Ahead Of Flight Suspension, Emirates Sends Cancelation Notice To Passengers

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Sequel to the announcement of the withdrawal of service by Emirates Airline over its $85million that was trapped in the country, the airline has sent cancelation message to its numerous customers.

Recall that on Thursday, Emirate airlines announced suspension of its flights into Nigeria, saying there was no considerable improvement and headway in repartraiting its $85million trapped fund.

The statement reads, “Emirates has tried every avenue to address our ongoing challenges in repatriating funds from Nigeria, and we have made considerable efforts to initiate dialogue with the relevant authorities for their urgent intervention to help find a viable solution.
“Regrettably there has been no progress. Therefore, Emirates has taken the difficult decision to suspend all flights to and from Nigeria, effective 1st September 2022, to limit further losses and impact on our operational costs that continue to accumulate in the market.
“We sincerely regret the inconvenience caused to our customers, however the circumstances are beyond our control at this stage. We will be working to help impacted customers make alternative travel arrangements wherever possible.”
“Should there be any positive developments in the coming days regarding Emirates’ blocked funds in Nigeria, we will of course re-evaluate our decision.”
A visit to the website of the airline has shown that the airline has made good it’s threat as the passengers can no longer make bookings for travel to the United Arab Emirates (UAE) or any other routes through the airline in September.
However, takeholders have, however, predicted that the country will be at loss if foreign airlines withdraw from Nigeria due to their trapped fund.
Reiterating this to LEADERSHIP, the secretary general, Aviation Round Table Initiative (ARTI), Capt. John Ojikutu (rtd), stated that
the country will be the loser if the foreign airlines withdraw their services.
According to him, about 70 to 80 per cent of the nation’s earnings in commercial aviation were from foreign airlines operating in the sector.
He said, “First, why do we find ourselves among the countries that are not keeping to the articles of the Bilateral Air Service Agreement (BASA), Secondly, what happened to our forex earnings on commercial aviation particularly those that were earned by the aviation services providers like the PSC of $100/pax and those earned on landing and parking?”
“We are going to be the loser if the foreign airlines withdraw their services of flights to our country because about 70 to 80 per cent of our earnings in commercial aviation is from the foreign airlines. What about the forex earnings by others like the ground handling services companies such as NAHCO, SAHCOL and the fuel marketers? My last calculations on all these is over $1bn. Where are they before we start blaming the Central Bank of Nigeria (CBN).”
According to Ojikutu, said commercial aviation policies, regulations and administration are nothing but what I called unilateral exploitation of the systems.
“Obasanjo said at the first public hearing on aviation ever held by any President in Aso Rock about 2006 that forex earnings by aviation operators including the Nigerian Civil Aviation Authority (NCAA), be domiciled in the CBN, naira equivalent given to the operators but can be returned to the CBN when the needs arise. What happened to that presidential directive? What has been happening over the years in the Nigeria Commercial Aviation policies, regulations and administration are nothing but what I called unilateral exploitation of the systems.
“What will happen further will see Nigerians going to Accra, Cotonou, Lome, etc to connect the flights of these foreign airlines making them hubs over Nigeria. I saw these happening to us when a minister unilaterally cut off the Commercial Agreements between us and them and when we indirectly open the domestic routes and markets for some them for multiple destinations. The consequences are staring on us all; now who will save us from ourselves?”
“How many Nigerians have the dollars to pay, which the CBN does not have for flights? Therefore, let all the government agencies that have been earning forex on their services account for their earnings in the last 10 years otherwise we, particularly our aviation industry is on the way to the Valley of Shadow of death,” he said.
Also in a press statement by the former vice-chairman, the National Association of Nigerian Travel Agencies (NANTA), Segun Adewale, he urged the federal government to repatriate the $450million in ticket revenue belonging to foreign airlines operating in the country.
Adewale stated that revenue from ticket sales which accumulated from 2021 to July 2022 was blocked by the CBN from being repatriated to airline operators through the International Air Transport Association (IATA).
“The repatriation of revenues of all tickets sold to travellers by airline operators to their home offices is the responsibility of the CBN, but it has refused to release the equivalent in dollars for service already rendered.
“We have lost so many airlines and jobs are being lost in the aviation sector and at airports generally.
“The development is inimical to our economic wellbeing as a nation; from the spiritual angle of thought, it is wrong to muzzle the ox that treads the corn,’’ Adewale stated.
The airline chief decried that the blocked funds had already led to a reduction of air connectivity and restriction of flights.
He stated that it was disheartening that the same FOREX being denied the airlines were being released to import non-essential products such as champagne and toothpicks.
“If foreign airlines suspend flight operations, businesses will be shifted to neighbouring countries like Ghana and Benin Republic.
“The issue is so difficult for the operators, who now borrow FOREX from their home offices to fuel their airplanes.
“With the increase in dollar rate leading to rising in flight ticket prices, especially en-route America and Dubai, which is now over a million naira, the environment is getting hostile for businesses to thrive,’’ he stated.
Adewale appealed to the ministers of Aviation, Finance and the CBN to do the needful and ensure the release of FOREX.