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BSP Has Restored Confidence Of Airlines – NCAA

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The Director-General, Nigerian Civil Aviation Authority (NCAA), Dr Harold Demuren, says the Billing  and Settlement Payment (BSP) has restored confidence and mutual  trust  between members of the powerful airline cartel and local travel management firms.

BSP is a system designed to simplify selling, reporting and remitting procedures of International Air Transport Association (IATA) accredited passenger  sales agents  as well as well as improve financial control and cash flow for BSP airlines.

The NCCA boss told The Tide that the system had  brought tremendous  progress into the  aviation sector since its introduction in 2008, saying that the travel agencies were almost dead as the foreign  airlines were killing them.

According to him, the BSP has restored confidence  in local travel firms and created more job opportunities in the country’s aviation industry.

He said: “we fought that battle and we won. Today, we have the strongest downstream in the aviation sector and the travel agency system”.

Before the introduction of the BSP in Nigeria, major airlines required each  travel management firm to produce bank guarantees  and performance  bonds for as much as N30 million, forcing  many to close shop.

Demuren, who worked with IATA and the International Civil Aviation Organisation (ICAO) to introduce the BSP system in Nigeria, noted that it was good for the country.

He disclosed that globally, 400 airlines are in the BSP system in 160 countries with sales in  $2010 exceeding about  200 billion, adding that more than 26 airlines operating in Nigeria, including Air Nigeria and Arik Air were also members of the BSP.

Damuren stated that the BSP had also brought integrity into travel management business by protecting  airlines against loss of revenue.

Meanwhile, Southwest Airlines won United States of America’s government approval to buy out Air Tran Holdings in a deal that will add East Coast muscle to Southwest’s operations as it takes on bigger rivals.

Antitrust enforcers at the Justice Department signed off on the $1.04 billion deal on  conditions, concluding it would not hurt competition or raise fares. “The merged firm will be able to offer new services on routes that neither serves today”, the agency said in a statement.

Government approval come hours after a South-west  Boeing 737-700 with 134 passengers  ran off the runway at a rainy period Midway airport in Chicago, though no one was hurt.

Southwest is also in the midst of a federal safety investigation of older 737s after a hole opened up in one of its aircraft on April 1, forcing an emergency landing in Arizona. No one was hurt in that incident either and investigators are focusing on fuseless cracks.

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Aviation

COVID-19: Arik Airline Sacks 300 Staff

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At least 300 staff of Arik Air have been relieved of their appointments by the airline’s management.

This was announced in a statement by the airline on Friday.
It blamed the sacking on the impact of COVID-19 pandemic.
The press statement was titled, “Arik Air management declares 300 staff redundant”.
The company explained that a redundancy package would be provided for the affected workers with the help of the aviation unions.
The statement read in part, “Arising from the devastating impact of the COVID-19 pandemic, leading to the constrained ability of the airline to complete heavy maintenance activities and return its planes to operations, stunted revenues against increasing operational costs, the management of Arik Air (In Receivership) has declared 300 staff members redundant to its current level of operations.
“The leadership of the impacted unions has been contacted to negotiate a redundancy package for the affected staff.”
The airline added that over 50 per cent of its workforce of over 1,600 staff have been on furlough in the past six months.
In a separate statement also forwarded to our correspondent by its Public Relations and Communications Manager, Banji Ola, the airline apologised to passengers whose travel plans were disrupted by the protest carried out by the National Union of Air Transport Employees on December 3, 2020.
The picketing disrupted operations in Lagos and prevented the airline from processing passengers at the Murtala Muhammed Airport Domestic Terminal 1 and 2.

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S’East Leaders Laud FG Over EndSARS

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South-East leaders on Saturday, lauded the Federal Government on the matured and responsive manner it handled all issues relating to the EndSARS protest and agitation.
The leaders of the zone, which included Governors, Senators, House of Representatives members as well as traditional, religious and youth leaders, gave the commendation in a communiqué issued after their meeting with a Presidential delegation in Enugu.
The presidential delegation was led by Prof. Ibrahim Gambari, who is the Chief of Staff to President Muhammadu Buhari.
“We thank President Buhari for the speed and restraint with which he handled the EndSARS protest, which has engendered peace throughout the country, especially the South-East.
“We, therefore, request the President to look into demands of various groups and youths with a view to resolving them,’’ the statement, which was read by the Chairman of South-East Governors’ Forum, Governor Dave Umehi, said.
It also called for joint operation by security agencies and local vigilant groups into all forests in the zone to flush out criminals and killer herdsmen with AK47 rifles.
“But we pledge our commitment to continuous coexistence with peaceful herdsmen who have been living peacefully with us.
“We stand for an indivisible and united Nigeria, built on love, fairness, equity and justice. We believe that under this platform – NIGERIA; we are bigger and stronger,’’ it said.
It also called on the Federal Government to continue its support and diplomatic push for the former Coordinating Minister of the Economy, Dr Ngozi Okonjo-Iweala, to be elected as the Director-General of the World Trade Organisation (WTO).
The statement thanked the Federal Government for the timely interventions in Akanu Ibiam International Airport rehabilitation as well as intervention in road infrastructures in the zone.
“We are grateful for the attention given to the second Niger Bridge and completion and inauguration of the Zik’s mausoleum.
“However, we urge the Federal Government to give attention to the completion of the current road projects within the zone,’’ it said.
The statement said that the states in the zone will provide money for the compensation for those affected by the EndSARS protest, help to rebuild police stations and their logistics; while engaging the youths constantly to forestall any violent development in the zone.
“We have plans to set up various empowerment programmes to gainfully engage the youths. The governors also plan to mainstream the youths in their governance to give them a sense of belonging.

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Minister Hails Meeting With S’East Leaders

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The Minister of Information and Culture, Alhaji Lai Mohammed, has described as “extremely fruitful” the meeting which a presidential team had with leaders and stakeholders of the South-East.
“The meeting of the presidential delegation with South-East leaders was very useful,’’ Mohammed told journalists on Sunday in Enugu.
The delegation, led by Prof. Ibrahim Gambari, Chief of Staff to President Muhammadu Buhari, met for more than eight hours in Enugu with selected South-East leaders.
Mohammed said that it was quite instructive that all the groups which took part in the meeting believed in the unity and oneness of the country, pointing out that they clearly spelt out this in their presentations.
“We listened clearly and carefully to all the positions and demands and we are going back to report directly to President Buhari,’’ the minister said.
He noted that the Federal Government had been spreading development and infrastructure to all parts of the country, simultaneously and equitably.
“We want the South-East people to be confident that the Federal Government is spreading development and infrastructure to all parts of the country equitably and will never marginalise any zone in the ongoing development and infrastructure agenda.
“This is what I want to assure Nigerians living in the South-East,’’ Mohammed noted.
According to the minister, when the team gets back to Abuja it will see what can be done immediately concerning some of the positions and demands made by the South-East leaders.
The presidential delegation met with South-East governors, statesmen, elders, religious and traditional leaders, as well as market women and youth leaders.

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