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Greece Battles Mistrust To Target Bailout Deal

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Greece has expressed hope  of finally securing a 130-billion-euro EU/IMF bailout to ease its debt crisis even as acrimony grew between Athens and euro zone partners led by Germany.

Frustrations exploded as Greek President Karolos Papoulias, an 82-year-old veteran of the resistance to Nazi occupation of Greece during World War Two, lashed out at Germany’s finance minister for appearing to suggest Greece might go bankrupt.

Past backsliding on promises by Athens has created a growing mood of mistrust, with German Finance Minister Wolfgang Schaeuble likening Greece to a “a bottomless pit” and asking on Wednesday whether Athens would stick to new promises.

“I cannot accept Mr Schaeuble insulting my country,” Papoulias riposted.

“Who is Mr Schaeuble to insult Greece? Who are the Dutch? Who are the Finnish?” he asked of critics in two countries which, like Germany, have heaped pressure on Athens.

Greek officials insisted after late-night talks with euro zone counterparts that they had met the final demands set by the European Union and IMF to seal a second rescue deal needed to avoid chaotic default when debt repayments fall due in March, Reuters reports.

But the euro slid to a three-week low on the dollar in early Thursday trade as markets focused on a Reuters report that finance officials in the currency union were looking at ways to delay all or part of the rescue deal while avoiding a default.

EU sources told Reuters euro zone officials were studying the option of postponing part or all of the rescue deal until after the elections while still avoiding a disorderly default.

“Confidence has indeed sunk to a low point,” Dutch Finance Minister Jan Kees De Jager told Dutch paper Het Financieele Dagblad, suggesting one option was to delay delivering the bailout in full until after a Greek election expected in April.

“Schaeuble Junta,” ran a headline in the conservative Eleftheros Typos newspaper, harking back to Greece’s painful spell under military rule during the 1960s and 1970s.

Greece is pinning its hopes on a fresh meeting of euro zone finance ministers scheduled for Monday after it failed this week to clinch a deal to avert a bankruptcy which could shake financial markets around the globe.

Finance Minister Evangelos Venizelos said Athens had plugged a 325 million-euro gap in a promised 3.3 billion euros of extra budget savings this year, noting both parties in the government of Prime Minister Lucas Papademos had signed up to austerity measures which already triggered rioting in Athens on Sunday.

Venizelos said he hoped euro zone officials could tie up all the issues before the ministerial Eurogroup meets on Monday, opening the way for a bond swap deal with Greece’s private creditors, known as PSI, which will reduce its debt mountain.

“These issues will be prepared at a Euro Working Group meeting on Sunday in Brussels so that, with good faith, the final decision for the approval of the (bailout) program is taken and the public announcement of the PSI is made on Monday,” he told reporters after a conference call with euro zone peers.

Greece had said it must initiate a debt swap deal with private bondholders by Friday to meet a March 20 deadline for the 14.5 billion euros in debt repayments. It was hoping to have the euro zone’s backing for its second bailout this week. If that backing now comes on Monday, it is possible the debt swap could start in the middle of next week.

After the three-hour conference call among the 17 euro zone ministers, Eurogroup chairman Jean-Claude Juncker said progress had been made but made clear some matters remained open on making sure the bailout plan is carried out in full.

“Further considerations are necessary regarding the specific mechanisms to strengthen the surveillance of program implementation and to ensure that priority is given to debt servicing,” he said.

That was echoed by one government official in Germany, where public opinion is hostile to bailing out Greece.

“Questions remain that are very important to Germany and other member states about the sustainability of the program,” said the official, who declined to be named.

Juncker predicted things would fall into place by Monday although any number have deadlines have been set, only to be missed.

Greek conservative leader Antonis Samaras – tipped to become prime minister after a possible vote in April – gave a written pledge on Wednesday to stick to the austerity package but added that “policy modifications” might be required to boost growth.

Greece has yet to publicly specify how it will find the remaining 325 million euros worth of budget cuts and the cabinet – which would normally be required to approve such cuts – was not scheduled to meet on Thursday.

A new survey by the VPRC polling company showed Samaras’ New Democracy party getting 27.5 percent, down from its 30.5 percent score in January, but still well ahead of the newly-founded Democratic Left party in second with 16 percent.

Italian Prime Minister Mario Monti warned on Wednesday that the debt crisis was fuelling resentment within the bloc and rejected the idea of a “goodies and baddies” division between so-called virtuous northern states and profligate southern ones.

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NSIB, AAAU Sign MoU On Air Safety Training

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As part of efforts to curb mishaps in the aviation industry, the Nigerian Safety Investigation Bureau (NSIB) has signed a Memorandum of Understanding (MoU) with the African Aviation and Aerospace University (AAAU) to deepen training on preventing and reducing accidents in Nigeria’s air transport.
Director, Public Affairs and Consumer Protection of NBIS, Mrs Bimbo Olawumi Oladeji, in a statement, said NSIB granted AAAU access to its facilities to facilitate an efficient exchange of resources and expertise.
According to the statement, the Director-General/Chief Executive Officer of NSIB, Captain Alex Badeh, who spoke at the ceremony held at the NSIB Training School, noted that the MoU sets the stage for facility sharing, capacity building, and collaboration between the Bureau and AAAU.
“I am confident that this MoU will enhance the effectiveness of our collaboration and commitment to promoting safer skies and operational excellence in the aviation industry in Nigeria and beyond”, Badeh said.
Registrar of AAAU, represented by the Director of Physical Planning and Works, Engineer Masud Aliyu Yerima, was also quoted in the statement, saying, “The journey of AAAU’s establishment and progress would have faced considerable challenges without NSIB’s generous support”.
He commended Badeh for his exemplary leadership and steadfast dedication in propelling NSIB to greater heights, and affirmed AAAU’s readiness to engage in mutually beneficial endeavours with NSIB.
“This partnership marks a significant milestone in fostering a culture of safety and excellence within Nigeria’s aviation sector, and both NSIB and AAAU are poised to leverage this synergy for the benefit of the industry and the nation at large.
“The African Aviation and Aerospace University, AAAU, is the first Pan-African university dedicated to aviation, aerospace, and environmental science.
“Addressing two critical needs within the continent’s industry, AAAU tackles the research and development gap in Africa’s aviation and aerospace sector while simultaneously cultivating a skilled workforce to propel it forward”, the statement added.

By: Corlins Walter

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Naira Rebound, Air Peace’s Expansion Deepens International Route Competition 

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he commencement of flights operations on the London route by an indegenous Carrier, Air Peace Airline, and the recovery of the local currency have sparked fresh competition on international routes.
Air Peace, Nigeria’s outstanding indigenous airline, may face a prolonged market battle with many foreign airlines with decades of experience in the industry following its entrance on the Nigeria-London route.
Some of the industry’s experts say the airline required support from the government and a strategic approach to stay competitive.
Analysts have also stated that the strategic move has garnered high praise from stakeholders in the aviation sector, considering that Nigerians were paying exorbitant prices to travel from Nigeria to London, but that sustaining this momentum will require more than just offering low prices.
On March 31, 2024, the 11-year-old airline made a bold statement with its inaugural flight, using a Boeing 777 aircraft, offering a capacity of 274 seats and carrying 260 passengers from Lagos to London.
It sold its tickets for N1.2m, a price way lower than the rates offered by most foreign airline operators plying the same route.
Just two weeks after entering the market, Air Peace’s Chief Executive Officer, Allen Onyema, complained on Arise TV that foreign airlines were undercutting prices in an attempt to push Air Peace out of the market.
Onyema said, “We are aware that there are devilish conspiracies. All of a sudden, airlines are pricing below the cost. One airline is advertising $100  and the other $350. If you peel up your entire aircraft and carry people on the wings, it is not even enough to buy fuel.
“Why are they doing that? Their government is supporting them because Nigeria has been a cash cow for everybody. The idea is to take Air Peace out, and the moment they succeed in taking Air Peace out, Nigerians will pay 20 times over. It would happen, God forbid, if they were able to take Air Peace out”.
It was gathered that an economy ticket for a flight scheduled for April 29, 2024, from Lagos to London costs about N679,375 on Ethiopian Airlines, an operator with 75 years of experience.
Air Peace priced the same ticket at N1,090,750. The difference is that on Air Peace, it will be a 6-hour non-stop flight, while on Ethiopian Airlines, it will take 16 hours with one stopover.
Last Friday, Ethiopian Airlines reduced the price of its London ticket by 0.77 per cent to N1,628,660 from  N1,641,249 two weeks ago.
In the same period, Air France’s price dropped to N1,687,824, nearly halving from last month’s N2,482,138.
On March 4, 2024, Lufthansa offered the Lagos-London route for N1,966,165. Qatar Airways provided the same ticket for N2,016,824, and KLM priced it at N2,448,740.
This continuous decline in air ticket prices was also driven by the strengthening of the naira against the US dollar and the payments of airlines’ trapped funds by the Central Bank of Nigeria.
Minister of Aviation and Aerospace Development, Festus Keyamo, had confirmed that the Federal Government, through the CBN, had cleared all the trapped funds (foreign exchange backlogs) to the tune of about $160m.
Beyond the ongoing price war, the Air Peace Chairman had also lamented the challenges with ground handling and space allocation at the London Gatwick Airport, adding that no airline has faced such obstacles before.
He noted, “On the inaugural flight out of London, 24 hours before departure, the management of Gatwick Airport moved us to another checking area instead of the designated one.
“The area they provided had a malfunctioning carousel, forcing us to manually transport luggage 50 meters away, causing delays”.

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PH Airport Users Lament Down Turn In Flight Operations 

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Users and business operators at the Port Harcourt International Airport, Omagwa, have decried the downward trend in flight operations at the airport.
Some of the users and operators told The Tide that flight operations at the airport, rather than go upward, have steadily been irregular, and diminishing steadily.
A regular air passenger of the airport, Simeon Echeonwu, in a chat with The Tide, said many airlines, both domestic and international operators, that usually operate at the Port Harcourt airport, have stopped operations, whereas others that are still operating are no longer very stable as before.
Echeonwu noted that airlines such as Aero Contractors, United Nigeria, and Green Africa airlines, now operate about one flight, twice a week, unlike before that they flew every day on Lagos and Abuja to Port Harcourt.
Also speaking, former Chairman of the FAAN Accredited Car Hires Association, Clifford Wahunoro, lamented that the down turn in Operations has affected the business of car hires.
“If you have noticed, I have not been regular at the airport for some time now, because business is no longer flowing at the airport as before. I will not fold my hands and be sitting down doing nothing, so I have to look for other things, so I come when I think there will be something.
“You can see that between 12noon and 1pm, after that segment of flights, when you have few flights arrival, many people will close for the day, and when you wait till evening, flight like Dana may come very late at night, and sometimes, it will not arrive, and by that time, many people will not like to book for commercial vehicle”, he said.
Meanwhile, a travel agent, who wished to be anoyimous, decried the rate at which the airport is going down in terms of flights operations, noting that Port Harcourt airport ought to be competing with the other major airports like Lagos and Abuja.
He queried if such was a calculated attempt to bring the airport to its kneel in terms of flight operations, while other major airports have steady flow of flight operations both for domestic and international.
TheTide observed a continuous distortions in flight movement at the airport. Some of the airlines, like Max air, which many passengers patronize, have completely stopped operations, and no new airline has been added.
Apart from the Air Peace Airline that has maintained some level of stability in operations, other few operators have been involved in either steady rescheduling of flights, cancellation and regular delay, resulting in poor and unpredictable flight movement, which affects or determine other businesses in the airport.

By: Corlins Walter

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