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Hospitality & Travel

Max Air, Aero Contractors attribute fare hike to current exchange rate

The recent hike in air fare has been attributed to the rising exchange rate.

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FG suspends local flights resumption on June 21

The Management of Max Air and Aero Contractors have attributed the hike in air fare to the current exchange rate.

In separate interviews with NAN, the airlines stated that $1 that used to be N365, has recently gone up to N480/N500.

Max Air Station Manager, Mr. Kehinde Ogunyale, explained that the industry largely relies on dollar as parts of the craft and it could only be obtained from abroad.

He said, “We need to catch up with the economy. That is why we increase the fare. If not, we may be left behind and will not be able to fund operations anymore.

“The fare actually went up. From Abuja to Lagos last week, highest fare was N35, 300 (Economy Class) and N80,000 (Business Class). From Abuja to Lagos at present, highest fare is N60,000 (Economy Class) and N98,000 (Business Class).”

Ogunyale further said that the festive season also contributed to fare increment. “We are in traditional high season. The demand has outweighed capacity. After this period, we are going to a period called ‘low season’. That is the middle of January, when nobody will want to fly.”

So, in order to attract passengers, he added that Max Air will need to lower the prices later but now is the ‘high season’.

In the case of Aero Contractors, its Station Manager in Abuja, Mr. Abdulmalik Jibreel, explained that the company had increased the fares due to dollar to naira exchange rate, coupled with high demand for tickets by passengers.

Jibreel added that the airlines have no option than to increase the fare to meet the demand of foreign exchange in the market of aircraft parts.

He said, “Government should give a certain discount for the airlines on ‘FOREX’ as special price by Central Bank of Nigeria. By so doing, this may make ticket fare to drop.

“Government needs to step into aviation sector, because we do not manufacture any part of air craft in Nigeria. One of the previous administrations in the country once waved custom duty on all spare parts of air craft. Government needs to take all these steps to make aviation sector viable. If not, masses will pay for it.”

What they are saying

Dr. James Odaudu, Director of Public Affairs, Ministry of Aviation, cleared the air that the ministry does not have the power to fix ticket prices for any airlines.

He said, “The ministry does not have power to fix tickets prices for airlines. If airlines feel they can increase their tickets, others should take advantage of lowering their tickets prices.

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“Masses should learn to patronize the ones with lower prices, as the others will be forced to go with market forces. It is all about forces of demand and supply.”

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Abiola has spent about 14 years in journalism. His career has covered some top local print media like TELL Magazine, Broad Street Journal, The Point Newspaper.The Bloomberg MEI alumni has interviewed some of the most influential figures of the IMF, G-20 Summit, Pre-G20 Central Bank Governors and Finance Ministers, Critical Communication World Conference.The multiple award winner is variously trained in business and markets journalism at Lagos Business School, and Pan-Atlantic University. You may contact him via email - [email protected]

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Hospitality & Travel

FG approves reopening of Osubi Airport, Warri for daylight operations

Osubi Airport will be opened for operations in daylight in VFR conditions and observe COVID-19 protocols. 

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The Federal Government approved the reopening of Osubi Airport, Warri, Delta State for daylight operations on Monday.

This was disclosed by the Minister of Aviation, Hadi Sirika, via his Twitter handle on Monday.

According to him, the facility will be opened for operations in daylight in VFR conditions, while observing COVID-19 protocols.

READ: FG to spend N13 billion for automation projects in 4 airports

He tweeted, “I have just approved the reopening of Osubi Airport Warri, for daylight operations in Visual Flight rules (VFR) conditions, subject to all procedures, practices and protocols, including COVID-19, strictly being observed. There will not be need for local approvals henceforth.”

VFR are a set of regulations under which a pilot operates an aircraft in weather conditions generally clear enough to allow the pilot to see where the aircraft is going.

READ: FG to open new Lagos International Airport Terminal in 2021

What you should know

  • The Airport, which was commissioned on 17th April 1999 by the former Minister of Aviation, Captain Briggs, is managed by the Federal Airports Authority of Nigeria (FAAN).
  • In 2020, the Federal Government, in a letter to all the aviation parastatals, had allegedly terminated the contract of Shoreline Oil Services Limited, the operator of the airport, with immediate effect, citing incompetence.
  • The facility has been a subject of controversy since it changed hands from the original owner, Shell Petroleum Development Company (SPDC), to Shoreline in partnership with the Nigeria National Petroleum Corporation (NNPC) in 2015.

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Business

NAHCO recalls suspended GMD

NAHCO recalled Adetokunbo Fagbemi, its Group Managing Director and Chief Executive Officer.

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NAHCO

The Board of Directors of Nigerian Aviation Handling Company Plc (NAHCO Aviance) has recalled Mrs. Adetokunbo Fagbemi, the Group Managing Director and Chief Executive Officer of the aviation handling firm.

The GMD was suspended over Management’s failure to diligently secure the delivery of a purchased equipment from vendor within the contracted period and Management’s inability to provide satisfactory/acceptable reason for the unreasonable long delay.

This was disclosed by the Board via a statement issued and seen by Nairametrics on Thursday.

It stated, “The Board is however pleased to inform the investing public and the Exchange that on, Tuesday, February 24, 2021, a satisfactory evidence of departure and arrival dates of the equipment has been received by the board from the equipment manufacturer.

“Consequently, the Board at its emergency meeting today, February 24, 2021, has recalled the Group Managing Director/Chief Executive Officer, Mrs. Adetokunbo A. Fagbemi from the suspension and she has resumed work.”

What you should know

  • The GMD was suspended by the Board at a meeting held on 27th of January 2021 in line with the Board’s earlier decision that if a certified bill of lading for the equipment was not received by 2nd February 2021, the GMD/CEO shall proceed on suspension with half pay until receipt of acceptable evidence of equipment shipment from the manufacturer.
  • Since Fagbemi commenced her suspension on February 3rd, 2021, Mr. Olumuyiwa A. Olumekun, the Group Executive Director, Corporate Services, has been acting as the GMD/CEO.

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