By Dickson Omobola
On Wednesday, stakeholders in the air transport sector gathered on the Nigerian Civil Aviation Authority, NCAA Annexe, in Lagos to listen to former Director Common of the NCAA, Dr Harold Demuren, assess Nigeria’s place in worldwide aeropolitics.
On the occasion, hosted by Saptco Communication Restricted, Demuren drew from his wealth of information to share concepts on how Nigerian carriers can survive and compete on worldwide routes, notably the profitable London route presently operated by Air Peace.
Domination
Beginning the dialog, he lamented how overseas airways are dominating Nigerian routes and the lack of the nation’s carriers to reciprocate.
Demuren mentioned: “Many worldwide airways are rising their frequencies to Nigeria, however we’re not. When these routes are given to Nigerian airways, they don’t reciprocate.”
Capital flight
He famous that when Nigerians fly overseas carriers, whether or not British Airways or Virgin, “they’re not directly spending overseas change. When somebody desires entry to foreign exchange, they must adjust to sure legal guidelines as a result of an establishment oversees it. As a passenger, while you purchase a overseas airline ticket, there is no such thing as a management. The income they generate in Nigeria goes again to their international locations. If they’re unable to get their cash, the Worldwide Air Transport Affiliation, IATA, would make noise, and the stress would mount. And that’s the reason we’ve to help our personal. I do know it may be powerful, however as authorities is doing its personal, we additionally should do ours. Let me give an instance.
“At one time, Ethiopian Airways earned nearly 50 per cent of its income from ticket gross sales in Nigeria. At the moment, Ethiopian Airways was Ethiopia’s highest overseas change earner. It reveals the size of capital flight. I used to be the Director Common of the NCAA on the time. When Ethiopian Airways mentioned it wished extra frequencies, notably to Port Harcourt, I mentioned no.”
Selections
Drawing from his expertise with the defunct nationwide service, Nigeria Airways, he warned that to maintain worldwide routes like London, sound decision-making is important.
He mentioned: “Mistaken choices can kill anyone. A single dangerous resolution can kill an airline. Air Peace, earlier than making any resolution, you will need to think twice. You will need to do that since you make cash from ticket gross sales. Sound choices are essential, and that’s the reason it’s also necessary to have full authorities help. You can not do it alone.”
Partnerships
He additional argued that for Nigerian airways to be worthwhile and sustainable on worldwide routes, there’s a want for “interlining, partnerships, sturdy authorities help and truthful pricing constructions” as a result of they face an uphill battle, corresponding to fare disparities, particularly in neighbouring international locations.
He mentioned: “About two weeks in the past, a buddy of mine travelled overseas by Ghana as a result of the ticket from Ghana is less expensive. That could be a regional imbalance. What number of instances have you ever seen British Airways doing adverts in Nigeria? They don’t must do it as a result of it’s at all times full. The market is nice for Nigeria as a result of we’ve the inhabitants, however we don’t have the operators. So, they should be helped to succeed.”
Authorities’s position
The ex-DG famous that authorities has a task to make sure success on worldwide routes, saying: “First is coverage intervention. I heard that they intend to push the Fly Nigeria Act. Have you learnt what meaning? Any authorities official who’s going overseas on a authorities fund should journey in a Nigerian service. When Babatunde Omotoba was the Minister of Aviation, we went to the council with this identical concept, however we misplaced. They threw it out. Now, the Minister is eager on doing it.
“Authorities should help with plane leasing and supply entry to foreign exchange. It’s important. There needs to be well timed responses in instances of challenges. Have you learnt why I discussed this? A few years in the past, certainly one of our airways had an issue in Europe, and we had simply quarrelled with the airline, however when the UK CAA introduced complaints in regards to the airline, we have been there the next day to defend it. When the airline’s workers noticed us, they requested why we have been serving to them, despite the fact that we have been quarrelling. We informed them this could possibly be a scandal for us, and we should come collectively to avoid wasting the state of affairs. I say this as a result of we should help our personal airways. A well timed response is important as a result of if a fast response isn’t given, it is going to be worse for the airline.”
Renegotiate BASAs
Demuren additionally referred to as for the renegotiation of the nation’s Bilateral Air Service Agreements, BASAs, saying: “We now have to renegotiate the BASAs. Now, we’ve a minister who’s a lawyer, and he is aware of this very nicely. In BASA, either side should take pleasure in it. Whether it is one-sided, it’s not a BASA. You must shield native airways. You can’t be flawed in supporting your individual. If you happen to don’t help Air Peace, who would? Any Nigerian service on the worldwide route should be supported by the Nigerian authorities.”
Home airways
He urged home carriers to start out home frequent flyer programmes, noting that “the struggling of flyers can be diminished if a home airline cancels or delays a flight and the passenger can use the identical ticket on one other airline. If an airline isn’t creditworthy, it can’t function on a world route efficiently. In Nigeria, you possibly can owe the Federal Airports Authority of Nigeria, FAAN, but land your plane, however that gained’t be attainable at Heathrow. If a world route is completed nicely, now you can be engaging to airways to contemplate having an alliance. You must work for it. Our carriers nonetheless have alternatives, however they need to work with the Ministry of Aviation and the NCAA. After that, they should have a dialog with the Ministry of Overseas Affairs. Our airways should interline. You additionally must increase to regional companions.”
For Air Peace, the aviation skilled mentioned: “You must be very cautious. The airline’s relationship with the Minister and the NCAA should be stable. You could have cash, however when hassle comes, it gained’t work. Good relationships can open doorways that cash can’t open for you. When points come up, your nation’s representatives are those who will communicate, and also you gained’t be there. Cash gained’t assist in overseas international locations. In the event that they let you know to do that, make sure the rule is obeyed. Operational reliability can also be necessary. In any respect prices, you will need to not abandon passengers overseas. When you’ve got an interline settlement, one other airline can choose up passengers for you in case of slight points, however when you don’t have one, that gained’t occur. When operational reliability isn’t there, passengers gained’t believe within the airline. Subsequently, they gained’t purchase tickets. Be further pleasant, courteous, well mannered and agency. You should be good to passengers. Nigerian passengers are very refined. They know their rights, however typically overblow it. That’s the reason we’ve belligerent passengers. So, you will need to practice your cabin crew on the best way to deal with them. It isn’t simply serving tea and occasional.
“Creditworthiness can also be needed as a result of while you function overseas routes, they are going to examine your books. In Nigeria, it’s possible you’ll default in your fee plan with FAAN, however that can not be carried out overseas. Good company governance rules are necessary too. You must be a part of IATA, and so they have security necessities, safety necessities, insurance coverage stage and should be clearing home compliant. When it’s needed, you must pay your dues. Keep in mind what kicked Nigeria Airways out of IATA? As soon as you’re out, you’re out, and it is going to be troublesome to return. One other one is continuity and sustainability. One of many issues that killed Nigeria Airways was having 10 Managing Administrators in 10 years. What can it do with that? There should be some stage of continuity. I’m not saying you must endure an unintelligent particular person, no.”
Final phrases
Whereas concluding, he mentioned: “Nigeria can survive in world aviation solely by turning aeropolitics into technique. Keyamo is doing nicely. If he can come by with this leasing firm, it gained’t be dangerous for the nation. Nigeria must leverage its high-value routes. Our airways should construct alliances; they’ll’t work with out that, however there are necessities, and so they should have them. You are able to do it. There should be insurance policies for Nigerian carriers to compete and win. Our airways must compete. No one will cease the opposite airways as a result of it is sort of a race. You might be all in that race, however our airways can win.”
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