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Nigeria-US Open Skies: Blessing or curse?
![](https://aviationmetric.com/wp-content/uploads/2018/04/Delta-563x320.png)
Delta’s flag off of its New York-Lagos route has elicited reactions from stakeholders. Why many believe it was a well-orchestrated plot to consolidate on the route, others say it does the country no good. WOLE SHADARE writes
The United States-Nigeria Open Skies aviation pact has continued to be a subject of discourse. It is also a subject of discourse for many countries where this agreement has taken firm route.
It is not only the US open skies that have come under scrutiny, the African Open skies or liberalisation of Africa’s airspace has equally come under serious scrutiny with many calling on their governments not to sign or implement an agreement that was signed over 20 years ago without looking at the benefits.
The African open skies have come under scathing criticism most especially by Nigerian airline operators as championed by their President under the platform of Airline Operators of Nigeria (AON), Capt Noggie Meggison.
Dwelling in the past
While the Nigerian operators may be lauded for protecting themselves, they seem to be dwelling in the past. Their view about global aviation, many think should have changed by now. They seems to dwell so much on factors that have kept down for ages rather than collaborate and seek ways of being part of the huge air transport market of Africa.
Africa’s air liberalisation, otherwise known as Single African Air Transport Market (SAATM), which is better referred to as the open skies treaty, is a flagship project of the African Union (AU) Agenda 2063. It is an initiative of the AU geared at creating a single unified air transport market in Africa; the liberalisation of civil aviation in Africa and as an impetus to the continent’s economic integration agenda. It is a form of free market treaty to which the Minister of State for Aviation, Mr. Hadi Sirika, says Nigeria is a signatory and had pledged to be committed to its full implementation as from January 2018.
Experts are divided over the two big aviation policies. Why some saw great economic benefits with these pacts, others have faulted it. The truth of the matter is that they are far reaching policies that are very difficult to overturn considering their economic consequences.
Delta flags up New York-Lagos route
Just last week, Delta Air began direct New York-Lagos route, aside the Atlanta-Lagos route it started with over ten years ago.
The airline may have taken advantage of the stoppage of New York by Arik Air to New York as the Nigerian carrier abruptly stopped the lucrative route.
Nigeria and the US in 2000 signed the ‘Open Skies’ pact when former President Bill Clinton came to Nigeria with President Olusegun Obasanjo.
The New York-JFK route complements the airline’s existing flight to Atlanta, providing a daily departure and more travel choice to the U.S. than ever before.
Many had criticised the pact saying that the country entered the agreement when her carriers were not ready and non-existent.
It took many years before Arik Air after it was established to venture into the route, giving competition to Delta and later, United.
United pulls out
United, however pulled out of the country in 2016, citing recession and trapped funds that ran into over $500 million owed several airlines at that period. The government has however released all the monies owed the airlines.
The situation is worrisome because out of 48, 000 seats available daily on the country’s route, Nigerian airlines utilise less than 4, 000 seats; an indication that the airlines are not big players in the global airline industry.
Considering the huge market offered by the country, there was a time many more American carriers were trying to invade the country to have a share of the market, and there is no corresponding move by more Nigerian airlines to take advantage of the agreement to also fly into the US, with a view to reducing the stakes of the Americans.
Showing the way
The United States carriers have unarguably been the leader in the sub-sector for several years. Thanks to the support and consistent policies of its government. The carriers have several things going for them while several agreements were signed with other countries in a bid to give their airlines the leverage to continue to dominate the global aviation sector.
In fact, the US carriers have always been comfortable with the policies and its collaboration with smaller and less developed aviation countries.
Stakeholders and professionals are worried that with the open sky agreement with the US, the airlines may eventually turn Nigeria and some other less financially strong countries into their local markets, which may benefit the air travellers but spell doom for the country and local operators whose passengers would be taken over especially when there is no national carrier to promote its course.
It is not all doom and gloom for Nigeria-US open skies. They come with so many advantages. These advantages are what the country’s carriers are not capitalising on it because of their obvious fragmentation and weakness. All Nigerian airlines put together can’t match the least of American airline and do not have the capacity and capability to compete.
Their seriousness would have helped to increase transatlantic travel by up to two million passengers, boost Africa-US travel by up to ten million passengers a year, create economic output in directly related industries $400 million a year.
Last line
Had Nigerian airlines done well, it would lead to increased competition and consolidation that would lead to cost savings, because less efficient ones would be forced to adopt the business practices of more efficient airlines;
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