Experts in the nation’s aviation sector have expressed divergent views over the economic implications of Emirates airline planned suspension of flight into Nigeria from September 1st, 2022 due to the airlines $85million earnings trapped with the Central Bank.
Emirate Airlines announced yesterday that it was suspending its flights into Nigeria, saying there was no considerable improvement and headway in repatriating 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.”
However, speaking exclusively to LEADERSHIP, a former secretary-general, Nigerian Union of Air Transport Employee (NUATE), Com. Abioye Olayinka, said aside from other foreign airlines following suit, there would be job loss as Nigerians working with the airlines will lose their jobs.
According to him, the airlines would as well move to neighboring West African countries where Nigerians will be forced to travel to connect their various destinations.
He said, “I am very much aware that the Nigerian government has been unfair to these foreign airlines. They have been acting in an unwholesome manner to foreign airlines by trapping their funds with the CBN. Investors expect that when you work in an environment such as ours, you will be be able to repatriate your funds as you make them, but for reasons best known to the government, monies that foreign airlines and other investors have made in Nigeria are being trapped without any recourse to repatriate their money back to their home. That is not only unacceptable, but fraudulent act on the part of the FG.”
“I recall that some years back, I raised this issue with the federal government through the Minister of Aviation that the Nigerian workers who are members of our union and working with these foreign airlines are likely to lose their jobs. If a company make money in Nigeria, they should be allowed to repatraite their funds home because if they closedown or suspend their operations, the Nigerian workers will suffer the consequences and this will not encourage other foreign investors coming to make investment in Nigeria for fear of their money being trapped.”
He, moreover, called on the federal Ministry of Aviation to liase with the Finance counterpart on how to release the trapped fund in the country’s economic interest.
“It’s going to be a terrible thing and a collosal loss to Nigerian flying public as they would be forced to travel to Dubai and those who want to connect their flights outside Dubai vis a vis Nigerian workers employed by this foreign airlines will all be affected.”
“My appeal to government is to please prevail on minister of finance to do the needful otherwise the consequences of their failure to allow foreign airlines repartrait their funds back home will be calamitous.”
“Very many foreign airlines who are portfolio airlines have nothing to lose by closing shops here and going elsewhere and the next available station for them is Ghana. They will move out of Nigeria and go to Ghana and be doing their business while NIgerian passengers will travel from Lagos or Abuja to Ghana to join Emirate airline and I can tell you that the Ghanian government will not trap their fund and Nigeria government doing so have no reasons doing so.
“It doesn’t make any economic or political sense infact, it’s giving Nigerians a very negative impression in the commity of nation’s, so if Emirate that is about number one among foreign airlines doing business with us suspends its operation here you can be sure that Qatar airways, Turkish, British airways will follow suit and Nigeria will become a pariah nation.”
Also speaking, the chief executive officer, Belujane Konzult, Chris Aligbe, said suspending flight to Nigeria is a difficult situation that will lead to increase in air fare.
According to him, other airlines may not follow suit by shutting down their operation because every airlines have its own economic model of operations, saying those who can survive their fund being withheld will stay while those who can’t will move out of the country.
His words, “every airlines has its own economic model and if it’s a thing that they can cope with not being able to transfer their earnings, they will stay, but if they think it’s something they can’t cope with they will leave. it’s a very difficult situation.
Speaking on Nigerians traveling to other neighboring countries to join the Emirate flights, the former spokesman of the defunct Nigeria Airways, said, “Nigerians will rather travel on other airlines that will connect them. Must it be Emirates?” He asked rhetorically. He continued, Qatar, Turkish Airlines and others are still flying in and out of Nigeria. Passengers have other choices, they mustn’t go to Ghana and it will be an issue of cost, though airfare will change,” he stated.
However, another stakeholder flayed Emirate airline for suspending it’s operation, saying it’s a subtle pressure on government to release scarce foreign exchange to the airline.
The stakeholder who craved anonymity because of fear of being accused of bias observed that why the airline singled out Nigeria, saying their are other countries that have been unable to allow Emirate repatraite its fund and their flight into those countries were not suspended.
According to the top management staff of a leading aviation consulting firm, he said, “We shouldn’t succumb to the Emirates narrative. The country cannot and will not manufacture dollars for repatriation. When they were negatively competing to out do an indigenous airline, Air Peace , that was operating direct flight to Dubai, didn’t they know of the foreign exchange situation in Nigeria before embarking on multiple frequencies into Nigeria?
“Before, they do two flights out of Lagos daily and one out of Abuja, bringing total flight to three daily flights into Nigeria and 21 flights every week, but once they heard Air Peace was about to start flying to Dubai, they applied to increase the Lagos frequency to three flights daily, just to stifle the airline out and dominate the route. They didn’t need all these flights but they increased frequency to stifle competition,” stakeholder said.
