Written by Dixon Omobola
In this interview, ASRTI/ART Aviation Safety Roundtable Secretary General Olumide Ofunayo talks about Nigeria’s Bilateral Air Services Agreement BASA with the United Arab Emirates and UAE.
Travel analysts also identified, among other things, why Nigerian airlines are not interested in operating to the UAE, even though the Minister of Aviation and Aerospace Development, Festus Keyamo, said they had cleared potential hurdles. I am doing it.
background:
Care must be taken as the appropriate blocks are laid. Like all other partners, the UAE has been shown to be a predator whenever reciprocity clauses are triggered. Recall that for Nigeria to get an Air Peace slot in Dubai, a letter from the Federal Government to the UAE was required. All the while they pushed Air Peace into Sharjah, making the terminal and arrival times uncomfortable. And then the UAE only tried to shut it out of Sharjah completely by tightening the noose and further breaching the BASA between the two countries. However, with the resignation of former Aviation Minister Hadi Sirika, slots have become available that were never available at Dubai Airport. This means that when we put together a law, from the moment we designate an airline that is also the flag carrier for a designated route, we activate the necessary communication with the necessary government agencies and ministries and their counterparties, and ensure that the provisions and wordings are in place. Indicates that it should be reviewed. Based on our agreement, we can get a positive commercial deal and get a grateful response from the other party. I believe that the lessons of the past and his I believe it was legal acumen. Reciprocity has always been part of all bilateral and multilateral air services agreements. It is historical, not just invented or inserted. The fact that the minister says he has cleared all the hurdles in the agreement suggests that he must have done something about the slots that were once an issue. As I said earlier, there were no slots available before. But unlike the previous minister, who had to shut up after the deed was done, the current minister, before resuming operations, said: “If you go into Lagos, I go into Dubai, which means they go into Dubai.” He said he would like to conclude an agreement. I have to find a slot.
strict visa
It is absolutely within the UAE government’s rights to amend visa policies to protect its citizens and assets prior to tourism. That said, strict visa measures have made it extremely difficult for any airline to conduct point-to-point flights. And perhaps that is why there is no interest from Nigerian airlines at the moment. So, to have a decent balance sheet, we need a partner to take passengers from Dubai and other airports in the UAE. The visa policy currently in place is very strict against visiting Dubai and does not encourage travel, just as the South African route has now been effectively abandoned by Nigerian airlines. Visa policy favors Emirates. This is due to the international hub-and-spoke policy that Emirates has leveraged heavily to compete and gain an advantage. Unfortunately, we can’t compete. Before we can dream of competition, we need to improve airport infrastructure, invest in airlines and develop a hub airport here.
Air Peace and Heathrow Airport
This is reminiscent of a recent development in which the Minister wrote to British authorities regarding slots at Heathrow Airport, but troublingly, 80 per cent of those who criticized the Minister were Nigerians, not British. That’s what it means. Why do we cry more than the bereaved families? There is also an aeropolitical arm-twisting school of slots. It’s so we know how to play our game. It is up to us to know how to retaliate, because retaliation is not diplomatic. When it comes to the London route, just like we are talking about Dubai now, Nigerians are more aggressive. They are more worried about foreign airlines than domestic airlines. The minister, who is a lawyer, saw the agreement and took action. Now that the arrow has been released, all you have to do is wait and see until the arrow hits the target.
Impact of Emirates Airline flight suspension
Emirates operated 21 weekly flights to Nigeria (14 to Lagos and 7 to Abuja). That was the majority of international seats. The withdrawal from international flights led to a rise in international flight fares. The grounding reduced competitiveness, which the few remaining foreign airlines took advantage of. One of the airlines that benefited was Qatar Airways and the airlines of Egypt and Morocco. They all used that opportunity to increase frequency and raise prices. Emirates’ withdrawal had a major impact on the industry. Aviation Ecochain experienced revenue loss. All businesses were hit, from government agencies to travel agencies, airport taxis, service providers, and catering providers. Everyone felt the pain of departure.
Benefits of Emirates’ return and potential codeshare agreement
Let me tell you, governments cannot enforce commercial agreements, but they can grant approval as long as the agreements are mutually beneficial to all parties and are not predatory. The glee that Emirates has caused over codeshare and cooperation commitments with airlines is welcome, but it is not new. Ten years ago, Emirates took another step forward by signing an agreement with Arik. Still, the benefits were not significant. Emirates needs to step up based on the steps I highlighted earlier. Again, it takes two people to dance the tango. Additionally, our airlines should not expect cooperation to be legislated or forced. Derailment can lead to lawsuits and loss of customers, so integrity should come naturally based on business ethics, systems, and processes that require it. The good thing is that Emirates is here now. The capacity they regain will help reduce freight costs. I recently had to book a flight from Abuja to Sydney, Australia and Emirates offered me the cheapest fare. Although it was denominated in dollars, it was cheaper than Naira. The more competition, the more fun and better the experience for passengers. What I want Emirates to do is not just operate flights, but invest in airlines and airports and other parts of the aviation ecosystem. What we currently lack is significant investment from outside institutions and individuals, and that’s what we need to work on.
Topics about strangulation
Foreign airlines didn’t strangle us, we strangled ourselves by refusing to plan. And when I tried to make a plan, I ended up half-hearted. I think only Nigeria, not foreign airlines, can get out of this predicament. You can’t start big. You just need to build it up slowly. I like Ibom Air and Overland’s small steps. As we start to grow, we will encourage competition and domestic integration, and then we will start to look at international cooperation and investment partnerships on international routes. That way we can grow and participate organically. We have the market and the knowledge, but it’s time to start looking at what other successful countries are doing to deepen their aviation sector. That’s what partnerships are: commercial agreements that bring these multiple airlines together in the form of mergers, alliances, codeshares, etc. to create a larger, more powerful airline.
AMCON, ARIK, AERO
As of today, I do not understand why the Nigerian Asset Management Corporation, AMCON, still has to manage Arik and Aero as two different entities. These two airlines should be combined and brought to market, and court and ownership issues should be resolved so that these airlines can continue to operate and grow until all debts are resolved. It should even be handed over to a holding organization until resolution.
The need to collaborate and take on challenges
As of today, Air Peace operates flights to London. There should be two or three airlines flying that route. However, there are still some routes that are not served by Nigerian airlines, so you should start looking for airlines that you can work with to challenge the big airlines. I like what Air Peace is working on with the Norwegian airline. I would love to see what they can do for them beyond London. Once again, those who have criticized Air Peace for demanding slots at Heathrow should allow Air Peace to breathe. They have a professional team and a business plan. If Heathrow Airport is what they want, it must be respected. Slowly build partnerships with some brands and investors who can support your airline. This also leads to a direction for practice in protecting these assets from judicial obstruction. Recently signed Practice Directions will give airlines access to more aircraft, more dry leases, and acquiring dry leases will bring in more jobs and reduce lease payments. Insurance will also be reduced, which will help expand the aircraft’s carrying capacity. .
