Concerns As Local Airlines Venture Into Foreign Routes Amid Frequency Gaps

In the last few months, local airlines have expressed intentions to venture into regional and international routes rather than expanding their frequencies on the local routes especially as the yuletide period approaches.

The airlines that seek to expand their capacity into international routes are Air Peace, United Nigeria and Ibom Air.

While Ibom Air expanded into Ghana, United Nigeria airline targeted Houston Texas in the United States and Air Peace is currently expanding into London, Saudi Arabia, China and other countries.

According to www.planespotters.net, Air Peace airline has 31 operational aircraft in its fleet, United Nigeria and Ibom Air have 4 and seven aircraft in their fleet respectively.

It was, however, gathered that Air Peace, with 31 aircraft in its fleet has capacity and equipment to venture on international routes and still maintain dominance in the local market but same cannot be said of United Nigeria and Ibom Air with four and seven aircraft in their fleet respectively.

And currently, Nigerian airlines currently lack capacity to provide on time boarding for their passengers while some northern part of the country have remained underserved.

However, stakeholders expressed fear that amid yuletide and challenges faced by airlines operators, venturing into international routes when locally the industry still remains underserved may not be necessary.

Also, not at a time that the local airlines are grappling under high interest rate, high operating cost and multiple charges in addition to lack of understanding of the state of Nigeria’s local financial institutions and, of course, forex challenges.

Highlighting challenges faced by airlines operators in the aviation industry, the chairman of Air Peace, Allen Onyema, said volatility of the forex regime does not allow operators to plan adequately.

“The forex is not even constant, so you can’t even plan with it. Your ticket sales are in naira and everything about aviation is in dollars. So, at the end of the day, the volatility of the forex regime does not allow you to plan adequately. You need to pity not just the airlines but anybody in this industry. The one that is even very disturbing is the insurance challenges.

“Like I said, Nigeria has been stigmatised, they will tell you that Nigeria is unsafe, it is all lies. They do this deliberately in order to make our premium go high. The premium a Nigerian airline pays to insure one Boeing 737, the legacy airlines in the first world nation, will use the same premium to insure three aircraft. So how do you compete in such an unfair world? How do you compete? And this is deliberate; they will tell you it is unsafe, meanwhile, they are here working,” Air Peace boss said.

But, despite the challenges, and fear expressed by stakeholders, the chief executive officer, Centurion Aviation Security and Safety Consult, Capt. John Ojikutu (rtd), said the local airlines irrespective of their fleet can operate successfully on international routes.

He, however, advised the government to designate two of the airlines as flag carriers and as well restrict foreign aircraft to either Abuja or Lagos airports to allow the local airlines to grow.

“They can survive if they have the fleet capacity, crew capabilities and meet the National Operating Regulations requirements for the country of destinations. The only thing they need if they have the fleet capacity and crew capabilities is for our government to designate just two credible ones of them as flag carriers and restrict the foreign airlines to either Lagos or Abuja not anymore to Lagos and Abuja and any other one in the alternative geographical location to the airport of their first choice.

“They can, however, be making as many frequencies daily to the airports of their choice. Government can also designates two of the airlines with capacity as a Flag Carriers and they should be supported by the government to begin flying to at least six airports which should include: London Heathrow and Gatwick in Europe, U.S, UAE, Ethiopia, and any airport we have Bilateral Air Service Agreement (BASA) within the far East in other to have access to China and the rest.

“FG should designate two airlines with capacity as flag carriers and with the necessary support as would be given to a National Carrier to the BASA routes. They can if they have the fleet capacity and crew capabilities and meet the National Operating Regulations requirements for the country of destinations.”

Also speaking, the general secretary, Aviation Round Table Initiative (ARTI), Olumide Ohunayo, said there is a huge market for foreign travels in Nigeria but the supply is very low, thereby, making foreign airlines hike their fare because of absence of competition.

He, therefore, corroborated calls for support for local airlines to succeed on international routes, saying airlines with capacity can be designated flag carriers.

“The only way we can bring fare down on the international routes is to allow our local airlines to participate. For instance, we are able to get more KGs because Bellview airlines introduced it and it has stayed till today.

“It’s only when that airline comes with a lesser fare that the foreign airlines will bring down their price. Maybe, if we have Emirates and Ethiad then the price will come down.

The one that will benefit Nigerians is that the Nigerian operators should participate in international routes. It’s not their responsibility alone, we must support them in whatever way the government can do that. We don’t necessarily need to have a national carrier if an airline expresses interest, finds out what their problems are and the government should see how they can assist.

“Since there is an existing market, if they see support, people will come in to invest and expand it and the local aviation sector will thrive. However, what we have presently is lack of supply and not demand and because the demand is available, the price is available,” he said.