Photo caption: From left: Chief Executive officer, Acroconsult, Engr. Babatunde Obadofin; Regional Manager, NCAA, Barr. Aduragbemi Bukdateriba; Guest Speaker, former DG NCAA, Dr. Harold Demuren; Host, Chief Executive officer, SAPTCO Communication Limited, Mr. Sam Adurogboye and his wife, Mrs. Adeola Sam Adurogboye; Representative of Minister of Aviation Mrs. Obiageli Orah; Representative of the Chairman of the Occasion, Mr. Nowel Ngala and CEO, Kixcel Consulting Limited EGR. Koyode Ajiboye, during the Inaugural Lecture to Unveil SAPTCO Communication Limited, in Lagos on Wednesday
As Demuren Tasks FG On Assisting Domestic airlines
The Minister of Aviation and Aerospace Development, Festus Keyamo, said Nigeria cannot be taken unaware by other aviation climes who are using aero politics to stop Nigerian carriers from reciprocating the Bilateral Air Services Agreement (BASA)
This is just as he also assured that Nigeria as country will play international aero-politics to ensure that the country’s local carriers sustain the gains already made.
Represented by Director, Special Duties of the Federal Airports Authority of Nigeria (FAAN), Mrs. Obiageli Orah at the inaugural lecture organised by a former General Manager, Public Affairs of Nigeria Civil Aviation Authority (NCAA), Sam Adurogboye.
The maiden lecture with theme, “International Aeropolitics and Survival of Nigerian Carriers’ on London Route”, emphasised the immense support the government gave the domestic carriers especially Air Peace to gain entry into the lucrative London route that has not been reciprocated for a long time and also support the government has equally other airlines .
Also speaking at the event the former Director-General of Nigeria Civil Aviation Authority,(NCAA), Dr. Harold Demuren, who was the guest speaker at the event decried the challenges affecting the country’s domestic airlines, saying that they need the Federal Government’s assistance.
He posited that though the domestic airlines operators have the market because of the over 200 million very mobile population but lamented that despite the huge population, they lack the power to compete with their international airlines.
He described the Lagos-London route as the seventh highest yielding route in the world
Demuren argued that despite this potential, the country’s airlines still do not have what it takes to compete with international airlines such as Air France-KLM, British Airways, Emirates, Ethiopian Airlines, Lufthansa, Qatar Airways, and other international carriers
“The Nigerian government has designated Nigerian carriers to many destinations, but they are not operating them. At one time, Ethiopian Airlines earned 50 per cent of its ticket sales from Nigeria. The airline was then and still the country’s number one foreign exchange earner”.
“The Lagos-Abuja route is used as a feeder hub to fill foreign long-haul aircraft. Political consideration can override BASA negotiation. Foreign airlines have no competition here in Nigeria. However, we should support our airlines. You cannot be wrong supporting your own”, he added.
Demurem pointed out that the demand for flights on international carriers is l making the foreign airlines not to reduce fares from Nigeria.
He added that as a result of the above, most foreign airlines’ seats are even overbooked six months before flight operations.
He noted that fares to London from Lagos on British Airways are twice those to Accra on the same equidistance.
According to him, “Foreign airlines are overbooked, hence no incentive to lower prices. Lagos-London is the highest-yielding route. It is a natural place, it is the beautiful bride. Nigeria is not fully exploiting the benefits due to capacity constraints, including interlining and partnership. Strong government support is needed to unlock full value. If you are not creditworthy, you cannot operate successful international operations”.
He said that while the NCAA and the Federal Airports Authority of Nigeria (FAAN) can be encouraging Nigeria’s airlines to owe them huge debt which is running into billions of Naira, same he said cannot be tolerated by countries that Nigerian carriers operate to.
To buttress his point, Demurem cited the moribund Nigeria Airways Limited (NAL), which according to him was kicked out of the International Air Transport Association (IATA) clearing house over humongous debts and poor decision of Arik Air which saw its fortune nose-dive over the years.
He called on the Air Peace and other Nigerian carriers planning to embark on international operations to learn from the mistakes of NAL and Arik Air.
On the areas the federal government should assist domestic carriers to endure their survival, Demurem listed : aircraft leasing, access to foreign exchange, and timely responses in times of challenges
He warned that the industry could be in distress if all the airlines should collapse.
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