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Crisis Looms in Aviation Industry Over Planned Price Hike
(CPC) Had Earlier Urged Airline Operators Not to Increase Fares as Proposed.
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It was a ‘ding dong affairs’ between the Consumer Protection Council (CPC)and the Airline Operators yesterday at a meeting over the planned increased in air fares by airline operators. The CPC had called the meeting of stakeholders over the proposed increased in air fares.
Consumers Protection Council (CPC) had earlier urged airline operators not to increase fares as proposed. The director general of the council, Mrs Ify Umenyi, made the call in Abuja at a meeting with representatives of airline operators, Federal Airports Authority of Nigeria (FAAN), the Nigerian Civil Aviation Authority (NCAA), and the Petroleum Products Pricing and Regulatory Agency (PPPRA).
Mrs Umenyi said that efforts are been made to ensure that price of aviation fuel stabilize.
“We just read on the pages of newspapers that the air fares would be increased by 20 percent because of a speculated increase in aviation fuel by 10 percent by the
PPPRA, our position is that there is a range and that so far the increase is within that range but we do not want to hear about increase in air fares, it is not every time we would be talking about increase in air fares when consumers are not satisfied with the services they received in the sector.” She emphasized.
In his remarks, the Secretary General of Airline Operators of Nigeria, Captain Emmanuel Jooji, said air fares would be increased unless the price of aviation fuel was stabilized.
Nigerian Railway System is Back on Track
TTimes Nigeria
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Railway stations across the country used to be a one stop place where most commuters found solace in order to beat traffic on the road. After a while, the rail tracks got dry of trains and rather became a rendezvous for street urchins and highway hawkers. But, recently, there appears to be a renewed interest in bringing life back on the railway tracks in the country. BUKOLA BAKARE takes a look at the resurgence of the railway transport system in Nigeria, the inherent benefits and challenges that lie ahead.
It’s 6.45am in the morning in a highly populated suburb in the Lagos area and Christie Oma, (not real names) a trader and mother of three, struggles to get her family ready for the day. There are only two options before her: she could go through the road transport and get stuck in the heavy early day traffic of Lagos or go through the railway. The railway, she reasoned, was the most sensible option: it is cheaper and faster.
The railway would take her from Iddo to Oyingbo Main Market where she sells her wares. Failure to get to the train station before 7pm would mean that she would miss the train.
Christie’s case is not too different from a cross section of Nigerians who use the train which is one of the fastest means of transportation in a country that has more than 150million people.
In recent times, there has been an increase in the number of trains that ply various routes in the country.
Reports show that as at 2003, Nigeria’s rail system had 3,557 kilometres of track, 19 kilometres of which were the dual guage and the remainder, standard guage. The country has two major rail lines, one connects Lagos on the Bright of Benin and Nguru in the Northern state of Yobe State, while the other connects Port Harcourt in the Niger Delta and Maiduguri in the North eastern state of Borno.
In March, 2006, plans were on the way to establish a rail link between Nigeria and Niger but that was put on hold due to The International Court of Justice’s verdict in favour of Cameroon on the issue of the control of the Bakaasi Peninsula.
As this reporter takes a ride on the train from The Nigerian Railway Corporation Terminus in Iddo, it was evident that conscious efforts are being made to remedy the poor conditions, efficiency and profitability of the Corporation – the odds which marred its smooth operation in the past.
Commuters from the Iddo Terminus are mostly traders who are going to sell their wares across the metropolis.
Worthy of note are the coaches which are now improved and depending one’s choice, one can either ride in the economy class or business class; the latter is meant for high class people in the society who just want to pamper themselves.
The train stops at designated stations and each stop is about two minutes except in cases where cars and buses have to pass. In addition, the seats are more comfortable compared to what was obtainable in the past.
All these are an attestation that the Nigerian Railway Corporation (NRC) will live up its mission statement, “to emerge as the leader in the Nigerian transport system, using well motivated work force with modern technology;’’ and its vision statement: “to be a world class rail transport organisation, providing safe, efficient, affordable, reliable and widely linked network and customer oriented services.”
According to Mr. John Dottie, a District Manager of the NRC, “traffic congestion which is the bane of the major roads within major roads in Lagos will reduce significantly as the Lagos District plans increase in the train frequency.
“From December 2010, Lagos District passenger trains have been increased from six to eleven daily using the recently rehabilitated up mainline.
“The first and second trains leave Ijoko and Agbado simultaneously by 5.30am to arrive Iddo by 6.45am/7.34am.
“Another one leaves Ijoko by 6.20am and arrives Iddo at 7.56am while two more trains leave Ijoko by 10.20am and 2.20am to arrive at 11.56am and 3.56pm respectively and from Iddo, five other trains depart from Ijoko at 8.00am, 12noon, 4.15pm, 5pm, 6pm and 7pm accordingly and each arrive Ijoko within a transit period of one hour, twenty minutes.”
Another observation on the train is that all kind of people are found in the coaches, from the low class to the highly placed, everyone in their own world and looking forward to getting to their respective destinations.
Continental Airline CEO Gives Up His Pay
Till Airline Turns Profitable
Continental Airlines CEO Jeff Smisek told employees Monday that he won't accept his annual salary or bonus until the company is profitable for a full year. Smisek, who took over Friday as chairman and CEO after the retirement of Larry Kellner, will give up his annual salary of $730,000 and any annual bonus he'd earn, the airline said in a regulatory filing.
“I am willing to make this commitment because I have faith in you, and because the tone for any business is set at the top,” he said in a letter to employees Monday. “I am not asking you or anyone else to reduce their pay. What I am asking is that you join me in making Continental profitable again.”
Smisek, who previously served as president, received total compensation of almost $4.9 million in 2008, according to regulatory filings from early 2009.
In addition to his base salary of $240,000, he also got $1.4 million in long-term incentive pay and $66,000 in other compensation.
Terrorist Father Had Reported Son To US Authorities
Why Was Son's Name Not Restricted From Travel To The US
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Many questions are now raised as to how a Nigerian man carried explosives through stringent security measures even after he had been reported to US authorities by his Father a prominent Nigerian Banker. Mr. Mutallab the outgoing chairman of First Bank Nigeria, one of Africa's largest banks, father of the alledged terrorist Abdulmutallab, said in a press report yesterday in Lagos Nigeria, that he had informed the US authorities of the very suspicious behavior of his son with alledged anti American rhetorics combined with trips he son had made to Yemen to meet with radical islamic elelments.
In the meantime, authorities in the United States are investigating whether Abdulmutallab had any connections with terrorist organizations or was acting alone. Questions with Dutch officials scrutinizing security procedures at Amsterdam's Schiphol airport that allowed the 23-year-old man to smuggle the explosives on the aircraft remains some of the key questions still hanging over the incident. Abdulmutallab have confessed obtaining the explosives from Yemen, along with instruction on how to use it. He carried these onto a flight from Lagos, Nigeria, to Amsterdam, Netherlands where he transferred to Northwest Flight 253 to Detroit. The story from the alledged terrorist father also confirms the son's confessions to the FBI.
Why Was This Man Not Denied Entry To Europe or The United States
U.S. authorities have also confirmed that they were contacted by the man's father ahead of the attack, but why there was a break down on taking the information seriously leaves some questions to be answered. Dutch officials say the passenger's name appeared on a manifest supplied by the airline, which was passed to U.S. authorities and the US authorities cleared the flight with the passenger on board to depart to the US.
And then the question of how Abdulmutallab could have entered the flight with explosives. The Dutch authorities are puzzled but point to the fact that if the passenger had powders concealed upon his body or concealed bottles of liquid somewhere else, they certainly would not have been picked them up by the metal detectors.
A Nigerian Terrorist Attempts To Bomb Delta Flight To Detroit
Terrorist is US Custody and Plane Landed Safely With All Passengers
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A Nigerian passenger attempted to ignite device aboard a Northwest Airlines flight from Amsterdam to Detroit on Friday as the plane began its approach for landing, the plane however landed safely about twelve noon Detroit time.
The suspected bomber suffered burns as the result of his attempt, and two other on the flight reported minor injuries, authorities said. The White House believe this to be a terrorist act and the FBI is investigating the event. The suspect is in US Custoday and all passengers are currently been investigated in US custody.
"He was trying to ignite some kind of incendiary device," said a federal anti-terrorism official. "He lit himself on fire and he's suffered some burns." The nature of the explosive device is not released at this time and it was too early to say how potent or sophisticated it was. The passenger has been identified as a Nigerian who began traveling from Nigeria and caught the flight in Amsterdam, the anti-terrorism official said. A Passenger Syed Jafri, a U.S. citizen who had flown from the United Arab Emirates, said the incident occurred during the plane's descent. Jafri said he was seated three rows behind the passenger and saw a glow and smelled smoke. Then, he said, there was a lot of panic.
The focus on whether the Nigerian acted alone or had training from Al Qaeda or another network. There will be great interest also in the nature and destructive capacity of the explosive device and on how it got past airport security screeners. Nigerians have not figured in many cases involving Al Qaeda, but the rise of violent Islamic extremism in that country, and in sub-Saharan Africa overall, concerns Western anti-terrorism officials.
Reports on recent investigation revealed that the ingenious technology in plots have been developed in Pakistan by Abu Ubaida al Masri, terrorist groups linked to Al Queda, revealed to involved teams of two or three attackers smuggling aboard explosives and separate ignition devices to blow up planes bound for North America.
Twelve US Airlines Company Takes a Bold Step in Alternative Energy Fuel
The US Avaition Department Support The Move
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AltAir Fuels LLC and Rentech, Inc. are the future supply of alternative aviation fuel that the US airline industry is betting on getting through the energy grid of today's economy. Twelve airlines from the United States, Canada, Germany and Mexico – Air Canada, American Airlines, Atlas Air, Delta Air Lines, FedEx Express, JetBlue Airways, Lufthansa German Airlines, Mexicana Airlines, Polar Air Cargo, United Airlines, UPS Airlines and US Airways – have signed MOUs with both producers. In addition, Seattle-based Alaska Airlines and Honolulu-based Hawaiian Airlines signed the MOU with AltAir Fuels, and Orlando-based AirTran Airways signed the MOU with Rentech.
These alternative fuels will be more environmentally friendly, on a life cycle basis, than today’s jet fuels. This domestically produced fuel will create jobs and bolster U.S. energy independence. This will reinforces the proactive steps that airlines are taking to stimulate competition in the aviation fuel supply chain, contribute to the creation of green jobs, and promote energy security through economically viable alternatives that also demonstrate environmental benefits. United Airlines chairman, president and CEO. Glenn Tilton also noted that discussions with a number of additional alternative-fuel producers about other projects are underway. Federal Aviation Administration Administrator Randy Babbitt said, “Today’s announcements reaffirm the airlines’ commitment to a greener, more stable and secure energy future, reinforcing the spirit of innovation and openness that is the essence of the Commercial Aviation Alternative Fuels Initiative.”
Boeing 787 Makes The Much Anticipated Maiden Flight
The First Crucial Milestone For the Delayed 787 Program
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The new Boeing 787 Dreamliner passenger aircraft successfully completed its first test flight in the US. A three-hour flight from Everett, Seattle in the State of Washington. With delays about two-and-a-half years following a series of design problemsn the Dreamliner finally completed its maiden flight. "The airplane responded just as we expected," said Randy Neville, one of the pilots. "It was a joy to fly." "There were cheers as the sleek jet, painted in blue and white, lifted off from a cold, damp airfield".
With much company fortunes resting on the 500 billion dollars projects, some of the Boeing employees said they felt a sense of excitement and relief." Now the real testing can begin. With about 840 orders from all over the globe, the work to get the plane ready for late 2010 delivery will begin in earnest. Its lighweight design, with titamium and cardon base, all help reduce fuel consumption and save on maintenance costs. Boeing has said it hopes to deliver the first plane by the end of 2010 to All Nippon , the Japaness second world Airline.
Airlines Are Saving Cost Even in Purchasing New Aircrafts
Smaller and Less Fuel Consuming is in, Larger More Comfort Out
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Boeing's 787 Dreamliner and Airbus' A350 XWB burn much less fuel, thats what United Airline is going for these days, needless do we add that it consumes much less fuel then the 767, 747's their are replacing. After 2008's brush with triple-figure oil, efficiency is critical. United Orders 50 Wide-Body Planes From Boeing, Airbus What's more, the new aircraft should fly further, but will have 19 fewer seats than the planes they're replacing.
If the recession has thought everyone one lesson, the powerful message is that fleets need to be sized properly for demand to maintain pricing power.
Smaller aircraft with greater range are easier to fill on new routes. That should hold even for point-to-point services connecting smaller markets directly, without the need to aggregate passengers at traditional transfer hubs on the way. It works all the way, more direct flight, more on board passengers willing to pay a premium, less need of snacks, get your passenger to their destination on time. Excellent recession bursting strategy, you bet.
American and Delta Airlines Battles For Japan Airline
American Airlines Announces Their Offer of $1.1Billion
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American and private-equity firm TPG would invest as much as $1.1 billion in Japan Airlines, twice the capital infusion proposed by Delta, American Chief Financial Officer Tom Horton said yesterday in Tokyo. Delta and its partners in SkyTeam offered $500 million in capital, with Delta agreeing additionally to cover as much as $300 million in initial lost revenue from JAL’s switch in alliances and to provide $200 million in asset-backed financing. Trebor Banstetter, a Delta spokesman, said agreement on the text of an Open Skies accord “opens the door to antitrust immunity, which would enable Delta and JAL to engage in deeper and more effective cooperation.”
JAL is Japan’s largest, followed by Tokyo-based All Nippon.
All Nippon, or ANA, is already part of the Star Alliance, the world’s largest airline grouping, which includes UAL Corp.’s United and Continental Airlines Inc. Now the ball is on Delta's court, no one knows how much Delta sees this potential big access to the Japaness market a big deal. Whatever the next step, Delta has shown their desire to gain JAL into the SkyTeam and came out with the $500 million investment offer, it would be interesting to see their next move.
Three American Crew Die in a Shanghai Plane Crash
Many other Crew Members are Injured
Three American crew members died when a Zimbabwean cargo plane crashed early Saturday at Shanghai's Pudong International Airport, the U.S. Embassy in Beijing said.The embassy said one of the injured crew members was also an American.
The Xinhua news agency reported that the plane was on its way to Kyrgyzstan and caught fire on takeoff. Thick smoke was seen billowing from the crash site.The agency said there were seven crew members on the plane and that the four survivors were taken to Pudong Xinqu People's Hospital.
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