Open Skies: Not a win-win for Nigeria, US

Nigeria is currently at the receiving end of an agreement as United States-Nigeria ‘Open Skies’ defies the principle of reciprocity. Already, there are agitations for slight modification same way the US is pressurising Gulf carriers to slow down on entry into its territory. WOLE SHADARE writes
When Nigeria signed the ‘Open Skies’ agreement with the United States in 2000, many thought of the benefits that would accrue from the pact, considering the fact that the country’s air transport system was already liberalised and one that would engender competition.

Years of no gain
The landmark agreement signed 15 years ago after former President Bill Clinton visited Nigeria has been so lopsided to the extent of eliciting reactions and condemnations. Those opposed to the agreement are of the view that American carriers were more prepared than their Nigerian counterparts who were yet to be designated.
It took the designation of Arik Air to benefit, though, insignificantly from the market. The Nigerian carrier was designated to New York as the sole airline to the United States to compete with more established United Airlines and Delta; two airlines that are regarded as part of the biggest in the world.
Picking crumbs
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.
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.
US to stop Gulf carriers’ influence
It seems all that is being rubbished at the moment with the birth of Gulf carriers that are equally receiving same attention from their home governments. The development is gradually taking the US carriers out of their comfort zones thereby seeking changes from their collaboration with the Gulf carriers and governments.
There seems to be reversal of roles. While the American airlines are continuing in their expansionist programme by establishing Open Skies in Africa and many other continents, the US is piqued with the stiff competition they are receiving from Gulf carriers.
The three big US carriers, American Airlines, Delta Airlines and United Airlines are no longer comfortable with the trio of Qatar Airways, Etihad Airways and Emirates Airlines as they now seek for a change of gear from their relationships. The US carriers are now calling for the abrogation of the Open Skies policy and agitate for ‘Fairer Skies’ agreements with the Gulf airlines.
The cold war
The cold war between the two separate airlines started about two years ago, but reached its peak when the three US airlines openly canvassed its government to restrict the expansion of the three Gulf carriers in its country. It argued that the airlines were receiving massive grants from their home countries.
Stakeholders’ worries
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.
Chief Executive Officer, Finum Aviation Services, Sheri Kyari, insisted that by the time the fierce competition grew between the American and Gulf carriers, the US airlines may want to look inward into countries they know they have an edge in terms of competition and travel capacities.
He explained that the only way Nigeria could be free from such unfavourable competition is to immediately commence untying the agreements it had with the US, which he said might even take about eight years to be concluded as spelt out in the agreement.
Also, he called for the re-establishment of a national carrier for the country for it to improve air travels and withstand competition. He, however, noted that such should not be funded by the government. The aircraft engineer suggested that every potential investor should be allowed to invest and grow the airline for the benefit of the country. Kyari said:
“By the time the competition becomes more intense, America could just simply step in and implement to the full their Open Sky agreement with Nigeria.”
Role of national airline
According to Kyari: “The national carrier we are talking about is not the one that the government would come in and pump in money, we are talking about a carrier that Nigerians would be so eager and interested in and invest in so that we can make it a mega carrier too and we would be able to start and reach out to a lot of places that Nigerians fly to.” Many expect Nigeria to also take a cue from these Gulf nations to begin to ask for a review of the aviation pact it signed with the US.
Conclusion
Many European carriers have also spoken so glowingly about how they had used their operations to Nigeria to underwrite losses incurred from their operations in other parts of the world. Consequently, stakeholders in the industry fear that the Americans may have, by this, been given a path to follow to maximise their inroad into Nigeria’s aviation sector once more.

Wole Shadare