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Major Blow For Foreign Airlines As FG Shuts Abuja, Lagos Airport In A Few Days / Air Peace, Emirates, Turkish Airlines To Launch Flights From Port Harcourt / Foreign Airlines Reject Kaduna Airport (2) (3) (4)

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Foreign Airlines To Reduce Operations Over Forex Policy by basilo102: 6:42am On Dec 20, 2016
Operators’ trapped funds hit N160b

Some foreign airlines operating in the country are considering gradual withdrawal of operations from Nigerian routes over inability to fully repatriate funds that are stuck in the economy.

The funds, being proceeds of ticket sales, have again accumulated to $400 million (N160 billion) as at November, after the airlines repatriated $300 million between June and September 19, 2016.

Part of the worry, The Guardian learnt, is the alleged unfavourable policy of the Central Bank of Nigeria (CBN), which mandated the airlines to sell tickets at the rate of N308 to $1, but to have them repatriated at N386 to $1.

Efforts to get the CBN to react to the claims failed. Several calls and text messages to the Acting Director of Communication, Isaac Okorafor, were replied with “I’m in a meeting”. As at press time yesterday, the CBN was yet to react.

Sources told The Guardian yesterday that some of the airlines might, therefore, begin to quit routes like Abuja, Port Harcourt and Kano “to cut losses on account of stranded funds and unfavourable foreign exchange policy of the CBN.”

“Most airlines do not want to leave Lagos as long as Nigeria is one of their destinations. But other routes, given their already low passenger traffic, can be scaled down to prevent further losses for the airlines. The airlines are running at a loss and that is the problem,” the source said.

It was learnt that the Turkish Airline has withdrawn from Mallam Aminu Kano International Airport, Kano. The airline followed the path of Emirates and Kenyean Airways that both closed down their Abuja offices in September.

The implication is that Nigerians outside Lagos will have greater difficulty and also spend more to connect international flights.

Regional Manager of one of the African airlines, who would not want his name to be mentioned because of possible sanctions from concerned authorities, said the withdrawal from some routes was due to losses the airlines were incurring in Nigeria, despite the slow pace of repatriation.

The manager observed that prior to the forex market reopening after CBN introduced the flexible policy in June this year, airlines were selling tickets between N165 to N200 per dollar. Following the new policy, airlines could only repatriate at N285, which means 40 per cent loss in revenue.

He said: “As at today, we are selling tickets at N306/ 308, while the parallel market is N474. But when we want to exchange from naira to dollar, we still cannot get it at N306 that we sold tickets. We are still buying from CBN at N330/ N350. Why the imbalance?

“We would have preferred it to float, that is, if the market rate is N400, then we sell at N400. That is what the market entails and the CBN should make it dynamic. Right now, what they are telling us is that they don’t care, more so, we are not their priority. The loss is pinching us and putting the business at risk,” the source said.

The General Manager of British Airways, Kola Olayinka added that getting forex to repatriate funds remained one of the main challenges that forced the aviation sector “on its kneels, either praying or falling.”

Olayinka said that in the interest of all parties concerned, the government should make forex available to the airline operators, “who should not be begging for it in the first place.”

The local office of the International Air Transport Association (IATA), the central clearing house of 260 airlines around the world, confirmed the rather slow process and dissatisfaction of the airlines in repatriating funds from Nigeria.

Prior to the CBN’s introduction of flexible foreign exchange policy in June, the airlines had over $600million stuck in the economy with IATA negotiating for its release to the airlines.

IATA Lagos office yesterday confirmed to The Guardian that $300million was approved by the CBN in June, in the first forex intervention given to the airlines. The second intervention had another $300milion bill submitted on October 17, but only $69million was approved by the CBN.

However, since October 17 when the last bill was presented, the stuck funds have again risen to over $400 million, as the foreign airlines in total make about N100 million in ticket sales daily.

An official said: “The issue is more of propaganda than actually repatriation on the part of the government. If airlines were actually repatriating their funds, the stuck funds would have been at zero by now.


“Truth is that some airlines, like EgyptAir have still not received anything. Some airlines were selected and they were given. Since then, more money is till there and has piled up despite losing revenue.
“No airline will come and add any frequency in this kind of system that does not allow them to get dollar, even where they do, it is at a colossal loss. We have made it known to the minister that the system is not working. No airline makes profit of 40 per cent. Where they are losing 40 per cent in revenue, then there is a big problem. That is why they are groaning, but nobody seems to care.

“Airlines will continue to move out from some routes. They cannot continue to run at a loss. If it continues like this, most of these airlines will close shop totally. This is business,” the official said.

http://guardian.ng/news/foreign-airlines-to-reduce-operations-over-forex-policy/?F

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Re: Foreign Airlines To Reduce Operations Over Forex Policy by Flexherbal(m): 6:59am On Dec 20, 2016
Make Nigeria nor collapse ooo

2 Likes 1 Share

Re: Foreign Airlines To Reduce Operations Over Forex Policy by Atiku2019: 7:01am On Dec 20, 2016
cry cry cry cry cry cry cry
Re: Foreign Airlines To Reduce Operations Over Forex Policy by Miles300: 7:07am On Dec 20, 2016
Policies are just up side down , who do nigeria like this

2 Likes

Re: Foreign Airlines To Reduce Operations Over Forex Policy by ivandragon: 7:13am On Dec 20, 2016
this regime is just sooo confused & has no direction nor plan.

it is also too arrogant (or just plain stupid? or just revels in the destruction it is bringing?) to see that it must marry sociopolitical stability with sound economic policies.

as long as PMB continues to behave like a spoilt child who finally gets the prized toy & won't let any other kids in the play room to play with him, his regime will just keep bumbling around.

29 Likes 1 Share

Re: Foreign Airlines To Reduce Operations Over Forex Policy by veekid(m): 7:52am On Dec 20, 2016
Buhari sef

1 Like

Re: Foreign Airlines To Reduce Operations Over Forex Policy by MrPresident1: 7:55am On Dec 20, 2016
Systematic decommissioning of Nigeria.

2 Likes

Re: Foreign Airlines To Reduce Operations Over Forex Policy by teamchocolate: 7:55am On Dec 20, 2016
Most airlines do not want to leave Lagos as long as Nigeria is one of their destinations. But other routes, given their already low passenger traffic, can be scaled down to prevent further losses for the airlines.


Some people of hate from the red mud region won't like this... when your region is blessed grin

1 Like

Re: Foreign Airlines To Reduce Operations Over Forex Policy by Kondomatic(m): 7:57am On Dec 20, 2016
Sai Baba
Re: Foreign Airlines To Reduce Operations Over Forex Policy by hotspec(m): 7:58am On Dec 20, 2016

5 Likes

Re: Foreign Airlines To Reduce Operations Over Forex Policy by fineboynl(m): 8:00am On Dec 20, 2016
I keep saying it. it's not just buhari but the north as a whole. they are untrained and we should not allow them to govern over us again.

if PDP bring northern candidate they should forget winning. northerners are not fit to govern this country for the next 200 years.

14 Likes

Re: Foreign Airlines To Reduce Operations Over Forex Policy by Nobody: 8:02am On Dec 20, 2016
ivandragon:
this regime is just sooo confused & has no direction nor plan.

it is also too arrogant (or just plain stupid? or just revels in the destruction it is bringing?) to see that it must marry sociopolitical stability with sound economic policies.

as long as PMB continues to behave like a spoilt child who finally gets the prized toy & won't let any other kids in the play room to play with him, his regime will just keep bumbling around.

How many times did you travel this year?
Re: Foreign Airlines To Reduce Operations Over Forex Policy by rawtouch: 8:03am On Dec 20, 2016
The General Manager of British Airways, Kola Olayinka added that getting forex to repatriate funds remained one of the main challenges that forced the aviation sector “on its kneels, either praying or falling.”


said it all..
Re: Foreign Airlines To Reduce Operations Over Forex Policy by Danny287(m): 8:09am On Dec 20, 2016
Gosh this country is collapsing everyday no good news at all

2 Likes

Re: Foreign Airlines To Reduce Operations Over Forex Policy by LOSKYXANDER: 8:12am On Dec 20, 2016
.

2 Likes

Re: Foreign Airlines To Reduce Operations Over Forex Policy by BuyGoats: 8:13am On Dec 20, 2016
Buhari Buhari Buhari.
Smh


Please check my signature for your Christmas goats. Thanks for your patronage so far.

1 Like

Re: Foreign Airlines To Reduce Operations Over Forex Policy by livgenius: 8:15am On Dec 20, 2016
hotspec:

Aeroplanes have no reverse gear. And u can see it's a small private aircraft which can easily be pushed backwards so no need for a tug vehicle

Not every time bash Nigeria. Sometimes understand first
Re: Foreign Airlines To Reduce Operations Over Forex Policy by ivandragon: 8:33am On Dec 20, 2016
PUSH1:

How many times did you travel this year?
0.
so what's your point?

2 Likes

Re: Foreign Airlines To Reduce Operations Over Forex Policy by hotspec(m): 8:36am On Dec 20, 2016
livgenius:


Aeroplanes have no reverse gear. And u can see it's a small private aircraft which can easily be pushed backwards so no need for a tug vehicle

Not every time bash Nigeria. Sometimes understand first
I do, its all for fun. ACTIVATE UR SENSE OF HUMOUR

1 Like

Re: Foreign Airlines To Reduce Operations Over Forex Policy by Electroweb(m): 8:39am On Dec 20, 2016
How many exchange rates do we have? Na wa.
Re: Foreign Airlines To Reduce Operations Over Forex Policy by drnoel: 8:52am On Dec 20, 2016
ivandragon:
this regime is just sooo confused & has no direction nor plan.

it is also too arrogant (or just plain stupid? or just revels in the destruction it is bringing?) to see that it must marry sociopolitical stability with sound economic policies.

as long as PMB continues to behave like a spoilt child who finally gets the prized toy & won't let any other kids in the play room to play with him, his regime will just keep bumbling around.

But u dont get it. These foreign airlines where making money off Nigerian travellers. Nigerians are among the first 10 most travelled people in the world and these airlines cos of no constant policy governing airlines in Nigeria they do whatever they want. The move of the Nigerian CBN may not be the best but making money out of them too is not a bad idea. Afterall these airlines make serious money in Nigeria and then repatriate money made back to their countries. I am sure if they decide to invest something back to the country they are reaping off some reasonable measures will be given to them. Now that does not go to say that I think Bubu is doing well. I think they have failed Nigerians.
Re: Foreign Airlines To Reduce Operations Over Forex Policy by ivandragon: 9:34am On Dec 20, 2016
drnoel:


But u dont get it. These foreign airlines where making money off Nigerian travellers. Nigerians are among the first 10 most travelled people in the world and these airlines cos of no constant policy governing airlines in Nigeria they do whatever they want. The move of the Nigerian CBN may not be the best but making money out of them too is not a bad idea. Afterall these airlines make serious money in Nigeria and then repatriate money made back to their countries. I am sure if they decide to invest something back to the country they are reaping off some reasonable measures will be given to them. Now that does not go to say that I think Bubu is doing well. I think they have failed Nigerians.

no, you don't get it. the present issue is a consequence of poor decisions & lack of coordination between social & economic policies. the CBN is taking measures that it ordinarily would not & that alone shows that there is a bigger problem elsewhere.

these airlines are out to maximise profits. they are not charities.

what government needs to do is encourage more Nigerian based airlines, especially by giving them more routes internationally (this of course involves a great deal of bargaining with other countries).

the present situation will lead to job losses, less revenue for government, increased scepticism of investors & other negative knock on effects.

a couple of friends were supposed to come to Nigeria recently to make some 'meagre' investments, but they keep saying that the country is too sociopolitically unstable to come now & the economic policies, where clear, are unfavourable but seem generally uncoordinated.

my prayer is for PMB to get it right because he & his family are not affected by all these... its we, the general populace that are suffering...

3 Likes 1 Share

Re: Foreign Airlines To Reduce Operations Over Forex Policy by Nobody: 9:41am On Dec 20, 2016
Nigeria's loss, Benin, Ghana, Togos gain .
well more dollars and Foreign Dorect Investment for Ghana or Lome, the airlines would just probably make smaller African countries their port of call and we have to go there to travel..
They expect the airlines to buy tickets at the rate of N308 to $1, but to have them repatriated at N386 to $1.
for wetin now.

Even Togo cannot make the kind of elementary mistakes our government is making and this airlines are the ears and eyes of their government, you expect their governments to come and invest of give us loans...then you must have the drinks the "top dogs" of this confused government is having

4 Likes

Re: Foreign Airlines To Reduce Operations Over Forex Policy by Nobody: 9:44am On Dec 20, 2016
drnoel:


But u dont get it. These foreign airlines where making money off Nigerian travellers. Nigerians are among the first 10 most travelled people in the world and these airlines cos of no constant policy governing airlines in Nigeria they do whatever they want. The move of the Nigerian CBN may not be the best but making money out of them too is not a bad idea. Afterall these airlines make serious money in Nigeria and then repatriate money made back to their countries. I am sure if they decide to invest something back to the country they are reaping off some reasonable measures will be given to them. Now that does not go to say that I think Bubu is doing well. I think they have failed Nigerians.
your reasoning is so elementary and basic.. Nigerians will still travel, but the money now will be given to smaller countries, if they airlines go to Togo, then Nigerians will fly to Lagos go to Togo to travel and who becomes richer through tax and what have you those countries.

1 Like

Re: Foreign Airlines To Reduce Operations Over Forex Policy by Nobody: 10:43am On Dec 20, 2016
Buhari just loves killing FDIs. How did Nigerians end up with him?

1 Like

Re: Foreign Airlines To Reduce Operations Over Forex Policy by Nobody: 12:36pm On Dec 20, 2016
Sai Buhari?
Re: Foreign Airlines To Reduce Operations Over Forex Policy by drnoel: 1:32pm On Dec 20, 2016
ehie:
your reasoning is so elementary and basic.. Nigerians will still travel, but the money now will be given to smaller countries, if they airlines go to Togo, then Nigerians will fly to Lagos go to Togo to travel and who becomes richer through tax and what have you those countries.

And u say my reasons are so elementary but u never understood the comment u quoted
Re: Foreign Airlines To Reduce Operations Over Forex Policy by DJInfluence: 3:20pm On Dec 20, 2016
hotspec:

Pushing of the plane (from the pic you attached) doesn´t mean it is defective. Planes don´t reverse so probable there was no towing trcuk (for lack of a better name) to push the plane backward.

But i agree with others, the policies our country throws out daily are just too funny.
Re: Foreign Airlines To Reduce Operations Over Forex Policy by Nobody: 3:20pm On Dec 21, 2016
ehie:
Nigeria's loss, Benin, Ghana, Togos gain .
well more dollars and Foreign Dorect Investment for Ghana or Lome, the airlines would just probably make smaller African countries their port of call and we have to go there to travel..
They expect the airlines to buy tickets at the rate of N308 to $1, but to have them repatriated at N386 to $1.
for wetin now.

Even Togo cannot make the kind of elementary mistakes our government is making and this airlines are the ears and eyes of their government, you expect their governments to come and invest of give us loans...then you must have the drinks the "top dogs" of this confused government is having

You need to see how well Kenya is doing.

1 Like

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