Internet news 16/3/2015

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

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host of outdated and crumbling infrastructure.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.

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.

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

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.

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.

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

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.

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

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".

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.

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/

"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/

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.

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.

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

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.

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

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

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

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

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

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.

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.