STAR
DEAL: Nigeria Airways Combines With
Air Atlanta Icelandic to Fly Lagos – NY - Lagos
By
Mobolaji E. Aluko, Ph.D.
[MARYLAND USA]
Tuesday, March 26, 2002
http://www.atlanta.is/news/jan02_a.html
Long
term contract for Nigeria Airways
Nigeria Airways
and Air Atlanta Icelandic have signed an initial 6 month wet-lease contract for
TF-ATS, a B747-300 aircraft. The aircraft was delivered to Nigeria Airways on
November 21st [2001] in
Lagos.
The 406-seat aircraft is configured in three classes, with 20 first-class, 46
business-class and 340 economy seats. The 747 is presently in all-white with
Nigeria Airways logos on tail and fuselage.
The aircraft is used on the long-awaited service between London Heathrow and
Lagos. Nigerian carriers have not been operating on this lucrative route for
years leaving the route entirely to British Airways and Virgin Atlantic. In
addition to three London Heathrow flights per week Nigeria Airways also operates
twice to Dubai and once to Jeddah in Saudi Arabia.
The
base of operation is Lagos. Cabin Staff are from Nigeria Airways while Air
Atlanta provide pilots, senior cabin crew members, operations and maintenance
personnel.
http://www.atlanta.is/news/jan02_b.html
Air
Atlanta to take on four aircraft from Virgin Atlantic
Air
Atlanta has dry-leased four 747-200 aircraft from Virgin Atlantic. The Aircraft
with registration G-VSSS, G-VRUM, G-VCAT and G-VBEE will all be assigned
Icelandic registrations TF-ATW, TF-ATV, TF-ATK and TF-ATN respectively. Two of
the aircraft are ex Cathay Pacific aircraft powered by RB211-524-D4 engines and
will be operating for Garuda Indonesia in the upcoming hajj. The 456-seat
aircraft are configured in three classes with 12 first class, 32 business class
and 412 economy seats. The other two aircraft are ex Air New Zeeland aircraft
powered by RB211-524-D4 engines. One
will operate hajj for Air Algerie while the other will replace TF-ATS on the
Nigeria Airways contract. Both aircraft will remain in the original
seating configuration with 28 first class, 36 business class and 358 economy
seats.
http://www.atlanta.is/atlanta/index.html
About
Air Atlanta
Air
Atlanta Icelandic was founded in 1986 by Captain Arngrimur Johannsson and his
wife Thora Gudmundsdottir. The Company offers ACMI [Aircraft, Crews, Maintenance
and Insurance] world wide services.
Approximately 1.000 employees are currently with the company.
Air Atlanta headquarters
are located in Mosfellsbaer in Iceland. In the year 2000, the company's
operations are based in London Gatwick, Manchester, Manston, Madrid, Jeddah,
Bombay, Paris and Keflavík.
During the past years Air Atlanta has operated a fleet of 15-20 aircraft
at a time, Boeing 747-100/200/300 and 767-200/300. The current fleet has a
seating capacity of approximately 8.000 passengers. All Company aircrafts are
registered in Iceland. Air Atlanta Icelandic is JAR-145 and JAR-OPS 1 certified.
Air Atlanta has enjoyed a period of consistent growth since 1994, currently
operating 20 wide bodied aircraft. Air Atlanta headquarters are located in
Iceland and operating bases
are all over the world.
Air Atlanta Icelandic is today one of the largest airlines of its kind in Europe
and among Iceland's largest companies. The airline has received several awards
for its achievements. Most recently, Air Atlanta received President of Iceland's
Export Award 1999, in recognition for remarkable advancement for export commerce
and currency compilation for the Icelandic nation. In 1999 Air Atlanta was in
the 20th place on a Europe's 500 list of the 500 most progressive companies in
Europe, and had moved up 9 places on the list since the year before. Europe's
500 also awarded Thora Gudmundsdottir to be the most progressive pioneer amongst
European women in 1999.
http://www.atlanta/news/aug01.html
http://www.atlanta.is/grafik/chart2.gif
Top
Personnel
Mr.
Hafthor Hafsteinsson, 35, President and Chief Executive Officer
Mr.
Arnar Thorisson, 37, Executive Vice President & VP Finance
Mr.
David Masson, 33, VP Marketing
“Air
Atlanta Icelandic has 17 wide bodied aircraft, operating on projects in Spain,
Ireland, United Kingdom, France, Algiers and Saudi Arabia. Last year's turnover
was 140 million U.S. dollars but is estimated to rise to over 220 million U.S.
dollars this year. The company has, as budgeted, shown positive financial
results for the first 6 months of 2001. “
http://www.airclaimsv1.com/info/glossary.asp
When
we discuss lease rates we refer to operating lease rates, in particular
"net dry operating lease" rates. One of the most useful definitions of
an operating lease is as follows.
"The
Lease of an asset whereby the Lessor takes all of the risks and rewards of
ownership and the Lessee takes all of the risks and rewards of operation."
By
a dry lease we mean that the Lessor provides the asset to the Lessee for the
Lessee to use. In return the Lessee pays the Lessor a contracted sum at
contracted intervals. When we discuss aircraft the most usual payment interval
is monthly and the term of the lease tends to be around 5 years duration. A wet
lease, also known as an ACMI lease, involves the provision of the aircraft,
crew, maintenance and insurance by the Lessor. These deals tend to be charged by
utilisation units, such as Block Hours, Flight Hours or Cycles, and can be for a
single flight or several years.
http://odili.net/news/source/2002/headlines/032502.html
Nigeria
to lease Air Atlanta plane for Lagos-New York route
By
Laolu Akande
New York, NY, USA
Nigeria
Airways and the Federal government are completing arrangements with Air Atlanta,
a U.S. airline company to lease an additional aircraft for the Nigerian carrier
for the purpose of operating the Lagos-New York air flight route.
The
flight route was recently affected by the pull out by South Africa Airlines from
its agreement with their Nigerian counterpart to ply that route in an
arrangement that allows the Nigeria Airways to bring in its own passengers.
It
is not clear as yet what the financial aspects of the lease between Nigeria
Airways and Air Atlanta, but industry sources said the average cost of the
Lagos-New York route was about 50,000 US dollars per flight.
Nigeria
Airways sources in the US told this reporter over the weekend that all hands are
on deck to lease the aircraft so that by the second week in April at the latest
the Lagos-New York route of the Airways would be active again.
And
when that happens, Nigeria Airways would be fully in control as this is
different from the deal with South African airline, where seats were shared by
both airlines. All passengers would now be passengers of Nigeria Airways, who
will solely manage the route just as it is currently doing with its London and
Dubai flight routes. But the pilots would be supplied by Air Atlanta, the U.S
airline, while the crew would be those of Nigeria Airways.
It
is believed that the U.S. airline company that is leasing the aircraft to
Nigeria Airways already leased a 747 to the Nigeria Airways which is currently
being used for the Lagos-London route.
The
aircraft being used for the London route, a 747 may be the one to be used for
the New York route now, while the aircraft to be leased in addition, a 767,
would ply the London route.
The
plan for the resuscitation of the New York route, according to sources would be
to have the Nigeria Airways ply the Lagos-New York route twice a week, and also
using the same aircraft for the Dubai route once a week. But there are plans to
make this thrice a week in high season.
Air
Atlanta, it was also gathered would also supply back-up aircraft to the Nigeria
Airways in case of any emergency or if the need arose. And they will be
responsible for maintaing the planes.
This
reporter gathered that the presidency was worried that South Africa Airline
could pull out of the deal with Nigeria Airways without fulfilling the
obligations of the agreement which required a 30-day notice. The South Africans
pulled out of the deal and gave 2 weeks notice after it could not get the
Nigeria Airways to agree to cut its seat allocation on each flight from 109 to
30. The South Africa Airline complained of not breaking even.
An
official source in New York said there is no plan of a legal action against
South African Airlines for that violation in the term of agreement.
The
option to lease additional aircraft by the Nigeria Airways to operate the New
York route had however been on the table even before the South Africans pulled
out. It was gathered that this plan was supposed to take off later in the year
when the deal with the South Africans would have completed its run.
It
would be recalled that Minister of Aviation, Dr. (Mrs.) Kema Chikwe assured
Nigeria Airways passengers that the South Africa Airway's withdrawal from the
venture with Nigeria Airways will not stop the Lagos- New York flights which has
been popular with passengers on the route.
She
said her ministry and the Nigeria Airways are working hard to provide other
alternatives to forestall any inconveniences the withdrawal of SAA may cause
travellers.
----------------------------------
Retaining
this Lagos-NY route is very
welcome, particularly with the convenience of straight flight and
departure/arrival times. However, a
Nigeria Airways wet-leasing agreement with an obscure (or is it growing?
enterpreneural?) Air Atlanta Icelandic – particularly when that company will
be dry-leasing, from Virgin Atlantic, an
ex-Air New Zealand 747-200 aircraft powered by RB211-524-D4 engines (how old?),
which will in turn soon to “replace the TF-ATS Boeing
747-300 plane on the Nigeria Airways contract” - does not generate much confidence in the absence of more information.
It just looks too circuitous, and the plane too “historical”:
Nigerian Airways – Air Atlanta – Virgin Atlantic – Air New Zealand!
Anyway, we
shall see – but there you have it!
Bolaji Aluko
