Emirates: Stakeholders predict major shift in Nigerian market dynamics

 …Seek urgent resolution on Dubai visa

The announcement last week of Emirates Airlines’ resumption to the Nigerian market 18 months after it exited as a result of a diplomatic face-off between Nigeria and the United Arab Emirates (UAE) may have sent jitters down the spines of other carriers that filled the void created by the carrier’s exit.

While announcing Emirates flight resumption last week, Adnan Kazim, Emirates’ Deputy President and Chief Commercial Officer said, “We are excited to resume our services to Nigeria. The Lagos-Dubai service has traditionally been popular with customers in Nigeria. We hope to reconnect leisure and business travellers to Dubai and our network of over 140 destinations.  We thank the Nigerian government for their partnership and support in re-establishing this route and we look forward to welcoming passengers back onboard.”

While Emirates was away, Qatar and Ethiopian Airlines occupied the space left by the carrier as their flights were very full as many of the passengers to far-flung destinations like Malaysia, China, Australia, Bangkok and India shifted to the two carriers.

But with the resumption of Emirates flights, there are indications that Emirates, Ethiopian Airlines and Qatar may slug it out to retain huge market share on those routes even to Europe as some Nigerians travel through Addis, Dubai and Doha to Europe and many other destinations.

Chairman of Dees Travels and Tours Limited, Mr Daisi Olotu told Aviation Metric that while Emirates was away for nearly two years, other carriers shared the market amongst themselves.

He however stated that since the announcement of flight resumption by the carrier, other carriers had become jittery because of the awareness of the strength of the Dubai-based airline and the enormous products it would be coming with to retain its market share that made it operate 14 frequencies in and out of Lagos to Dubai and the capacity to do 21 frequencies weekly.

Olotu, while describing the resumption of the airline as a welcome development, called for the government to speedily resolve the visa conundrum that made air travel to Dubai cumbersome.

 The UAE said October 2022 it will no longer issue visas to citizens from Nigeria and 19 other African nations. It did not provide further details.

Obtaining a 30-day tourist visa was relatively easy until the UAE abruptly stopped issuing visas to Nigerian nationals.

Olotu noted that relaxing visa restrictions for Nigerians should be resolved, adding that that would also help Air Peace to quickly return to the Dubai route.

According to him, “When Emirates left the Dubai-Lagos route, other airlines shared their market but with the return of the carrier, other airlines were jittery. Their resumption is a welcome development and good for the market as it provides additional capacity and choices.”

“We laud the Nigerian government for paying the carriers their trapped funds. They must allow Air Peace to return to the route by resolving the visa issue as quickly as possible.”

The Group Managing Director of Finchglow Holdings and a former President of the National Association of Nigerian Travel Agents (NANTA), Mr. Bankole Bernard said the coming of Emirates would be an additional inventory in the market with more choices for the passengers, saying, “Their service will make them stand out. It is a welcome development for the market”.

Aviation consultant, Dr Daniel Young said in terms of brand visibility, the airline stands head and shoulder above many of its competitors or those that share the market with it.

According to him, “It is very difficult for anyone who has flown the airline to say they prefer other carriers. It is a brand to beat because you know what to expect on the airline. The possibility of missing your luggage is zero. Emirates will dominate the market again and many Nigerians are willing to patronize the brand.”

A former National President of NANTA, Mrs. Susan Akporiaye stated that Emirates would do more than enough to recapture the market, noting that when the carrier exited the route, Qatar and Emirates occupied the void left by the airline.

She said during that period, Qatar Airways consolidated on the route and provided five star service to it’s customer maintaining that Qatar is a five star airline while Emirates is a four star carrier.

She admitted that Emirates is a very rich airline and about one of the few richest carriers in the world but stated that it would find it hard to take back the market just like that except it comes up with promotional fares and products that would make passengers warm up to it.

She equally agreed that the resumption of flights by the carrier on the Nigerian route would open the space for more choices and more business for travel agents.

One of the factors that she said would work against the carrier is the fact that Emirates only operates to Lagos from Dubai while Qatar operates to both Lagos and Abuja, explaining that Abuja residents or travellers do not like to come to Lagos for their flights and would rather travel from Abuja.

Without the Nigerian route, Emirates Group announced annual profits of $5.1 billion last week a rise of 71 per cent, as the airline company set a new record for the second year in a row.

“The Emirates Group has once again raised the bar to deliver a new record performance,” said chairman and chief executive Sheikh Ahmed bin Saeed Al Maktoum.

State-owned Emirates Group, an operator of the world’s largest long-haul carrier, announced a record $3.0 billion in profits last year as it returned to the black after the pandemic.

“The Group’s excellent financial standing places us in a strong position for future growth and success. It enables us to invest to deliver even better products, services, and more value to our customers and stakeholders,” Sheikh Ahmed said.

Last year’s profits followed a $1.1 billion loss in the post-pandemic 2021-2022 financial year and a $5.5 billion deficit in Covid-ravaged 2020-2021, its first in more than three decades.

“The Group’s excellent financial standing today places us in a strong position for future growth and success. It enables us to invest to deliver even better products, services, and more value to our customers and stakeholders,” Sheikh Ahmed said.

Wole Shadare