₦airaland Forum

femicyrus:
The oil producing states that wants Nigeria to break so as to have their oil for themselves alone, how far? Do you still want to break up?

citizenY:
Enjoy, ,while it lasts. Many of them will soon fizzle out. At the expense of being called names, many of these guys na,,money miss road. After the initial blingbling, na downhill.

Regulatorsmust ensure that standards are kept and this means money . Operators with out track records portend danger.

Descartes:
Please is Asaba Int'l airport operational now cos that will be closer to Onitsha than Enugu

bossmini84:
Who are the ones striking when ASUU, NMA, NUT all want salary increase. All civil servants, even the unemployed youth want financial benefits, where is the money the govt would channel to order sectors. Nigerians are the cause of their problems

iaatmguy:
checkmate, annihilate corruption, scrap overlapping agencies, reduce cost of governance before you talk of further impoverishing the masses all in the name of taxation and lets see where we would be

BlackTechnology:
You want to tax an economy filled with lots of poor people and struggling businesses.

BlackTechnology:
I disagree with you.


Pls mention other diversified products we export to get dollars.

crudedude:
Even if we pay taxes that make up 30% of revenue government spending and corruption will still deal with it leaving next to nothing for the citizenry. no be this same Nigeria again?

obinoscopy please move to front page

The domestic scene of the nation’s air transport sector is witnessing a boom, as more airlines join the sector, bringing down fares.

With increased seat capacity, new entrants such as Azman Air, Discovery Air and Air Peace, have crashed the fares to as low as N9,000 (one way) on the popular routes from Lagos to Abuja, Kano, Portharcourt, Enugu, Calabar among others, as travellers throng their counters.

Already, with the coming of Air Peace with seven (Boeing) B-737 aircraft, Azman Air with three B-737; Discovery Air with three B-737 and FirstNation also with three B-737 , capacity in the domestic scene has increased, as travellers also have more choice among ten airlines, as against the previous four as at three months ago.

Before now, the sector could only boast of about 45 aircraft with Arik having 26, Medview five, Dana four and Aero ten. However, with the addition of 16 aircraft, analysts say the sector is looking up, with more competitive fares.

Also, a visit to the domestic airport in Lagos reveals that across –the-counter fares which previously stood at between N25,000 and N35,000 now go for between N20,000 and N30,000 with established airlines depending on the destination and time of travel, while the relatively new ones are wooing passengers with price slashes.

Dana Air has a bold banner on the top of the wall of the domestic Terminal-2, popularly known as MMA2 asking passengers to take its flights for as low as N10,000 when they book online.

Discovery Air says ‘Everywhere in Nigeria from N8,000’.

Meanwhile travellers are basking in the fare slash, saying it is already breaking what they think would be a monopoly, especially during the Yuletide season.

“This is good for the sector, we can now come to the airport and select from the airlines, whether online or across the counter, at least there are choices for Nigerians”, Tunde Adewale, a passenger, observed.

Another traveller who flew on one of the new ones, Air Peace, described the situation as ‘good times’ adding that the old airlines have no option but to also begin to lower their fares.

“You know they are now competing with one another and that is why competition is good for the system. Customers will have the power to choose and dictate the tune because they will be competition for us”, he said.

However, observers are cautioning the airlines to also brace up for the challenges of maintenance, as safety is key to the system.

They are of the opinion that when airlines operate at a loss or offer too low fares to attract customers, even when fuel prices and maintenance fees are still high, “there is the tendency for some aspects of the airlines’ operations to be affected.

“As much as the sector needs more airlines and needs to put in place, measures to attract more people to travel, there is also the need for them to consider other factors such as high maintenance fees, aviation fuel prices and others.

“They should not operate at a loss in the name of attracting passengers and at the risk of compromising safety, which is very important”, Ebenezer Adewole, a travel analyst said.

Abdulahi Mohammed said, “there is need for the Nigerian Civil Aviation Authority to monitor the trends as both travellers and airlines are needed for the sector to boom as expected.

“Although it is a deregulated market, the NCAA should ensure that safety precautions are still adhered to in the face of an anticipated growth”, he said.

banki:
So who kidnapped the journalists.......abeg dss una no see this man or is he above the law?

yuzedo:
No, I have a more pertinent question.

My question is - Why do we have so many widows that are landladies in Benin?

Mogidi:
Bros where you come go na, been too busy or what?

Mogidi:
This is what APC will do to him after the 2015 election.

davitogreat:
It's because nigeria has one of the worst tax frameworks on the planet. Taxes in nigeria only make up 3% of govt revenue. (The average in subsaharan Africa is 9% and the average in the developed world is 30%)

prettyboi1989:
Where did they get their facts from that the US shale oil boom won't last? The us has an estimate 4.8 trillion barrels of shale oil deposits so tell me how that's gona deplete so soon? The reason why us is still buying saudi's crude oil is because the quality is lower than the one produced in nigeria, hence they prefer buying low quality oil at a cheap price. Nigeria has stopped selling crude oil to the us since the beginning of this year. So basically the petrol we getting is what we send to us to refine and send back at a high price. Just like in the case of cocoa in other african countries.

Adminisher:
Another problem for Nigeria is that our competitors and customers are on an import substitution strategy. The US is not interested in exports of oil and gas even though they have started competing with us in LNG. What they want is a strategy to add value typically to petrochemical and for the first time in years, refineries in Texas have been having cheaper raw material coming from just next door the the Dakota's and Utah.
So Nigeria is competing with people who don't have to put oil on tankers to send abroad to the customers. Logistics cost savings alone will keeps the price differentials interesting. Advanced economies like Russia and US competing in the oil sector is very bad for us. Putin himself has started intense economic diplomacy this week to Turkey and India.

ISpiksDaTroof:
Do you even remotely understand how the markets work?

Adminisher:
Have you seen the operations in North Dakota?. I drove past there one year ago. It is no frills high tech operations by independent producers. Very dynamic, entrepreneurial people, almost like Nigerians. A guy borrows money from the bank, drills using good data, and starts small scale production and is making only a margin of $20 a barrel but he is happy because he is a multi millionaire in three months already. There are now thousands of those entrepreneurs in the industry. Shale Oil and gas is mostly not for the oil majors yet although some are investing in it as well. The oil majors will lock in production and low oil price but the small scale independent oil producers I'll keep pumping. OPEC countries too have a price cut off, for Saudi Arabia I think it is $20 but they will pretend it is not so. For Nigeria anything below $40 is going to be very painful.

Boss13:
You are definitely right. But with this, oil prices will go down further.

BlackTechnology:
Nigeria needs to diversify her sources of foreign currency if she doesn't want to end up like Ghana.

Adminisher:
Big Idiots.

Technology will soon ameliorate the margin squeeze at lower oil and gas prices. The lower prices will curb new investments in Shale gas a little but once you have invested capital in oil and gas and have started producing you are already a player. Canadian oil sands is also very high cost but they are also producing.
Let us not depend on Shale gas producers and unconventional oil going out of business at low price, it will not happen. Also Nigeria's unit cost of production has increased onshore to the highest in the world, it was becoming comparable to Shale gas that was why Shell has dumped all its onshore fields and sold them to local operators.
The problem is the low oil price will cause the world economy to expand but after it does the increase in oil consumption will never come up again because of Kyoto, hybrid cars, electric cars and investment in renewable energy. I nearly got a job last week in a UK company generating power for municipal use from waste and sewage, things are happening fast....so get your government thinking, stop them stealing or vote them out.

drnoel:
This is just a game OPEC is doing with the us to see who blinks first. I am just sorry 4 oil dependent countries that will be stuck in the middle but in as much as this will hurt shale oil production. I don't feel it will crack.

Adminisher:
DON'T FOOL YOUR SELF THAT SHALE OIL WILL GO AWAY, AMERICANS ARE THE MOST INNOVATIVE PEOPLE ON EARTH.
The problem with Shale Oil and Gas is that it is drilling intensive. You need drilling almost every six months which is expensive. However Americans and Canadians are spending money on 'smart wells', well analytics and the complete digitisation of surface and in face production. American ingenuity will reduce the cost of production by $25 per barrel in th next three years I am sure. OPEC should be careful and a country like Nigeria governed by idiots should be even more careful. Oil price will NEVER EVER exceed $80 per barrel again. This are the dying embers. Nigerians need to hold their government accountable and force the oil money multi start making a difference now. 2015 should be a year of strikes to make sure money flows into productive sectors. All the conspicuous consumption and private jet buying should be taxed painfully. Youths must have jobs, the young must be educated. American bashing will not help us, let us take our governments to the grinder.