Stories by Louis Ibah
On Thursday December 7, 2017, Medview Airlines Limited launched its inaugural flight from the Murtala Muhammed International Airport, Lagos into the Dubai International Airport, in the United Arab Emirates (UAE). The historic Medview’s flight operated with a Boeing 767-300 aircraft had 197 passengers on board. It would be the third attempt by a Nigerian carrier on the lucrative Lagos-Abuja-Dubai route. Prior to this, two other Nigerian airlines – Virgin Nigeria and Arik Air – had made foray into the Dubai market. But their operations were short lived, thus raising fears on the ability of Medview Airline to survive the stiff competition often offered by the UAE airlines plying that route.
Daily Sun learnt that top priority is given to the Nigerian market by the government of the UAE which also throw in their weight to ensure that they don’t cede an inch of the market to any Nigerian airline that attempts to offer a competition on the route.
“They (Arik and Virgin Nigeria) were frustrated out of the route because they lacked the capacity and the backing of the Nigerian government to withstand the politics played by the two airlines from the United Arab Emirates that operate into Nigeria,” said a senior government official.
“In fact, for the past four years, the Bilateral Air Service Agreement between Nigeria and the United Arab Emirates (UAE) has been left in the hands of Emirates and Etihad due to the absence of a Nigerian carrier and they really enjoy that sort of monopoly. But it is sad because Nigeria continues to lose millions of dollars annually in capital flight. We hope the entry of Medview Airline into Dubai won’t end abruptly like the case of Arik and Virgin Nigeria,” added the official who spoke to Daily Sun at an event organised to celebrate Medview Airline’s inaugural flight into Dubai.
The challenges
Managing Director/CEO of Medview Airlines, Mr. Muneer Bankole, told Daily Sun that the major reason Nigerian carriers fail whenever they ventured offshore like into the UAE is due to the lack of support by the Nigerian government.
“No airline can survive outside without the backing of its government,” said Bankole. “But I can tell you that Nigerian carriers who launch out to other countries don’t have the government backing as being enjoyed by airlines like British Airways, Ethiopian Airline, Emirates and others that fly into Nigeria. We are usually on our own and this is not helping us to grow,” he added.
Indeed, following the collapse of Nigerian Airways in the early 2000s, successive Nigerian governments have failed to extend the same support it gave to the then national carrier (Nigerian Airways) to any of its indigenous operated airlines. For instance, regulatory approvals on the Nigerian side for local airlines to go offshore are often stalled or frustrated. There are also allegations of graft by local airlines against top officials at the Ministry of Aviation who are believed to be paid by foreign airlines to prevent the reciprocity of local airlines on their routes as stipulated in the BASA thus leaving them to enjoy a monopoly.
It is a trend that has exposed most local operators to all manner of abuses whenever they venture outside Nigeria, even within its tiny West African neighbours who are all abreast of the fact that Nigerian carriers enjoy no form of government protection.
The other challenge most nigerian airlines battle with sustaining their operation offshore is the high cost of fuel bought in Nigeria. There is also the challenge of the high cost of funds to purchase aircraft as well as the high cost of insurrance premium paid on aircraft in Nigeria.
Way forward
Some stakeholders who gathered at the Sheraton Hotel Dubai to celebrate the inaugural flight of Medview Airlines into Dubai last week Sunday were however of the view that if the airline and any other Nigerian airlines that come into UAE did the right the right things, there was no way their entry would end abruptly.
The Nigerian Ambassador to UAE, Mr. Muhammed Remi, said Nigerian airlines have to step up their game and ensure that they render efficient service delivery to passengers.
Getting the right aircraft and having the best in-flight entertainment on board for passengers is an imperative if a Nigerian airline hopes to compete with the UAE carriers.
“There has to be on time flight departure and efficient operations and good treatment of passengers,” Remi said. “There is a lot of competition on this route, but the solution to competition is perseverance,” he added.
Minister of Women Affairs, Mrs. Aisha Al Hassan, who also spoke at the event demanded the greater patronage of Nigerian carriers by Nigerians. She lamented the trend whereby Nigerians would chose to patronise foreign airlines to the detriment of their own carrier saying the monies spent in buying air tickets on foreign carriers would go a long way in boosting the local economy if spent on a Nigerian airline. “There should be patronage from Nigerians at home and in the Diaspora for indigenous airlines,” said Al Hassan. “For instance, Medview has brought a Nigerian product to Dubai. It behooves on Nigerians to support the airline knowing that any money spent in buying a Medview ticket is retained in Nigeria,” she added.
Al Hassan was simply reiterating the position of other stakeholders who said the Federal Government should make it compulsory that on all routes where Nigerian carriers fly to, its officials must fly the Nigerian carrier.
In fact, it has been argued that the reason foreign airlines charge Nigerian passengers’ exorbitant fare on some routes that they fly direct from Nigeria is because there is no competition from a local airline. Once they is a completion from a Nigerian carrier like Medview has done on the Lagos – Abuja-Dubai route, the fares from Emirates and Etihad is bound to drop. Most stakeholders were also of the view that one way the government can support Medview to stay longer and consolidate on their Lagos – Abuja – Dubai route is for it to block the fresh attempt by Emirates to re-launch its Abuja – Dubai flight. It would be recalled that the airline had refused to cooperate with the Nigerian government and operate its Abuja – Dubai flight from the Kaduna International Airport following the shutdown of the Abuja airport for its runway maintenance earlier in the year. If Medview is allowed to operate a monopoly for a year on the Lagos – Abuja- Dubai route, it would go a long way in assisting it consolidate its operations on that route. That is what most governments that care for the growth and survival of their own airline would do. As a major crude oil producing country, nothing stops the Nigerian government from ensuring that local airlines flying to foreign destinations have access to cheaper fuel if that is the edge the UAE have over the Nigerian carriers.
Interlining
It is believed that about 40 -50 per cent of the Nigerian passengers that fly into Dubai with Emirates only use the airline to connect to other countries or cities, especially in Asia. China, Hong Kong, India, Japan, Indonesia, Malaysia are some of the countries where Nigerians connect to using Dubai. Nigerian airlines flying into Dubai must therefore make greater efforts to code-share or interline with other foreign airlines that would help them airlift their passengers wishing to connect to other countries outside Dubai. That way, Dubai would not be the final destination for the Nigerian carrier but a stopover hub like it is the case with other airlines where passengers can connect onto other destinations.