16 mar internet 2015.ppt..pdf
TRANSCRIPT
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Internet news 16/3/2015
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Egypt, UAE ink deal to build brand new capital east of
Cairo
Sharm El-Sheikh, Asharq Al-AwsatEgypt and the United Arab Emirates on Saturday signed a deal to build Egypts
new administrative capital, east of the existing capital Cairo.
The agreement to build the new, as-yet unnamed capital was
signed between Egypts Ministry of Housing and Capital City
Partners, a group of investors led by Mohamed Alabbar, the
chairman of Dubai real-estate giant Emaar Properties,
famous for developing some of the UAEs most iconic real
estate projects, including the Burj Khalifa, the worlds tallest
building.
The deal comes as part of the Egypt Economic Development
Conference (EEDC) currently taking place in the Red Sea
resort city of Sharm El-Sheikh. The Egyptian government is
hoping through the conference to attract much-needed
investments from Gulf and global partners, in order to fulfil
future development plans, among them plans to build the
new capital.
The new city will take up 270 square miles (700 square
kilometers)roughly the size of Singaporeand should take
seven years to build, Egypts Housing Minister Mustafa
Madbouli said on Saturday while showing President Abdel-
Fattah El-Sisi and the UAEs Vice President and Prime
Minister, Sheikh Mohammed bin Rashid Al Maktoum, a model
of the proposed city.
He added that the new capital, which will cost around 45
billion US dollars to build, should create around 1.5 million
new job opportunities and would be a sustainable city,
relying heavily on solar power and using an electric-powered
train to connect it with Cairo.
www.aawsat.net/2015/03/article55342343/egypt-uae-
ink-deal-to-build-brand-new-capital-east-of-cairo
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Plans for the city also include an airport larger than
Londons Heathrow, a large central park, schools, hotels
and residential spaces for more than 7 million
inhabitants.
This should take pressure off the existing capital Cairo,
currently buckling under the strain of an estimated 20
million inhabitantspredicted to double by 2040and a
host of outdated and crumbling infrastructure.
Gulf countries have thus far promised a total of 12 billion
dollars in direct central bank deposits to Egypt during
the conference, which has now attracted more than 115
billion dollars in commitments from global investors.
Among them are investments for the Suez Canal region,
which is seeking to benefit from new expansion plans
announced last year to build a new canal parallel to the
existing one.
The current canal only allows for one-way traffic along
its 120-mile-long (193-kilometer-long) tract, except
occasionally during less busier periods. The new
proposed 45-mile-long (72-kilometer-long) parallel canal
should allow 46 ships to cross the channel
simultaneously and reduce waiting times for ships from
11 to three hours.
Speaking at the EEDC during an open session on the
new canal on Saturday evening, Mohab Mamish, the
head of the Suez Canal Development Authority, said
once complete the new project should help treble the
canals yearly revenues, currently standing at around 5
billion dollars each year.
He spoke to Asharq Al-Awsat shortly after the session and thanked Egypts Gulf partners Saudi Arabia, the UAE
and Kuwait for supporting the project.
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Speaking of Gulf investments for slated tourism and
manufacturing facilities planned for the Suez Canal
region, he said: Everyone is coordinating to invest
in these areas because they are now on the up and
represent lucrative opportunities due to the canals
central geographical location with respect to the
entire world.
Through this region you can access not only global
markets but also the domestic Egyptian market,
which is a large one, he added.
Mamish said Egypt hoped to transform the Suez
Canal region into a major manufacturing hub, which
will include building car assembly plants as well as
glass and petrochemical manufacturing facilities.
Speaking to Asharq Al-Awsat on Saturday, veteran Egyptian statesman and former Arab League
secretary general Amr Moussa said the conference
had been a great success and had exceeded all
expectations.
The important thing now is to build on this and
make the best use of the funds pledged . . . and by
this I mean what comes after the conference,
whereby the Egyptian Investment Ministry should
work with renewed energy in order to direct these
investments to benefit the Egyptian people.
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Aviation fuel unlikely to take off Aviation turbine fuel (ATF), refined from crude oil, is the largest cost
component for airlines in India, accounting for 40-50 per cent of their
operating cost.
The cost of ATF in the country is among the highest in the world,
thanks mainly to the pricing mechanism in the country and high state
taxes.
No surprise then that the sharp dip in ATF prices, following the rout of
crude oil since June last year, has provided big relief to airlines.
Public sector oil marketing companies Indian Oil, HPCL and BPCL are
the key vendors of ATF and revise the fuels price on the first day of
each month.
From 69,748 a kilolitre at the start of June last year, ATF price in
Delhi crashed a third to about 46,500 a kilolitre in the beginning of
February. With crude oil recovering some ground last month, the
price of ATF went up to about 50,400 a kilolitre on March 1. But this
is still 28 per cent lower than the price at the start of June
Yet, the fall in ATF price is much lower than the 47 per cent dip in
price of the Indian crude oil basket (in dollar terms) since June.
Airlines in the country have been complaining that the full benefit of
falling crude oil price is not being passed on. The divergence is due
to three reasons.
Factors at playOne, the PSU oil companies price ATF at the beginning
of each month on the basis of import parity pricing
So, rather than taking into account the actual cost of crude oil,
refining cost and mark-up, and marketing margin, the oil companies
start with the average international price of the fuel in the preceding
month.
http://www.thehindubusinessline.com/features/investment-world
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To this, various expenses relating to import, such as freight,
insurance and customs duty, are added. In effect, ATF is priced
as if it is imported into the country. Airlines have been protesting
this because India is, in fact, an exporter of ATF. So, the import-
related expenses are not incurred in the first place.
To the import parity pricing are added other expenses, such as
the marketing margins of the oil companies. Airlines also
complain that the three oil companies operate as a cartel, since
they all charge the same price at various airports.
Next, there is the burden of high state taxes which can go up to
30 per cent. Airlines have, for long, been demanding
rationalisation of these taxes.
They have also been asking for ATF to be categorised as a
declared good this will mean a uniform tax of 4 per cent
across the country.
Last year, Andhra Pradesh reduced the state tax on ATF to 1 per
cent. This was to provide a boost to air traffic in the state after
its separation from Telangana and the loss of the key aviation
centre of Hyderabad.
According to reports, states such as West Bengal, Jharkhand,
Madhya Pradesh, Rajasthan and Chhattisgarh have also brought
down their sales tax on ATF to 4 per cent.
In Maharashtra, the tax rate is 5 per cent at all airports, except in
the major consumption centres Mumbai and Pune where ATF is
taxed at 25 per cent.
If tax on ATF is moderated in major consumption centres such
as Delhi, Mumbai, Chennai, Bengaluru and Hyderabad, it will
provide much respite to airlines. Interestingly, the price charged
to international airlines is far less, since sales tax is not
applicable to them. For instance, on March 1, a kilolitre of ATF at
the Delhi airport for international airlines was priced at $640.
In rupee terms, this works out to about 40,300 a kilolitre
(considering the dollar-rupee rate at 63). This is 20 per cent
lower than what domestic airlines pay.
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Finally, the value of the rupee also plays an important
role since it has a bearing on the import parity price.
The rupee has weakened from about 60 to a dollar
last June to 63 now. This means a higher rupee cost
of ATF.
OutlookTrying to predict the levels of crude oil, the
currency exchange rate and also the Governments
intent to moderate taxes on ATF can be a mugs
game.
That said, despite some recovery in recent weeks,
crude oil is expected to remain weak due to
oversupply and weak global demand. This, along
with hopes of a stable rupee, should keep the price
of ATF under check.
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Corporate Espionage: Files of Etihad-Jet Airways
Deal Leaked from Finance Ministry
While investigation of classified documents leaked
from several ministries is being carried out in full
swing, Delhi police crime branch found that files
pertaining to Jet and Etihad Airways partnership
deal were leaked from the finance ministry.
Among the several files related to the deal, copy of
papers containing the foreign investment promotion
board's (FIPB) clearance to the Jet-Etihad deal for
2,058 crore was leaked in July.
"In this deal, all the papers, file notings, information
about rivals, policy notes regarding FDI, FIPB
approval, and communications at the level of
finance secretary, minister and other officials were
leaked," according to The Times of India source.
Along with this, other files including legal
documents and papers containing important
communication between the ministries of finance,
civil aviation, FIPB and SEBI on the jet-Etihad deal
were also leaked.
According to the TOI sources, these classified files
were leaked out of the ministry premises with the
help of finance ministry officials, private
consultants and middlemen.
http://www.ibtimes.co.in/corporate-espionage
http://timesofindia.indiatimes.com/india/Jet-Etihad-deal-files-leaked-from-finance-ministry/articleshow/46577997.cms
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The others being interrogated in connection with
corporate espionage have revealed that papers
pertaining to more deals have also been leaked. This
has channelised CBI's focus on "more companies
benefitting from finance and commerce and ind-ustry
ministry officials," CBI officials said.
Following this, there are possibilities that more
corporate executives and ministry officials will be
arrested in near future as the case of corporate
espionage is getting much deeper than expected.
Calling the corporate espionage "beyond belief", a
senior official said, "It is a clear cut case of
subversion. Crucial wings of the government which
were important in decision-making were being
compromised".
The CBI has since 19 February arrested a number of
people accused of leaking confidential documents
from coal, petroleum, power ministries and selling it
to the corporate houses. During their recent
investigation, they arrested a few officials and
corporate executives in connection with the leakage
of files from finance ministry.
Under-secretary in the finance ministry Ashok Kumar
Singh and a section officer in North Block Lala Ram
Sharma have been arrested for leaking documents
from the ministry and supplying it to the private
companies. Mumbai-based chartered accountant
Khem Chand Gandhi and two others have been taken
into custody in charge of facilitating the leak and sale
of confidential documents to corporate houses.
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Book review: 2020 Vision
Tim Burt, a former Financial Times journalist and managing partner at Stockwell Communications, follows up his PR
book Dark Art: The Changing Face of Public Relations with a more ambitious project interviewing 20 leading
chairmen and senior executives of major companies.
The focus of each interview is what their markets,
companies and strategy will look like in 2020, and it makes
for some interesting reading.
The list of participants is impressive: everyone from Sir
Martin Sorrell (WPP) through to Kasper Rorsted (Henkel),
although I suspect most people will concentrate their
attention on the sectors they are most interested in, or deal
with on a day-top-day basis. To that end, I read closely the
interview with Lord Rothermere of the Daily Mail & General
Trust (which indirectly used to own Business Traveller), and
Mark Schwab, chief executive of Star Alliance.
Some very senior people are interviewed, but there are also
big gaps. Burt points out that "business has an image
problem", and as a result: "Some entire sectors remain
toxic, seemingly unable to reverse public sentiment about
past bad behaviour. That is why you will find no bankers in
2020 Vision. There is no one from the fast-food sector, from
the defence industries, pharmaceuticals, nuclear energy or
the chemicals sector."
http://www.businesstraveller.com/tried-and-tested
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This is very honest of him, but these sectors are very large
omissions. Although Burt presumably asked various
organisations in those sectors for access to their top
management and met with refusal, there are writers who have
succeeded in speaking to people in at least some of these
industries and have included them in their own business books
(reviewed in these pages). In addition, I would have liked to see
someone from the hospitality business interviewed, and if it
was a choice between the chief executive of one of the airline
alliances or a major airline, I would have gone for the latter.
Burt helpfully summarises the themes that emerge from the
interviews, such as the crucial importance of securing and
retaining executive talent and the potential of big data, and if
there are no great surprises there, the interviews are a good
way of learning about other industries you knew little about,
and also as a summary of those you do know quite a bit about.
Star Alliance's Schwab speaks of his pride in Heathrow
Terminal 2, but reveals that he was first shown conceptual
drawings in 1998, 16 years before the facility opened. He adds:
"What frustrates us is when airports go out and hire the big
architectural firms to design them a pretty building but without
thinking about the customer experience in connecting from
one airline to another."
To which we can only add, if it frustrates the airlines, imagine
how it makes us travellers feel.
Schwab also says that Star Alliance "has declined to invite"
any of the powerful new Gulf carriers such as Emirates and
Etihad to join its club "because we don't need to".
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Well, that's one way of framing it, but as you'd imagine the
Gulf airlines would probably describe it differently -
another reason I wished Burt had managed to speak with
Tim Clark of Emirates, James Hogan of Etihad or Akbar Al
Baker of Qatar Airways.
Perhaps in the sequel although I'd probably then wish
he'd asked different questions if he did. Journalists rarely
agree about such things.
However, I'm impressed both by the list Burt has compiled,
and the quality of the writing throughout, which is clear,
concise, and keeps the author's own opinions and
personality firmly out of frame until the conclusion.
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EU to address competition concerns in Gulf aviation
agreement
BRUSSELS, March 13 ( Reuters ) - The European
Commission said on Friday it will address French and
German concerns over what they see as unfair
subsidies to Gulf carriers when it proposes a
commercial aviation agreement with the Gulf region
later this year.
At a meeting of European Union transport ministers
on Friday, France and Germany asked the
Commission to look at an aviation agreement with
Gulf carriers - such as Emirates and Etihad - as a way
to stop European airlines losing market share to their
Middle East competitors.
Any commercial flying agreement including the
granting of air traffic rights to foreign carriers should
be accompanied by provisions allowing member
states to monitor potential illegal subsidies and
unfair competitive practices, French transport
minister Alain Vidalies said in a statement.
http://www.zawya.com/story/EU_to_address_competi
tion
http://www.zawya.com/company/profile/1006036/Reuters/
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"Aviation is very much challenged by
competition right now and we need to address
it in a more comprehensive way," said Violeta
Bulc, EU Transport Commissioner.
In a letter to France and Germany, seen by
Reuters , Bulc said she supported their
initiative and would address it as part of an
aviation package due to be presented later this
year.
"There are indications that the state support
leads to an advantage (for Gulf carriers)
compared to European airlines," said
Alexander Dobrindt, Germany's transport
minister.
"The benefit of an aviation agreement for us
could be to get equal opportunities and for the
Gulf carriers that there is the possibility, if
there is an equal opportunity again, to talk
about new landing rights."
On Feb. 12 the French and German transport
ministers sent a letter, seen by Reuters , to
Bulc asking her to negotiate an air transport
agreement with Gulf countries that would
require the "financial transparency of the
various entities involved".
http://www.zawya.com/company/profile/1006036/Reuters/http://www.zawya.com/company/profile/1006036/Reuters/
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Bulc said she will ask member states for a
mandate to start talks with the Gulf countries
and also wants to propose flying agreements
with countries such as Brazil and China.
U.S. airlines are campaigning to persuade
Washington to alter commercial flying
agreements with Qatar and the United Arab
Emirates because of alleged unfair subsidies.
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Bulc said she will ask member states for a
mandate to start talks with the Gulf
countries and also wants to propose flying
agreements with countries such as Brazil
and China.
U.S. airlines are campaigning to persuade
Washington to alter commercial flying
agreements with Qatar and the United Arab
Emirates because of alleged unfair
subsidies.
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EgyptAir Holding's EGX issuance solution to losses: Civil
Aviation Minister
(MENAFN - Daily News Egypt) The Ministry of Civil Aviation is
studying whether to issue EgyptAir Holding on the Egyptian
Stock Exchange (EGX) as a solution to overcome funding
obstacles.
Minister of Civil Aviation Hossam Kamal said the issuance will
be a solution to overcome the company's losses and prepare
structural and economic reforms at EgyptAir. Kamal said the
airline's workers cannot be laid off.
The airline's losses reached EGP 2.3bn during the last fiscal
year (FY) 2013-2014, according to Kamal.
The ministry is targeting zero losses during FY 2014-2015 with
a transition to profit in the next fiscal year.
EgyptAir currently has 81 planes, with the ministry aiming to
increase this number to 127 by 2025. Kamal declined to
disclose the cost of buying 23 planes, saying only that
"purchases will be financed from the company's revenue after
the transition to profit".
http://www.menafn.com/1094126049/EgyptAir-
Holdings
http://www.menafn.com/nl_sub.asphttp://www.menafn.com/nl_sub.asphttp://www.menafn.com/nl_sub.asphttp://www.menafn.com/nl_sub.asphttp://www.menafn.com/nl_sub.asphttp://www.menafn.com/nl_sub.asp
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The new Airport City project is due to be
located close to Cairo International Airport
and will be presented by the ministry on the
third and final day of the Economic Summit
on Sunday.
"The first phase of the project will be built on
an area of 3m sqm, to attract investments
worth EGP 20bn, and the total area of the
project is 10m sqm," the minister said.
Kamal added that the ministry received offers
from Emirati, Chinese and Indian companies
regarding the Airport City development, but
that the ministry is studying these offers.
The Ministry of Civil Aviation aims to develop
Egyptian airports by the end of this year at a
cost of EGP 1.4bn, according to the minister.
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Lufthansa says cannot ease up on cost-
cutting
Frankfurt: Tough competition from rivals in Europe
and elsewhere means Lufthansa cannot let up on
cost-cutting, the German airline said, even though it
faces more strikes from pilots over such measures.
It said its core German airlines unit comprising the
Lufthansa and Germanwings brands saw profits fall
by almost 11 per cent in 2014 to 252 million (Dh983
million, $266 million).
Lufthansa is being squeezed by budget carriers on
routes within Europe and rivals such as Emirates and
Turkish Airlines on long routes.
Moves to alter costly wage agreements and expand
low-cost operations have met with resistance from
pilots who staged 10 strikes last year and have
threatened more.
http://gulfnews.com/business/aviation/lufthansa-
says
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Lufthansa Unveils New Special Service for Falcons:
Fly Like a Star
They use million-dollar police hypercars to show off in front of
tourists, have the largest malls in the world and shine through
opulence, but there is a lot more about the Middle East than extreme
abundance and money spending. One of the things that are really
big in their culture and Westerns still dont seem to understand is
falconry, an extremely popular sport in this part of the world.
So buying riffles and shooting up ducks in the Epping Forest is
royal. Buying shotguns to kill wild pigs in the swamp is totally OK.
Filling up you mountain cabana with dear heads you hunted the
other weekend, yeah thats totally normal. But training a falcon to
hunt wild quarry in its natural state and habitat, thats weird.
Hey, to be honest were car people here, we find killing animals quite
stupid since as far as we can tell they exist for us to feed in a
somewhat sustainable way. They are creatures part of nature, not
some toy we play with, but that's just us.
Yet, who are we to judge, right? If that Arabic prince wants to enjoy a
nice sunny weekend with his beloved Bluebird or Lester, who are
you to tell him not to? Nobody. In fact, theres an opportunity to
make some cash here, so why not take advantage of it, right?
Thats what Lufthansa is thinking so instead of forbidding hunting
birds on their airlines, like US does, they thought to find a way to
safely and comfortably fly the falcon along with his owner. Called the
Falcon Master, its a design for safe resting and transport platform
for falcons and is an optional feature Lufthansa Techniks VIP &
Executive Jet Solutions Division is offering for its customers.
http://www.autoevolution.com/news/lufthansa
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Cool, but how did they come up with this idea? Well, they looked at
their fellow competitors from the Middle East, like Etihad and Qatar
Airlines who already allow falcons to travel in the main cabin.
Falcon Master includes a perch and stainless steel surfaces to
contain dirt produced by the birds. One unit is only going to cost
about EUR 50,000 ($53,002), but hey flying like a star comes with a
price.
UP NEXT: 2015 Ram 1500 Ignition Orange Sport & Black Sport
Editions Limited to 1,000 Units Each
http://www.autoevolution.com/news/2015-ram-1500-ignition-orange-sport-black-sport-editions-limited-to-1000-units-each-93230.htmlhttp://www.autoevolution.com/news/2015-ram-1500-ignition-orange-sport-black-sport-editions-limited-to-1000-units-each-93230.htmlhttp://www.autoevolution.com/news/2015-ram-1500-ignition-orange-sport-black-sport-editions-limited-to-1000-units-each-93230.htmlhttp://www.autoevolution.com/news/2015-ram-1500-ignition-orange-sport-black-sport-editions-limited-to-1000-units-each-93230.htmlhttp://www.autoevolution.com/news/2015-ram-1500-ignition-orange-sport-black-sport-editions-limited-to-1000-units-each-93230.htmlhttp://www.autoevolution.com/news/2015-ram-1500-ignition-orange-sport-black-sport-editions-limited-to-1000-units-each-93230.htmlhttp://www.autoevolution.com/news/2015-ram-1500-ignition-orange-sport-black-sport-editions-limited-to-1000-units-each-93230.htmlhttp://www.autoevolution.com/news/2015-ram-1500-ignition-orange-sport-black-sport-editions-limited-to-1000-units-each-93230.htmlhttp://www.autoevolution.com/news/2015-ram-1500-ignition-orange-sport-black-sport-editions-limited-to-1000-units-each-93230.html
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Asiana Airlines to deploy A380 on Seoul-New
York service from 28-May-2015
Virgin America achieves a second year of profitability despite revenue
pressure in key markets 20-Feb-2015
Virgin America joined most US airlines in recording solid financial results for
4Q2014 and CY2014 marking the first time it has reported its performance
as a publicly traded company after completing an initial public offering in
late 2014.
The airline delivered solid top-line revenue growth in each period, but faced
some cost headwinds stemming from increased salaries and higher airport
costs. Compensation expenses will continue to pressure Virgin Americas
unit costs for CY2015.
Virgin America is also facing some revenue challenges in the New York
transcontinental market and in Dallas Love Field driven by significant
increases in industry capacity. The airline believes that those two markets
should return to a more normalised state at some point, but it does appear
the competitive dynamics shaping those markets will remain intact at least
through 1Q2015.
Asiana Airlines' new Seoul-based LCC subsidiary will be closely coordinated
with its parent 23-Jan-2015
Asiana Airlines continues to work towards launching an unnamed low-cost
carrier to be based in Seoul, enabling Asiana finally to participate in the
budget growth enjoyed by Korean Air-affiliated Jin Air and independent Jeju
Air. The LCC would be Asiana's second after Air Busan, based in Korea's
second-largest city. Air Busan is showing restrictions with a high cost base
while Asiana, with a minority 46% stake in Air Busan, has limited say. Asiana
intends to have majority ownership of the Seoul LCC.
Flagged for the LCC are thinner markets to Japan where Asiana is
weak. Asiana's Japanese yields have fallen and has previously announced
an all-economy configuration for short-haul services; but this appears also
to have had limits and Asiana needs a step-change solution. Asiana has long
worried it was over-exposed in the short-haul market, which it foresaw
becoming more competitive. Long-haul growth with A380s and A350s was
one measure to rebalance, and the Seoul LCC should further help. But
Asiana must ensure the LCC can pursue valuable opportunities and not just
be allowed to serve weak routes.
http://centreforaviation.com/news/asiana-airlines
http://centreforaviation.com/analysis/virgin-america-achieves-a-second-year-of-profitability-despite-revenue-pressure-in-key-markets-210658http://centreforaviation.com/analysis/virgin-america-achieves-a-second-year-of-profitability-despite-revenue-pressure-in-key-markets-210658http://centreforaviation.com/analysis/asiana-airlines-new-seoul-based-lcc-subsidiary-will-be-closely-coordinated-with-its-parent-204165http://centreforaviation.com/analysis/asiana-airlines-new-seoul-based-lcc-subsidiary-will-be-closely-coordinated-with-its-parent-204165http://centreforaviation.com/analysis/asiana-airlines-new-seoul-based-lcc-subsidiary-will-be-closely-coordinated-with-its-parent-204165http://centreforaviation.com/analysis/asiana-airlines-new-seoul-based-lcc-subsidiary-will-be-closely-coordinated-with-its-parent-204165
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Why Nigerian Airlines May Not Engage in
Manpower Training
The quest for Nigerian pilots to quit for better jobs outside the country
after being trained by the Nigerian airlines may affect the new policy
recently introduced by the federal government that every commercial
flight in Nigeria must have a Nigerian in the cockpit.
According to the policy, the airlines are supposed to train the
indigenous personnel and employ them in order to create jobs for
many experts in the aviation sector that are now jobless.
However, THISDAY checks revealed that this policy may not achieve its
objective because the airlines which are supposed to train the
indigenous personnel are not likely to embark on that progamme.
Their reason is that when the Nigerians are trained they leave the
airline that trained them and travel overseas to secure jobs with juicier
salaries and irresistible incentives.
The airlines said that their attempt to bond the pilots and engineers
have not worked because they do not get the cooperation of the
Nigerian Civil Aviation Authority (NCAA) which would have forced them
to abide by their agreement by refusing to conform them for the new
company they have secured jobs.
Bonding is an arrangement whereby an airline will agree to train a pilot
and after the training the pilot would serve the airline for five or more
years before leaving the company to another organisation.
Although many indigenous carriers are engaged in the training of
pilots, engineers and others but it is not being done on a big scale that
will enable the goal intended by the federal government to be realised.
http://www.thisdaylive.com/articles/why-nigerian
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NCAA, however, is said to argue that it is a free market, therefore,
every skilled person should be free to ply his trade anywhere in
the world. So when the bonded pilot or engineer leaves the
company that trained him to another company, probably
overseas, NCAA writes to acknowledge and endorse him with a
good reference.
Now, some Nigerian airlines are demanding that NCAA should
not be giving such endorsement if the bonding the person has
with the indigenous airline is still subsisting. They said that it
was on this condition that they would stake their resources and
train the Nigerians as requested by government in order to
realise the goal of indigenes taking over the technical areas in
the aviation sector.
One of the major problems of the aviation industry is dearth of
indigenous manpower which has necessitated the dominance of
the technical area of the sector by expatriates who earn huge
remuneration that are repatriated, an action that stretches the
Naira and increases the high demand for foreign exchange.
In fact, some of these expatriates are paid in dollars, while the
airlines earn their revenue in Naira.
The consequence of leaving the sensitive areas of the sector to
expatriates has security, economic and other implications. Most
all,the jobs that ought to be for Nigerians are given to foreigners.
There are also safety implications because many of the
expatriates that come to work in Nigeria may not have the
certification and experience they claim to have. Many operators
have confirmed that some expatriates they engaged
disappointed them and manifested incompetence when given the
job they claimed they know so well.
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They also argue in the industry that if it were a Nigerian that
operated the Ill-fated Dana Air flight that crashed in Lagos and
killed 153 people in 2012, he would have taken a better decision to
avoid the crash because he would know the terrain and the nearest
airport to land under such emergency.
A source in NCAA said it would be difficult for the regulatory body
to hold down a pilot or engineer that wants to move because some
of the Nigerian airlines pay slave salary to the indigenes while they
pamper the expatriates whom they pay about $10, 000 monthly,
keep them in at least equivalent of four-star hotel or give them a
home with swimming pool and house helps in the highbrow area of
Lagos.
In addition to that; they give them chauffeur-driven cars and first
class tickets when they travel. They also work one month and go on
holiday for one month and still collect salaries for the month they
have not worked.
A top official of a major airline told THISDAY that bonding is very
difficult to do because if the pilot that was trained reneges you
cannot take him to court and while he is working with the airline
that trained him, he may not give his best because his mind may be
elsewhere.
But the style which was adopted by Ethiopia is the best. If you
leave to another job they will not confirm you. But what NCAA is
doing will not encourage indigenous airlines to train, but a new
system has been adopted which is referred to as NPL, whereby the
certification that is given to the pilot or engineer is issued under the
company that trained him. This means that if he leaves, he losses
the certification, so he has to train again to get the qualification,
the official said.
The best option, many in the industry have said, is for government
to help train the pilots and engineers so that even when they seek
for jobs outside the country they repatriates funds home as
thousands of Ethiopian and Kenyan aviators who work in different
parts of the world do.