Why Nigerian airlines can’t compete, by Medview CEO
- Shut down Dubai route
Nigeria’s flag carrier, Medview Airlines has shut down its Dubai operations less than two months it started services to the city.
The airline attributed its decision to suspend the lucrative route to issues it has with its European partners, Euro Atlantic over aircraft it leased from them.
The Managing Director of the airline, Alhaji Muneer Bankole at a press briefing at the airline’s headquarters in Lagos stated that the aircraft has not been able to meet, “our requirement in providing the necessary capacity,” adding that, “we have shut down Dubai operation till March 2018 when our own aircraft B767-300ER christened ABEKE returns from complete refurbishment in the United Kingdom.”
Bankole however stated that passengers who have booked with the airline will be flown to their destinations via interline arrangement.
The airline chief also explained the circumstances that led to the stranding of its passengers both in London and Dubai, attributing it to its ground handling partner, Menzies Aviation which failed to handle the airline’s flight from London Gatwick over alleged £1.5 million the airline was expected to defray.
His words, “Traditionally, we have a contract. Menzies Aviation is our ground handling agent and the second one is Gatwick Authority. We have done a transaction of £1.5 million with them. We have paid Gatwick Authority £1.45 million. We have as at today paid Gatwick Authority over $1.45 million since we started operations.
“Our outstanding to Gatwick authority was about £37, 000 and Gatwick authority. The Chief Executive of the airport and other top managers of the airport met with me in London. Our partner paid £37, 000 on hotel during that crisis and I took it upon myself that we are going to refund them”.
“Menzies had no basis to do what they did. For Menzies, our ground handling agent, they charge £5000 per flight and there must be reconciliation. We paid upfront. We have £45, 000 we kept as security account, which means that for every default, this £45, 000 will be accessed. So, if you wake up and say you will not handle my flight that is coming here because you have not paid me £50, 000 0r £100, 000, it should be something of regret between a service provider and an airline that will give you money for the service”.
The airline chief disclosed that they got the news late of the impending crisis on approach to London, stressing that they decided not to make a fuss about it but asked the airline staff to check stranded passengers into hotels and forward a letter to their partner, Euro Atlantic to clear the backlog which it promptly did.
He stated that the airline has returned to the London route, disclosing that his team is in London to shop for a new ground handling firm to replace Menzies.
Bankole admitted that is is practically impossible for Nigerian airlines to compete with mega airlines like British Airways, Air France, KLM, Emirates, Lufthansa, Delta and others because of difficulty in accessing foreign exchange, tough operating environment and and access to spare parts.
He said, “Let me tell you this. From this part of the world, it is absolutely difficult to compete with these other airlines. For you to compete with the big boys on the other side there are three basic things you need to do. We do not have the resources to get aircraft of $50m. You cannot access dollars. I am still looking for $2.3 dollars from the Central Bank of Nigeria (CBN) to pay for lease of aircraft. Secondly, there is no place in this country or this part of the world where you have basic maintenance facilities in case anything happens to your aircraft.”
He lamented that aircraft remain on ground for so long because of lack of spare parts for airplanes that ordinarily should be flying.
“When an aircraft is AOG, there is no AOG support here; that is what is keeping the aircraft flying. When an aircraft is AOG, you know that somebody is there. In Europe, there are platforms. If we have issues of spare parts, we have to wait scanning all over Europe, America asking them whether they have parts or not. While doing this, we catch up flight to London, wait for the airline. That aircraft will remain on ground throughout that period”.
He lamented the cumbersome Customs procedure in getting spare parts from Europe and other parts of the country coming to Nigeria.
“Sometimes you get approval and at times they tell you that your approval is for specific period. We are a victim today. Their thinking was that we will not last six months, today, we are over two years on London route. This exercise has made us so proud. We have a very good relationship with UK CAA, European Union members”, he added.
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