateral Air Services Agreement (BASA).

“The first time Nigeria attained Category One Status was in August 2010. The U.S. Federal Aviation Administration (FAA) conducted another safety assessment on Nigeria in 2014.  A further safety assessment was conducted on Nigeria in 2017, after which Nigeria retained her Category One status.

“However, with effect from September, 2022, the US FAA de-listed Category One countries who, after a two-year period, had no indigenous operator provide service to the U.S. or carrying the airline code of a US operator. Also removed from the Category One list were countries who the FAA was not providing technical assistance to base on identified areas of non-compliance to international standards for safety oversight.”

Najomo stated that no Nigerian operator had provided service into the United States using a Nigerian registered aircraft within the two-year period preceding September 2022. He said it was expected that Nigeria would be de-listed, as were other countries who fell within this category.

Nigeria was de-listed since 2022 and was duly informed of this action in 2022.

The NCAA director-general said, “It is important to clarify here that the de-listing of Nigeria has absolutely nothing to do with any safety or security deficiency in our oversight system. Nigeria has undergone comprehensive ICAO Safety and Security Audits and recorded no Significant Safety Concern (SSC) or Significant Security Concern (SSeC) respectively.

“It is furthermore necessary to add that a Nigerian operator can still operate into the US using an aircraft wet-leased from a country who has a current Category One status.”

According to Najomo, NCAA continues to adhere strictly to international safety and security standards and respects the sovereignty of states, including the United States of America, as enshrined in Article One of the Convention on International Civil Aviation. This provision gives states complete and exclusive sovereignty over the airspace above their territories.

Najomo said, “Furthermore, it is in full realisation of this situation that has since prompted the Honourable Minister of Aviation and Aerospace Development, Festus Keyamo (SAN), to embark on an aggressive international campaign to empower our local operators to access the dry-lease market around the world, which culminated in the visit to Airbus in France earlier this year and the MOU signed with Boeing in Seattle, Washington just last week.

“The minister has also done a lot of work to make Nigeria comply fully with the Cape Town Convention, which will bring back the confidence of international lessors in the Nigerian aviation market. We are confident that with these steps of the minister, it is only a matter of time that Nigeria, not only regains, but can sustain its US Category One status.”

Also, reacting to the delisting of Nigeria from by the USFAA Category 1 status, shareholders of Arik Air, in a statement by Lanre Bamgboshe, recalled how FAA inspectors audited the airline and used it to rate Nigeria.

Bamgboshe said the takeover of Arik Air downgraded the industry, hence, the delisting of Nigeria by USFAA.

He stated, “It should be noted that Arik Air invested in the rigorous and painstaking audit and certification programmes that resulted in the Cat 1 certification for Nigeria and Nigerian air operators, in collaboration with the Nigerian Civil Aviation Authority (NCAA), Federal Airports Authority of Nigeria (FAAN), and the Ministry of Aviation and Arik Air between 2009 and 2010.

“To achieve this, Arik Air made direct investments of over $12 million in engaging a world class consultant, SH&E from USA, to develop manuals, procedures, supervise and facilitate the implementation of the Cat 1 certification process.

“SH&E USA assisted the Nigerian civil aviation authorities and Arik Air, to train several professionals to achieve the USFAA Cat 1 certification for Nigeria and airline operators in Nigeria between 2009/2010.

“During this process, several flights, safety and operations professionals of Arik Air, NCAA and FAAN were trained and certified by USFAA, this is in addition to their respective NCAA certifications. Also, the entire check-in, boarding, security of Nigerian main airports (Lagos/Kano, Abuja & Port Harcourt) related operation support for airlines were enhanced as recommended by the Consultants and approved by FAA.”

Since Arik Air stopped flights to the US in 2017, no registered Nigerian carrier had started operation to any destination in the US.

Dublin Airport Set to Exceed Passenger Cap, Operator Warns - BLOOMBERG

SEPTEMBER 05, 2024

 

(Bloomberg) -- Dublin airport is set to breach an annual 32 million cap on passengers that was imposed by Ireland’s planning body for the first time, its operator daa has forecast.

The condition was set by An Bord Pleanála over 15 years ago as part of the planning permission that was granted for a second terminal at Dublin airport, due to concerns about road infrastructure into the airport. 

“Ireland’s falling behind on this, and the quicker we catch up, the better. We’ll continue to do our very best to comply with the planning cap, but we know that there’s demand out there next year for 37 million from the airlines,” daa’s chief executive officer Kenny Jacobs said in a phone interview.

As of the end of August, passenger numbers trended 5.5% ahead of 2023, a trend daa forecasts to continue into September. A total of 31.9 million passengers passed through Dublin airport in 2023, according to daa.

The airport authority has requested to increase the passenger cap to 40 million a year via a planning application in December 2023. However, it is expected to take some time for a decision to be made while the planning board seeks further information. Plans have faced opposition from local residents. That’s creating an opportunity cost, Jacobs added, because of the uncertainty.

Stakeholders, including daa, Irish airline Ryanair Holdings Plc and Ireland’s business lobby Ibec, have called for action, arguing that the cap inhibits Ireland’s ability to grow as a foreign direct investment hub. “Sustainable growth of the airport will deliver benefits to the region and the wider economy,” Danny McCoy, Ibec’s chief executive officer, said in a statement.

The cap symbolizes infrastructure challenges facing the small island nation as decisions on everything from offshore wind, to homebuilding and expanding Dublin port are held up by bottlenecks in the planning system. Planning reforms are currently being ratified in the Irish parliament, while prime minister Simon Harris has proposed a new Department of Infrastructure to bring all planning issues under one roof.

The transport minister and former green party leader Eamon Ryan has yet to intervene, saying it is a matter for the planning board. That has irked some of those stakeholders, who counter-argue that lifting the cap should be a government decision, not a local council one.

Breaching the cap leaves all stakeholders involved in “unchartered territory,” Jacobs said, as the consequences are not yet clear.

“The passenger cap at Dublin Airport is an important issue for our business” Dermot Crowley, Dalata Hotel Group chief executive officer, said in a half-year statement Wednesday. “The ability of Dublin Airport to continue to increase passenger numbers is critical to support further growth in the Irish economy, particularly in the hospitality and tourism sectors which are a key source of employment for the island of Ireland.”

Air Canada Offers Pilots a 30% Pay Boost as Strike Deadline Nears - BLOOMBERG

SEPTEMBER 05, 2024

(Bloomberg) -- Air Canada has offered to boost the pay of more than 5,000 pilots by about 30% within the next three years, according to people familiar with the matter, as it seeks to prevent a strike. 

Pilots at Canada’s largest airline would received a minimum 20% increase up front, followed by annual raises over a three-year period, said the people, asking not to be identified because the discussions are private. Pilots with one to four years of service would receive more, the people said.

The offer means that a captain with 10 years of service flying a widebody aircraft such as a Boeing 777 with a current salary of just over C$350,000 ($259,000) per year may see an increase of more than C$100,000 over the life of the contract, the people said. The airline’s offer also includes improvements in pension and health benefits.

Air Canada and the Air Line Pilots Association have been in talks for more than a year. The last contract, a 10-year deal that was ratified in 2014, provided pay increases of about 2% annually. The pilots haven’t received a raise since last year. 

Air Canada pilots are paid less than half of what industry counterparts receive, the union has said in previous statements.

ALPA’s local head, Charlene Hudy, declined to comment on the specifics of the proposal. But entry-level wages for pilots are an issue, she said. “One-quarter of our pilots have a second job, with almost 80% of those needing the job out of necessity,” she said. “We are trying to change that.”

A meeting between the parties is expected later this week. As of last week, the talks had “completely stalled,” Hudy added. 

In August, the pilots voted 98% to give the union authorization to strike, and they’re in a position to walk off the job in the middle of September if there’s no deal. The airline introduced a rebooking policy for customers with travels between Sept. 15 and Sept. 23.

The union seeks to close the pay gap with large US airlines, which have given their pilots substantial pay increases. Last year, ALPA reached a four-year agreement with United Airlines Holdings Inc., providing pilots a total compensation increase of as much as 40%, including an immediate pay boost of 13.8% to 18.7%.

“When it is in force, we want our pilots to remain the best-paid commercial pilots in Canada by far,” Air Canada spokesperson Peter Fitzpatrick said by email. “We are open to any solution to reach a reasonable settlement, including arbitration.”

Canada’s No. 2 airline, Onex Corp.-controlled WestJet Airlines, agreed to a contract in 2023 that included a 24% compensation bump over four years.

--With assistance from Mary Schlangenstein.

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