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Nigeria reviews BASA, open skies for UAE, signs fifth freedom right

- Etihad, fludubai, Wizz Air, Air Arabia, designated to Nigeria
- United Nigeria to join Air Peace on Dubai route
- Stakeholders decry new deal
Nigeria has changed its agreement with the United Arab Emirates (UAE) from the Bilateral Air Services Agreement (BASA) to the Open Skies agreement tailored towards Nigeria’s agreement with the United States of America.
The ‘open Skies’ deal allows countries to designate multiple airlines to each other’s territories and no any destinations they choose while BASA is restrictive to some frequencies and destinations.
Aside from that, the agreement stipulates that “There shall be no restriction on the capacity and the number of frequencies and type(s) of aircraft to be operated by the designated airlines of both contracting parties in any type of service (passenger, cargo, separately or in combination)”.
“Each designated airline is permitted to determine the frequency, and capacity it offers on the agreed services.”
The deal also stipulates that neither contracting party shall unilaterally limit the volume of traffic, frequencies, regularity of service or the aircraft type(s) operated by the designated airlines of the other contracting party, except as may be required for customs, technical, operational or environmental requirements under uniform conditions consistent with Article 16 of the convention.
This agreement is contained in a document called “Protocol amending the air service agreement between the Federal Republic of Nigeria and the United Arab Emirates relating to air services between and beyond their respective territories’.
This agreement according to experts shows that Nigeria holds the short end of the stick and has firmly put the UAE carriers at an advantage over Nigerian carriers that cannot compete with Emirates not to mention other big carriers like Etihad and others.
According to them, Nigeria has inadvertently or deliberately ceded the market to the UAE carriers at the expense of the local airlines.
“They granted five airlines flight rights and fifth freedom meaning that they can fly to any destination with so many frequencies. It is like signing an ‘Open Skies’ with UAE. That is what it means. It is not different from ‘Open Skies’; it is just that they did not call it ‘Open Skies’. You sign an Open Skies when you can’t reciprocate.”, stakeholders lamented
Delegations representing the Nigerian government and the government of the United Arab met in Dubai on September 30, 2024, to further discuss the strengthening of the bilateral air transport relations and the enhancement of the existing Air Services Agreement (ASA) signed by the two governments on December 7, 2017.
A copy of the agreed minutes agreement made available to Aviation Metric stated that the delegation of the UAE re-confirmed their designation of Etihad Airways, Emirates, Air Arabia, flydubai, Air Arabia Abu Dhabi, Wizz Air Abu Dhbabi as designated airlines of the UAE.
The delegation comprised the Minister of Aviation and Aerospace Development, Mr Festus Keyamo who was head of the delegation, Special Assistant to the Minister on Project Monitoring, Mr Issa Osagie, Director of AirTransport Regulations, Nigeria Civil Aviation Authority (NCAA)Mrs. Babaoye-Iriobe, Director of Operations, Federal Airports Authority of Nigeria (FAAN), Capt. Abdullahi Mahmood and Chairman of Airline Operators of Nigeria (AON), Mr. Abdullahi Ahmed reconfirmed their acceptance of the designation of the airlines by the UAE.
The delegation of the UAE comprised Deputy Director-General and Assistant Director-General (GCAA), Omar Bin Ghaleb who headed the delegation.
Others are the Senior Director of Air Transport Department (GCAA), Captain Khalid Humaid Al Ali, Expert Air Transport (GCAA), Mr Nasser Mubarak Al Khater, Senior Lead Air Transport (GCAA), Ms Valerie Beowne, Lead Air Transport (GCAA), Mrs Jawaher Mohammed Al Abdouli, Senior Officer Air Transport (GCAA), Mr Fahad Abdulrahman and Senior Officer Air Transport (GCAA), Mr. Hassan Ahmed Barman.
Additional UAE airlines according to the minute may be designated “in due course by the Aeronautical Authority of the UAE’.
The agreed minutes according to the parties, “ shall come into effect on the date of its signature and shall supersede the previous Memorandum of Understanding (MoU)”.
The delegation of Nigeria in turn re-confirmed their designation of United Nigeria Airlines and Air Peace as the designated airlines of the Federal Republic of Nigeria.
The delegation of the UAE re-confirmed as well their acceptance of the designation of Air Peace and United Nigeria Airlines.
Air Peace used to operate to Dubai as Nigeria’s flag carrier airline until COVID set in and the face-off between Nigeria and the UAE made the carrier suspend flight operations. Since it resumed flight to Nigeria on October 1, it is expected that the Nigerian carrier would pick itself up to relaunch services to Dubai or Sharjah in the UAE.
Routes to be operated by the designated airlines of the UAE airlines stipulate that they can operate from any point in UAE to intermediate points to any points in Nigeria and any point points beyond. The same applies to the designated Nigerian carriers.
This arrangement by the two nations sees the introduction of the Fifth Freedom right that allows the carriers to pick up passengers and cargo from one foreign country to another while en route to/ from a home country.
The fifth freedom of the air is permission that allows, for example, Qatar to carry passengers between Atlanta and Paris on its way to Doha.
Both nations agreed to recommend to their respective competent authorities to agree on the avoidance of double taxation on revenues arising from their airlines’ activities and income earned by their employees when stationed in the territory of the other contracting party.
Article 2 of the amended air pact says, “The designated airlines of each contracting party shall enjoy the right to fly across the territory of the other contracting party without landing; to make stops in the territory of the other contracting party for non-traffic purposes and to make stops in the territory of the other contracting party to take on and/or discharge international traffic in passengers, baggage and cargo, separately or in any combination while operating the agreed services”.
It further states that “If because of armed conflict, political disturbances or developments or special and unusual circumstances designated airline of one contracting party is unable to operate a service on its normal routing, the other contracting party shall use its best efforts to facilitate the continued operation of such service through appropriate temporary rearrangement of routes as is mutually decided by the contracting parties”.
The designated airlines according to the two nations shall have the right to use all airways, airports and other facilities provided by the contracting parties on a non-discriminatory basis.
The designated carriers are free to enter into cooperative marketing agreements including but not limited to blocked space and/or codeshare arrangements including third-country codeshare arrangements with any other airline or airlines.
It however comes with a condition that before providing codesharing services, the codesharing partners shall agree as to which party shall be responsible in respect of the liability and on consumer-related matters, security, safety and facilitation.
The agreement stated the agreement setting out the codeshare terms shall be filed with both Aeronautical Authorities before implementation of the codeshare arrangements.
An airline operator who pleaded anonymity said, “With this, you have killed the market. When our airlines start operating, I wonder whether they will have passengers. They can’t even compete with Emirates, and much more the other airlines the Minister has brought in. Nobody has done this before. You have offered them all the freedoms”.
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