Days after the ill-fated Ethiopian Airlines flight 302 crash in Addis Ababa, Norwegian Air is demanding compensation for the grounding of its 737 Max 8 jets.
The demand is coming after authorities in China, Singapore, Malaysia, and many EU countries have all grounded Boeing’s improved 737 jets.
The company has at least eighteen Boeing 737 Max 8
Norwegian Air currently has eighteen Boeing 737 Max 8 jets in its fleet, all of which fly the trans-Atlantic routes; that is between Europe and the United States of America. However, following Sunday’s tragic accident, all the jets were grounded following the tragic accident.
The CEO is emphatic about the demand
But the airline’s Chief Executive Officer, Mr Bjørn Kjos, said the company will not bear the costs that will accrue from the jets being grounded.
“It is quite obvious we will not take the cost related to the new aircraft that we have to park temporarily.
“We will send this bill to those who produce this aircraft,” -Bjørn Kjos
Other affected airlines could make similar demands
With Norwegian Air being the first to demand compensation for lost flight time, other affected airlines in other countries might follow suit, thereby adding to the troubles of the American jet maker already faces.
Safety concerns persist
Already, there are concerns about the safety of the improved 737 model, after two of the jets fell from the sky barely five months apart. Following the latest crash, the Black box has been recovered and sent to Europe for analysis. In the meantime, however, the cause of the crash remains unknown.
A difficult time for Boeing
This is a trying time for the management of Boeing, whose share price crashed to record low following the air mishap. The company lost $24 billion in market capitalisation in two days. No doubt, the company will be shaken even more financially, seeing as many law suits loom.
In the meantime, this could give Elon Musk’s SpaceX an upper hand in its growing competition Boeing; Boeing is currently losing NASA contracts to SpaceX.
Meanwhile, Nigeria’s Air Peace is standing by its partnership with Boeing
Despite the recent developments, Nigeria’s Air Peace said in a statement, today, that it is sticking with its partnership with Boeing. According to the Nigerian airline, it is still still monitoring the situation.
Air Peace had, last year, ordered delivery of 10 737 Max 8 jets to enable expand its international flights.
Nigeria makes its position clear on the matter
Nigeria’s Aviation Minister, Hadi Sirika, sent out a tweet, yesterday, to clear the air about Nigeria’s position. According to the Minister, there is no Boeing 737 Max 8 jet in Nigeria operated by any airline. As such, there is no need for the public to panic.
As we continue to mourn the ET crash in Addis, and pray for the victims, we wish to reassure Nigerians that we do not have any Boeing 737 Max on Nigeria’s register to worry about. Civil Aviation Authority has issued the needed advisory, please.🤲🏽🤲🏽🤲🏽🇳🇬🇳🇬🇳🇬
— Hadi Sirika (@hadisirika) March 12, 2019
Central banks digital currencies pose a threat against the U.S dollar
In general, digital currencies could weaken the power of U.S. sanctions and the ability of the U.S. Treasury to watch illicit financial flows.
A new report by America’s biggest bank, JP Morgan Chase, said the U.S dollar is being faced with a major threat as many central banks’ digital currencies continue to gain traction.
Analysts, including Josh Younger, the head of U.S. interest-rate derivatives strategy and Michael Feroli, the chief U.S. economist, wrote in a report saying this:
“There is no country with more to lose from the disruptive potential of digital currency than the United States.
“This revolves primarily around U.S. dollar hegemony. Issuing the global reserve currency and the medium of exchange for international trade in commodities, goods, and services convey immense advantages.”
Aditi Kumar and Eric Rosenbach also recently penned an opinion piece for Foreign Affairs in which they noted that “Just recently, America’s arch-rival China became the first major economy to carry a real test of a national digital currency.”
In general, electronic currencies could weaken the power of U.S. sanctions and the ability of the U.S. Treasury to watch illicit financial flows. A digital Chinese currency (yuan) combined with China’s developed electronic payment systems may give China more future influence than it ever bargained for.
What Nigerians should know about Digital currencies
A digital currency is a cash balance recorded electronically on a store value card or other physical devices, which could someday replace the physical notes of the naira, for instance.
Digital currencies can be decentralized, that is where the control over the cash supply can come from diverse sources. Digital currencies can also be centralized, where there is a midway point of control over cash supply, just like the way central banks work.
Although JP Morgan does not see the U.S dollar being overthrown as the world’s reserve currency anytime soon, experts warned that the U.S dollar dominance could weaken. This is because its processing trade settlement and the SWIFT system could make it more vulnerable.
The American bank continued by saying:
“Offering a cross-border payment solution built on top of a digital dollar would, particularly if designed to be minimally disruptive to the structure of the domestic financial system, be a very modest investment to protect a key means to project power in the global economy,
“For high-income countries and the U.S. in particular, digital currency is an exercise in geopolitical risk management.”
Federal Reserve Chairman Jerome Powell said months ago that the Federal Reserve was taking a critical view on the issues regarding a digital currency.
Dollar gains against major currencies
U.S dollar stood firm against major currencies on Monday as fears over rising tensions between America and China over Beijing’s plans to begin
The U.S dollar was up on Monday morning during London’s trading session after protests in Hong Kong yesterday escalated U.S-China tensions.
US dollar stood firm against major currencies on Monday as fears over rising tensions between America and China heightened.
The American Dollar Index that monitors the U.S dollar against a basket of other major currencies was slightly up 0.02% to 99.945 by 11.10 am Nigerian local time.
What it means: Nigerians hoping to meet a foreign exchange payment obligation, transactions via the dollar to countries like Europe, Japan, would have the need to pay fewer dollars to fulfill such transactions.
Meanwhile, the friendship between the Americans and Chinese has soured lately since the outbreak of the COVID-19 pandemic. US President Trump and President Jinping of China have traded words against each other issues surrounding COVID-19, including accusations of lack of transparency and cover-ups.
Consequently, the U.S. Commerce Department added 33 Chinese businesses to a blacklist on Friday, and some U.S. Senators proposed sanctions on those businesses.
“The biggest concern is the tension between the United States and China, things were already bad, and it is likely to get worse because of the Hong Kong security law. This supports risk-off trades, which is positive for the dollar and the yen,” Tekuya Kanda, the general manager of research at Gaitame.com Research Institute, told Reuters.
Air Peace to evacuate stranded Indians from Lagos to Kerala
A list of the passengers to be attended to has already been given and the flight shall depart Lagos on May 30, 2020, to Cochin Airport, Kerala.
The management of Air Peace Nigeria has been contacted by the Indian High Commission in Nigeria to undertake the evacuation of stranded Indian nationals to Kerala, India. This was disclosed by the airline via its Twitter handle.
The airline explained that a list of passengers that would be attended to have been released and it has started reaching out to the Indians on Saturday.
It stated, “A list of the passengers to be attended to has already been given to us and we have commenced reaching out to them. The flight shall depart Lagos on May 30, 2020, to Cochin Airport, Kerala.”
The flight is not free anyway. According to the airline, payments are expected immediately and they are Economy is $1.300 and Business class is tag $1,700. “You are equally allowed to pay in Naira at N460/$,” it added.
PUBLIC NOTICE (23-05-2020) pic.twitter.com/bn0xNxnRmO
— Air Peace (@flyairpeace) May 23, 2020
However, some Indians in Nigeria has reacted with mixed feelings to the development on Twitter. While some were ready to join the flight back home, others called for the refund of ticket fare booked a week ago.
For instance, Jayant Khamesra requested for the refund ticket fare of N568, 100, which he paid for a flight from Lagos to Delhi.
He said, “Please refund ticket fare P47812 LAGOS to DELHI. No show by Air Peace and it is been 1 week now, there has been no refund or confirmation of the same. Reference ALHN79 amount N568,100. I am sure a good world-class carrier like Air Peace won’t delay refunds purposely. Please act fast.
Pls refund ticket fare P47812 LAGOS to DELHI – NO SHOW by AirPeace and it’s been 1 week now —- there has been no refund or confirmation of the same. Reference ALHN79 Amount 568100 NGN. Am sure a good world class carrier like AIRPEACE won’t delay refunds purposely. Pls act fast
— Jayant Khamesra (@JKhamesra) May 23, 2020