Abnot's Posts
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mktinsight:MRO business requires a very efficient supply chain and highly skilled personnel which can be difficult to come by. In Nigeria I expected all the airline operators to come together and fund an MRO as a joint venture with may be 5% stake owned by FG. Onyema needs to consider breaking down his business interest in aviation into 2 or three companies. One company to manage domestic operations , another for regional and another for international. He can combine regional and international into one company. Combining all three into one company (Airpeace) makes him lose focus as the kind of competition and politicking needed to compete on the regional routes (Ecowas and rest of africa) is different from what you face in the domestic market. On the domestic side they pretty much doing well and only need to work on improving their on-time performance and modernizing their fleet. Its time to pay attention to the regional market particularly west and central africa . |
donbachi:No it’s an ATR 72-600 a modern turbo prop jet. They will face competition from Airpeace . Air peace operates a jet on the route which can take you from akure to Lagos in 30-35 minutes whereas green Africa turboprops will take like an hour. Secondly the turboprops flies below the cloud (17000-20000ft above sea level ) whereas that Airpeace embraer jet flies at 28000 ft . Thus passengers who are scared of turbulent flights may prefer a jet. On the other hand the green Africa turbo prop is cheaper to operate thus we can all get cheaper tickets with them than air peace |
Philipxxxx0:The way allen onyema is pushing this his business you can tell that there is a difference between his personality and that of arik founder. Allen goes to any length. All the aviation ministry senior officials know him because he goes to any office to make sure something is done to ease the burden on his business and that of other nigerian aviation operators. Even the aviation committees in both nigerian senate and house of reps hosted him and his colleagues many times when they went to lobby to get certain elements of the finance act amended. When he disagreed with nigerian customs over duties and all he went to everywhere to try to to get the government to call customs to order. He even threatened to take asky to court due to their anti-competitive actions. I still wonder why the arik CEO founder remained laid back and allowed his company's debts to accumulate despite the huge investments he had made. It marvels me. Aliko Dangote, Mike Adenuga, Jim Ovia, Tony Elumelu , BUA and many others won't stay laid back and allow their businesses to suffer. They will go to anywhere (within government circle) to make a case. Today airpeace and many other airlines don't pay customs duty on any of their aircrafts or aircraft spares. Imagine how much arik would have saved if this policy was passed into law during their hay days. Right now the operators are fighting for CBN to create a FX window for them so they can buy dollars at the official rate. |
mktinsight:In its initial years it did nothing different from arik, dana and the rest. In fact arik started better because it started off with new planes which were more efficient than the old planes air peace started with. However there are certain factors that led to arik's huge debt profile some of which I'll outline. 1. Wrong Aircrafts- Arik ran domestic routes with Beoing 737NGs (700/800). These aircraft types are more profitable on regional routes with flight durations of 3-5 hours. Arik used these planes on short 40-45mins flights which made it impossible for them to generate the kind of revenue they ought to have generated. Also the engines of the 737NG are very expensive thus generating very little money on each cycle of lagos to abuja also made it hard for them to breakeven. 2. Wrong funding: Arik was getting its financing from Nigerian banks at 24% interest rate. In commercial aviation the margins are very low thus starting off at negative 24% percent already sets the airline for disaster. 3. Expatriate workforce : Many of arik's pilots/engineers were expats earning in dollars along with other perks that drove up their personnel expenses. There was no longterm plan of training young nigerian pilots and gradually filling up positions with the young pilots.. 4. Dollar loan Naira revenue: The massive devaluation of 2014 drove up arik's debt profile. They were exposed to dollar loans which they took when the dollar sold for NGN157 and had to pay back at NGN380 to the dollars. 5. Diversion of funds: There was a clear cases of the airline's owner taking advantage of the huge cashflow seen in commercial aviation by diverting these funds out of the airline to other personal and business interests. This made them unable to meet their financial obligations to service providers. 6. Heathrow and JFK landing slots: These landing slots are some of the most expensive in the world. Kenya airways recently sold one of the landing slots at heathrow airport to oman air for $75 million. Running a point-to-point (Lagos to heathrow) service to heathrow was definitely going to lead to cash bleed. 7. Unfavorable wet-lease deal with Hi-Fly - Another avenue for cash burn. 8. Management team with limited knowledge of aviation business - The owner's son graduated from uni, worked at a bank for 3 years and joined arik afterwards as a director or even CEO. Can't remember exactly. 9. Poor government policies in Nigeria that made sure that cost was permanently higher than revenue. Every airline operator today ought to know these and know that if arik could go down there businesses could also go down if they repeat the same mistakes arik made. At least the FG has taken away custom duties from all their imports and also granted VAT waiver on tickets. Also CBN now has a window where they can borrow at single digit interest rates. I wish them all the best and hope that they don't get carried away by the huge cashflow |
PROUDIGBO:Arthur Eze believes in deriving joy from praise singers coming to worship him and get handouts from him . He believes in everyone coming to him to boost his ego. Allen onyema beleives in building something that will empower his people where they can work and earn a decent income from. Two different ideologies |
gordonbarrett:I’m not sure Airpeace is planning to build an MRO all alone. They need the right partnerships. There’s a lot of technical requirements that cannot just be met . Aero MRO specialises on 737 classics. From what I’ve seen Airpeace is phasing out that model of aircraft from their fleet thus an MRO based on the 737 classic model will be a waste for them. Most likely they’ll start with a facility that can take care of minor maintenance works (A and B checks) and gradually build capacity. Truth is Allen Onyema as a person has big dreams and Many who doubted many of the things he said he’ll do (including me) are beginning to learn how possible it is a achieve ones dream. In 2014 I was boarding an arik aircraft and saw three aircrafts parked at Lagos airport apron with the Airpeace logo. I rubbished them as one of the many airlines that will come and go. Same year fist nation and discovery air came . Today those two airlines are gone while Airpeace is still there. In 2020 even some pilots working at Airpeace openly criticised Allen Onyema with one saying Airpeace has almost all its 737 aircrafts grounded due to one maintenance issue or the other . The pilot said Airpeace wasn’t meant to survive more than 5 years and it is living on borrowed time. A few weeks later the pilots protested over covid-induced pay cuts with many leaving and commenting on how they’ll rather go work for an airline abroad. Today a good number of those pilots are back at Airpeace working. They couldn’t get flying jobs abroad. The new orders that some aviation analysts saw as newspaper orders have began to witness deliveries . Even FG and it’s agencies are beginning to take him seriously. He is the VP of the AON and is aggressively pursuing his dream. |
mktinsight:Ethiopian is 75 years old with full backing of their government. Airpeace is a private operator of 7 years old. There is no basis for comparing both. Every enterprise has a history of little beginnings . 7 years ago Airpeace started with old aircrafts. At least they’ve started bringing in new nee generation aircrafts. Ethiopian also had old aircrafts and started a fleet renewal program in 2012. Regarding the recently acquired embraer aircrafts I’ll say that aviation is one of the most regulated sectors and you can trace the history of any aircraft. Those aircrafts were acquired new and delivered from the embraer factory in Brazil. Anybody spreading false news about that is just a hater |
SlyDev:Please let go of all these bashing’s. Anywhere there he collaboration progress and development becomes inevitable. The governor in collaboration of businessmen like innoson and Allen Onyema are developing aviation in their state (anambra). The state and its people will benefit from this feat. FG will not do this for them. They are contributing their quota . |
If you read the history of most nations you'll find that at one time or the other the people fought for or towards the kind of nation they desired. In Nigeria obasanjo, IBB, buhari and many others fought a war to keep the country they inherited from the british. People also fought for have and keep the USA of today. People sacrificed and fought a war to prevent the Nazi invasion of the UK, France and Russia. If the people of Afghanistan are not willing to fight for the kind of country they want I don't think UK or USA has a duty to fight for them. The world powers can support but not play the lead role. The afghan people prefer to live in refuge camps in uganda, south africa , canada, germany USA ... It's up to them |
Ajaxa:In trying to be polite I still want to pour out my mind. It looks like the challenges of Nigeria have made people desperate to the point that they lose their sense of reasoning and fail to make rational decisions. It is my hope that your "so called" agent doesn't make more money from you because work permits are not processed the way you've described |
PrinceOfLagos:FAAN killed itself not Sirika . Show me one airport terminal managed by FAAN that is at par or better than any major airport in Ghana , togo , Kenya , Tanzania , Ethiopia , South Africa ot even Niger. Have you ever gone into Lagos airport without being welcomed by a thug or arrived without being welcomed by a thug trying to hustle you to get into his cab. Is that how airports are run globally ? They are just trying to mess Sirika up but we all know that airports are managed by professional airport management companies and FAAN does not have what it takes to manage any airport international airport in Nigeria |
Rugaria:What an insult. Even among the educated soludo is a star and has consulted for some of the top institutions in the world. Debating with Ifeanyi Uba is an insult lol . In as much as education isn’t everything it is very important |
Idiko1:In aviation aero-politics is one of the most important pillar. Let's put ourselves in his shoes. He may even be contributing far more to biafra than many of his online critics |
Buckeyemedia1:Party members never want to subject themselves to the constitution of the party. They always want a chairman that will do their bidding and impose them/their candidates. As a party chair you can’t do much to stop that but the best you can do is to stand firmly by the constitution but secondus and his NWC members take money from Rich members of the party and tweak the system in their favour. Look at what happened at anambra . Godwin maduka was played out for Valentine . Argument was that Valentine always gave pdp free rooms and hall at the transcorp Hilton hotel for their events. It was time for pdp to pay him back with the ticket . The other candidates felt aggrieved and maduka pulled out |
Ultimus:Well welcome to the west . IRCC and Canada by extension is only interested in the immigration numbers and money ( students). Life as an immigrant/potential immigrant is not easy. Many are made to believe Canada is a place where things work but as you can see things don’t work as efficiently as we think. Pandemic or not IRCC did not do a good job. U.K. and US government are both processing indefinite leave to remain & green card applications respectively with minimal delays . US non immigrant visa applications are equally processed within three days if one is able to get an appointment. I suggest people accept things the way they are or withdraw their applications if they can’t wait any longer. |
nowhere:African countries are weak and poor. Productivity levels are also low. These monies are still nothing compared to what a G7 member state has at its disposal . Many factors , actions , inactions and colonialism contributed to the poor state of Africa . For now the continent needs as many vaccines as possible |
AgreatMan:As a continent Africa is weak and does not have the resources to procure these vaccines for all. There is nothing wrong with seeking help in matters of health. |
Onedimple:I have also lived in Nigeria , Scotland ans USA. It’s not about where you live or have lived . I followed up with the vaccine delivery and distribution (first and second batch) in 2020. That does not mean everyone will have confidence in the program, if you don’t have fine. It’s not about where you’ve lived . Living in Canada and Nigeria doesn’t mean you know everything. The people who handled the vaccine program in Nigeria ( chikwe of ncdc , enahire of fmoh , mamora of fmoh, faisal shuaib of primary health care agency, Sani aliyu formerly of naca ) were all trained and excelled in their careers in the both Nigeria , South Africa , USA and U.K. I only wrote what I wrote to encourage some people who may have been skeptical about the vaccine program . At the end individuals will make their decisions . |
Upeople:People are desperate. Even things a common knowledge are ignored because people are desperate. I’ve encountered a few . When I try to discourage them from adopting short-cut routes they get annoyed and attack lol . Last year I met a man who was trying to recruit young Nigeria software engineers for a project in Canada . He was offering some of them as low as CAD36,000 per annum. I told one of them to bargain better as he was well placed career wise in Nigeria and he said the job comes with a work permit and he will accept even CAD10,000 to leave Nigeria. That’s how desperate people are. Eventually they were all (the recruited) placed in contact with an immigration lawyer who charged them $4000 each . Many of them went to the black market to source for dollars and paid . One year now they are still being told about IRCC delays and border closure. Grown men in their 40s are returning to study at mushroom universities in U.K. just to be able to get the post study work visa. They are also taking along with them their families with the hope that they’ll get a job and permanent resident status after their studies. My hope is that everyone will be patient enough to make concrete plans before migrating |
Onedimple:I know you may have been disappointed by Nigeria many times but regarding the covid vaccines donated to Nigeria the value chain was well monitored and regulated . I took my shot in April as I was worried about contacting the virus. |
joselekas:Well |
Zetra7:I like your contribution. Many May bash you but this worked for me. My personal experience : In 2008 my parents sent me to the west to study while some extended family members condemned the move likening it to an elitist thing of limited value. Six years later I moved to Lagos as a youth corp member and was hired by a small tech company that couldn’t even wait for me to complete the program. I built them a software that automated some bank card management functionalities . They sold this to some banks and I also got more exposure working jointly with tech teams in 5 banks . Most Corp members were reliant on 19,800 pay from the government but I was earning per project. The only difference between us was the little knowledge I had acquired . Same family members began to question how a youth corper could live in a such a furnished home and get established almost immediately. Two weeks after the nysc program the employer made me a full time offer which I turned down. Joined the tech department of one of the banks for one year and left thereafter to join a VC. At the VC I got to work with software teams on projects across portfolio companies they had investments in. Exposed me to tech in multiple sectors and for the first time gave me opportunity to travel to many African countries. I had only been around EU / east coast USA before then. The investment in my education opened doors for me. My uncles/aunts who felt education was all about having a certificate saw the difference between investing in education and investing in obtaining a certificate. Nigerians are self driven and many have made it despite the quality of education available here. If the government can better invest in education and SMEs many will be moved out of poverty |
OLOKUN175:Igbonedion’s wealth has depreciated immensely compared to what it was 15-20 years ago. State-capture was one took he used to sustain his wealth till oshiomole came in and disrupted. Hakeem belo Osage has run down every major company he helped setup ( standard trust bank , 9mobile). The face of wealth in south-south are the likes of Jim ovia , Tony Elumelu, Austin avuru, Herbert wiggwe and the likes. While their states of origin are in the south-south zone they pretty much established themselves in Lagos |
OLOKUN175:In the whole of south south I don’t know anybody that I’ll call rich as in rich. Their business acumen is so poor that’s they only able to make money VIa direct access to public funds or oil deposits . Give a typical anambra man $1million dollars and he’ll build something worth more than that. Give a typical ijaw man $1 million and he’ll squander it. How can any right thinking individual say Allen Onyema is fronting for Kingsley Kuku . Who the hell was Kingsley Kuku before NDDC/special advisor position. Even after he left office he has not been able to build anything after office. Allen Onyema had lots of properties/estates in Lagos before he got contracts from NDDC/iOCS between 2008 and 2015. After that government ended he set up Airpeace and has grown the company to what it is today. Can Kingsley Kuku even buy a single aircraft engine ? Rubbish |
Fahdiga:While they may not be fans of secondus many within the party are ashamed at wike’s handling of the party like a one-man business. That is what they want to stop. At the end of the four months they’ll all have an opportunity to vote in another national chairman |
macof:The issue here is about abba kyari And Allen Onyema VS the US judicial system. Abba kyari’s bosses regard him as an asset in the fight against crime in Nigeria. Allen Onyema is the biggest investor in the Nigerian aviation space. Should the country push them to US prisons to satisfy the Americans ? My opinion is NO. |
Asgard73:What is abba kyari and Allen onyema’s business with USA ? They don’t live there . They don’t work for USA and they are not US citizens. Nigeria is supposed to be an independent country and not a subset of USA. Only a foolish country will give out its citizens to be humiliated by another country |
People's experiences are different but I'll summarize mine. At the age of 16 I found myself studying microbiology at one of the private universities. Till date I dont know how I ended up there studying microbiology. My grades were not good and my GPA hovered around 1.4 - 1.7 on a 5.0 scale. I was not happy as I felt I was wasting my time. I endured through two years but by the second year I began to express my displeasure to my parents who were financing my studies. Some teachers said negative things about me. I missed many classes for reasons I still cannot tell today. While many were studying for exams and tests I was studying for SAT in isolation. At the beginning of my third year I got admitted into a computer science program at a uni in Maryland with no idea on how it will be funded. After my third year results came out I saw no significant improvement and was forced to tell my parents that I needed to leave the uni. The question was what next ?? I told them about the offer I had from college park and they supported me financially to enable me get the Sevis. With that I was able to get an appointment at the embassy and had my F1 visa application approved. I left Abuja the day I received my passport and two weeks later my dad came to visit me with words of advice/warnings. Many thought it was unwise to dump university after almost 3 years ( I was 18 then) to go start over again but till this day I don't know what was guiding me but I knew that I couldn't blow up that opportunity. My first Computer Science GPA in fall 2008 was 3.6 on a 4.0 scale and I made the deans list. I became hands on as most of my courses were hands on involving projects, course work and very little theory. Over time my GPA began to slip downwards but I eventually graduated with a 3.24/4. I was so excited about the power of technology and believed I could make money automating many of the mundane tasks in companies, government, et al. After my graduation I moved to UK for a one year work placement in Scotland . Afterwards I did a masters at Edinburgh univeristy and returned to Naija thereafter. I started out by looking for a place to do nysc as I was told teaching/rural development was the norm. I was determined to gain more technology experience during the service year. I was applying via linkedin and sending emails to companies. Interview requests were coming on a weekly basis. By week 6 I landed my first job ( a software development job) that got me working on projects across 4 banks. in lagos The employer told me they couldnt hire me on a permanent basis as I had not fulfilled the NYSC requirement which was part of the law. I was working on contract but earned enough money to be spending some weekends in accra and abuja. By my 9th month I shipped in a car I bought for $13,000 ( as a youth corper). Money made after I successfully built a bank card management system which the company sold to two banks. Two weeks after NYSC employer made me a fulltime offer which I turned down but a month later they made another offer which I accepted. Four months later one the banks I worked for during my service year headhunted me to join their technology team. I was there for some months but in need of more pay I wrote an email to the CEO of a venture capitalist firm showcasing myself. Their Technology team gave me a task which I delivered and they made me an offer which involved working across portfolio companies they had investments in . I took the offer and it exposed me to process automation across multiple sectors. After two yeats of doing that I began to offer the service on a consultancy basis and now looking to go gain professional experience in a developed world. I for once wondered if I was capable of coping with the rigour of university education but I must say Computer Science rescued me. It brought back the confidence in me. At a point I began to doubt the unemployment problem in Nigeria because I could not believe how openings were coming my way quite often with no God Father. I once even found myself discussing projects with theCEO of one of the big 5 banks who was considering hiring me. My story may not mean anything to you but when I think about what I went through in one of these pentecostal private universities I become more and more grateful to computer science. In my opinion Computer science is a good course particularly if you are sound in the theoretical and practical modules. |
Igethope:A canada that is fair with little or no problems is the selling point that attracts most migrants. Far from truth you need patience in this game. Patience with Immigration (IRCC) and when you get to CA you need patience to get appointment for the free healthcare, patience with the job market and patience with many other things. Kindly get used to it and make sure you aren't losing out on anything (business, career, investment, family ...) while you still in Nigeria. Live life like normal and when they are ready they'll grant you the permanent residence status you applied for |
mechanics:Read through three pages of this thread and I must say the level of ignorance is mindblowing. Grounding an airline's aircrafts because of a mere tyre blowout that AIB classified as minor not warranting investigation. The confidence with which contributors put out there statements makes you feel like they are knowledgeable enough but content is empty with no correlation to the workings of the aviation industry |
Aganju849:I will fly air peace, arik, dana and any operator under the current NCAA regime. Don't pity me. Tyre blowout in aviation is not abnormal . It happens all over the world and there are procedures on how to handle it when it happens during take off and when it happens during landing. If you don't know something spare 5 mins and read about it. Ethiopian is the best airline in africa today yet it suffered a plane crash in 2019 and suffered a fire incidence in 2020 that led to the complete loss of the aircraft. I still fly their aircrafts. |
adonainana:Exactly. |
