Louis Ibah
The sloppy performance of Nigerian airlines on international routes is gaining currency within the aviation sector with concerned stakeholders pushing for a raft of protectionist policies to sustain local operators on the global stage.
Although, Nigeria does not rank among the world’s developed economies, it’s citizens nonetheless are grouped among nations contributing to air transport passengers traffic growth across major international airports in the world.
A recent data on passenger movement released by the Federal Airports Authority of Nigeria (FAAN) said there were 227,834 aircraft flights that moved in and out of Nigeria in 2018 carrying an estimated 15.2 million passengers.
Without a doubt, Nigerians travel a lot. A population of over 200 million people with limited job opportunities has seen Nigerians migrating more than any other African nationals in search of greener pastures in various developed countries in Europe, America, and Asia. These economic migrants – alongside those going for academic, sports, diplomatic, trade, medical and tourism purposes – drive the huge population of Nigerian traffic coming in and out of the country’s international airports. Sadly, with the absence of a vibrant national or flag carrier, the bulk of the Nigerian passengers are carried by foreign airlines with the attendant capital flight.
Stakeholders complaints
Recent data released by the Airline Operators of Nigeria (AON), indicated that foreign airlines repatriate about $3billion out of Nigeria annually. But in raising the alarm, the greater worry for the local airline owners is the havoc done the value of the local currency with the repatriation of such huge funds by foreign airlines.
According to the Chairman of the AON, Capt. Nogie Meggison, it would be impossible for the government desiring to diversify its economy and boost the aviation sector contribution to national GDP to achieve its goal in an environment where about $3billion (monies generated by Nigerians) is lost annually to foreign airlines and their bankers. Something ought to be done to halt the slide, Meggison said.
It is a view also shared by the Aviation Round Table (the think-tank of the industry). It’s President, Gabriel Olowo, called for urgent steps be taken by the Federal Government to protect the local airline industry.
Among other challenges , the AON and the ART identified the multiple designation of routes and frequencies assigned foreign airlines operating into Nigeria, the failure of the government to assist local airlines weather the storms of international aero-politics, and the exorbitant and multiple taxes paid by local airlines as factors hindering their competitiveness at the international aero-market.
The aero-politics angle
According to the Chairman of the Airline Operators of Nigeria, Captain Nogie Meggison, the issue of aero politics led to early exit of most of Nigeria’s local airlines on international routes.
“Operators like Bellview were frustrated out of the India market; Arik Air was given a distant parking bay in Dubai at the far end of the terminal; Medview was frustrated out of the London route by sheer regulatory technicalities and so called safety deficiencies, unfair slot allocation, exorbitant airport charges, levies and fees,” said Meggison.
“There are all forms of excuses mainly to discredit the Nigerian airline as a means of edging them out of the route in order to get rid of the competition posed to their own local operators on the route and to protect their own,” Meggison said.
It was a view corroborated by the Chairman/CEO of Air Peace, Mr. Allen Onyema, who also sees ‘aero-politics’ as one critical issues the Federal Government has to take serious if the problem of capital flight and poor participation of Nigerian airlines in the international market is to be tackled.
“Most countries see Nigeria as a huge market that offers them the opportunity to make so much money and they can only do this if their airlines operate into Nigeria (as a monopoly) without a Nigerian carrier flying in reciprocity,” said Onyema.
“You find a situation where some countries do everything to block a Nigerian airline flying into their country. They impose all manner of exorbitant charges to discourage Nigerian airlines;they charge you for in-bound and out-bound flights, but when they come to Nigeria they are given red-carpet reception. In fact, our own people in Nigeria assist them to get what they want even to the detriment of Nigerian carriers. And when you complain they say they are creating more options for Nigerian passengers. But in reality, there is no Nigerian carrier on such a route offering any competition. This must change. There is no reason to give them what they are not ready to give us. The government of Nigeria should reciprocate these charges to serve as a deterrent and protect Nigerian airlines,” Onyema added.
Multiple routes designation
The move by officials of the Federal Ministry of Transport to grant a third frequency to Emirates to fly out of Lagos is already infuriating stakeholders in the aviation sector with the Nigerian Senate calling for a review of the BASA agreements signed by the Federal Government given the lopsidedness that tends to favour foreign airlines.
According to Senator Ifeanyi Ubah, who moved the motion for the Nigerian Senate to review the BASA agreements with other countries, continuous offer of multiple routes and frequencies by ministry officials will never allow foreign airlines to interline or code-share with local airlines as it is done in other countries. Ubah, said an emerging local airline like Air Peace will be heading for a financial crash on the newly launched Lagos-Dubai route if a third daily frequency is given to a gulf airline to fly from the Lagos-Dubai route and mop up at a much reduced fare passengers that ought to fly with the local carrier.
“You find a situation where because Air Peace is now going to Dubai and Sharjah, some gulf airlines have started a promo to offer ticket fares that ordinarily won’t take a passenger from Lagos to Owerri and this ticket also comes with free accommodation,” explained a top official of a local airline calling for a review of existing BASA deals.
“Nigerians don’t know that this is a trap. They are very happy. They want to give them a third frequency to fly from Lagos, plus the one frequency they have in Abuja. The target is to run the Nigerian airline out of the route. They are ready to incur the short-term loses. But once they succeed, the next thing they do is to jack up the airfares immediately. And by the time they are operating as a monopoly, Nigerians will be paying even more. That’s the trick; that’s the danger of allowing multiple entries and frequencies to foreign airlines which they can’t allow in their countries.