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Home Blog Page 6355

The GMD’s Statement

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GMD Kyari mele nnpc

Hope is back in the beautiful nation. The Chief High Priest of Nigeria’s economy (yes, the GMD of NNPC), has spoken: the message from the alpha of our economy, crude oil, is normalization is around the corner. 

“At this point, we have seen a gradual easing of the situation. Those numbers of the uncommitted cargoes have gone down drastically and that’s why we see a gradual rise in prices in the last three to four days. It means that those uncleared transactions are now easing off.” Group Managing Director of Nigerian National Petroleum Corporation (NNPC), Mr Mele Kyari, 17th May 2020

“Today, I can share with you that there are over 12 stranded LNG cargoes in the market globally. It has never happened before. LNG cargoes that are stranded with no hope of being purchased because there is abrupt collapse in demand associated with the outbreak of coronavirus,” Mallam Kyari, 12th March 2020

“After ‘Black April’, the heaviest demand destruction may be behind us…” IEA Executive Director Fatih Birol tweeted. “We see early signs markets have begun the rebalancing process.”

Nigeria’s Bonny Light traded as low as $14.75 on 21st April, it has gained over 100% since then. At the weekend it gained over 10% to close at $29.84. The uptick in oil prices has fuelled the growth in the country’s Fx reserves.

Oh ye Nigerians, very soon, it would be party moments again with all the recent “reforms” magically unreformed. The alpha is returning back to the throne, and crude oil we all pay economic allegiance.  Farmers, leave your seats; techies, vacate here; manufacturers, you are uninvited; etc. What matters now is this: oil is feeling healthier and the iroko has sounded. I can feel it – the village square is awash with the energy of politicians, briefcase contractors, and we will spend again like there is no tomorrow.

This Time Is Different: Prepare Now (Updated: Quote of GMD, NNPC)

 

Nigeria Grounds UK’s Flair Aviation

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The normalization is coming. Lufthansa will fly into Abuja and Port Harcourt from June 7, 2020. But the biggest news is the grounding of Flair Aviation, a foreign carrier, by the Nigerian aviation regulator for flouting the “no flight” rules when not on humanitarian services: “COVID-19: Flair Aviation, a UK company, was given approval for humanitarian operations but regrettably, we caught them conducting commercial flights. This is callous! The craft is impounded, the crew being interrogated. There shall be maximum penalty. Wrong time to try our resolve,” Minister of Aviation, Hadi Sirika,  wrote on Twitter.

The Federal Government of Nigeria announced on Sunday that a British airline company, Flair Aviation, has been grounded for flouting the “no flight” rule. The Minister of Aviation, Hadi Sirika, disclosed this on Twitter, explaining that the company was only authorized to operate humanitarian services but went on a commercial business.

“COVID-19 Flair Aviation, a UK company, was given approval for humanitarian operations but regrettably, we caught them conducting commercial flights. This is callous! The craft is impounded, the crew being interrogated. There shall be maximum penalty. Wrong time to try our resolve,” Sirika wrote on Twitter.

It could be recalled that the Federal Government had earlier this month, extended the “no flight” to four weeks, limiting flights to essential services only. The Aviation Minister said the Flair Aviation company would be penalized. However, the development tells of the struggle of the aviation industry to survive the COVID-19 pandemic that has brought it to its knees.

It is extremely surprising that some Nigerians are taking unusual risks to leave the UK, Canada and U.S. to return back to Nigeria. Typically, you would expect the reverse. But Covid-19 is not normal in any dimension. As they always say, there is no place like home!

Meanwhile, CBN and NNPC have promised to support Nigerians returning back to the nation as a result of the pandemic.

“The governor of CBN, very generously and very kindly, agreed; he said the amount I was talking about, over N1 billion because we have over 4,000 Nigerians out there… he said he was ready to explore and share the cost with NNPC. ..And I spoke to the GMD of NNPC and he said he was going to consult. And thanks be to God, today, he got back to me to say he was ready, he was going to meet up with the CBN governor and together, they will fund this portion; a very important portion, the accommodation and feeding of evacuees.”

Comments on LinkedIn Feeds

User: The opportunities are drying up. Nobody wants to stay aboard without pay.

My Response: I think you are 100% correct. It is very surprising that the hope is back home, as least the bills freeze unlike UK and US when they continue to come, job or no job. We may see a repeat of 2009 again where many professionals returned to Africa. I just hope the governments can take advantage and use their skills to help the continent. With this paralysis projected to run for quarters, economically, Africa may be a safer place for many before things normalize again.

The Aviation Industry is Getting Desperate to Survive

The Aviation Industry is Getting Desperate to Survive

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The Federal Government of Nigeria announced on Sunday that a British airline company, Flair Aviation, has been grounded for flouting the “no flight” rule. The Minister of Aviation, Hadi Sirika, disclosed this on Twitter, explaining that the company was only authorized to operate humanitarian services but went on a commercial business.

“COVID-19 Flair Aviation, a UK company, was given approval for humanitarian operations but regrettably, we caught them conducting commercial flights. This is callous! The craft is impounded, the crew being interrogated. There shall be maximum penalty. Wrong time to try our resolve,” Sirika wrote on Twitter.

It could be recalled that the Federal Government had earlier this month, extended the “no flight” to four weeks, limiting flights to essential services only. The Aviation Minister said the Flair Aviation company would be penalized. However, the development tells of the struggle of the aviation industry to survive the COVID-19 pandemic that has brought it to its knees.

Punch has reported on Sunday that some foreign airlines are planning to resume flight activities to Lagos, Abuja and Port Harcourt airports. The Ministry of Aviation has however vowed to penalize any airline that flies into Nigeria in defiance of the ban. The Transport Service Senior Staff Association of Nigeria (TSSSAN) said no foreign or local airline is allowed to fly until the ban is lifted.

Despite the stance of aviation authorities of Nigeria on the matter, some foreign airlines are reportedly making plans to resume flight operations in June. Lufthansa Airlines has reportedly added Abuja and Port Harcourt among its 20 long-haul routes that is scheduled to kick off in June. Lufthansa has made its first batch of flight reservations available in its booking system according to people familiar with the matter.

On the other hand, Virgin Atlantic is reportedly lining up flight schedules for London Heathrow to Murtala Muhammed Airport Lagos. And beginning from May 16, services for its March 28, 2021 summer schedule flights. Though some other cities around the world are part of their flight plan, Nigerian Aviation authorities are not seeing the possibility in the nearest future unless the ban is lifted.

“They (foreign airlines) can’t operate scheduled passenger flights as long as the ban remains. The PTF on COVID-19 has the final remains. The PTF on COVID-19 has the final say on when flights can resume, based on the level of control of the pandemic.

“Of course, we in the sector can’t wait for activities to resume at the airports to forestall further loss of jobs and revenue. Aviation has been one of the hardest hit by the pandemic and it will be a great relief to have flights resume,” said James Odaudu, Director, Public Affairs, FMA.

The president of ATSSSAN, Ilitrus Ahmadu, said the decision to fly is not for foreign airlines to make. He said the Federal Government reserves the right to open and close its air space when it deems fit.

“It is not the foreign carriers that will decide for our country. So it is not their business and they cannot say they can fly into the country without government opening the airspace,” he said.

The aviation industry’s revenue has plunged massively since early in the year when countries started to halt flight activities. The plague has plummeted many companies into dire financial strains and near bankruptcy status despite governments’ bailout measures.

German national carrier Lufthansa, last month demanded a $11 billion bailout from the German government, on the agreement that it will take 25.1% stake in the company. Lufthansa has been losing $1.1 million per hour as a result of the global health crisis.

Virgin Atlantic also appealed to the UK government for a 500 million pounds bailout to save the airline from going out of business. In an open letter to the British Parliament in April, Virgin Atlantic founder, Richard Branson, who has already staked his private island for fund, said the coronavirus pandemic has forced the company to seek external funding.

“Because of significant costs to our business caused by unprecedented market conditions which the COVID-19 crisis has brought with it, we are exploring all available options to obtain additional external funding,” he said.

Around the world, every aviation company is on life support that requires sustainable intervention that many governments appear unable to offer right now. It seems that the desperation to survive is pushing airlines into sharp practices, and many of them are getting ready even to dare the “no flights” rules.

Uber About To Eat GrubHub, Air Peace Refreshing Its Aircrafts, Emirates to Cut 30k

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As Emirates plans to cut 30,000 jobs to manage the paralysis resulting from Covid-19, the conclusion is that cuts are not just due to low current demand but rather projected dislocation in global aviation. Now that firms know that doing business on Zoom is legitimate over flying across cities, Chief Financial Officers in companies will work their models to accommodate this redesign. Simply, aviation will recover but not immediate to carry and hold unnecessary liabilities and expenses.

Dubai-based Emirates Airlines is reviewing its costs, which could lead to 30,000 job cuts and the fast-tracked retirement of its superjumbo A380 fleet. Sources tell Bloomberg that Emirates, the fourth-largest airline in terms of passengers, may slash 30% of its workforce. Emirates has not made an official announcement, but carriers worldwide have cut jobs after the near-total shutdown of travel during the pandemic.

Arik Air has spoken: 90% of staff are going on compulsory leave without pay while those remaining will see 80% pay cut. We are yet to read from Air Peace, the industry leader in Nigeria. But we do know that it is using this downtime to scale “up technical maintenance and cabin refresh of our aircraft to keep them safe for the skies again” Nigeria must not allow its aviation sector to collapse.

Arik Air, one of Nigeria’s major airline companies has ordered 90% of its staff to go on leave until further notice. This is as a result of lockdown that has paralyzed commercial activities in many states in Nigeria, and put aviation transportation to a halt.

The aviation company has also implemented an 80% pay cut for its personnel while the rest of its workforce has been sent on leave without pay.

Meanwhile, Uber plans to eat GrubHub, a meal delivery service competitor to Uber Eats, breaking apart the construct of antitrust.  I expect the regulators to bless it as this time is not normal.

Uber and GrubHub are continuing their takeover discussions, with GrubHub signaling over the weekend that the ride-share giant’s offer “is too low,” reports The Wall Street Journal, citing anonymous sources. Uber, which operates Uber Eats, approached its rival after the pandemic started, according to The New York Times. Uber has relied on its meal-delivery service to make up for severe losses in its main business amid the current crisis — the company reported losses of nearly $3 billion in the first quarter. A merged Uber Eats and Grubhub would account for 55% of the U.S. food delivery market, says the Times. DoorDash, which accounts for 35% of the market, would be its largest rival.

The one marketing mistake you mustn’t make during the COVID-19 pandemic

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Nothing is going to be back, as usual, the situation presently at hand is the ”new normal” whether you like it or not, your disposition to this fact isn’t going to change a thing.

Many small and medium-sized businesses are shutting down, most companies are laying off staff and even the big guns in the world markets are losing millions of dollars by the day.

Although there are various downsides to the present COVID-19 economy, some businesses have found a way to remain afloat in these turbulent times. 

Apart from the health industry’s who are fighting on the front line to save our lives, Remote businesses offer the best potential of any form of survival during the COVID-19 pandemic. 

However, many remote businesses might be tempted to reduce or stop their advertisement altogether in order to reduce costs and sustain their business while the economy is at a low. 

This strategy looks like the fastest way to go out of business, but it is one that seems to make sense to the majority of business owners because it looks safe. 

Advertisement during this period shouldn’t be all about conversion, you must find a way to contribute and emphasize with your customers and prospect in these difficult times. 

In the process of doing this, you’re creating a positive image of your product/services in the kinds of your customers thereby giving you an edge over your competition when your audience decides to make a purchasing decision either during or after the COVID-19 pandemic. 

As the oracle of Omaha, Warren buffet rightly stated; “Be greedy when others are fearful and be fearful when others are greedy”.

Now is the time to be greedy, For your business to have a chance during and after this pandemic you can’t afford to cut down on advertisement, you have to continually put your product/service out there for your prospect to see.

Don’t fall into the trap of reducing the amount of your advertisement. The time to be greedy is now, the time to be fearful is tomorrow.

As you already know, you can’t afford to be late to the party in the business world 

Your advertisement is key to your business sustainability, you’ve got to get it right or you risk going out of business after the COVID-19 global pandemic.