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Tuesday, 23 January 2018

Stakeholders Caution FG Over Approval Of Additional Frequencies, Routes To Foreign Carriers

Aviation Industry analysts have told the Federal Government not to grant additional frequencies and entry points to foreign carriers. They rather advise such airlines to form partnership with the nation’s airlines. OLUSEGUN KOIKI writes.

Stakeholders and the Nigerian scheduled local carriers are striving to survive. Their fleets have consistently deflated and recently nosedived to just 42 aircraft from over 80 in 2016.

Though, several factors are responsible for the depletion of the country’s aircraft fleet, but mostly mentioned are unfavourable operating environment, ownership syndrome and poor government policies as some of the challenges confronting the local carriers, thereby leading to avoidable close of shop of many.

However, to some players and analysts in the sector, government policies seem more pronounced among the factors responsible for early collapse of the nation’s carriers.

A government policy, which gives unhindered access to foreign carriers to land in multiple points in Nigeria and increase their frequencies without considering the local carriers, is undoubtedly having an untoward effect on the operations of ingenious airline operators who are still battling with multiple charges from government agencies.

As at the last count, no fewer than 11 of the about 30 foreign carriers operating into Nigeria land in multiple points in the country, yet, there is less than 5 per cent reciprocity to foreign cities from the country’s carriers as some of the nation’s airlines that have indicated interest to fly to single airport in some of these countries are stylishly stiffened out of their choice airports by foreign regulators and governments who insist on protecting their own carriers.

Some of the airlines with extra frequencies into Nigeria are British Airways, Air France/KLM, Ethiopian Airlines, Lufthansa, Egypt Air, Turkish Airlines, Asky Airlines, African World Airlines, Air Cote D’Ivoire Kenya Airways and others.

However, despite the obvious lopsided policy and extra capital flights out of the country due to the multiple entries and extra frequencies allotted these carriers, some of them still seek extra frequencies and entries into the country.

Recently, Mr. Samuel Lindfield, the Country Manager of Virgin Atlantic Airways in Nigeria during a chat with journalists in Lagos, announced the plan of the airline to increase its frequencies from present seven weekly to more.

Lindfield based his premises on the fact that Nigerian passengers patronised the airline on the Lagos-London route more than any other nationals during the outgone year 2017.

According to him, the ratio of percentage of Nigerians that fly with the airline was 60 per cent compared with other nationals.

Lindfield disclosed that the airline would likely seek for the review of its bilateral agreement with the Nigerian Government through the Ministry of Transport, Aviation Unit to enable it increase its frequencies weekly, so as to cope with the traffic on the Lagos-London route.

He also commended the Nigerian government and its aviation agencies for providing enabling environment for the airline and other foreign carriers to thrive in the country.

But, players in Nigeria are not comfortable with the planned request for more frequencies by Virgin Atlantic and other carriers, especially those with hostile relationships with the nation’s airlines.

Stakeholders that spoke to our correspondent cautioned the Federal Government against approval of additional frequencies to the airline.

They argued that such approval by the government would only increase capital flights out of the country by the airline without any major reciprocity from the country’s carriers.

Rather, they challenged the airline, which in November 2015 sacked its over 20 Nigerian cabin crew to form a partnership with Nigerian carriers in the local scene.

Statistics obtained by our correspondent indicated that the two British airlines were among the foreign carriers with highest number of revenues and passengers traffic in the third quarter of this year while the sole Nigerians operating into the route, Med-View Airline had less traffic.

For instance, British Airways in the third quarter of 2017 had airlifted 75,298 passengers in and out of Nigeria while its counterpart, Virgin Atlantic ferried 50,320 passengers within the period, totaling 125,618 passengers within the period.

However, the only Nigerian carrier flying the long haul route, Med-View Airline airlifted a paltry 18,870 passengers on the London and other of its international and regional routes within the same period.

Two carriers from United Kingdom, British Airways and Virgin Atlantic Airways currently operate 21 frequencies into and out of Nigeria weekly on the route while the sole Nigerian carrier operating the route has just four frequencies weekly and given Gatwick Airport instead of London Heathrow International Airport, which is the preferred airport for Nigerians.

Commenting on the development, Mr. Olayinka Abioye, the General Secretary, National Union of Air Transport Employees (NUATE), said that approval of more frequencies to Virgin Atlantic would not augur well for the country’s economy.

Abioye also queried the benefit of the airline to the country since it commenced operations into the country almost two decades, stressing that while the Nigerian Government gives foreign carriers the leverage to expand, Nigerian carriers flying to international routes are usually constraints by foreign governments.

He recalled that the airline in last quarter of 2015 sacked over 20 Nigerian cabin crew members, other Nigerian staff without accruing severance packages to the affected workers and also relocated its Nigerian call centre to other country.

Till date, no Nigerian cabin crew or cockpit crew is on the payroll of the airline that has highest number of travelling public on the continent from Nigeria.

He insisted that so far, there is no major reciprocity from the Nigerian carriers to the United Kingdom, stressing that the four frequencies weekly by Med-View Airline could not be compared to the current 21 from the two British carriers.

Abioye declared that rather than grant additional frequencies to Virgin Atlantic, the government should review the multiple frequencies allotted to foreign carriers, maintaining that most of the agreements had no economic benefit for Nigeria.

He added: “There are some of the foreign carriers that are just flying without any monetary benefit to the government and the attention of the government has been drawn to some of these irregularities. We are hoping that by this year, some of these would be reviewed and Nigerian carrier will get the benefit of some of these frequencies that have been given to some of these foreign carriers.

“Ordinarily, there should be some form of reciprocity in this movement. The argument has been that we don’t have our airlines on the international routes, but the few ones that are available, how well have they been taken care of and allowed to operate in the countries they fly into like their foreign counterparts that operate into Nigeria?

“Let’s wait for this year because there are several questions that we will be asking the government and the airline. Of what benefit is the operation of Virgin Atlantic Airways to Nigeria? I recalled that in 2016, we had to take them to the Ministry of Labour and Productivity over the disgraceful manner they disengaged some Nigerian cabin crew.

“There are questions we will be asking ourselves very soon. It is the same set of people that will be saying Nigeria is not conducive for business and will still come in here to do business.”

Also, Mr. Chuks Amokwu, another aviation analyst, urged the government to disregard the call for additional frequencies by Virgin Atlantic.

Amokwu, like others, said that such approval would lead to capital flight out of Nigeria, expressing that since the commencement of direct flight operations into the country by the airline, Nigerians working with it had consistently been relegated to the background and also recalled the sacking of over 20 cabin crew from Nigeria without a replacement till date.

But, Mr. Olumide Ohunayo, the Executive Director, Research, Zenith Travels, said that the extra frequencies for the airline would give air travellers more options on the route while airfare would also crash.

Ohunayo, however, noted that this would have negative impact on the country’s economy as revenue loss to foreign carriers would increase.

“But, we are still losing revenues to the foreign airlines because at the end of the day, whatever revenue that is generated by Virgin will be taken out of the country and thereby weaken our participation.

“Rather than giving foreign airlines more frequencies, we must be able to build credible airlines that these foreign carriers will partner with. But, before the foreign carriers can do this, we need to build a standard that will be in tune with international standards.”

The post Stakeholders Caution FG Over Approval Of Additional Frequencies, Routes To Foreign Carriers appeared first on Independent Nigeria.

Stakeholders Caution FG Over Approval Of Additional Frequencies, Routes To Foreign Carriers



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