ADC Airlines set to resume operations

[Hani]

Former Nigerian leader in commercial air transport, Aviation Development Company (ADC Airlines) is set to resume services soon after a 1 year suspension of services.

ADC will take delivery of 4 ex-New Zealand Being 737-200s. The first is set to arrive within a few days, following a paint-job in Addis Abeba, Ethiopia. Initial services include a twice-daily Lagos-Calabar flight. Services have been repackaged, with a new look and a focus on customer service.

At its peak in the mid-90s, ADC Airlines operated up to 8 aircraft, including 3 Boeing 727-200s, BAC1-11s a modern ATR42 on regional flights to West Africa.


Source: ThisdayOnline.com

[tally]

Hani,
I guess Chanchangi,Albarka and Bellview should be on the lookout. Interesting times ahead, the market has witness new operators such as Skyline, Sosoliso and Savanna giving the Big 3 some competition.But ADC's resumption will be very interesting. What's your take?

[Boss Raptor]

On the current load factors and yields everyone is just about scrapping a living in the Nigerian domestic market...a further 4 aircraft from ADC will just dilute this even further...I certainly wouldnt recommend committing 4 aircraft into this market at present!

Just checked the 2001 fleet listing for Air New Zealand which is only indicating 3 B737-200 aircraft, although ANZ had many more in the past most have been long sold on to lessors, other airlines etc. - however the inference is ADC have got these aircraft direct?

[ 11 January 2002: Message edited by: Boss Raptor ]</p>

[tally]

Boss,
You're quite right. The market is not growing, but I believe they are betting on past loyalty to attract a good share of the market.

[Boss Raptor]

That past loyalty wont come from all the shareholders who it would seem lost a fortune when they floated on the Nigerian stock exchange as ADC Airlines PLC or the numerous banks and subcontractors such as JAT etc. they no doubt still owe money to from past operations...

[ 12 January 2002: Message edited by: Boss Raptor ]</p>

[JJflyer]

Rumour is that Freedom Air is to resume operations in the near future using B727-200. I flew for a while with one of their ex Captains in Western Africa. I am wondering if he is headed back to Nigeria.

[The Claw]

Apologies Hani for moving off the topic,

JJflyer: Do you know anything about Tokoph's plans in Benin? Will this be a new home for his B737's, I wonder? <img src="confused.gif" border="0">

[The Guvnor]

Bos Raptor - don't forget that Alpha Merchant Bank pocketed a very large proportion of ADC's funds when they floated the company.

ADC was the only airline in Nigeria to operate a proper reservations system (rather than the usual "run around the aircraft five times and the first x pax on board get the seats"); yield management system, proper crew training and maintenance.

Unfortunately, due to infighting, the best senior executives departed, leaving behind people whose primary interest was stealing as much money as possible.

Until Nigerian airlines are permitted to set their own fares - rather than have the government determine them for them - there isn't going to be the money available to pay for proper training, maintenance etc.

At the end of the day, you get what you pay for.

[Boss Raptor]

Well from what I have been reliably informed the Directors did rather well out of it as well...

Anyway ADC had a 737 on lease last year and it was eventually returned to the lessor as the routesdidnt pay their way...and now 9 months later they say they are planning to bring on another 3!

[JJflyer]

Air Afrique left quite a void when they "Rationalisized" Their operations.
Rumour has it that Mr T has a contract and intends to fly to South Africa via Brazza and Pointe Noire. Using either of his Companies. Since Lina Congo is reduced to one airplane operation ( Either the DC9 or B737 as they seem to change weekly .) Trans Air Congo with their peculiarities cannot compete effectively against an outsider with Mr T´s influence. Also I hear that Lina Congo being the state owned company is preferred over TAC. Looks like ANAC has been hitting them hard in the last month or 2 with non-flexibilty being the rule of thumb.
I think that there is a good business opportunities in Western Africa. You will see some of Mr T´s airplanes based there be it the Threeholer or Baby Boeing.

I remeber flying some of Mr T´s emmisaries from Brazza to Cotonou some time ago when they where on their inspection tour.

[tally]

Guv,
Remember Alpha was involved in a WT scam as well. Seems the system keeps reproducing the same characters. You're right in regards to the fare issue, the govt has to promote a free enterprise, not the system that kept Okada and Kabo flying based on patronage (CBN and Hajj).

[Hani]

Dear Guvnor,

I agree with you about the respect ADC Airlines deserves for setting new standards in the Nigerian air transport industry in the mid-90s. Unfortunately for itself, a series of air crashes including the fatal Boeing 727-200 crash near Lagos in 1997 and finally the BAC 1-11 incident in Calabar were too much for the traveling public to bear.

I believe that those incidents were a mix of catastrophic bad luck and perhaps some negligence here and there. But the airline needs to heal and hopefully it will win its case against the Nigerian government to raise a few dollars to rebuild.

I'm not sure if the fare liberalisation you propose could be that benefitial. A few years ago, the government allowed fare increases, resulting in a big drop in demand for air travel. With the current amount of competition (especially the Abuja air shuttle with 10 airlines?), fares stabilize at less the maximum allowable fares. But eventually, I agree that liberalisation should be implemented.

What about modern airliners? If the airlines (like Bellview, ADC or Chanchangi) secure loan guaranatees for say, a Boeing 737-300, could the a/c be operated profitably? Previously, airlines weren't allowed to operate at night. Does this still apply? What do you think?

Thank you,

Hani

[Boss Raptor]

There are not 10 airlines on the 'Abuja Shuttle' from Lagos or anywhere else for that matter!

[Hani]

They are:
Nigeria Airways (737-200)
Bellview Airlines (737/DC9)
Chanchangi Airlines (727)
Albarka Airlines (727/1-11)
EAS Airlines (1-11)
DANA (D328)
Aerocontractors (twice daily DASH-8-300)
ADC Airlines (resumption, effective March 02)
Savannah Airlines (BAC-11-500)

9 carriers share the market.

[Hani]

and..


Sosoliso Airlines (727-200)

[Boss Raptor]

The 'Abuja Shuttle' was a marketing name introduced by Bellview and referred to the Lagos-Abuja service and route.

It is currently being operated by;

Bellview (Oneflight Alliance)
Chanchangi
EAS/Skypower (Oneflight Alliance)
Albarka...sometimes
Nigeria Airways...sometimes

[Hani]

Boss Rapter,

I'm aware of the "Air Shuttle" marketing term used by Bellview, but I think by African standards, this route qualifies as a shuttle service.

What exactly is the "Oneflight Alliance"?

Is Albarka really flying erratically to Abuja and where else do they fly regularly?

Last, do you live in Nigeria and did you ever work there?

[j boy]

Boss
You worte EAS/Skypower is operating on the abuja sector. Is Skypower express operating pax flights now? If so what aircraft?

[ 18 January 2002: Message edited by: j boy ]</p>

[Hani]

Skypower Express is wet-leasing a Boeing 737-200 from Air Mediterranee (a French operator).

[Boss Raptor]

I am an Executive of one of the operators listed above...and yes I am regularly in the region...

The Oneflight Alliance is an economic grouping of three airlines who have agreed to share facilities,pool resources,crossover of ticketing and generally work together to achieve a better service and industry.

Those airlines are; EAS, Skypower Express and Bellview.

[Hani]

Hi Boss,

Could you shed some lights about the following issues related to Bellview Airlines?

1- What was the reason for the halting of intercontinental flights? Were services to Amsterdam, Nairobi and Mumbai unprofitable?. .How would Bellview compete against Virgin, British and Nigeria AW? Would they operate the A300 again?

2- Could Bellview secure the financing of increasingly cheap 737-300s? and could they operate it profitably?

3- Aren't there more markets in Nigeria where Bellview could make money other than ABV and PHC?

Sorry if I ask so much!

Thanks,

[Rani]

They have launched an interesting website at
www.adcairlines.com and their online reservation system seems to be working !

[lowflare]

Just to ad few corrections.Sosoliso operates 3 DC9 on Abuja route as well (among other domestic)...For you guys regular in the region,been there done that etc,etc

[Rani]

lowflare,

Do you know if the fuel shortage / price increases are still affecting flight operations? Are Sosoliso's flights, for example, being operated now?

Thanks

[lowflare]

As of my knowledge the Sosoliso ops are regular and most of the flights depart and arr. on time (as much as it can be in Nig:).Cheers,

lowflare