Global aero politics: Time for Nigeria to wake up
WOLE SHADARE looks at the intricate global aviation politics and concludes that Nigeria also needs to play the game to increase market share for her airlines
The disclosure
Last week, the Managing Director of Nigeria’s only listed carrier on the Nigeria Stock Exchange (NSE), Medview Airlines Plc, Alhaji Muneer Bankole, took people into a serious politicking by global aviation players. This borders on how nations protect their airlines amid stiff competition.
The hurdles deliberately set by foreign airlines to frustrate Nigerian airlines from reciprocating Bilateral Air Services Agreement (BASA), came to the fore as United Arab Emirates averted a diplomatic spat between it and the Nigerian Government.
The UAE had recently prevented Nigeria’s flag carrier airline, Medview Airline from operating to Dubai Terminal One Airport, citing slot allocation or ‘lack of space’ at the Emirates Airline’s hub in Dubai.
The UAE had concluded plans to allow Medview, which is scheduled to begin Lagos-Dubai flight by end of the year to Sharjah, to operate to a remote and less viable airport in the country, which was flatly rejected by the carrier and Nigerian government. After Medview had filed applications to the UAE, backed by the Nigerian Civil Aviation Authority (NCAA), the former wrote back to say they could only allow the Nigerian flag carrier to operate into Sharjah.
The hurdles deliberately set by foreign airlines to frustrate Nigerian airlines from reciprocating Bilateral Air Services Agreement (BASA), came to the fore as United Arab Emirates averted a diplomatic spat between it and the Nigerian Government.
The UAE had recently prevented Nigeria’s flag carrier airline, Medview Airline from operating to Dubai Terminal One Airport, citing slot allocation or ‘lack of space’ at the Emirates Airline’s hub in Dubai.
The UAE had concluded plans to allow Medview, which is scheduled to begin Lagos-Dubai flight by end of the year to Sharjah, to operate to a remote and less viable airport in the country, which was flatly rejected by the carrier and Nigerian government. After Medview had filed applications to the UAE, backed by the Nigerian Civil Aviation Authority (NCAA), the former wrote back to say they could only allow the Nigerian flag carrier to operate into Sharjah.
Protectionism
Speaking at an occasion to unveil its new routes, which include Baltimore, Washington, Houston Texas, Abidjan, Conakry, other routes and upgrading of four First Officers to captains, Bankole said some countries tried very hard to put impediments on their path to frustrate the carrier from operating outside the shores of Nigeria because of competition.
Speaking at an occasion to unveil its new routes, which include Baltimore, Washington, Houston Texas, Abidjan, Conakry, other routes and upgrading of four First Officers to captains, Bankole said some countries tried very hard to put impediments on their path to frustrate the carrier from operating outside the shores of Nigeria because of competition.
He described protectionism in airline business, especially for foreign carriers who have unfettered access to Nigerian market, as very unfair.
His words, “The Dubai authorities said they had no space for us in Terminal 1 and instructed that we move to another airport in Sharjah. We wrote to the Federal Government. The government wrote a strongly worded letter to them to allow for reciprocity.”
The Government said since they did not stop Emirates Airlines from operating to Nigeria, there was no reason why they should not allow Medview to reciprocate flight rights.
His words, “The Dubai authorities said they had no space for us in Terminal 1 and instructed that we move to another airport in Sharjah. We wrote to the Federal Government. The government wrote a strongly worded letter to them to allow for reciprocity.”
The Government said since they did not stop Emirates Airlines from operating to Nigeria, there was no reason why they should not allow Medview to reciprocate flight rights.
He disclosed that the Dubai authority eventually listened and yielded to the government’s request that the airline operate to Dubai Airport Terminal One.
“We want to commend the government and the Minister of State for Aviation, Hadi Sirika for helping to protect the interest of our airlines. The speed at which they rose to the occasion was highly commendable. I am very proud of the government that we have for taking this up with UAE,” he said. Bankole also disclosed that the ‘big boys’, which can be interpreted to be mega carrier on the lucrative London route are posing great challenge to the operations of the airline to London, but noted that the carrier has come to stay on the route, which is about the most lucrative for the airline aside the West Coast route.
This scenario has given cause for concern on how Nigeria has been liberal in granting traffic rights to foreign carriers without getting anything in return, especially as it relates to domestic carriers.
Just recently, the Minister of State, Sirika recently ordered foreign carriers to recruit Nigerian pilots to be part of the technical crew of foreign carriers into Nigeria as a measure getting some positive returns for the country.
Nigeria lags behind
Over the years, Nigeria seems not to have taken aero political manoeuvrings seriously. The closest it came about was the stand-off between it and United Kingdom some six years ago when the British Airport Authority (BAA) had to stop Arik over failure to renew its slot at Heathrow Airport.
The country’s airlines are too small and fragmented. They lack what it takes to compete, just as they are constantly constrained by policies of the government that have made them not to be able to compete.
Over the years, Nigeria seems not to have taken aero political manoeuvrings seriously. The closest it came about was the stand-off between it and United Kingdom some six years ago when the British Airport Authority (BAA) had to stop Arik over failure to renew its slot at Heathrow Airport.
The country’s airlines are too small and fragmented. They lack what it takes to compete, just as they are constantly constrained by policies of the government that have made them not to be able to compete.
Nigeria has over 70 BASA, but do not have the funds to reciprocate air pact. Even the Nigeria-US Open skies, which used to be at US’s advantage because two America carriers – Delta and United – operated to the country while only Arik reciprocated in what appeared to be a no competition before the carrier eventually stopped flight services to New York early this year.
What Nigeria needs is to find ways foreign carriers will operate into some destinations along with their counterparts. Alternatively, its best to seek another bilateral air services negotiation.
However, considering the new policy being initiated for an African single sky, that could be a major hurdle.
Nigeria’s huge aviation potential
Being Africa’s largest aviation market, Nigeria can take a bold move to negotiate on its own and force its agenda through. The marginal contribution of aviation to Nigeria’s Gross Domestic Product (GDP) is inexcusable. A 20 – 30 year roadmap is required with the total agreement of stakeholders on how to move the industry forward irrespective of political leanings or developments in the future. A visionary road map that will survive future governments is the key to the future growth of aviation in Nigeria.
Tit for tat
Tension was high as the Nigerian government threatened to stop British Airways from operating to Nigeria in what it described as a tit for tat policy of reciprocity.
The Nigerian government through the NCAA immediately filed a case against British Airways for price fixing among other ill treatment levied against Nigeria travellers.
An aviation expert, who spoke on condition of anonymity, said being Africa’s largest aviation market, Nigeria can take a bold move to negotiate on its own and force its agenda through.
“As a top emerging market, Nigeria’s aviation market is a huge potential over the next 50 years, considering the current and future youth population and the untapped human and material resources”.
Tension was high as the Nigerian government threatened to stop British Airways from operating to Nigeria in what it described as a tit for tat policy of reciprocity.
The Nigerian government through the NCAA immediately filed a case against British Airways for price fixing among other ill treatment levied against Nigeria travellers.
An aviation expert, who spoke on condition of anonymity, said being Africa’s largest aviation market, Nigeria can take a bold move to negotiate on its own and force its agenda through.
“As a top emerging market, Nigeria’s aviation market is a huge potential over the next 50 years, considering the current and future youth population and the untapped human and material resources”.
Global airline politics
Aero political battle is not limited to Nigeria alone. Few years ago, the biggest U.S airlines, sparred with three Persian Gulf carriers over flights into the U.S and asked the Obama administration to consider new limits on that service.
Chapter 11 bankruptcy protection in the U.S. is an incredibly powerful tool for airlines and other companies to reduce structural costs. It is a tool not available to carriers outside the U.S. European carriers still benefit from significant “restructuring aid” by their governments.
Carriers such as Air India only survive on bailouts. Competition can be distorted almost anywhere almost all the time, but as long as it is not painful or even in one’s own interest, nobody complains. And isn’t the kind of protection American, United and Delta are asking for, a subsidy in the guise of economic policy?
Aero political battle is not limited to Nigeria alone. Few years ago, the biggest U.S airlines, sparred with three Persian Gulf carriers over flights into the U.S and asked the Obama administration to consider new limits on that service.
Chapter 11 bankruptcy protection in the U.S. is an incredibly powerful tool for airlines and other companies to reduce structural costs. It is a tool not available to carriers outside the U.S. European carriers still benefit from significant “restructuring aid” by their governments.
Carriers such as Air India only survive on bailouts. Competition can be distorted almost anywhere almost all the time, but as long as it is not painful or even in one’s own interest, nobody complains. And isn’t the kind of protection American, United and Delta are asking for, a subsidy in the guise of economic policy?
Last line
As a top emerging market, Nigeria’s aviation market is a huge potential over the next 50 years, considering the current and future youth population and the untapped human and material resources.
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As a top emerging market, Nigeria’s aviation market is a huge potential over the next 50 years, considering the current and future youth population and the untapped human and material resources.