FG to build five new airport terminals with N106b

Defends lifting of ban on Dana Air

THE Federal Government has unfolded plans to construct five new airport terminals in Lagos, Abuja, Port Harcourt, Enugu and Kano at the cost of N106 billion.

Meanwhile, the Chairman of Airline Operators of Nigeria (AON), the umbrella body for airlines in Nigeria, Dr. Steve Mahonwu, has lauded President Goodluck Jonathan and the Minister of Aviation, Stella Oduah-Ogiewonyi, for lifting the suspension on Dana Air.

The aviation minister, who disclosed the plan for new terminals while briefing the press, said the projects would commence within the next three months and are expected to be completed within 24 months. According to her, the projects are to be executed with a concessionary loan of 22 years with five years moratorium at an interest rate of two per cent.

She explained that the projects were approved at the last Federal Executive Council (FEC) meeting and that the loan was granted by Chinese Nexim Bank. The projects would be executed by a Chinese firm.
Oduah-Ogiemwonyi said: “As we travel round the world, we see and admire international airports in other countries and wish that our nation could boast of just one that can truly go by the name international airport. Today, following the approval of FEC, we have concluded arrangements to commence construction of not just one, but five brand new world-class international airports.

“The process is when the Chinese Nexim or any country’s Nexim gives a loan, that country’s contractor will have to do the execution. That is the process we follow. They will have to decide on who will do the awarding of the project, so ours is for BPP to check if it’s in line with our regulation to ensure that the loan is in order. Once BPP gives no objection, then we are free.”

Describing the initiative as part of moves to ensure Nigerians and travellers enjoy good travelling experience, the minister stated that the construction of the new airports will further contribute to the nation’s Gross
Domestic Product.

While reacting to insinuation in some quarters that the government was pressured into lifting the suspension of Dana Airline, which was suspended after the unfortunate and tragic crash of June 3, she stated: “Government was not under any pressure to restore the airline’s operating licence and we want to assure Nigerians and the travelling public that safety remains our priority.”

She said the suspension was lifted “based on our satisfaction, after carrying out a technical audit of the operator, that the airline is airworthy. While we continue to share in the pain and loss of the families of those who lost their loved ones in the crash, we want to stress that we took this decision with all sense of responsibility.”

On his part, AON’s Chief, Mahonwu, said: “Dana Air has about 540 human capital and most of them are Nigerians who invariably have been thrown into the labour market since the suspension of the airline from commercial operations early in June, 2012.”

Mahonwu spoke as the management and staff of Dana Air expressed their appreciation to the Federal Government for lifting the suspension of the airline’s operations. Chief Executive of the airline, Jacky Hathiramani, said: “We also wish to thank all Nigerians and our esteemed guests for your prayers since the tragic accident of Sunday, June 3, 2012. Our thoughts and prayers will always be with the families that lost loved ones; we remain committed to assisting them in every way possible and also fulfilling our obligations to them fully, as stipulated by the law.”

Source: Guardian

Govt lifts DANA Air’s suspension

The Federal Government yesterday lifted the suspension on Dana Air’s operating licence, freeing the airline to resume commercial operation, 93 days after its aircraft crashed, killing 153 passengers on board and other people on the ground in Iju Ishaga, Lagos State. Minister of Aviation Princess Stella Oduah said the lifting of the ban followed the government’s satisfaction with the air-worthiness of the airline after a rigorous technical, operational and financial audit.

She explained that government would continue to strengthen its oversight and regulatory functions to ensure that all airlines operating in the country, including Dana Air, adhere strictly to safety procedures as required by the Nigerian Civil Aviation Act and all other local and international regulations that ensure and promote sustainable air safety.

The operating licence of Dana Airlines was temporarily suspended following the June 3 crash as a safety precaution. Agitation by passengers and the desire not to create a near monopoly in the aviation sector may have accounted for the lifting of the ban on the suspension, investigations have revealed.
The lifting of the ban did not come to many observers in the aviation industry as a surprise, as the dwindling fortunes of other carriers on the domestic scene may have created a wide vacuum in the sector. 

Since the crash, passengers have had to struggle to get seats on the existing carriers following the closure of other carriers including Chanchangi Airlines limited, which is currently reflecting, Air Nigeria which has suspended operations to reorganise and one of the domestic carriers, which took its aircraft overseas for major repairs, leaving passengers with the choice among Aero airlines, Arik air and IRS airlines. 
A cross section of passengers who reacted to the lifting of the ban yesterday described it as a welcome development, as the three existing carriers namely could not provide the needed services for the available capacity on all routes.

The passengers however called on DANA Air to consider changing the aircraft in their fleet to other types other than MD 83, because of the serious safety integrity issues raised about the aircraft type.
Demuren stated yesterday that one major challenge the airline has to grapple with is the homogeneity of its aircraft type, which will subject it to serious scrutiny.

With yesterday,s lifting of it’s suspension, DANA Air has made history as the only airline in Nigeria to have its suspension lifted after it crashed without complete payment of insurance claims to families of victims.

Other carriers that have crashed in the past including Sosoliso Airlines and ADC Airlines are yet to be considered for resumption of operations on reasons bordering on inability to pay insurance claims.
The Nigeria Civil Aviation Authority (NCAA), yesterday gave reasons why only 62 families have been paid the mandatory $30,000 after the crash, insisting that delay in identification of the victims, slow pace of documentation by the relevant bodies and multiple claims by the families, accounts for the inability of the airline to pay the remaining 91 families, including foreigners.

The NCAA Director General, Dr Harold Demuren, explained that the insurers and officials of DANA Air, have to be sure that all legal issues are sorted out before the insurance compensation is paid to the right persons, as the airline and the insurers have faced challenges of multiple claims among the families of victims.

Demuren attributed the delay in the payment of the outstanding $70,000 to issues on getting death certificates, letter of administrator and other legal issues. He spoke after a meeting with insurers of the airline and the national insurance commission of Nigeria , affirming that the full insurance cover of the crashed airline and aircraft is not in doubt, even as he said the right steps have to be taken to ensure that what has to be done is done properly.

Demuren explained that the money is already in place to for the insurers to meet the obligation, but had to ensure that all parties to the compensation are adequately carried along to avoid legal issues that may arise. He said some families have already sued the airline across the globe to claim damages, saying the regulator will ensure that all that has to be dome must be taken care of, before the airline resumes operations.

Source: The Nation