Nigeria Airways Cuts 1,000 Staff ... to 600 Staff Per Aircraft!

[The Guvnor]

BBC EXTRACT
<a href="http://news.bbc.co.uk/hi/english/business/newsid_1742000/1742567.stm" target="_blank">http://news.bbc.co.uk/hi/english/business/newsid_1742000/1742567.stm</a>

Nigeria Airways halves workforce

Nigeria Airways is sacking nearly half its staff in a last-ditch attempt to put its house in order and prepare for privatisation.
In a statement, the airline said it was getting rid of 1,000 of its 2,300 employees, and promised they would be receive redundancy payments within three months.

The airline, which has only two planes, called its actions "a major right-sizing exercise".

It said the staff had been "rationalised as a result of Federal Government efforts to put the airline on line again".

Deep differences

But analysts said it remained an open question as to whether the airline could ever be put back together.

There are deep differences between the minister of aviation, the bureau of public enterprises - which has overall resonsibility for privatisations - unions, advisers and the company itself over how to proceed.

The International Finance Corporation (IFC), the private finance arm of the World Bank, pulled out of its role advising the government late last year.

It pointed out that since the government had sold off most of the routes to which the airline still had rights, there was nothing of practical value left to sell.

Far cry

Nigeria Airways is today a far cry from its heyday in the early 1980s when it had a fleet of about 30 aircraft.

After nearly two decades of military rule the airline was asset-stripped, its revenue stolen and its planes impounded at airports around the world - either for safety reasons or because of the airline's inability to pay its way.

The Lagos-London route, for instance, lapsed in the early 1990s.

In August last year the airline tried to re-establish the route with a hired 747 from Air Djibouti - only to have its inaugural flight cancelled with just 24 hours to go before take-off.

The reason, it emerged later, was that despite warnings from Nigeria's aviation authority the airline had not secured the right permissions to prove the plane was airworthy.

Only after another three months, the sacking of the chief executive and other senior officials, and the hiring of a more reliable plane, did the service resume.

[tally]

Guv,
Interesting. Thank God Jiya is taking the bull by the horn. The employee issue has been a thorny one especially with the unions. As you know Yomi and his cronies did not want to rock the boat bcos of their shady deals. I understand uncle sege is giving them $100 million to buy a b767-300 and 2 b737-300s outright. How far is this true?

[The Guvnor]

NIGPLT - at current prices, US$100m means that there is a very substantial amount (US$40 - 50m) available for dash!

Even with the 50% staff cuts, WT employs six times as many people as the efficient low cost carriers in Europe; and if the additional aircraft are not acquired then further substantial cost cuts will have to be made.

I reckon they should put Skypower's Joji back in charge...

[Boss Raptor]

So do I - at least he can count, dont/wont take kick backs and his past history shows he's not scared of creating a stink right up to presidential level...

Think the dosh is for new build 767 so that would be about $60 mil...but 737-300's are tops $14 mil each so this still leaves a fair chunk adrift...but then there will have to be redundancy payments and transfer of the pensions etc. etc...could be creative accounting to cover this...

But then there wu

[tally]

Guv & Boss,
Using Boss's estimates cost of acquisition will be $88 million, that leaves $12 million for the "boys". Personally, I think it beats buying a beat up DC 10 and stealing $88 million. The company gets more value for the dollar than what occurred previously. If Joji were to return to WT, he should be given more autonomy to direct the company. The question is will aunt kema agree to this ? I believe that is the million dollar question.

[Boss Raptor]

Well I understand that over the last 5 years Capt. J has turned down both the job of aviation minister for Abacha (twice) and more recently heading the Obasanjo's presidential taskforce on transportation with specific responsibility for WT - on all occasions he has stated he requires reasonable autonomy and no un-necessary political interference - this has never been guaranteed...

He still remembers having all his good work of his tenure as MD at WT undone after he was removed for 'political reasons' - let's face it he did get all the aircraft flying, he did get the debts rescheduled/under control and he did stamp down heavy on internal corruption...more than any of the others to date!

...and Mrs. Chikwe likes him...

[The Guvnor]

... and he likes Mrs Chikwe! <img src="wink.gif" border="0">

Perhaps BA could learn some lessons from Nigeria Airways' restructuring...

[quote]Airways Sacks 1,000 Workers
This Day (Lagos)

January 4, 2002
Posted to the web January 4, 2002

Ndubuisi Francis


Top management staff affected

The Federal Government's resolve to privatise the Nigeria Airways took a dramatic turn yesterday as 1,000 workers of the national carrier were laid off in a major rationalisation preceding the privatisation programme.

The rationalisation which cut across all strata of the airline's management is a fallout of the recommendations of a committee set up last year by the Federal Government to explore ways of reviving the ailing company.

Briefing journalists in Lagos yesterday, the General Manager (Public Affairs) of Nigeria Airways, Mr Chris Azu Aligbe, said the exercise commenced yesterday with letters being despatched to the affected staff.

A breakdown of the retrenched staff showed that the office of the managing director accounted for 35 employees, 358 from the administration Department, 137 from Finance and Supplies, 309 from Commercial Services (Marketing), Engineering and Maintenance shed 31 while flight operations lost over 85 workers to the exercise.

Aligbe, who noted that various criteria were used in determining those retrenched, listed them as the attainment of 55 years of age, poor records of performance, and disciplinary cases arising from warning, reprimand or any kind of indiscipline in the last three years.

The exercise also considered staff who had been sacked or retired but who later found their way back into the system in the last three years.

Other variables considered were the medical records of staff, as staff who had taken up to six months sick leave in the last 3 years were eased out. Those who also have proven cases of disability were swept off by the exercise.

Aligbe added that workers who were seen to have embarked on leaves of absence without due permit or proof of doing so to enhance their professional status were among those affected.

He also disclosed that workers in units which duties can be outsourced had to be retrenched, even as he stated that top managment staff on Grade Levels 15, 16 and 17 without recognised university degrees or equivalent qualifications were not spared in the exercise.

On the question of terminal benefits for the affected staff, Aligbe said the Nigeria Airways management has resolved to pay the retrenched workers three months' salaries in lieu of notice.

The first instalment, he added, would be paid next week while the balance and other entitlements would be settled at the end of this month.

"By the end of March, all other entitlements and gratuities would have been paid," he assured even as he expressed the resolve of the Federal Government and the company not to subject those affected to any form of hardship through delayed payment of their benefits.<hr></blockquote>

[Hani]

Just to clarify, and update this thread:

Mr. Nasir El-Rufai (who is president of the BPE Bureau of Public Enterprises) has denied the rumours in the Nigerian press about Obasanjo's 'approval of $100m for WT a/c purchases' which would include 1 767-300ER and 2 737-300s. At least, he denied the BPE's endorsement of such an injection, reinstating the BPE's consistent view that no further cash should be given to WT.
Chris Aligbe, WT Public Relations Director, declared yesterday the airline's plans to acquire widebody a/c for 'use on regional routes'.

However nobody knows who is really in charge of the airline, be it BPE, Chikwe at the Aviation Ministry, or Obasanjo. Let's see what happens ....

Hani
<img src="smile.gif" border="0">

[tally]

Mr Hani,
Mr El Rufai has consistently been opposed to any cash infusion into WT. I believe selling WT off in the current state of the industry in Nigeria will not be very beneficial for the nation in the long term. The european carriers will have a total domination of the market just as they are now. WT's revival is not an impossibility if the right people are put there and given the mandate to resuscitate the airline. The problem with the airline is just plain STEALING. The airline is at a cross road, if the stealing is going to continue, get rid of it. But if the govt is serious, reviving it with a dynamic team should be the goal.

[Hani]

NIGPILOT,
In my opinion the very few assets which attracted investors to Nigeria Airways was the Bilateral Agreements, especially the routes to London, NY, and Jeddah.
Now that Obasanjo either sold the routes (London) or opened them completely (NY through open skies agreement) I see little hope in attempting to revive WT because of the following reasons:
1- The competition on these routes, especially given the entry of more private and forgeign carriers, is too high for a prospective investor to tolerate in the initial phase of the investment.
2- We need not talk about the carrier's reputation
and its ugly track record with IATA clearing house and other int. agencies which demand over $300m from WT (debts of all kind).
3- Unfortunately the corruption and chaotic nature of Nigerian affairs is still prevailing despite the promises of democracy. Even if you invite Joji in he will be powerless because Govt. is yet to adopt an enabling environment vis-a-vis private initiative.

The latest from Abuja suggest Obasanjo is now dreaming of a revived "Air Nigeria" concept to serivce the int. routes, beginning from scratch and using (initially) 4 airbus aircraft and managed by Airbus Industrie itself for an unspecified period.

The concept sounds promising but I hope uncle Sege is not bull****ting again.

Do you have any comments on Govt. continued overlooking of the private carriers in the right to apply and fly to London? What about Kabo Air's 7 B747s, what on earth is Dan Kabo waiting for, he seemed to have the connections in Aso in the past.

Hani

[Boss Raptor]

well Mr. Kabo is probably well aware of the fact that his aircraft are believed so far out on AD status etc. and his safety/operational oversight so awful that he is likely to be grounded by a SAFA team as soon as he lands in UK...

[The Guvnor]

Don't forget that Virgin Atlantic sold off those aircraft cheaply because of their AD status (a lot of VERY expensive work was due on them, which has not been carried out to date as far as I am aware, though at least one has gone through maintenance at Garuda) - and the CAA will be well aware of this.

[tally]

Guv,Boss & Hani,
What do you guys seriously think about the "Air Nigeria" concept. Mr Joji was the originator of this concept, but due to the "nigerian factor" it was shelved. In principle it sounds fantastic, but airbus running the show doesn't sound too promising. First they are a manufacturing concern and second it gives them an edge over boeing which is unfair. The A310 never did fare well with WT, so why not use boeing products which are well accepted in the market and will cost less to run. This is looking like one of those high cost ventures that will not profit WT.
Hani, I don't believe Kabo is ready to operate in the "civilized" world of euro aviation. He can get away with all sorts of atrocities in the 3rd world ,but dare not try such anywhere else. Like Guv and Boss said, the Virgin 747's still have outstanding AD's due. He needs to get his house in order, and hire more professional people than what he has at the moment.

[tally]

Guv,Boss & Hani,
What do you guys seriously think about the "Air Nigeria" concept. Mr Joji was the originator of this concept, but due to the "nigerian factor" it was shelved. In principle it sounds fantastic, but airbus running the show doesn't sound too promising. First they are a manufacturing concern and second it gives them an edge over boeing which is unfair. The A310 never did fare well with WT, so why not use boeing products which are well accepted in the market and will cost less to run. This is looking like one of those high cost ventures that will not profit WT.
Hani, I don't believe Kabo is ready to operate in the "civilized" world of euro aviation. He can get away with all sorts of atrocities in the 3rd world ,but dare not try such anywhere else. Like Guv and Boss said, the Virgin 747's still have outstanding AD's due. He needs to get his house in order, and hire more professional people than what he has at the moment.

[Boss Raptor]

Well of course Air Nigeria was using the technical expertise of Swissair in its' original concept. I personally think it is the only way...Airbus do not have experience running an airline, purely providing the technical support yes...it is the bums on seats and profit/loss that count!