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Green Africa Airways is set to take ownership of 50 Airbus jets 

Nigerian startup airline, Green Africa Airways, has ordered fifty A220s jets from Airbus.

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Green Africa Airways is set to take ownership of 50 Airbus jets 

Nigerian startup airline, Green Africa Airways, has ordered 50 A220s jets from Airbus. This has been described as the largest aircraft purchase by an African airline.

Recall that Nairametrics earlier reported that the deal was close to being finalised. Green Africa Airline hopes to begin commercial operations in Nigeria soon. It will compete with the likes of Medview and Air Peace which have dominated the Nigerian aviation market in the last few years.

Green Africa Airways is set to take ownership of 50 Airbus jets 

The BBC quoted the company’s Founder, Babawande Afolabi, to have expressed excitement following the deal. He said:

“Together with Airbus, we are incredibly proud to announce the largest order ever for the A220 from the African continent.” 

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Green Africa Airways initially planned to acquire Boeing’s controversial 737 Max. The company announced the impending deal with Boeing in December 2018, months before a second deadly air mishap involving the Max model resulted in it being grounded.

[READ MORE: TAAG-Angola Airlines, SAHCO sign deal as national carrier)

The deal with Boeing was expected to cost about $11.7 billion. It was also supposed to be the largest aircraft agreement from Africa.

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It has long been Afolabi’s long-held dream to build a “world-class airline” that will serve the Nigerian market, helping to “unlock a new realm of positive possibilities for millions of customers.”

Green Africa Airways received its Air Transport License from the Nigerian government some years ago. The startup is anchored by a group of senior industry leaders led by Tom Horton, former Chairman and CEO of American Airlines; William Shaw, Founder and former CEO of VivaColombia, and Virasb Vahidi, former CCO of American Airlines. According to reports, the airline’s strategy is to first develop the Nigerian market and then ‘build a strong Pan African network.’

In the meantime, Boeing’s 737 Max airplanes continue to be grounded.

Emmanuel is a professional writer and business journalist, with interests covering Banking & Finance, Mergers and Acquisitions, Corporate Profiles, Brand Communication, Fintech, and MSMEs. He initially joined Nairametrics as an all-round Business Analyst, but later began focusing on and covering the financial services sector. He has also held various leadership roles, including Senior Editor, QAQC Lead, and Deputy Managing Editor. Emmanuel holds an M.Sc in International Relations from the University of Ibadan, graduating with Distinction. He also graduated with a Second Class Honours (Upper Division) from the Department of Philosophy & Logic, University of Ibadan. If you have a scoop for him, you may contact him via his email- [email protected] You may also contact him through various social media platforms, preferably LinkedIn and Twitter.

5 Comments

5 Comments

  1. Yahaya Abubakar

    February 14, 2020 at 9:47 am

    This is really exiting and a very good news for the Nigerian economy. I hope the government will make available enabling environment for such a giant economic stride.

  2. Rashid Hamid

    February 16, 2020 at 12:44 pm

    The aircraft choice is excellent. But I would have advised 30 and another 20 from a different manufacturer. In aviation anything can happen. Look at the grounding of Max. It’s a lesson. Imagine if they had bought Max. It means the whole airline is grounded. In any case. This is what we need in Nigeria . Kudos to our green airline

  3. Rasaki Ola Raheem

    February 16, 2020 at 5:59 pm

    A WELCOME AND LONG OVERDUE DEVELOPMENT INDEED!. GREEN AFRICA AIRWAYS MUST STRIVE TO CAPTURE NOT JUST THE NIGERIAN MARKET ALONE BUT, THE ENTIRE AFRICAN MARKET. WITHOUT ANY ATTEMPT TO UNDERMINE THE FINANCIAL CAPACITY OF ITS OWNERS,THE AIRLINE NEEDS TO GO PUBLIC TO ENHANCE ITS FINANCIAL BASE ,BEARING IN MIND THAT AVIATION IS SO MUCH HIGHLY CAPITAL INTENSIVE. IN ADDITION, THE AIRLINE MUST BE IN PATNERSHIP AND ALLIANCES TO REMAIN AND BE RELEVANT IN THE INDUSTRY.

  4. Arc. Sule Aminu. O

    February 20, 2020 at 2:25 pm

    This is a laudable development in Aviation industry in recent time. This will eventually close the gap in inadequate air transportation. I am one of those people that participated in development of aerodrome infrastructure and facilities across the country in the last two decades, sure we are on ground to render any assistance that you may deem necessary. The potential for the growing industry shall be unlocked with the massive deployment of this number of aircrafts by the operator of GREEN AFRICA AIRWAYS. Kudos to the arrival of this outfit!!!

  5. Anonymous

    March 4, 2020 at 5:55 pm

    Its a laudable one. I will love to add my knowledge on aviation to it too

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Business

Nigeria among countries to be worst hit by food crisis globally

Nigeria, others were listed as countries with the worst deteriorations in acute hunger in recent months.

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7 million Nigerians to experience food shortage

Nigeria has emerged as one of the countries to be most hit by food crisis across the globe in the face of the coronavirus pandemic which had worsened the already bad situation.

This disclosure is contained in a report by the United Nation’s Food and Agriculture Organization (FAO).

The report from the FAO also shows that the Democratic Republic of Congo is emerging as the country with the world’s largest food crisis in terms of absolute numbers, with Burkina Faso listed as the country with the worst deteriorations in acute hunger in recent months.

The food crisis is made worse in Nigeria by the longstanding religious and ethnic conflicts and even organized crimes by some bandits, which has greatly affected farmers working on their farmlands.

In addition to these, the farmers were already contending with the issue of flooding or drought, which has negatively been impacting on the agricultural sector in a period the country is desperate and very desirous of economic diversification. The coronavirus pandemic has triggered a surge in food prices as can be seen in the reports released by the National Bureau of Statistics (NBS), in a country that imports over 10% of its food supply.

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With a population of over 200 million people, Nigeria is the most populous country in Africa, which is regarded as the world’s most food-insecure continent. This is made worse as importers of food items struggle to gain access to dollars for their imports due to scarcity of foreign exchange which is triggered by the crash of oil prices and low foreign inflow.

This is expected to be exacerbated by the recent order by President Muhammadu Buhari to the Central Bank of Nigeria, to stop the allocation of foreign exchange to importers of food items.

The Governor of Niger State, Abubakar Sani Bello, warned in April, “We are heading toward famine and starvation.”

The FAO report which states that Congo has about 21.8 million people that are acutely food insecure, also points out that Burkina Faso has witnessed an almost 300% uptick in the overall number of people experiencing acute hunger since the start of 2020.

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Around the World

US government to ban WeChat and TikTok from app stores

Chinese-owned social media apps are facing a ban in the US over national security concerns.

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Reasons why a record number of people are giving up their US citizenship, US approves chloroquine as treatment for coronavirus COVID-19, Nigeria U.S. Donald Trump-oil prices

The United States government says it will ban the services of Chinese tech giants, WeChat and TikTok, from online mobile application stores in the U.S. It also plans to prohibit any funds transfer/payment services through the WeChat mobile application.

This was announced by the U.S Commerce Secretary, Wilbur Ross, in a statement on Friday, following President Donald Trump’s Executive Orders (E.O.) 13942 and E.O. 13943, on the 6th of August.

“In response to President Trump’s Executive Orders signed August 6, 2020, the Department of Commerce (Commerce) today announced prohibitions on transactions relating to mobile applications (apps) WeChat and TikTok to safeguard the national security of the United States,” said Wilbur Ross.

He added that the Chinese Communist Party (CCP), has proven it has the means and the motive to use Chinese tech apps, to threaten America’s national security foreign policy, and the economy of the U.S.

He said the following transactions will be prohibited from September 20th for WeChat and November 12th for TikTok

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  • Any provision of service to distribute or maintain the WeChat or TikTok mobile applications, constituent code, or application updates, through an online mobile application store in the U.S.
  • Any provision of services through the WeChat mobile application, for the purpose of transferring funds or processing payments within the U.S.

Mr. Ross said that with the Executive Order, the US government has taken a ‘significant action’ in fighting China’s malicious personal data breach on American citizens, and also promote democratic rule-based norms, and aggressive enforcement of U.S. laws and regulations.

The U.S government announced that further prohibitive measures, relating to both companies may be announced in the future.

“Should the U.S. Government determine that WeChat’s or TikTok’s illicit behavior is being replicated by another app somehow outside the scope of these executive orders, the President has the authority to consider whether additional orders may be appropriate to address such activities.”

President Trump has given until November 12, to resolve the TikTok security concerns of the US. He added that the prohibitions may be lifted, if they are addressed.

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Companies

GMD, 2 Executive Directors buy 5 million additional units of Zenith Bank Plc shares

In three separate transactions, major stakeholders purchased 5 million units of Zenith Bank’s shares.

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Executive Director buys 2 million additional Units of Zenith Bank Plc Shares.

Zenith Bank Plc, Group Managing Director, Mr Ebenezer Onyeagwu, and two Executive Directors, Messrs. Dennis Olisa and Ahmed Umar Shuaib, have purchased an aggregate of 5 million units of additional Zenith Bank Plc shares.

This was disclosed by the bank, in a notification sent to the Nigerian Stock Exchange, and seen by Nairametrics.

According to the notification, signed by the Company’s secretary, Michael Osilama Otu, the purchase was made in the bourse, over three transactions on the 16th and 17th of September, 2020.

As part of the regulatory requirements, the disclosure must be reported to the Nigerian Stock Exchange, especially when the trade is executed by a major shareholder or director of a listed firm.

Breakdown of the deal

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According to the details of the deal verified by Nairametrics, Mr. Dennis Olisa pulled the highest deal as he purchased 2,000,000 additional units of Zenith Bank Plc’s shares at an average of N17.18 per unit, totaling N34.36 million. Mr. Ahmed Umar Shuaib also purchased 2,000,000 additional units of the Bank’s share, at an average price of N16.99 worth N33.98 million. Completing the trio was, Mr. Ebenezer Onyeagwu who purchased 1,000,000 additional units at an average of N17.05 worth N17.05 million.

This major purchase boosted the total number of trade deals (Volume) posted by the Bank in the NSE market, as the deals contributed about 11.61% of the Bank’s total deals between 16th and 17th of September, 2020.

(READ MORE: Zenith Bank rewards customers with massive giveaways in the “Zenith Beta Life” weekly promo)

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What this means

Based on the recently released H1 2020 Financial Results of Zenith Bank, Mr. Ebenezer Onyeagwu had 45,500,000 direct shares as of June 30, 2020. Mr. Ahmed Umar Shuaib had 7,577,343 direct shares, while Mr. Dennis Olisa had 7,122,316 direct shares. All these remained unchanged from their reported shares in H1 2019.

With the addition of 1,000,000 shares, Mr. Ebenezer Onyeagwu’s stake increased to 46,500,000, indicating an increase of 2.19%. Mr. Ahmed Shuaib’s shares also leaped by 26.39% to 9,577,343, while Mr. Deniss Olisa’s shares increased by 28.08% to 9,122,316 direct shares.

This deal may signify that the Bank’s insiders expect an increase in share price. It is a positive signal to outsiders, coming from top insiders who are abreast with latest information on the Bank’s prospects.

This can play a vital role in stimulating a bullish trend. Zenith Bank’s share price is currently trading at N16.70 on the NSE.

Conclusion

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Regardless of the impact of the pandemic on the income and revenue of banks, Zenith bank still remained one of the high-flying financial organizations in Nigeria. For example, the tier-1 bank’s gross earnings grew by 4.37% from N331.5 billion in H1 2019 to N346.1 billion in H1, 2020. Its Profit After Tax increased by 16.81% from N111.7 billion to N114.1 billion within the period under review. The aforementioned factors might have been the reason behind the recent bullish trend for its stock.

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