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IATA Rues Sluggish Air Cargo Growth

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The International Air Transport Association (IATA) released data for global air freight markets showing that growth continued to slow in May.

Compared to May 2014, growth in freight tonne kilometers (FTK) was 2.1%, the slowest rate this year and outpaced by a capacity expansion of 4.3%.

On a year-to-date basis, freight volumes are up 4% on the previous year, but much of that growth was realized in the latter part of 2014.

Carriers in most regions, with the exception of those based in the Middle East, saw weak growth or even contractions.

In aggregate, airlines in North and Latin America and Europe reported that their freight business was smaller in May 2015 than in the same month of 2014. Carriers in Asia-Pacific experienced slow growth as a result of poor import/export performance.

“Cargo growth has undoubtedly come off the boil. The expansion in volumes we saw in 2014 has ground to a halt, and load factors are falling.

Some economic fundamentals still point to a rebound in the second half of the year, but we have to recognize that business confidence is flat and export orders in decline.

There is also the risk of a shock to the economic system of a ‘Grexit’ from the Eurozone,” said Tony Tyler, IATA’s Director General and CEO.

Regional Analysis In Detail

Asia-Pacific carriers reported demand growth of 2.8% in May compared to May 2014, below a capacity expansion of 6.7%.

At the end of Q1, trade volumes for emerging Asia markets were down 10% compared to Q4 2014, although there have been signs of improvement at the start of Q2, which if sustained, would help ease downward pressure on air freight demand.

European carriers saw demand decline by 1.3% in May, compared to a year ago while capacity grew by 2.7%.

Consumer confidence remains subdued in the region, and the region is at risk of economic contagion if a disorderly ‘Grexit’ from the Euro were to occur.

North American airlines reported a fall in demand of 2.9% year-on-year while capacity was cut by 4.2%. The May result is a continuation of the disappointing economic performance in Q1. Stronger growth, however, is expected in coming months as the effects of poor weather and US seaport congestion fade.

Middle Eastern carriers saw demand grow by 18.1%, on the back of increased trade within the region, as well as shippers taking advantage of the Gulf carriers’ hub strategy. Capacity expanded 19.4%.

Latin American airlines reported a fall in demand of 10.5%, while capacity grew by 4.7%. A general increase in regional trade activity has not yet manifested itself in stronger air freight demand, possibly due to continued weakness in Brazil and Argentina, two of the region’s largest economies.

African airlines experienced a 3.0% rise in demand and a 1.3% increase in capacity. Despite some volatility, the region is the third-fastest growing for the year-to-date.

The under-performance of the Nigerian and South African economies may be outweighed by trade activity in the wider region.

Air freight plays a critical role in global trade, transporting some 35% of goods traded internationally.

The slowdown in air freight reflects a general slowing in world trade at a time when it is needed most to reinvigorate faltering economies.

“This week, governments are meeting in Geneva to discuss ‘aid for trade’ and the World Trade Facilitation agreement. If implemented, this could boost world GDP by up to $1 trillion. I urge governments worldwide to bring down the barriers to facilitate trade that will accelerate prosperity and innovation,” said Tyler.

 


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FG to Connect Schools Nationwide to Internet – Education Minister

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Federal government of Nigeria has announced plans to connect schools across the country to reliable internet services as part of a major initiative aimed at strengthening digital learning and expanding access to modern educational tools.

FG to Connect Schools Nationwide to Internet - Education Minister

The government said the programme will help equip students with the digital skills needed to thrive in a technology-driven global economy while ensuring that every Nigerian child has access to quality education comparable to global standards.

The development was disclosed in a statement issued on Wednesday in Abuja by Folasade Boriowo, director of Press and Public Relations at the Federal Ministry of Education Nigeria.

According to the statement President Bola Ahmed Tinubu directed Tunji Alausa, minister of Education, and Bosun Tijani, minister of Communications, Innovation and Digital Economy, to work together to implement the nationwide connectivity project.

Speaking during a high level meeting with stakeholders in Abuja, Alausa explained that the initiative builds on earlier connectivity efforts through the Nigerian Research and Education Network (NgREN), which previously supported broadband connectivity for tertiary institutions under a World Bank-funded project.

He noted that although the programme initially recorded significant progress in connecting universities and other tertiary institutions, the momentum slowed after the initial funding cycle ended, making a renewed and expanded strategy necessary.

The minister said the new effort aims to revive and strengthen the programme while extending connectivity across all levels of the education sector.

“Connectivity is not limited to broadband fibre alone. It also involves telecommunications towers, satellite systems and other digital infrastructure required to provide reliable internet access across the country,” Alausa said.

He revealed that the government is implementing major connectivity projects, including the deployment of about 90,000 kilometres of fibre optic broadband infrastructure, the installation of 3,700 telecommunications towers, especially in rural and underserved communities, and the expansion of satellite capacity to improve nationwide coverage.

According to him, the goal is to ensure that schools from primary to tertiary institutions are deliberately connected as broadband cables are deployed and towers installed across the country.

Alausa also said the meeting produced several concrete steps to accelerate connectivity within the education sector, including the expansion of the NgREN governing council to include representatives responsible for foundational and secondary education.

Two technical working groups have also been established to drive implementation one focusing on connectivity for tertiary institutions and another dedicated to foundational and secondary schools.

He expressed optimism that the first phase of the initiative would begin to deliver visible improvements within the next three months.

The minister added that improved connectivity would enable students and teachers to access digital learning platforms, global knowledge resources, and emerging technologies such as Artificial Intelligence (AI).

He further disclosed that the project would support the gradual transition of major national examinations to Computer-Based Testing (CBT), with plans for exams conducted by West African Examinations Council (WAEC) and National Examinations Council (NECO) to fully adopt CBT within the next two to three years, similar to the system currently used by the Joint Admissions and Matriculation Board (JAMB).

Also speaking, Tijani emphasized that technology-driven education cannot succeed without reliable internet connectivity.

He noted that although Nigeria hosts about eight international submarine internet cables the highest number in Africa the challenge lies in distributing that capacity inland through fibre networks capable of reaching communities nationwide.

 

“Most of the internet capacity enters Nigeria through submarine cables landing in Lagos, but without sufficient inland fibre infrastructure, that capacity cannot effectively reach schools and communities across the country,” he said.

Both ministers reaffirmed the government’s commitment to collaboration between the education and communications sectors to ensure that investments in digital infrastructure translate into improved learning outcomes for Nigerian students.


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WhatsApp Launches Parent-managed Accounts for Pre-teens Amid Safety Concerns

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WhatsApp said yesterday it would allow parents to ​create accounts for pre-teens, restricted to messaging ‌and calling, amid rising global concerns about the impact of social media and chat apps on children.

A number of ​countries around the world are now seeking ​to follow Australia, which last year became the first ⁠country to adopt a social media ban ​for teenagers because of mental health worries.

Messaging apps have ​also triggered concerns following hacking incidents where users were persuaded to divulge security verification and pin codes giving malicious ​actors access to personal accounts and group chats.

WhatsApp ​said the idea of parent-managed accounts came after feedback from ‌parents, ⁠who wanted a messaging service tailored for under-13s.

“These accounts come with strict new default settings, parental controls and options for parents to guide their ​pre-teens’ (under 13s) first ​messaging experiences,” ⁠the messaging app said in a blog post.

“Once set up, these accounts ​are controlled by the parent or guardian ​who ⁠will be able to decide who can contact the account and which groups they can join. ⁠In addition, ​parents can review message requests ​from unknown contacts and manage the account’s privacy settings,” it ​said.


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Reps Give FAAN Two-week Ultimatum to Recover N18.98bn Debts from Foreign Airlines

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House of Representatives Committee on Finance has given the Federal Airports Authority of Nigeria (FAAN) two weeks to recover N18.98 billion owed to the Federal Government by foreign airlines operating in the country.

Reps Give FAAN Two-week Ultimatum to Recover N18.98bn Debts from Foreign Airlines

The directive was issued on Tuesday by the Committee Chairman, Rep. James Faleke, during an interactive session with FAAN officials led by the Managing Director, Mrs Olubunmi Kuku, as part of the committee’s ongoing revenue monitoring exercise.

Lawmakers expressed displeasure over what they described as the growing debt profile of international airlines, insisting that the situation was unacceptable in the face of government’s revenue needs.

Faleke said the accumulation of liabilities, despite clearly defined payment timelines for airport service charges, raised serious concerns about enforcement and compliance in the aviation sector.

In her presentation, Kuku explained that airlines using Nigerian airports are required to settle their service charges within two weeks.

She, however, disclosed that several operators had exceeded this window, with some liabilities ageing beyond 30 days, 90 days and, in certain instances, more than a year.

She put the total outstanding indebtedness of foreign airlines to FAAN at N18.98 billion.

According to her, the debts relate to statutory charges for services provided by FAAN and are largely processed through the International Air Transport Association’s (IATA) global settlement platform.

Airlines listed in the debt profile include Qatar Airways, Lufthansa, British Airways, Virgin Atlantic, KLM, EgyptAir, Ethiopian Airlines, Air France, Royal Air Maroc, Turkish Airlines and Africa World Airlines.

She said Qatar Airways and Lufthansa each owe about N1.5 billion, Virgin Atlantic about N1.35 billion, while KLM, EgyptAir and Ethiopian Airlines each owe over N1 billion.

Other carriers, including Air France, Royal Air Maroc, Turkish Airlines and Africa World Airlines, carry liabilities ranging between N700 million and N1 billion.

Committee members queried why FAAN allowed the debts to accumulate beyond the stipulated two-week payment period.

One lawmaker asked why airlines that defaulted were neither sanctioned nor barred from operating at Nigerian airports, and whether late payments attracted interest charges.

Members warned that persistent delays in settling obligations could amount to negligence and undermine the integrity of government revenue collection.

Responding, Kuku said international airline payments often pass through IATA’s central clearing system used globally for ticketing and financial settlements, which can create delays beyond FAAN’s direct control.

She stressed that FAAN closely monitors ageing of debts, steps up engagements with airlines once liabilities exceed 30 days and applies stronger enforcement measures when debts cross 90 days.

She added that the authority had, in some instances, grounded defaulting airlines, particularly domestic operators that do not operate under the same global credit structure as foreign carriers.

Unsatisfied, the committee directed FAAN to furnish it with detailed addresses and documentation of all indebted airlines and warned that the affected carriers would be invited to appear before the House if they failed to clear their debts within the two-week deadline. “We need every kobo that belongs to this country,” Faleke said, adding that any airline found violating its financial obligations to Nigeria would be held accountable.

Foreign airlines operating in Nigeria are required to pay passenger service charges, landing and parking fees, aeronautical charges and other operational levies for the use of airport facilities and services.

Lawmakers have repeatedly argued that while the IATA settlement structure is global, it should not be used as justification for prolonged delays in remitting monies owed to Nigerian agencies.

The latest directive by the House Committee on Finance forms part of wider National Assembly efforts to strengthen revenue collection, block leakages and shore up government income, especially from strategic sectors such as aviation.


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