African airlines hit most by fuel costs

Filed under: Kenya — admin @ 2:00 pm

Rising fuel costs continue to afflict African airlines as they fight to make a mark in global aviation.

With the challenging economic situations, the airlines are experiencing what industry players term as exceptional challenges.

“Over the past three years, the challenges have been rising and the situation is getting worse, but the burden now lies in the cost of fuel,” Mr Mike Higgins, vice president of Africa region, International Air Transport Association (IATA), said on Monday.

While high fuel prices could be a global phenomenal, airlines in the region are feeling the pinch most, owing mainly to the current economic hard times.

This, Mr Higgins said, will result in low results for the industry this year.

“We are looking at returns of about one and a half per cent, which is exceptionally low,” he said.

In a report released last week IATA indicated that African airlines are expected to break even this year.

But, it added, the airlines will slip back to losses of around $100 million next year.

Kenya seeks bids for border projects to boost EA trade

Filed under: Kenya — admin @ 9:54 am

Kenya has floated tenders for the construction of five one-stop border posts, raising hopes for faster trade flow with neighbouring countries.

The Kenya National Highway Authority said Thursday the facilities would be constructed at Lunga Lunga, Malaba, Busia, Taveta and Isebania as part of the East Africa Trade and Transport Facilitation project.

Bids for the tenders are scheduled to be opened on October 21 and successful bidders required to conclude construction work within 15 months.

East African Community Affairs PS David Nalo said the all-under-one-roof customs houses would harmonise transit clearance procedures.

“The essence of this concept is to have officers from both countries sit under one roof and handle transit documents concurrently in order to save on time,” he said.

Currently, traders in the region are hampered by strenuous customs clearance procedures in which goods are inspected separately by officers on either side of the border leading to massive delays.

This situation often leads to corruption because impatient truckers and traders resort to offering bribes to jump queues or expedite clearance of their cargo.

Analysts said the harmonisation of customs clearance routines on common borders would cut back on processing time and substantially reduce the cost of doing business.

“It makes no sense to be cleared on one side then be subjected to a repeat process on the other end. It is expensive in terms of time and we hope the new posts being created will deal with this matter comprehensively,” Mr Abdul Mohammed, a cargo transporter told the Business Daily by phone.

A pilot one-stop-border post facility erected on the Kenyan border with Uganda at Malaba has already yielded success story with its backers such as the World Bank calling for its replication.

Prior to the establishment of the facility, truckers required two days to clear with customs officials on the common border but this has since been slashed to an average two hours or less owing to the joint handling of documentation. “The other five concepts will be seeking to replicate the success story from Malaba and spur trade across other borders,” Mr Nalo said. “The results from the facility on our border with Uganda have proved that this is the way to go.”

Greek FM Expresses Athens’ Concerns over Recent Developments in Eastern Mediterranean

Filed under: Greece — admin @ 5:57 am

United Nations.- Greek Foreign Minister Stavros Lambrinidis on Friday  expressed Athens’ concern over what he called Ankara’s “threats and hostile actions against the Republic of Cyprus, speaking from the podium at the 66th UN General Assembly. Lambrinidis sternly condemned what he called Turkey’s hostile “rhetoric” and reiterated Greece’s support for the UN-brokered peace process to unify the island republic.

He further juxtaposed Turkey’s polemics with Athens’ stance, stressing the latter’s commitment to exploratory talks with Turkey on the issue of delineating the Aegean’s continental shelf, adding however, that in case Turkish leadership decides against cooperation, then the issue should be referred to the International Court of Justice at The Hague.

In other points raised during his address, Greek foreign minister referred to the need to broaden and deepen international cooperation in order to face whatever challenges, such as climate change and desertification, along with security threats, such as nuclear proliferation, terrorism and piracy.

Closer to home, he cited Athens’ standing “Agenda 2014″ initiative to promote the European prospects of the western Balkans, while also referring to increased cooperation at the regional and trans-regional level.

Turning to developments in the wider region, Lambrinidis expressed Greece’s complete support for the “Arab Spring” and what he said was the “rights of peoples” for democracy and a better life, touching particularly on Greek actions vis-a-vis the recent conflict in Libya, such as the evacuation of thousands of third country nationals from the North Africa country, support of the NATO ‘no fly’ decision and a continuous Greek diplomatic presence in Benghazi.

Regarding the timely issue of the Palestinian Authority’s request for recognition of independence by the UN body — a matter that dominated the limelight at the 66th General Assembly — Lambrinidis repeated Greek policy in support of Palestinians’ right to their own nation, as well as in their right to petition for such recognition.

“Palestine has the right to exist as an independent state, just as Israel has the equal right to exist in complete and unwavering security,” he emphasised.

In another matter, Lambrinidis said Greece will be a candidate for a seat on the Council of Human Rights for 2012, and as such, requests the support of the UN’s member-states for the slot.

Finally, the veteran diplomat touched on the thorny and still unresolved “name issue” involving Greece and the neighbouring former Yugoslav Republic of Macedonia (fYRoM), reiterating Athens’ desire for a solution via a “fair compromise” that includes a name with a geographic determinant, for use by all (erga omnes).

“We want a resolution to the matter so that we can develop the huge prospects entailed in relations between our two countries, on the basis of directness and sincerity,” he said.