Why domestic airlines can’t fill Nigeria Airways’ vacuum, by Sirika
- BASA signed to create opportunities for carriers
The urge to forge ahead with the establishment of a national carrier has been attributed to huge vacuum left by domestic airlines since the demise of Nigeria Airways. Minister of State for Aviation, Hadi Sirika, said this in a paper he made available to Woleshadarenews.
The minister disclosed that no domestic airline has evolved to fill the vacuum left by Nigeria Airways since it ceased to operate over 15 years due largely to wrong business models, low capitalization and poor governance structure.
He lamented that only 28 out of Nigeria’s Bilateral Air Services Agreements (BASAs) with 83 countries are active.
Nigeria presently has BASA with 83 countries, many of which have been reviewed to create opportunities for domestic carriers, but are largely not utilized. Specifically, domestic carriers are yet to utilise 10 per cent of the air pact due to their limited capacity.
While carriers from these two countries have the capacity to operate to Nigeria, no Nigerian airline is strong enough to reciprocate what may be described as one-sided benefits.
Arik Air and Medview flew Nigeria’s flag to New York, London, Johannesburg and Dubai, but had to withdraw when it became obvious that they could not match mega airlines such as British Airways, Virgin Atlantic and Emirates.
Air Peace has been designated to places such as New York, London, Johannesburg, Dubai and other destinations.
Over three years after that, the airline is putting its house in order to begin flight services to China and Singapore through code share arrangement. Reports show that only 28 of those BASA’s are active.
No Nigerian carrier is currently taking part in the frequencies. BASAs are treaties signed between countries to allow international commercial air transport services between territories.
They promote international air link between countries, which supports and enables the movement of persons, cargo, trade and tourism.
These pacts provide the framework under, which identified airlines from the two countries fly into designated ports in each other’s country. The Minister reiterated that to give impetus to the emergence of Nigeria as hub for the West and Central Africa, to promote reliable air transport services, a national carrier was desirable. The project, he stated would support the growth of the aviation industry and domestic airlines through infrastructure expansion, traffic/routes expansion and manpower development associated, create employment and to compete with foreign airlines for a share of international routes through competitive pricing thereby reducing capital flight.
The minister also elaborated on the wrong business model, low capitalization and poor governance structure of Nigerian carriers, adding that these had conspired to affect the carriers.
Aviation expert who pleaded anonymity said controls and discipline can moderate the desire for excessive profit, which leads to unethical practices and fraudulent.
He noted that corporate governance thrives when you have a rationalized policy determination process.
Besides, he stated that this is only achievable when they have clear sighted political leaders who are committed to the development of Nigeria as opposed to sectional and parochial interests.
He hinted that Ethiopia, Namibia, Rwanda, Cote D’Ivoire, Togo, Ghana and Senegal are getting it right in terms of airline management and airport infrastructure, as with other areas of human endeavour. He asked, ‘what is stopping us?”
