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T H I S D AY • FRIDAY, SEPTEMBER 23, 2016
BUSINESSWORLD R A T E S NIBOR OVERNIGHT 1-MONTH
A S
NIBOR
29.4167% 20.7904%
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3-MONTH 6-MONTH
Group Business Editor Chika Amanze-Nwachuku
Email chika.amanzenwachukwu@thisdaylive.com 08033294157
S E P T E M B E R
21.4458% 24.7096%
NITTY 1-MONTH 2-MONTH 3-MONTH
15.8218% 15.8678% 16.2693%
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19.3764% 20.5132% 22.4006%
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EXCHANGE RATE N308.69//1US DOLLAR* *AS AT LAST FRIDAY
Quick Takes IATA Adopts Resolution on NewGen ISS
A BOOST TO BANKING SECTOR
L-R: Chairman, Afrinvest (West Africa) Limited, Dr. Fidelis Ndeh-Che; a former Chairman, Afrinvest, Apostle Hayford Alile; Emir of Kano, Muhammadu Sanusi II; Managing Director, Afrinvest, Mr. Ike Chioke and Chairman, Alpine Investments, Mr. Mohammed Hayatu-Deen at the Launch of the Nigerian Banking Sector Report 2016 in Lagos...recently
NPA, UK Govt Partner on Trade Facilitation, Investment Eromosele Abiodun In a bid to find other sources of revenue for the federal government following the decline in crude oil prices that plunged the Nigerian economy into a recession, the management of the Nigerian Ports Authority (NPA) plans to collaborate with the United Kingdom government in the area of trade facilitation and investment. The partnership, according to the NPA, will ensure efficient greater synergy, cooperation and technical road map for the development of the Nigerian port industry. Besides, the NPA said the partnership is aimed at developing more trade routes within the Gulf of Guinea and
MARITIME in order to improve revenue generation accruable to the Nigerian economy through the exportation of agricultural produce and solid mineral resources. To this end, it said it has commenced an interface with the UK trade and investment group through the British Council who paid the executive management a working courtesy visit. The Managing Director of NPA, Hadiza Bala Usman said the management of the NPA was desirous of working with parties on improving the volume of cargo into the country, which has reduced significantly due to the economic downturn
currently being witnessed in the country. She said there has been a prevalence of the diversion of cargo to neighbouring African countries resulting in the loss of revenue and consequently in the Nation’s Gross Domestic Product (GDP). “We are working assiduously with relevant security agencies at blocking these leakages arising from sharp practices within the system”, she said. Bala Usman enlisted the support and synergy with the United Kingdom group in the areas of infrastructural development especially roads leading to the nation’s sea ports and environs. According to her, the policy on automobiles requires reengineering in order to reap
most meaningfully from it as well, noting that the port plays a significant role in the development and facilitation of trade within the Gulf of Guinea. “We want to be able to tap into these by working with stakeholder’s home and abroad, in opening new trade routes. Government has interest in the swift evacuation of cargo especially agricultural produce and solid minerals to the North-East hinterland in view of its proximity to the Calabar Port, “she added. In the area of trade facilitation, the MD called for technical assistance in the areas of project management as well as improving on the existing Continued on page 20
NCAA Moves to Salvage Ailing Nigerian Airlines Chinedu Eze The Nigeria Civil Aviation Authority (NCAA) has commenced discussions with the federal government on the possibility of reducing the cost of aviation fuel through local refining of the product. The NCAA is also pushing for the practicability of granting the oil marketers and airlines the concession for lower exchange rates.The move was sequel to the challenges confronting Nigerian airlines due to the high cost of aviation fuel and exchange rate, which have made it difficult for the operators to carry out major maintenance checks overseas and acquire aircraft spares. It is feared that the high
AVIATION exchange rate may force Nigerian airlines to ground their operations as it is becoming increasingly difficult for them to buy aviation fuel, import aircraft parts and carry out compulsory checks, which are largely done overseas. Aviation industry sources hinted that in the next few months, the refineries would start refining petroleum products. It was gathered that the NCAA and the Minister of State for Aviation, Senator Hadi Sirika have made a special appeal to the managers of the refineries that Warri Refinery be dedicated to Jet A1 refining.
Also, the NCAA is seeking a reduction in taxes paid by the airlines, aside a review of the charges leveled on airlines, and has secured waiver on taxes airlines pay on importation of aircraft parts in addition to the waiver on tariffs. Specifically, the NCAA is said to be pushing for a zero tax on imported aircraft parts, a development, which would save the airlines huge amounts of money. Besides, the Authority is also talking with the airlines on merger, which is seen as a key to saving the airlines. According to sources, not only that merger would give the airlines economy of scale, it would also reduce their total expenses and maximise load
factor because instead of two airlines deploying two aircraft from Lagos to Abuja at the same time they would deploy one, which would safe fuel, the wear and tear of the equipment and even charges. The regulatory authority is also working with the Ministry of Transportation to promote code-share between Nigerian airlines and foreign carriers that operate into the country and there are advantages to this arrangement. Besides technical training and technology transfer which the foreign airlines can give to the local airlines, domestic carriers can sell foreign airlines tickets Continued on page 20
The International Air Transport Association (IATA) has announced that the IATA Passenger Agency Conference (PAConf) adopted resolutions supporting the development of the New Generation of IATA Settlement Systems (NewGen ISS). “IATA Settlement Systems are the financial back office of the air transport industry. Since its introduction 45 years ago, the Billing and Settlement Plan (BSP) has successfully facilitated the distribution and settlement of funds between travel agents and airlines, which totaled more than $230billion in 2015. But the one-size-fits-all model launched in 1971 no longer fits today’s vastly different operating environment. NewGen ISS will ensure that IATA’s Passenger Agency Program continues to deliver enormous value to airlines and travel agents by providing more flexibility and options with greater financial security,” said IATA Senior Vice President for Financial and Distribution Services, Aleks Popovich The Resolution text adopted by the PAConf would enable the introduction of three pillars of NewGen ISS, which include a range of travel agent accreditation models that can better fit travel agent needs. IATA EasyPay - a voluntary pay-as-you-go e-wallet payment solution for issuance of airline tickets in the BSP, and Global Default Insurance – an optional financial security alternative to bank guarantees for travel agents.
Delta Adds New Virgin Australia Route
Delta customers would soon gain direct access to Melbourne, Australia, following an announcement by joint venture partner Virgin Australia of plans to launch non-stop service between Melbourne and Los Angeles in 2017. The new route would strengthen the trans-Pacific network offered by Delta and its partner in the region. “Delta offers a truly superior network of international partners out of Los Angeles,” said Delta’s Vice President - Sales, West Region, Ranjan Goswami. “Through our joint venture, Delta and Virgin Australia continue to differentiate ourselves as leading carriers in the U.S.-Australia market, from boosting our service to key destinations to mutually investing in a best-in-class customer experience.” Beginning April 4, 2017, Virgin Australia would fly five times weekly between Melbourne and Los Angeles using Boeing 777-300ER aircraft.The new flight complements existing service offered by Delta and Virgin Australia, which would together offer 25 weekly flights between Australia and the United States and round-trip connectivity from 230 destinations in the Americas to 49 destinations across Australia and New Zealand. “The United States is a key market for Virgin Australia, and this enables us to offer direct services from Los Angeles to the three largest cities in Australia – Brisbane, Melbourne and Sydney,” said Virgin Australia Group CEO John Borghetti. Delta’s premium cabin Delta One, alongside Virgin Australia’s business-class experience The Business, which launched in June, distinguishes Delta and Virgin Australia as the only trans-Pacific alliance to consistently offer full flat-bed seats with direct aisle access in business class.
Emirates Revamps Loyalty Programme
Emirates has revamped its corporate loyalty programme, Emirates Business Rewards, to provide greater value and added features for customers. The new programme has been simplified and made more competitive to allow for easier redemptions and upgrades even on last minute bookings. One of the biggest features in the newly improved programme is the ability to use Business Rewards Points to book any commercially available seat at any time giving members cashlike convenience. Emirates is the first and only airline in the region to offer such flexibility as part of its corporate loyalty programme – improving cost-effectiveness for business travel. Emirates recently commissioned an independent survey on the perception and habits of over 800 business travellers and decision makers of business travel in the UAE.
“We are working assiduously with relevant security agencies at blocking the leakages arising from sharp practices within the system” Managing Director of Nigeria Ports Authority (NPA)
Ms. Hadiza Bala Usman