Nigeria can turn W’A into single aviation market, say experts

The Federal Government should support domestic carriers and assist them in turning the West African route into a single market as the airlines in the country have the capacity to do so.

Nigerian carriers now dominate the West African market, especially with the operation of four carriers-Arik, Aero, Medview and Dana to Accra, Ghana, leading to insinuations that the market is over-saturated.

A top official of one of the airlines to Accra who pleaded anonymity told woleshadare.net that government can turn the West coast routes into domestic operations because Nigeria has dominance and in doing so, this will get some returns for the country.

Speaking in the same vein, a former Director-General of the Nigeria Civil Aviation Authority (NCAA), Dr. Harold Olusegun Demuren disclosed that government can turn the West Coast route by removing those impediments that make for difficult transition.

By so doing, he stated that the carriers from Nigeria would now have a vast market to explore.

He said that one of the major challenges that have stunted the Nigeria Aviation industry is political interference which according to him, is all over the world. He however called for a strong will and honesty of purpose to surmount these challenges.

With its natural resources and oil reserves, West Africa is receiving increasing attention from international markets. Nigeria – rich in oil – and Ghana – rich in gold – are proving to be the stand-out aviation markets of the region.

While both face difficulties, such as carrier debt, poor infrastructure and unaffordable travel, the economies of the countries are handily exceeding the global average GDP growth rate.

Sub-Saharan Africa is showing a solid macroeconomic performance, with many economies now growing at rates close to their pre-crisis average. Nigeria is slightly slower in its growth rates, reporting a smaller-than-two percentage point difference from pre-crisis levels. Ghana, on the other hand, is one of the continent’s fastest growing.

Nigeria and Ghana are headlining growth in West Africa, but it is mainly being captured by foreign (US, Middle East and European) carriers in the absence of financial stable and internationally competitive local airlines.

Meanwhile, Airbus estimates only five other cities in Africa will become an “airline megacity” – Accra (Ghana, West Africa), Lagos (Nigeria, West Africa), Luanda (Angola, Central Africa), Addis Ababa (Ethiopia, East Africa) and Nairobi (Kenya, East Africa). Johannesburg (South Africa, Southern Africa) is already a megacity, according to Airbus.

Nigeria Airways had a troubled and erratic time during its 45-year history. In 2003, a new airline, named Transatlantic Airlines, operated for a few weeks before it collapsed, leaving hundreds stranded. Next, the joint venture attempted by Virgin, resulting in the creation of Virgin Nigeria also had a brief and colourful life before Virgin divested itself of the association. The remnant is now operating domestic and regional routes as Air Nigeria.

Bellview Airlines had a similar poor track record. Founded in 1992, it finally disappeared in 2009 with many of its aircraft still derelict in Lagos. The staff then began a new carrier that still awaits certification, First Nation Airways. It is a repetitive tale of failure.

Ghana Airways ceased operations in Aug-2004, shortly after it was banned from US airspace. Ghana Airways suffered a wealth of problems including under-capitalisation and mismanagement.

The carrier’s fleet, comprised of Soviet-built  Ilyushin jets, could only be serviced in Russia. Ghana Airways served Russia but it was a loss-making route – most passengers were government officials who travelled for free.

Ghana International Airways (GIA) was established to replace Ghana Airways when it folded. GIA launched operations in Oct-2005 but was plagued with similar problems to Ghana Airways. In May-2010, GIA ceased operations, making it the second causality to Ghana’s aviation industry in six years.