Zimbabwe: National Airline Looking At Leasing Aircraft

AIR ZIMBABWE has decided to lease aircraft because neither the Government nor the national airline have resources to buy new planes, an official has said.

Transport, Communications and Infrastructure Development Permanent Secretary Mr Partson Mbiriri, yesterday said contrary to media reports that Airzim had purchased an Airbus A350, the national airline was assessing which planes to lease.

"Not every plane that lands at the Airport belongs to Airzim, it is true that the national airline needs new aircraft but neither Government nor Airzim has the resources to purchase them," he said. "What is happening is that Airzim is exploring and assessing the leasing route because it's cheaper to lease than buy one when we don't have the resources."

Mr Mbiriri said since Airzim was assessing which planes to lease, it was inevitable that some planes would be seen at the Airport. He said some companies would send their aircraft to Airzim to market them.

"Some of the vendors even go as far as painting the planes in Airzim colours as a marketing gimmick. This has been happening over the years that I have been at the Ministry of Transport. Government is obviously determined to see the national airline continue flying the Zimbabwean flag," Mr Mbiriri said.

He said the Airbus 350 that had been reported as having been bought by Airzim was just being assessed for leasing by the national airline.

Meanwhile, State Enterprises and Parastatals Minister Gorden Moyo on Tuesday said Government would "ring fence" the US$140 million debt, which the airline would repay when it becomes profitable.

Last year, Cabinet resolved to incur the over US$140 million debt which would pave way for the restructuring of Airzim.

This also comes amid indications that the Cabinet Committee on the national airline has only met once despite several Cabinet directives.

MDC-T's national council last year met and called on the Government to stop funding the national airline saying it would rather be shutdown.

Minister Moyo said Cabinet resolutions were policies that had to be implemented than party positions.

"The Cabinet position is what matters because it becomes a policy and that resolution (debt takeover) is awaiting implementation," Minister Moyo said.

He said the decision to takeover the debt was motivated by the need to make the airline's balance sheet attractive to investors.

Minister Moyo said Cabinet resolved that Airzim should be restructured through a joint venture approach.

"Implementation of the restructuring is now in the hands of the Minister of Transport, Communications and Infrastructure Development (Nicholas Goche).

"The decision was that we are going to use the model of the Ethiopian Airways and the Kenyan Airways. It is up to the Minister of Transport to implement that decision," he said.

Minister Moyo said Cabinet had instructed Finance Minister Tendai Biti to raise the funds for "right sizing" the workforce at the airline.

He said the delay to clear the debt was due to financial constraints at the Treasury.

Minister Moyo said Cabinet would also restructure the National Handling Services whose proceeds would be channelled towards recapitalisation of the national airline.

Minister Goche and Minister Moyo have the responsibility to finalise the restructuring exercise.

Minister Moyo said the restructuring documentation for NHS was ready to be presented in Cabinet for approval. Cabinet, Minister Moyo said, also agreed that there was need to properly constitute the Airzim board and management.

"As we speak those people can't make decisions on their own thus they keep referring most of the issues to the Ministry of Transport, consequently leaving us with a kind of micro management of Airzim against the norms and values of corporate governance," he said.

Zanu-PF and MDC say there is need for the national airline to be recapitalised so that it can be profitable while the MDC-T argues the solution lies with the shutting down of the airline.

Zanu-PF spokesperson, Cde Rugare Gumbo, said there was need for the Government to implement the Cabinet resolutions.

"Like any other parastatals, we can't allow Airzim to liquidate, we have a responsibility to make sure that Airzim is capitalised and that is possible if Government takes the debt," Cde Gumbo said.

"The airline has to recapitalise so that it can fly the Zimbabwe flag because we believe an airline is a marketing strategy for the country. We want it to be run on a commercial basis so that it generates profits."

MDC deputy spokesperson, Mr Kurauone Chihwayi, said there was need for the Government to engage an investor who can help resuscitate the national airline.

"We cannot dump Airzim, the only dumping we can do is in the hands of an investor," Mr Chihwayi said.

"We expect the major shareholder to capitalise the national airline and if Government can't do that then an investor should come in with the money because it cannot continue in the state that it is in where workers can go for seven without getting paid."

He said Government was supposed to be flexible and allow the investor to own more than 49 percent stake in the airline.

However, MDC-T spokesperson, Mr Douglas Mwonzora, said the only way to solve the problems at Airzim was to implement the MDC-T resolutions on the airline.

"If Cabinet has failed to implement its resolutions it shows there is something wrong. We believe the problems at Airzim are persistent and our view is shut down Airzim, pay workers their packages, get a partner and then run it commercially," he said.

Mr Mwonzora said there was, however, need for the Government to find other ways of settling the Airzim debts.

Air France completes long-haul fleet re-configuration

Air France (AF) has completed the installation of its premium economy cabin on six Airbus A380s, extending the new intermediate class on almost all of its long-haul fleet and network covering 67 destinations. 

AF started rolling out the premium economy cabin in the fall of 2009. All of its A330s, A340s, A380s and most of its Boeing 777s (except those serving the French overseas territories with high-density seating configuration) are now retrofitted. 

The French carrier’s premium economy is a separate cabin located between the economy- and business-class cabins, with fixed-shell seats that recline to 123 degrees, have a 38 in. pitch and an individual video screen offering 500 hr. of programs on demand. The meal service is the same as in economy but passengers receive amenities such as noise-reducing headphones, a feather pillow and a wool blanket. On the ground, premium economy passengers have priority check-in and priority baggage delivery.

Ethiopian Airlines to Buy Five Bombardier Aircraft

Ethiopian Airlines, Ethiopia's flag carrier, is in negotiations with Bombardier Commercial Aircraft for the purchase of five Q400 turboprop aircraft. The airline has been in negotiations with the Canadian manufacturer for some months according to a senior Ethiopian Airlines Executive.

Bombardier and Ethiopian Airlines are in the process of negotiating the details in the purchase agreement said the executive. It is expected that this step will be concluded in the next couple of months he explained.

Bombardier declined to comment on its negotiations with Ethiopia on grounds that discussions with customers and prospective customers are confidential. The aircraft manufacturer will acknowledge an actual order with a press release describing all relevant details according to John R. Arnone, Manger, Media and Public Relations of Bombardier.

It is to be remembered that in 2010 Ethiopian Airlines purchased 8 Q400 aircraft which were deployed for domestic and regional routes.

In related news the Ethiopian Civil Aviation Authority announced that it has authorized Boeing to carry out a test flight of the B747-8 at Bole International Airport, Addis Ababa.

The aircraft manufacturer requested permission to conduct high altitude test flights on engine performance.

A similar request by Boeing made last July was denied because Bole International Airport was undergoing expansion works that led to congestion.

The civil aviation was able to permit test flights as the airports enterprise is near to completing the expansion project according to Col. Wossenyeleh Hunegnaw, Director General of the ECAA.

Air Zim mishap leaves Mugabe stranded

PRESIDENT Robert Mugabe and his delegation found themselves with a few extra days in the Big Apple after a chartered Air Zimbabwe plane sent to pick them up burst its tyres when landing in New York.

The Zimbabwean leader — along with scores of his allies — are banned from travelling to Western capitals after they were slapped with sanctions by the US and European Union over allegations of rights abuses and electoral fraud.

He left the country on September 17 to attend the 66th session of the UN General Assembly but was forced to put off his return home after the Air Zimbabwe plane burst four rear tyres when landing at an airport in New York.

Air Zimbabwe board Chairman, Jonathan Kadzura, confirmed mishap in an interview with The Standard but refused to give further details.

“It’s nothing serious, it’s not as magnified as you want it to sound,� Kadzura told the newspaper. “The plane’s tyres got punctured on landing and we are working on replacing them.

The national airline resumed local and international flights last week after a strike by pilots that grounded its planes for almost two months.

Government gave the cash strapped airline US$2.8 million as it sought to end the job boycott that has crippled the country’s tourism industry.

Comair deals with baggage pilfering as problem gets ‘out of control’

Comair, which manages British Airways and Kulula.com in South Africa, says it is tackling the scourge of baggage theft head-on. This comes after SAA said baggage theft at OR Tambo International Airport was out of control, with more than a dozen bags being stolen every day.

Gidon Novick, the joint chief executive of Comair, said efforts to deal with baggage pilfering was yielding results. “Less than one per 5 000 bags carried on Comair flights is being pilfered,” Novick told IOL. This works out to .2 per 1 000 bags, which is less than the international average of .3 bags per 1 000.

Last month South African Airways (SAA) CEO Siza Mzimela said that “baggage theft remains very high and OR Tambo International is out of control”. She added that pilfering at South Africa’s other airports was also “very high”. SAA’s acting head of group corporate affairs, Dileseng Koetle, said that pilfering at OR Tambo was .6 bags per 1 000.

"How can we promote SA as a tourist destination if their first experience of the country is the loss of their luggage?" asked Greg Krumbock of the Democratic Alliance.

According to a report released by SITA several years ago, 98% of the 2.25 billion items of luggage checked in at the world’s airports arrive at the right time at the right place. But the remaining percentile still amounts to 42 million bags, passenger frustration and US$3.8 billion in fines.

The Airports Company of South Africa (ACSA) said it had been working hard to solve the problem, which has been on the decline over the past few years. ACSA head of communications Solomon Makgale, said there had been “a consistent improvement” in the situation for the past five years and the average number of bags pilfered at OR Tambo had dropped from 36 a day to 14 a day. Since January last year, 18 people at OR Tambo have had their access cards blacklisted after being caught pilfering luggage.

Makgale said that baggage theft happens in three main areas – within the baggage sorting system, on the way to the aircraft, and in the hold of the aircraft. Consequently, “ACSA has installed CCTV cameras which enable us to catch the criminals in the act,” in the sorting area. He recommended that airlines install CCTV cameras in the holds of their aircraft.

Novick said Comair had improved the baggage pilfering situation by physically monitoring baggage whilst it was at the airport and getting baggage handlers to wear thick gloves so they cannot feel the contents of the luggage. “If an irregularity is found, baggage handlers’…restroom and lockers are searched both at the departure and arrival airports,” Novick said. “Staff face disciplinary action and polygraph testing if warranted.”

“We will continue to take this zero tolerance approach with all loopholes tightly closed until pilfering is eradicated,” Novick told IOL.

Other airlines are also taking steps to mitigate the problem. British Airways said its team at OR Tambo has seen a decline in baggage damage and pilfering and that security guards were present when bags were being loaded and unloaded.

Mango spokesperson Hein Kaiser told IOL that “presently pilferage averages between 0.2% and 0.6% dependent on the time of year,” adding that “Mango continues to work with all role players including ACSA, the SA Police Service, our shareholder SAA, and other airlines among others toward a remedy.”

Senegal Airlines launches new route to Douala in Cameroon from Dakar

Senegal Airlines, the new national carrier of the West African country, launched a new route from its Dakar (DKR) base on 15 August. The airline now flies via Abidjan (ABJ) in Ivory Coast to Douala (DLA) in Cameroon. Flights operate twice-weekly with the airline’s 136-seat A320 aircraft. Between Dakar and Abidjan, competition comes from Kenya Airways’ three weekly flights.

Air Zimbabwe struggling for survival

Air Zimbabwe is struggling for survival as the airline requires at least US$20 million to keep operations running as reported recently.  Transport, Communications and Infrastructure Development Minister Nicholas Goche on Monday said the money would be used to cover the costs of fuel and other expenses, according to Zimbabwe's Herald newspaper. The amount did not include US$8 million for retrenchment packages and other expenses.  "If we get a minimum of US$20 million, that would be enough for the airline to clear its short term expenses like buying fuel when they want to fly while we, as shareholders, are looking for other strategies to ensure they will remain viable," he said.  Goche noted that, "it is very difficult to attract an investor because of its balance sheet and debt and there is still no strategic partner that has come to the rescue of Air Zimbabwe." "The Air Zimbabwe balance sheet is very bad and not attractive to anyone. The revenue generated by the company does not match the overheads," Goche told local media recently.  VOA reported that experts have dismissed Goche's figure, saying that the money would not be enough to save the airline. Another problem is that the government cannot spare US$20 million to rescue Air Zimbabwe as it is on a shoestring budget and already sliding into deficit.  Aviation expert Guy Leitch of South Africa's Fly Magazine told VOA that Goche's proposals to the parliamentary transport committee do not make sense.  Some good news came for the airline on June 10 when Zimbabwe's civil aviation authority (CAAZ) allowed Air Zimbabwe's three Boeing 737-200s to take to the air again. They were grounded in April after the CAAZ said they had reached their flying limits. The aircraft serviced the Harare-China and Harare-London routes.  Nevertheless, the national carrier remains in dire straits as it has more than US$100 million of debt.  Air Zimbabwe has been hit by a number of crises recently. Air Zimbabwe's flights came to a halt for a week starting May 18 as the aircraft it was leasing from Zambezi Airlines was withdrawn over an unpaid US$460 000 debt. In March Air Zimbabwe leased a Boeing 737-500 from Zambia's Zambezi Airlines.  On May 15 the International Air Transport Association (IATA) suspended Air Zimbabwe from flight booking services as Air Zimbabwe had not paid US$280 000 of the debt it owes the organisation. Air Zimbabwe continued flying, using its own booking facilities. More than 50 percent of the airline's customers book through travel agents.  Air Zimbabwe is crippled with more than US$100 million of debt, some of it accrued from a nearly month long strike between March 22 and April 20, the second to hit the carrier in the last year. Pilots were protesting unpaid salaries and allowances dating back to February last year, amounting to approximately US$9 million.

Air Zimbabwe Refere Three Options to Local Passengers

EMBATTLED national airline, Air Zimbabwe, which is struggling to service its routes is now booking passengers on buses to some of their local trips, it emerged this week.

Scores of passengers who were scheduled to fly to Bulawayo on Sunday were left stranded after their flight was cancelled at the last minute due to operational challenges.

In a telephone interview on Monday, a spokesperson for Air Zimbabwe, who refused to disclose her name confirmed the cancellation of the flights and said they gave passengers three options.  The first option was to be booked in a bus that was supposed to leave Harare on Monday afternoon, the second one being to be rebooked for a Wednesday flight, while the last one was to have the passengers' money refunded.

"Our flight to Bulawayo on Sunday had to be cancelled due to operational challenges and we had to give the passengers three options.

“Those who were in a hurry were asked to use a bus on Monday afternoon, while others had their flights rebooked for Wednesday. Those who felt hard done by the move will have their money refunded," said the spokesperson.

One of the affected passengers, Mutare businessman Mr Isau Mupfumi, who was scheduled to fly to Bulawayo to attend to pressing commitments at his Senatar Tours, said  he was surprised to be told that the flight had been cancelled when he was  already at the airport.

"This is so inconveniencing because we had already made plans for meetings in Bulawayo, only to be told that the flight had been cancelled. When flights are cancelled the service provider usually pays for the passengers' accommodation while they wait for the next flight and this did not happen after Sunday's flight cancellation.

"Some of us we are in the public transport business and it was an insult for Air Zimbabwe to ask us to use buses to travel to Bulawayo. I could have even looked for the most comfortable bus among my fleet to take me to Bulawayo, but we opted to support our national airline, only to be repaid through this kind of service," complained Mr Mupfumi. Some of the passengers going to local routes like Bulawayo and Victoria Falls are first travelling to Johannesburg in South Africa and reconnect back to Bulawayo and Victoria Falls due to Air Zimbabwe's inconsistence.

Most passengers who opt for refunds have to wait for a little longer to have their money as the national airline takes time to avail the refunds.

"We do not pay refunds there and there and that is why we usually try to rebook our passengers in the next available flight," said the Air Zimbabwe spokesperson.

Air Zimbabwe out of fuel

Zimbabwe's debt-ridden national airline has cancelled flights to London and South Africa because fuel companies have cut off its supplies because of unpaid bills.

A senior manager at the troubled carrier yesterday confirmed the flight cancellations.

"We had no option but to cancel London flights because suppliers refused to give us fuel for the trip," the manager said.

London-to-Harare flights were also cancelled.

Air Zimbabwe GM Innocent Mavhunga would not deny that the groundings were a result of failure to pay fuel suppliers.

"I would not want to comment on that," he said.

Airlines cancel flights to Addis Abba

Three airlines operating out of Entebbe International Airport to Ethiopia temporarily cancelled flights following the suspension of the use of the country’s airspace and that of Eritrea.

The affected airlines include; Ethiopian Airlines, Emirates, and Kenyan Airways which fly to Addis Abba. Ethiopia and Eritrea have suspended flights over their airspaces according to Mr Ignie Igundura, the spokesman of Uganda’s Civil Aviation Authority.

Volcanic eruption
The suspension came on the back of the ash cloud formed by the eruption of a volcanic mountain in Eritrea at the weekend.
The cloud which could cause airlines to crash due to poor visibility, spread from Eritrea to Sudan, Ethiopia, Djibouti and Egypt, according to the BBC.

Despite the cancellation of flights, Mr Igundura told Daily Monitor that business at Entebbe Airport had not been severely affected.

“We have flights like Emirates that have been affected. You can call them to find out what they are doing about it,” he said in an interview yesterday.

Mr Igundura was not sure of when the suspension would be lifted to allow airlines to resume flights to or over Ethiopia. “You cannot know because it’s a natural disaster. It’s difficult to tell,” he said.

Despite the disruption, airlines such as Brussels which do not fly over Ethiopia, continued with their flights to Europe.
“We haven’t been affected, our operations are going on smoothly,” Mr Roger Wamara, the sales and marketing manager Brussels Airlines in Uganda, said.

By last evening, Ethiopian Airlines had also resumed flights to Djibouti but not to other affected markets brining hope to some disturbed travellers.

“The volcanic ash cloud in the Northern part of Ethiopia is clearing.

Senegal Airlines announces new services to Central Africa

Dakar, Senegal - The new Senegalese airlines company, Senegal Airlines, on Tuesday announced the opening of new services to Cotonou (Benin), Libreville (Gabon) and Douala (Cameroon) from Dakar, with a technical stopover in Abidjan, Cote d'Ivoire. A communiqué issued by Senegal Airlines said the opening of new stopovers is made possible by the arrival of a third Airbus A320, which will go into operation early July. According to the communiqué, the new flight schedule of the company is characterized by the reinforcement of the Dakar-Abidjan service, adding that the airline will propose 14 weekly non-stop flights between both capitals, with schedules adapted to the needs of the business clientele (daily departures from Dakar).

The opening of new direct services to depart Abidjan to Bamako and Cotonou: three times per week (Tuesday, Thursday, Saturday); to Libreville: two times per week (Wednesday, Sunday); to Douala: two times per week (Monday, Friday), it also announced.

Non-stop flights between Dakar and Ouagadougou: two times per week on Thursdays and Saturdays was also announced, in replacement of the flights operated hitherto via Bamako and non-stop flights between Dakar and Praia (Cape Verde): two times per week, on Fridays and Sundays.

Senegal Airlines will serve all these destinations with the assistance of its strategic partner, Emirates, for the transportation of the passengers to Dubai and beyond towards the Asian continent.

Iberia Offers Destinations in Africa and The Middle East

Iberia's customers can now book to new destinations in Africa and the Middle East. 

Since today, under code shares with British Airways, the Spanish airline is offering flights to Accra (Ghana), Lusaka (Zambia), Riyadh and Jeddah (Saudi Arabia). Meanwhile, British Airways has added its code to Iberia flights to Santiago de Chile, Guatemala and San Salvador.

The new code-sharing arrangements are a consequence of the merger of Iberia and British on January 24 of this year. Since then, more and more flights have both airlines’ codes. British Airways is placing its code in Iberia’s Latin American destinations, while Iberia is placing its code in British Airways flights to Africa, Asia and the Middle East. More destinations will be added to this code-share agreement in the coming months, so customers from both airlines will have access to a broader network.

 

Flights operated by each airline are progressively becoming available on the other's web site and telephone reservations lines. It is also possible in certain routes to combine fares of the two airlines, and to choose the most suitable. Other advantages to passengers include access to more than 120 VIP lounges in Airport s around the world.

Air Zimbabwe crisis deepens

THE Air Zimbabwe board has decided to keep a low profile until the expiry of its term of office as it is allegedly being bypassed by the parent ministry of Transport and Communication in making crucial decisions.
The board is chaired by farmer-cum- businessman Jonathan Kadzura and its term of office ends in August.

Standardbusiness understands that at one time board members contemplated resigning en masse but chickened out fearing a backlash from government.

What has irked the board is that a senior transport ministry official had allegedly become a de-facto executive chairman of the airline making decisions without consulting the board.

“He has made sure he does not consult the board. Honestly, how can you have a ministry official entering into an agreement with striking pilots without the involvement of either the board or management?” asked one board member.

“What he is saying is that we are irrelevant so we have decided to wait until our term of office expires then leave the airline for good.”

Transport ministry permanent secretary Partson Mbiriri’s mobile phone was unavailable while Kadzura’s phone went unanswered on Friday.

In January, Mbiriri allegedly struck an agreement with the striking pilots to resume work after they had downed tools.

The board recommended that the pilots be fired since the strike was illegal but the resolution was overruled by the ministry.

The January agreement could not be honoured by the ministry triggering another industrial action in March by the pilots which grounded the airline.
The ministry intervened again after it availed US$3,8 million to pay salaries and buy fuel among other expenses.

In 2009, Transport and Communication minister Nicholas Goche promised to rectify the problem.

While the board and the ministry are poles apart, the airline is deteriorating by the day. Air Zimbabwe has over the years degenerated into a museum of mismanagement attributed to government interference.

Analysts say government has to move out of the airline to stop the financial haemorrhage.

Board blames government

Board members said on Friday the decline at the airline could be attributed to government which made sure that AirZim had no competition.
Despite opening up the skies, government continued to stop airlines that wanted to compete with AirZim.

Fly Kumba was denied permission to fly the Harare-Johannesburg route because it would compete with AirZim.

AirZim’s decline comes at a time when airlines flying into Zimbabwe have increased frequencies citing growing passenger volumes.

South African Airways, Kenya Airways, Ethiopian Airlines and Zambezi have all enjoyed flying into Zimbabwe due to increased passenger volumes.

Airlines lose N7.2bn to aviation fuel scarcity

The un-abating scarcity of aviation fuel, known as JET-A1, which is an essential commodity in flight operations is hitting airlines harder by the day, as many of them are now cutting their flight schedules, out-rightly canceling them or delaying flights to enable them take full advantage of the meager supply from marketers.
The airlines are said to have lost in two weeks N7.2 billion to aviation fuel scarcity.
The product sells for N160 per litre from N98 which it hitherto sold for.
As a result of the scarcity, oil marketers are unable to supply enough JET-A1 to airlines. The price of the commodity in Nigeria is regarded as the highest in the world, leaving operators to groan under heavy operational costs, of which aviation fuel alone, accounts for over 50 percent.
Currently, some of the major airlines like Arik Air, Aero and Air Nigeria are finding it difficult to cope with the situation which has refused to abate.
Two weeks ago, when the scarcity again became noticeable, Arik Air and Air Nigeria’s flights that were scheduled to depart Enugu at 10.30a.m could not do so until 5.30p.m, leading to protests from passengers.
By the following Tuesday, an Aero flight scheduled to depart Lagos for Abuja at 9.50p.m did not depart the airport until well past midnight. The passengers only arrived at their destinations at 2a.m the next day.
One of the passengers on the flight said the flight was originally scheduled to depart at 5.55pm, but was asked to reschedule for 9.50p.m.
According to an Arik Air passenger, “The excuse they gave us was that they have not been able to get fuel from oil marketers due to its scarcity, but they have kept us in the dark since morning. The only thing I want from them now is the refund of my money.”
Another passenger of the airline to Port Harcourt who refused to disclose her identity said she was billed to sit for an exam in Port Harcourt penultimate Tuesday at 2p.m, but as at 5:30p.m, she was still stranded at the Lagos airport.
This development has put virtually all the airlines in a tight corner, leading to massive cut on their scheduled routes, amid serious competition for the few available seats offered to travellers.
Arik for instance, does an estimated 120 flights per day, but could only do 80 flights leading to a loss of 40 flights as a result of delays and cancellations, thus losing N269 million a day. Arik spends N400 million on fuel every week.
As for Aero Contractors which is second largest domestic carrier, and ordinarily operates about 80 flights per day, it has been operating between 40 and 45 flights per day leaving it with a short fall of about 15 to 20 flights per day. The airline by calculation has been losing close to N119 million per day.
Also lamenting the loss which his airline has had to endure, a senior official with IRS said the airline operates 15 flights daily, but has had to scale down flight operations. The airline operates with Fokker 100 which carries at least 100 passengers at once. For having to slow down on its operations, it is losing well over N25 million a day to the biting cost of aviation fuel.
And for Air Nigeria, the third largest airline, BusinessDay investigations show that the airline is losing about N100 million a day. “We have had to cope with the crippling effect of this aviation gas for operations. You can see we can’t fly as well as we should and have had to ration our routes,” an official of the airline said.
As a result of the high cost of the commodity in the country, both local and international airlines say they prefer to refuel their aircraft in neighboring countries like Ghana, Togo and elsewhere, thereby depriving the country from milking from the huge businesses that abound.
Lamenting the situation, Harold Demuren, director general, Nigerian Civil Aviation Authority (NCAA), said while marketers have raised the price of their product over time, the carriers have only marginally increased air fares and thus stressed: “We cannot operate this way.”
Demuren noted that, “The price of aviation fuel in Nigeria is ridiculously too high. We need to knock this down. We are working on it and I believe we will be able to do this. We can’t continue this way.”
The marketers have however attributed the cost of the product to high cost of import, maintaining that crude oil is not refined in Nigeria.
While they say they regretted that the cost of refining and importation to Nigeria were on the high side, they added that only when these are solved could the industry witness stability.
Meanwhile, the Federal Government has set a 24-month target to carry out full rehabilitation work on the country’s three refineries for maximum efficiency.
The refineries are Port Harcourt Refining Company with an installed capacity of 210, 000 barrels of crude oil per day; Kaduna Refining and Petrochemicals Company with a production capacity of 110,000 barrels per day and Warri Refining and Petrochemicals Company with an installed capacity of 125,000 barrels per day, bringing the total national capacity to 445, 000 barrels per day.
BusinessDay gathered that when completed, the Federal Government is expected to save annual revenue of about N1.3 trillion currently spent on petroleum products importation and the associated subsidy, which has become a major cesspool for oil cartels in the country.
All these targets are coming on the heels of the ongoing negotiation with the Chinese for the construction of three new Greenfield Refineries to be sited in Lagos, Bayelsa and Kogi States.
A top presidency source told BusinessDay on Sunday that the nation’s carrier, the Nigeria National Petroleum Corporation (NNPC), has already mobilised financial resources from its internally generated funds to handle the major rehabilitation works in the affected refineries.
BusinessDay investigations revealed that Austen Oniwon, Group Managing Director (GMD), NNPC, under the directives of Diezani Alison-Madueke, minister of petroleum resources, has begun ordering long lead items ahead of the conclusion of negotiations between NNPC and JGC/Tecnimont Consortium, the original contractors that built the refinery, by August this year, for the commencement of the rehabilitation works at the Port Harcourt refinery, the first on the line of rehabilitation, which is expected to be completed by the end of the first quarter of 2012.
Kaduna Refinery is expected to follow immediately, in the 24 months rehabilitation timetable of the Federal Government, while Warri, which is currently operating at over 65 percent installed capacity will end the rehabilitation programme before the end of 2013.
Though the source was reluctant to say how much NNPC will be spending in all for the rehabilitation of the three refineries, BusinessDay, however, gathered that the Port Harcourt refinery alone is expected to gulp not more than N1.5 billion ($150 million).
Once completed, the presidency source, who spoke to our correspondent on condition of anonymity, said the country will once again return to the part of sufficiency in kerosene and diesel production, thus ending the long years of sufferings of the ordinary Nigerian.
“This is going to save the Federal Government huge sums of money because in the first place, government is not going to spend a kobo to do the work. NNPC through its savings has been able to muster enough resources to carry out the work. This is not only a feat under the current minister of petroleum resources and the GMD of NNPC, but also for Nigeria as a country. This is the first time that NNPC is undertaking this type of exercise that it won’t be asking for Federal Government financial intervention,” the source said.

Ethiopian Airlines puts eight aircraft up for sale

Ethiopian Airlines this week announced it is selling five Fokker 50 and three decommissioned Boeing 757-200ER passenger aircraft in order to meet strict safety regulations set by the European Union, and increase revenue for the carrier.

The 54-seat Fokker 50s have been in service with Ethiopian for more than 15 years and are being replaced by eight Bombardier Q400 NextGen turboprops, which were bought at a cost of US$242 million in November 2008. The first Q400 arrived in March last year.

The state-owned carrier has put the Fokkers up for sale and has invited interested parties to enter into negotiations. "The airline is already conducting direct negotiations with several domestic and foreign potential buyers to sell off these aircraft," said Henok Tefera, an official at Ethiopian, AllAfrica reports.

Ethiopian’s 757s are ageing and are due to be replaced by the oft-delayed 787 Dreamliner. On April 5 last year, a 757-200 flying from Addis Ababa to Rome Fiumicino experienced a hydraulic failure related to the landing gear. The aircraft landed safely but the flight was delayed for 17 hours whilst the problem was fixed.

Ethiopian has around 40 aircraft on its order book, including ten Boeing 787 Dreamliners, 12 Airbus A350s, five Boeing 777s, ten Boeing 737s and eight Bombardier Q400s. Ethiopian was the first African airline to order the 787 when it did so in February 2005. Ethiopian expects the first two Dreamliners to arrive in January next year.

Ethiopian Airlines initiated an extensive fleet renewal project early in the millennium, something which is improving the safety and reliability of the carrier. Many African airlines have had operations disrupted due to safety concerns - the European Union on April 20 banned 269 carriers from 23 countries from flying in European airspace, citing safety concerns. Of these, 151 carriers are from 15 African nations.

A further motivation for selling the out of service aircraft is to improve fuel economy and raise cash. 39% of Ethiopian’s spending went to the rising cost of fuel, according to its nine-month report released earlier this month. This is up 67% from the same period last year. "The competition is not healthy, especially from the Middle East, as the carriers' fuel are subsidised," Henok said. "This is the context in which we are operating."

Qatar Airways joins tight airline market competition

National carrier, Qatar Airways, has announced a further expansion of its international route network with Uganda, Azerbaijan and Georgia, joining its growing list of countries served direct from the airline’s Doha hub.

This development could tighten competition in the respective markets.

The daily non-stop scheduled flights to Uganda are due to begin on November 2, marking the carrier’s first new route to the African continent since early 2007.

This will be followed by the airline’s expansion into Central Asia where it is expected to introduce daily non-stop flights to Baku then continue onto Tbilisi, the capital cities of Azerbaijan and Georgia respectively.

The announcement comes as the Doha-based carrier prepares for a busy few months ahead with the launch of scheduled flights to Shiraz, Venice and Montreal in June; Kolkata (Calcutta) in July; Sofia in September and Oslo in October.
Qatar’s entrance into the country brings the total number airlines to21.

Unveiling the expansion plans in Dubai on may 2, Qatar Airways Chief Executive Officer Akbar Al Baker said the new routes demonstrate the airline’s ambitious strategy to continue opening up new routes to popular and underserved markets.
Uganda is fast emerging as a regional trading centre with links to Europe and the Far East, but has limited international air services.

Qatar Airways is set to fill this gap with its huge international network of routes via its Doha base.

The three newest routes will be operated with Airbus A320 aircraft in a two-class configuration of 12 seats in Business Class and 132 in Economy.

“There is clear demand and huge potential and, as a network global carrier, we shall be able to fulfill the needs of the travelling public from these three countries and for those wanting to travel there from markets we serve around the world,” Mr Al Baker said.

“Qatar Airways already has a successful operation to the Russian capital Moscow. Expanding our presence deeper into Central Asia has been a focus of ours for some time so it is with extreme delight to be able to announce we will soon have new routes to add in this part of the world.”

He said the Airline is proud to reinforce its presence in Africa, four years after its last move thereas it launched flights to Tanzania’s capital city of Dar es Salaam.

Emirates to launch Airbus A380 to Johannesburg

Emirates airline announced that Johannesburg, the industrial and economic capital of South Africa, will be the next destination slated for its flagship A380 aircraft.
The daily A380 service will start October 1.
The announcement of Emirates’ first scheduled A380 service to Africa comes as the airline revealed a surge in the number of South African travellers flying with Emirates – with total passenger growth up 12 per cent over the previous financial year. Overall revenue from the South African market also rose sharply, up 34 per cent from 2009-10.
The year that saw South Africa host the highly successful 2010 FIFA World Cup also saw Emirates record a huge rise in inbound traffic to South Africa – with passenger volumes up 20 per cent in the calendar year 2010. As an official FIFA Partner, Emirates helped to bring the world to South Africa by flying in football fans from across its network of six continents.
“We have enjoyed a successful partnership with South Africa since launching services in 1995, and now connect our Johannesburg, Cape Town and Durban gateways to our vast global network through 42 non-stop flights each week to Dubai,” said Tim Clark, president Emirates Airline.
The 489-seat Emirates A380 offers 14 Private First Class Suites, 76 lie-flat beds in Business Class and 399 seats in Economy Class. First Class passengers have access to two onboard shower spas, while all premium passengers on the upper deck can socialise at 40,000 feet in the onboard lounge. Beverages and bar snacks are served once the aircraft reaches cruising altitude - all the way until descent.
The A380 service will operate daily as EK 761, departing Dubai at 0440hrs (local time) and arriving at O R Tambo International Airport at 1050hrs (local). The return flight, EK762, departs Johannesburg at 1410hrs (local) and arrives in Dubai at 0010hrs (local) the following day.
The new A380 service will also help to support the thriving trade relationship between South Africa and the UAE, which has enjoyed an average year-on-year growth of eight per cent since 2007.
Emirates currently operates a three times daily service to Johannesburg, a double-daily service to Cape Town and a daily service to Durban.
Emirates currently serves 19 passenger and cargo destinations across the African continent

Cheaper Flights Expected as Airline Capacity Rises

Travellers looking for a European getaway this summer should benefit from more affordable flights as capacity increases, according to travel site Travelmatch.

The site assessed seat availability to destinations such as the Costa del Sol and Marmaris, and using additional data from AOG Aviation, they concluded that Brits seeking Mediterranean holidays this year should find some bargains. OAG, a global aviation information company, found that airline capacity was up by 5 per cent in 2011, compared with 2010. 317 million seats were available to travellers in April 2011 across the world, and Europe showed a 2 per cent increase in capacity during the same period.

Travelmatch expected this to produce increased competition between airlines over the summer, resulting in lower prices for UK holidaymakers looking for cheap flights to Spain and beyond. Travelmatch's Alex Francis explained that Europe's capacity increases were due to airlines focusing their attention on the most popular resorts, as well as simply being part of a global increase in capacity.

" we believe this is fantastic news for British tourists as they should see prices fall as supply increases - this will also spur competition between different airlines, which will only serve to lower the overall cost of holidays further," said Mr Francis.

"Over the past decade we have seen prices drop considerably; we expect this trend to continue as increased capacity brings down the cost of air travel,” he added. “This is very exciting news for British travellers interested in booking stays in Marmaris and other fantastic spots around the Mediterranean."

Only South African Airways allows cellphones on flights

South African Airways (SAA) is currently the only airline that can test the feasibility of using cellphones on its flights, the SA Civil Aviation Authority (Sacaa) said on Friday.

"The Sacaa wishes to clarify that despite reports from some media outlets, SAA to date is the only operator/airline that officially applied and received the requisite exemption to test this possibility," spokesperson Kabelo Ledwaba said.

He said SAA was granted a six-month exemption in January and that the testing phase started on April 15.

One of the conditions of the exemption was that the airline submit a detailed proposal on how it would monitor the use of cellphones during flights.

The Sacaa would in addition conduct its own monitoring, Ledwaba said.

"The initial testing phase is for six months and, depending on the results of these tests, the Sacaa may conclude the testing phase or may request further tests."

The testing would take place on certain domestic routes, for each aircraft type in the SAA fleet and at certain specified times of the day.

There would also be onboard announcements advising passengers that testing would be conducted and guidelines on what the tests would entail.

He said the civil aviation regulator and the aeronautical information circular still prohibited the use of certain electronic devices, including cellphones on flights.

However, it acknowledged that technology advanced rapidly and the fact that airlines showed interest in testing the feasibility of using cellphones of flights came as no surprise.

We need healthy competition - South African Airways

South African Airways boss Siza Mzimela said she had no problem with plans by competitor Comair to introduce direct international flights between Durban and London, because it was a market the national airline did not serve.

She was responding to questions at a press conference following SAA’s annual breakfast at the Indaba tourism expo in Durban on Monday.

Mzimela’s comments came in the wake of the KwaZulu-Natal government and Dube TradePort Corporation announcing an agreement with Comair at the weekend.

The agreement would see a route being established between King Shaka International Airport and London’s Gatwick International, in addition to Nairobi and other African cities.

“Frankly we welcome this development, rather than see it as a fight. We need to look at the big picture and the fact is that this is a market not served,” said Mzimela.

“I am happy that someone will be able to service a market that we can’t. However, I think that it needs to be done carefully, because margins are tight in the airline industry. We all need to act wisely in terms of opening up new routes,” she added.

JSE-listed Comair, which operates kulula.com and the British Airways franchise in South Africa, is the country’s largest privately owned airline.

Mzimela said SAA was continuously “looking at new opportunities”, but that it was part of an airline alliance and worked on the “hub and spoke” strategy.

“We’ve got good connectivity to Durban; it’s just a matter of a short trip to Joburg and heading on internationally. We are placing a lot of emphasis on Africa, where the greatest growth is coming from,” she said.

SAA board chairwoman Cheryl Carolus said the airline had a “finite fleet” and there was only so much that it could do.

“We need to look at how best we can use this fleet and invest in routes that make the best business sense.

“The (Comair) agreement with KZN is actually fantastic news for the country and will ultimately be good for the industry in terms of competition – and it’s also good for the customers.

“This is a huge sign of confidence in South Africa’s aviation industry and tourism,” she said.

Last week, at the Hospitality Investment Conference Africa, KZN Tourism MEC Michael Mabuyakhulu said the province had had fruitless negotiations with SAA to re-establish a service between Durban and London.