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Domestic Airlines Shut Down Operations, Today
Nigerian airline operators have issued a notice that with effect from today, they would shut down their operations due to the high cost of aviation fuel which has hit N700 per litre.
A statement by the President of the group, Allen Onyema, made available to The Tide in Port Harcourt, stated that operators have carried on deploying and subsidising their services to passengers in the last four months despite the steady and astronomical hike in the price of JetA1 and other operating costs.
According to him, overtime, aviation fuel price (JetA1) has risen from N190 per litre to N700 currently.
He maintained that no airline in the world can absorb this kind of sudden shock from such an astronomical rise over a short period.
The airlines – Azman Air, Max Air, United Nigeria Airways, Ibom Air, Arik Air, Air Peace, Dana Air and Overland Airways – made this known in a letter addressed to the Minister of Aviation, Senator Hadi Sirika while copying the Director General of the Nigerian Civil Aviation Authority, Captain Musa Nuhu.
While aviation fuel worldwide is said to cost about 40percent of an airline’s operating cost globally, the present hike has shut up Nigeria’s operating cost to about 95percent.
In the face of this, airlines have engaged the Federal Government, the National Assembly, NNPC and oil marketers with the view to bringing the cost of JetA1 down which has currently made the unit cost per seat for a one hour flight in Nigeria today to an average of N120,000.
The latter cannot be fully passed to passengers who are already experiencing a lot of difficulties.
A statement advised the travelling public who intend to fly to make alternative arrangements to avoid being stranded at the country’s airports.
The statement read: “It is with a great sense of responsibility and patriotism that the Airline Operators of Nigeria (AON) have carried on deploying and subsidising their services to our highly esteemed Nigerian flying public in the last four months despite the steady and astronomical hike in the price of JetA1 and other operating costs.
“Overtime, aviation fuel price (JetA1) has risen from N190 per litre to N700 currently. No airline in the world can absorb this kind of sudden shock from such an astronomical rise over a short period. While aviation fuel worldwide is said to cost about 40percent of an airline’s operating cost globally, the present hike has shut up Nigeria’s operating cost to about 95percent.
“In the face of this, airlines have engaged the Federal Government, the National Assembly, NNPC and oil marketers with the view to bringing the cost of JetA1 down which has currently made the unit cost per seat for a one hour flight in Nigeria, today, to an average of N120,000. The latter cannot be fully passed to passengers who are already experiencing a lot of difficulties.
“While AON appreciates the efforts of the current government under the leadership of President Muhammadu Buhari to ensure air transport in Nigeria grows, unfortunately, the cost of aviation fuel has continued to rise unabated thereby creating huge pressure on the sustainability of operations and financial viability of the airlines. This is unsustainable and the airlines can no longer absorb the pressure.
“To this end therefore, the Airline Operators of Nigeria (AON) hereby wishes to regrettably inform the general public that member airlines will discontinue operations nationwide with effect from Monday, May 9, 2022 until further notice.
“AON uses this medium to humbly state that we regret any inconveniences this very difficult decision might cause and appeal to travellers to kindly reconsider their travel itinerary and make alternative arrangements”, President, AON, Alhaji Abdulmunaf Yunusa Sarina, advised.
However, Ibom Air has said that it is not part of the decision of Airline Operators of Nigeria (AON) to suspend flight operations from tomorrow over increase in aviation fuel price to N700.
The airline said even though it acknowledged the existential threat that fuel price increases pose for the air transport industry in Nigeria, it could not afford to stop operating given its obligations to suppliers, financiers and staff, which depend on uninterrupted flow of revenue to service.
It said every airline has its unique business model and pressures and that despite the escalating fuel prices, airlines volunteering to stop operations would rather exacerbate an already bad situation.
“Ibom Air acknowledges the existential threat that these runaway fuel price increases pose for the air transport industry in Nigeria. We agree that this out-of-control situation is simply unsustainable.
“However, every airline has its unique business model and pressures. We believe that in spite of the escalating fuel prices, airlines volunteering to stop operations would rather exacerbate an already bad situation.
“Ibom Air has financial obligations to suppliers, financiers and staff, which depend on uninterrupted flow of revenue to service. More importantly is the fact that having been paid by customers in advance for flight bookings we are bound by contract to deliver the services already paid for, to avoid exposing the airline to the risk of avoidable litigation.
“Apart from the above factors, Ibom Air is currently the only airline serving Akwa Ibom State directly and as such, any voluntary stoppage of operations would completely cut off access by air into and out of the state. Such action would be directly in conflict with and detrimental to the interest of our shareholder.
“In view of the foregoing facts, Ibom Air had respectfully disagreed with the decision of AON to suspend flight operations on Monday, May 9, 2022. Ibom Air cannot in the circumstance volunteer to stop operating and will continue normal operations on Monday, May 9, 2022, and beyond.
“Ibom Air’s inclusion as ‘signatory’ to the statement released by AON must have derived from its active and committed membership of the AON.
“The above notwithstanding, we identify very strongly with our AON colleagues and will participate in every effort to resolve this frightening situation as soon as possible in the interest of our business, our customers, our stakeholders and our country,” the airline said.
Meanwhile, the Minister of Aviation, Senator Hadi Sirika, yesterday, said the planned shutdown of airline operations by Airline Operators of Nigeria (AON) wasn’t in any way a strike against the Federal Government.
The ministry reacted to inquiries by some media houses to clarify if the notice to the Federal Government and passengers by the Airline Operators of Nigeria to shut down airline operations from Monday, 9th was a strike over the rising cost of Jet-A1.
In a statement by the Special Assistant to the Minister of Aviation, Dr James Odaudu, he said operations of airlines were purely their private business and not connected to being a strike.
His statement read: “Since members of the Airline Operators of Nigeria (AON) issued a notice of withdrawal of flight services as a result of the rising cost of Jet A1 (Aviation fuel), and in spite of the initial statement by the ministry, enquiries have continued to flood in with some under the erroneous impression that the withdrawal was a kind of strike against the government.
“We wish to state that the decision of the association is purely a business one as they are private businesses reacting to market forces but appealing for interventions to enable them to carry on with their operations.
“The ministry has always made conscious efforts to assist members of the Airline Operators of Nigeria (AON), some of which includes facilitating a meeting between the Association and Mr President, during which the Association got several concessions, including duty-free importation of aircraft, engines, spare parts and components.
“The Honourable Minister at various times personally took members of the association to engage with Central Bank of Nigeria (CBN) to sort out issues of access to Foreign Exchange (FOREX) for their operations, and also the NNPC to exploit ways of ensuring the availability of Aviation fuel (JET A1) through importation or from the major marketers.
“It should also be recalled that members of the association were also considered for, and given Bail-out funds to the tune of N4billion during the COVID-19 pandemic to ensure that they remained afloat. This was without prejudice to the fact that most of them were heavily indebted to aviation agencies (as they still are).
“We believe that members of the association are patriots who have continued to bear the brunt of an unfavourable oil market for which we salute their doggedness.
“It is gratifying that members of the association have started reviewing the decision to withdraw flight services, with Ibom Air Green Africa Airlines, Arik Air, Dana and others confirming that they will carry on with their normal flight schedules. We hope that other members will consider the expected impact on businesses and individuals and review their decision.
“We also wish to assure foreign airlines operating in the country that all logistics and services for their operations remain in place as usual and that no disruptions whatsoever should be envisaged.
“As a government, we reiterate our commitment to the continued growth of the aviation industry where airlines and other service providers operate in a profitable and competitive environment.”
In the same token, the Federal Competition and Consumer Protection Commission (FCCPC) has warned airlines against selling tickets if they won’t operate.
The caution followed the information by Airline Operators of Nigeria (AON) on the shutdown of flight operations from today.
The carriers particularly blamed the high and increasing cost of jet fuel for their decision.
Though Ibom Air has announced that it would continue operations, others seem resolved to carry out the threat.
In a statement, FCCPC chief Babatunde Irukera, appealed to them to consider the effect of the proposed action on passengers.
The agency said it does not trivialise the challenge the current price of fuel poses to domestic aviation, coupled with other rising costs of operations and foreign exchange.
Irukera said talks were ongoing with the leadership of major fuel marketers to understand the global supply challenges and possible steps for resolution.
The commission advocated engagement among stakeholders to mitigate constraints and develop an interim arrangement to address problems associated with global supply on account of the war, sanctions and post-pandemic recovery.
The FCCPC, however, raised concern about rising consumer feedback that airlines have continued to sell tickets beyond the date announced for the proposed service shutdown.
“It will be egregious exploitation of consumers and a violation of law to purport to sell a service that the service provider knows, it will not, or does not intend to provide or deliver.
“It is misleading and deceptive under S.123 of the FCCPA to represent a service will be delivered on a certain date when the provider knows the same is false or improbable,” it said.
The statement expressed hope that airline operators will not deliberately sell tickets for flights they do not intend to operate.
Irukera said the agency would continue to monitor the evolving situation and remain committed to supporting engagements to provide solutions and stability.
By: Ike Wigodo
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We’re Working To Improve Quality Of Life Of Rivers People -Fubara …As Taraba Gov Inaugurates 6.55km Okania-Ogbogoro-Mgbaraja Roads Project
Rivers State Governor, Sir Siminalayi Fubara, has reiterated the commitment of his administration to render quality service that will improve the quality of life of residents, and strengthen the platform to promote unity.
Governor Fubara gave the assurance at the Okania-Ogbogoro Road junction, venue of the inauguration of the 6.55km Okania-Ogbogoro-Mgbaraja (and Mgbuoba) Roads project in Obio/Akpor Local Government Area, yesterday.
The road cuts across Okania community through Ogbogoro, and connects Port Harcourt Ring Road project under construction, and was inaugurated by the Taraba State Governor, Dr Agbu Kefas.
Governor Fubara said that during the campaigns, he saw the roads in terrible condition, made a promise to fix them, and noted that that promise has been kept.
He emphasised that his administration will never be reckoned with abandoning of projects that it started, which is why he is particularly excited that the road has been fixed to ease the inconveniences suffered by the people.
The Governor said, “What we are doing here today is very simple: Promise made, promise fulfilled. I told you that whatever we are going to start, we are not going to leave it halfway. So, we have come here this afternoon to fulfill that promise.
“I am so excited, and I am so happy. I am leaving here with so much joy that we have done something that has so much impact, and importance in the lives of our people. So, I feel very fulfilled. Government is about the people. Government is knowing, understanding and seeing what you can do to make life easy for your people.
“We understand the situation of this road. Fortunately, I have a few friends who also live around here. So, there is nothing you will say that I don’t know. As a government, we will continue to do those things we know will make life easy for you.”
The Governor thanked members of the communities in the area for their support to his administration, and also for cooperating with the contractor to ensure completion of the project.
He assured the people that their request for the rehabilitation of the Community Secondary School and Health Centre, will be looked at and addressed immediately, saying, “Our government is a government that takes the interest of our people very seriously.
“There is no government without the people. It is only the people that keep the government going. So, what we will continue to do is to make sure that the problems and interest of our people are top on our list,” he assured.
Performing the inauguration, Taraba State Governor, Dr Agbu Kefas, said roads are not just physical infrastructure but represent a commitment to facilitate ease of transportation, boost local commercial activities and improve quality of lives for the people of Rivers State.
Dr Kefas noted that Governor Fubara has provided the people good roads, and like other good roads, it will serve as an artery of development, further connecting communities, enhancing access to essential services while unlocking economic potentials.
He said, “By completing this project, Your Excellency has, once again, demonstrated the transformative impact of visionary leadership. When I was coming in with the Governor on a ride, I saw the joy, the happiness of the voiceless people who were abandoned and neglected in this area, coming out to wave and welcome us.
“It wasn’t a hired crowd. Everybody, those who couldn’t make it to this place, in front of their homes, they were waving at us, and I was telling the Governor: this is all about good governance. He listened to the people, and solved their problems. So, it shows that he is doing the right thing, and I want to thank you, my brother, for what you are doing for the good people, especially the poor people even in difficult times.”
Governor Kefas further said: “As we celebrate this milestone, I am reminded of the importance of collaboration and shared vision among us as Governors. Together, we can inspire our people, improve their lives, and create lasting legacies in our respective states.”
Providing the project description, the State Commissioner for Works, Barrister Elloka Tasie-Amadi, recalled that when it was flagged-off in May, 2024, the project was for a 5km stretch but was extended in October, to include Mgbaraja axis, increasing the length to 6.55km, explaining that the 10.3 meter wide, and 5km of drains road, has now linked Apara Kingdom to Nkpor Kingdom.
In his address, Chairman of Obio/Akpor Local Government Area, Amb Chijioke Ihunwo, described the road as a very significant route that was abandoned for years until Governor Fubara intervened and fixed it, promising that Obio/Akpor people will not take the gestures of the State Government under Governor Fubara for granted.
Speaking on behalf of China Civil Engineering Construction Corporation (CCECC), the firm that handled the project, Eric Shen, said they are happy to be part of the infrastructure development strides of Governor Fubara, stating that though the rains posed significant challenge, they have delivered quality road network to serve the connectivity needs of the people.
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We’ll Implement Judicial Commission’s Report On Arson, Killings -Fubara …Says Such Violence Must Stop In Rivers
Rivers State Governor, Sir Siminalayi Fubara, has assured of implementing the recommendations of the report submitted to him by the Judicial Commission of Inquiry into the Arson, Killings, and Wanton Destruction of Property at some local government council headquarters on or around Monday, October 7, 2024.
Governor Fubara gave the assurance when the seven-member commission, led by the Chairman, Justice Ibiwengi Roseline Minakiri, submitted four volumes of reports of their investigation and recommendations to him at Government House in Port Harcourt, yesterday.
The Governor declared that his administration will neither tolerate nor allow such level of violence in the State anymore because it is not profitable or productive.
He said, “We are not going to be part of any system that would encourage any destruction in this State. And for that reason, we had to inaugurate this commission, so that this commission should look into the remote and immediate causes of this problem.
“And I believe that the recommendations of this commission, with the help of God and the support of everyone, we will make sure that we implement the recommendations.”
Governor Fubara said: “We are going to take it to the next stage. The report will be presented to the Executive Council, and there, we will surely come out with the White Paper and with the White Paper. I can assure you, we are going to follow it to the end.
“Nobody is above the law, including me. So, provided what we are doing is within the confines of the law, we will do it with the help of every one.”
Governor Fubara recalled how, before 2014, a group of persons had ran wide recklessly in the State, burning down court buildings.
He noted that it is such persons, who had recently surfaced with their destructive tendencies, and have extended the violence to local government councils, killing people and destroying government property.
Governor Fubara wondered why somebody will spend so much money to build a structure intended to last as legacy of the administration but would eventually be part of its destruction in the name of politics.
Governor Fubara clarified that he has never been part of such destructive politics that continue to set the State backwards and frustrate progressive development strides.
Governor Fubara said: “I make bold to say it, I have never been and will never be a party to anything that will bring shame, disgrace, destruction to our dear State.
“It is our State. If it is well with us, it will be well with everybody. As a matter of fact, why should I encourage destruction, when I know that when you finish spoiling things, you still need money to rebuild them.
“I am an accountant, I know the importance of how we can manage money. Rather than spoil, you should use that money to do a new thing for the State.”
Governor Fubara vowed: “So, I am going to ensure that we put a stop to that level of violence or such unreasonable violence. I call it unreasonable violence because it doesn’t mean anything in politics.
“Politics is a business of interest. There is no permanent friend, no permanent enemy. Some persons who were not even in our support, today, they are here following us because their interest is the most important thing.
“Likewise tomorrow, if the interest changes, they will also go their different ways. So, why burn down the house?”
Governor Fubara thanked members of the commission for being bold, focused, and accomplishing their task with determination in the face of physical and legal threats.
In her presentation, Chairman of the seven-member Judicial Commission of Inquiry, Justice Ibiwengi Roseline Minakiri, said they had put their findings into four volumes, including the recommendations.
Justice Minakiri explained: “We have here four volumes of the report. We have the memoranda, which is the memoranda we got after we made our publications.
“We also have the exhibits that came with the memoranda. We have the proceedings and the records. At the end of the day, we came up with the main report.”
Justice Minakiri advised that the recommendations of the report should be studied and implemented so that people can be deterred from such callous acts and the sought-after peace secured for the State.
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We Are Eager To Showcase The Best Of Rivers State -Fubara …Declares Federation Of Public Service Games Open
The Rivers State Government says it is committed to providing a memorable experience for all delegates participating in the Federation of Public Service Games(FEPSGA) hosted by the State Government.
Governor Siminalayi Fubara stated this during the opening Ceremony of the 43rd Edition, Public Service Games, titled ”Simplified Rivers 2024″, at Sharks Stadium, Port Harcourt, last Sunday.
Speaking through his Deputy, Prof. Ngozi Nma Odu, Governor Fubara said “Our hospitality is renowned and we are eager to showcase the best of Rivers State. From top-notch facilities to a secure environment, we have everything in place to ensure a seamless and enjoyable experience for all participants.”
Governor Fubara said to ensure the success of the games his Administration has put in place comprehensive plans and preparations with four venues approved for the events which include the Sharks Stadium, Alfred Diette -Spiff Civic Centre, Port Harcourt Club and the University of Port Harcourt.
The State Chief Executive urged participants to remember that the true spirit of FEPSGA goes beyond winning medals, stressing that it is about building bridges of friendship, fostering a sense of community and celebrating our diversity.
According to him, we envision a public service that is more productive, more efficient and more effective, a future where public servants are empowered to deliver exceptional results driven by a culture of excellence, innovation and teamwork.
The Governor reiterated that while a healthy mind and body are essential for high productivity, regular physical activity boosts our mood, increases energy levels and enhances our cognitive function. We are eager to showcase the best of Rivers State. From top-notch facilities to a secure environment.
In her address Head of the Civil Service of the Federation Mrs Didi Esther Walson-Jack, who spoke through Dr.(Mrs) Magdalene Ajani, Permanent Secretary in the Federal Ministry of Interior Commended Governor Fubara for hosting this year’s event, and for his dedication to promoting sports and fostering unity in the country.
She noted that the event which serves as a platform for furthering unity, camaraderie and sportsmanship amongst public servants, was a celebration of their shared commitment to excellence, resilience and service to the nation.
Also speaking the National President of the Federation of Public Service Games (FEPSGA), Comrade Amaebi Aloku, said Rivers State got the nod to host the annual event because the Federation was pleased with the vision of Governor Fubara in identifying with the needs of the Civil Servants in the State, in terms of their welfare and being one of the first State to implement the new minimum wage and even taking it above what was approved by the national.
Earlier the Head of Service Rivers State, Dr George Nwaeke had welcomed all participants to the State and expressed gratitude to the Governor for approving and making available the resources to host the games, noting that it was an opportunity to interact with all Civil Servants across the nation.
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