Med-View Airlines has become the first airline to be listed on the Nigerian Stock Exchange (NSE) in almost 25 years. Earlier in the week, the airline listed 9,750,649,400 ordinary shares of 50kobo each at N1.50kobo per share on the floor of the Nigerian Stock Exchange (NSE). Managing Director of Med-View Airlines, Mr. Munner Bankole predicted a revenue growth of N58.5billion for the company over the next three years.
Mr. Bankole made his prediction on known on the floor of the NSE after the sounding of the closing gong, making Med-View the first listed airline in 24 years. Previously, airlines like Albarka and ADC were admitted and later de-listed.
NSE Chief Executive, Mr. Oscar Onyema, congratulated the board and management of Med-View Airlines on the company’s its successful listing on the NSE.
The listing of Med-View, said Mr. Onyema, provides proof that despite the welter of policy and economic challenges facing the country, the NSE remained one of the best avenues for raising capital and enabling sustainable growth for national development.
He noted that certain challenges over the last decade hindered the aviation sector, resulting in the exit or decline of many operators and impacting negatively on passenger traffic.
Mr. Onyema commended Med-View Airlines for having the courage to take such an important step.
“Today’s listing by an introduction of 9.75Billion (9,750,649,400) ordinary shares of Med-View Airlines on the main board of the Nigerian Stock Exchange at a listing price of N1.50 per share is a culmination of several months of hard work by all parties to the transaction, including the Securities and Exchange Commission and The Exchange.
“This listing has added N14.65billion (N14, 625,974,100) to the market capitalization of The Exchange, further deepening the Nigerian capital market. It will also increase the visibility of Med-View Airlines Plc and differentiate it as a professionally run airline with high corporate governance standards, having met The NSE’s listing criteria,” Mr. Onyema said.
He urged more companies in the aviation sector to take a serious look at the opportunities available in the capital market.
While fielding questions from stakeholders and the media, the Managing Director of Med-View Airlines said the company will improve the its operations through commitment, hard work and dedication to its passengers.
Mr. Bankole explained that Med-View has stood out of the industry crowd by being customer-centric, an attribute that he said will be maintained by timely service. He added that the airline is now in a stronger position to attract loans.
“Being listed also gives better clout and rating when obtaining loans from financial institutions, boost the airline’s international image and profile as well as improve corporate governance and accountability,” he said.
Air Peace Announces Valentine Day Discount
In another piece of good industry news, the management of Air Peace has unveiled a discount scheme, which will see its customers travel on tickets as low as N16, 532 on all routes for the 2017 St. Valentine’s celebrations. The discounted tickets, explained Air Peace, are valid throughout February.
The discount scheme was announced in a statement signed by the airline’s Corporate Communications Manager, Mr. Chris Iwarah.
The statement explained that the ticket price slash represents the airline’s gift to its customers and other air travelers.
“We greatly value our loyal customers, who have continued to demonstrate an absolute belief in our capacity to deliver the best flight experience in Nigeria and beyond. Our esteemed customers have been there all the way, and we are thrilled to be the beneficiaries of such a great show of love and trust.
“Over the last two years of our operations, our valued customers’ support has been the biggest enabler of our massive growth, success, and vision to be the world’s best airline out of Africa and deliver nothing but the best in comfort, safety and affordability,” the statement said.
The airline assured that it would continue to seek ways of rewarding its clients for their support, which has seen Air Peace expand over the last two years, adding that St.
Valentine’s Day is a great opportunity to express appreciation to customers.
“Throughout this Valentine’s season, all our customers will have the opportunity of flying with us for fares as low as N16,532. The one-way tickets are valid for use throughout February,” he stated.
Aviation Industry In Dire Situation In No=igeria-FAAN MD
In another related, but less cheering development, the Managing Director of the Federal Airports Authority of Nigeria (FAAN), Mr. Saleh Dunoma, said the dire economic situation in the country had left the aviation industry reeling.
Mr. Dunoma noted that the situation has caused a sharp dip in demand in recent times.
To ensure a return to profitability, the FAAN boss urged all stakeholders to collaborate.
Dunoma spoke at the 2nd Quadrennial National Delegates’ Conference of Air Transport Services Senior Staff Association (ATSSSAN) in Ijebu-Ode, Ogun State, where he was represented by Mrs. Salamatu Eluwa, FAAN’s Director of Human Resources.
Mr. Dunoma noted that the aviation industry is beset by a variety of challenges, which include high price of aviation fuel and the attendant operational costs, personnel/labor relations issues and infrastructural/environmental matters. These, he said, call for new thinking.
Despite the debilitating economic circumstances, Dunoma explained, the FAAN management made staff welfare a cardinal objective through a culture of prompt payment of salaries commitment to staff career development. He explained that FAAN has released the results of the 2016 promotional exercises for junior and senior staff, while those of staff between Grade Levels 14 and 16 have been forwarded for ministerial approval.
He also disclosed that payments of furniture grant to staff and gratuity retirees as well as those of outstanding staff claims are ongoing.
Mr. Dunoma added that airport infrastructure around the country are being revamped.
To ensure sustainability of staff welfare programs, the FAAN Managing Director, urged staff unions to engender a rancor-free industrial climate.
3.7 Billion Passengers Safely Flown All Over the Globe In 2016-IATA
On the global stage, the International Air Transport Association (IATA) announced that a total of 3. 7 billion passengers were safely flown to their various destinations around the world last year.
IATA equally announced that the full-year global passenger traffic results for 2016 indicated that demand for air travel services rose by 6.3 per cent compared to 2015.
According to Mr. Alexandre de Juniac, IATA’s Director-General, demand for air travel continues to expand globally despite the various challenges the industry faces, especially in Africa.
“Air travel was a good news story in 2016. Connectivity increased with the establishment of more than 700 new routes. And a $44 fall in average return fares helped to make air travel even more accessible.
“If we can achieve that, there is plenty of potential for a safe, secure and sustainable aviation industry to create more jobs and increase prosperity,” said Mr. de Juniac.
The good news also extended to Africa, with IATA disclosing that the continent’s airlines had their best growth performance since 2012, up 7.4 per cent. The growth, explained IATA, is underpinned by strong demand on routes to and from Asia and the Middle East.
The IATA boss added that capacity on the continent exactly matched demand, with the result that the load factor remained flat at 67.7 per cent.
He explained that the impressive performance was well ahead of the 10-year average annual growth rate of 5.5 per cent. Capacity, he noted, rose by 6.2 per cent compared to 2015.
December, he noted, yielded a particularly strong performance, with an 8.8 per cent rise in demand outstripping 6.6percent capacity growth.
International passenger traffic, de Juniac said, rose 6.7 per cent in 2016 compared to 2015. Capacity rose 6.9 percent and load factor fell 0.2 percentage points to 79.6 per cent.
All the regions of the world said the IATA boss, recorded year-over-year increases in demand.
IATA disclosed that Asia-Pacific carriers recorded a rise in demand of 8.3 per cent compared to 2015, making it the second-fastest increase among the regions and keeping it well ahead of the five-year growth average of 6.9 per cent.
Capacity rose 7.7 percent, pushing up the load factor 0.4 percentage points to 78.6 per cent.
European airlines’ international traffic jumped 4.8 per cent last year. So did capacity, which went up by 5 percent. Despite a decline of 0.1 percentage points to 82.8 per cent, the load factor remains the highest among the regions.
European carriers experienced an improvement in the second half of 2016, with passenger volume rising at an average of 15 percent year-over-year since June. This compensated for the slight decline during the first six months of 2016.
Middle East carriers recorded the highest regional annual traffic growth for the fifth consecutive year. The region recorded an 11.8 per cent expansion in passenger traffic, cementing its position as the third-largest market for international travelers.
Capacity growth (13.7 per cent) continued to exceed demand, yielding a dip of 1.3 percentage points in the load factor to 74.7 percent.
In tourism, a call has been made for a review of the law establishing the Nigerian Tourism Development Corporation (NTDC). The call was made by the corporation’s acting
Director-General Mrs. Mariel Rae-Omoh.
Speaking during a stakeholders’ meeting in Lagos, Mrs. Rae-Omoh said the NTDC Act is flawed and needs to be reviewed to make the corporation more vibrant.
She said she is minded to develop a new tourism template for the country and restated her commitment restore staff morale in the corporation.
“I want to reposition the corporation and unite the staff whose morale have been low in recent years,” she said.
In their responses, the stakeholders, among whom were former President of the Federation of Tourism Association of Nigeria (FTAN), Mr. Samuel Alabi; Mr. Ayo Olowoporoku of Hotel Support Group; and President of the National Association of Nigeria Travel Agencies (NANTA), Mr. Bankole Bernard, described the NTDC boss as a round peg in a round hole.
They pledged to support Mrs. Rae-Omoh in her bid to reposition the country’s tourism industry forward. They also advised her to define her philosophy.