With over $5 billion carted away yearly by foreign carriers, their domestic counterparts are calling for the abolition of multiple entry point because of their “lopsidedness” KELVIN OSA OKUNBOR, reports
NIGERIA will not harness the potential of its lucrative aviation sector until it reviews the 73 Bilateral Air Services agreements with other countries, experts have said.
The agitation for their review is because of their perceived lopsidedness.
In interviews with The Nation, the experts said the agreements were skewed against indigenous carriers, alleging lack of fairness and reciprocity.
Under the agreements, 27 foreign carriers fly into Nigeria using the multiple entry points granted them.
British Airways, Virgin Atlantic, Lufthansa German Airlines, Emirates, Turkish Airlines, Ethiopian Airlines, Egypt Air and Kenya Airways enjoy multiple entry points into Nigeria.
But Arik Air, the only Nigerian carrier on the intercontinental routes, flies into a single point in the designated countries.
President of Sabre Travel Network, Mr Gbenga Olowo Mr Taiwo Adenekan, Chief Executive Officer of PDT Consulting Limited, Medview Airlines Managing Director, Alhaji Muneer Bankole Jed Air President Captain Nogie Meggison and Air Peace Chairman Allen Onyema described these agreements as a disservice to the government as well as the aviation sector.
They said until the government re- examined the lopsided air transport policies and agreements, the predatory invasion of foreign carriers through multiple entry arrangement will continuously stunt the growth of indigenous carriers.
The 27 foreign carriers operating into Nigeria, cart away over $ 5 billion annually as capital flight. This whooping sum accounts for 50 per cent, or over $10 billion taken way from Africa annually by the invading foreign carriers. No thanks to the multiple entry points granted them by government.
They said unless government abolishes the policy, many domestic carriers will be the worse for it, as the future of their businesses appears bleak.
Operators’ position
They canvassed the adoption of single entry point for foreign carriers, describing the existing multiple entry points as another attempt to further cripple indigenous airlines.
Olowo and Adenekan, both aviation economists, described the granting of multiple entry points as another antagonistic policy that could further impoverish domestic airlines that are battling to keep their operations afloat.
They urged the Federal Government to emulate steps taken by some foreign governments to protect their airlines by granting only one entry point to Nigerian carriers.
They said such multiple entry points given to foreign carriers have further helped to destroy the potential of domestic operators, as the foreign carriers make much profit from Nigeria.
Onyema said: “The Buhari government has to put the aviation sector as one of the priority areas and must focus on how to development the industry. This is because aviation is critical to economic development.
“The government must think deeply in appointing a very serious person with a sound business background as Minister of Aviation. The person does not have to be an aviator, but such a person must business background and at the same time have deep knowledge of aviation.
“If the government does not do that we will never get it right. Unless this is done the aviation sector will not be able to wriggle out of its current challenges Apart from the appointment of somebody with deep knowledge of aviation as minister, the government must urgently address the problem of multiple entry points granted foreign carriers into Nigeria . It is one of the missteps by government responsible for under development of the industry.
“This is unfortunate and highly disappointing for government to allow it to continue,they said.
The duo said it is unfortunate for any government serious about the development of local capacity to continue to allow the policy of multiple entry point to thrive. If it continues, they warned, it is going to kill the domestic sector of the aviation industry.
“We should do away with such an arrangement. This calls for total review. Even the bilateral air services agreement, it is lopsided against Nigeria.”
Experience in other
countries
As against Nigeria which has thrown its borders open to other carriers, many other African countries, including Egypt and Ethiopia have evolved market-protection policies for their airlines.
Onyema wondered how many countries are implementing the bilateral air services agreement, the way Nigeria is carrying on in this instance.
He said : “There is urgent need for government to sit down and examine this matter critically. The time for such is ripe and long overdue.
The fact is that other countries will not tell you they do not want to implement it, but they put several hurdles on the way for Nigerian carriers. That is where we are missing the point.
“Other countries close the door against our carriers, but we throw everything wide open.
Even some African countries, including Egypt and Ethiopia which enjoy several flight frequencies into Nigerian cities, are frustrating efforts by Nigerian carriers to get frequencies into their own countries.
“Egypt Air, for instance, flies into Lagos from Cairo, to Abuja and Kano, they even enjoy flights to Accra under the fifth freedom rights, but are not willing to grant such rights to Nigerian carriers. That is the height of lopsidedness .
Such agreement does not favour this country, any developing country like Nigeria should not imbibe such agreement because it will potentially destroy the local air transport sector.
“What Nigeria needs to do is to implement what other countries are doing to erect hurdles on the way that would create avenue to protect domestic carriers by way of agreements that would curb the excesses of invading carriers.
Government should put hurdles that makes it difficult for foreign carriers to access multiple entry points.
“Why is government allowing our air borders porous for these foreign carriers to come here and reap the bountiful benefits. This is unjust.
“Any government that is serious about creating of jobs for his people and preservation of its economy must address this policy of multiple entry point.
The first thing the Buhari administration should do is to review this policy of multiple entry point granted foreign carriers.”
What govt should do
Worried over the trend , Onyema said: “What government needs to do is to tell the foreign carriers to liaise with domestic operators .That is the only way to develop the industry.
Failure to do that will have huge negative effect on domestic carriers.
This has become important because of the challenges operators are daily grappling with. The passengers domestic operators should be distributing around the country is being shared by foreign carriers under the guise of multiple entry points. This does not happen in many countries of the world.
“I think government and Nigerians should be grateful to domestic airline owners who have taken the risk to put their investments into aviation with the low returns on such investments and associated risks. This business is not profitable because some inherent policies of government are limiting the capacity of indigenous airlines.
“Airline operators needs to be encouraged because they ventured into airline business to create jobs not to make profit.
“We are helping in the movement of businesses all over.
“Instead of bad mouthing airline operators government should come to their aid.
“They need to be assisted to move the business to the next level.
“I am not asking government to give us billions to run the business of air transport, but the government should create an enabling environment to make the business thrive. That for me is one of the ways government would have assisted in growing the business.
“If the government creates an enabling environment for domestic carriers the business will thrive and we will curb huge capital flight out of the country.”
Meggison corroborated his position. He said : “Look at Ethiopia Airlines government approved entry for the airline into four points in Nigeria, including Lagos, Abuja, Kano and Enugu and the next thing you hear they have secured approval to fly to Port Harcourt, this is not fair to domestic carriers. The government must reconsider any policy on multiple entry point that makes our air borders porous for all foreign carriers to come and exploit to the disadvantage of Nigerians and their operators.
Imagine Emirates Airlines, which flies from the Middle East , they have being granted double flight frequency into Lagos, a single frequency into Abuja and they are struggling to get frequency into Kano, just one single airline, this is not good for domestic aviation in Nigeria.
This is unfair do we have people in government at all seeing all these lopsided agreements and feeling that nothing is wrong.
“The government has to do something about this.”
According to Onyema there need for people in government to show they love Nigeria .
looking back at the inability of previous administration to correct the anomaly , he said ” We do not have people in government. That is why Buhari administration must consider this issue as an emergency to preserve our carriers, our economy and create jobs for Nigerians.
“If we had good people in government they should not allow things like this to happen.
“No developing country will allow such things to happen.
“That is why we need an aviation minister that has serious business background and thorough knowledge of the industry to be able to address this issues.
“It is very key to the growth and development of the aviation sector.
“What they are doing to this country is sinful , it is criminal too. Some people in government just sit down and allow foreign carriers to do us in, exploit us and our economy is going down the drain, this I must add is unpatriotic and unacceptable.
“The government should not even be in a hurry to appoint an aviation minister.
Until issues concerning bilateral air services agreements, and other challenges in the industry are considered.
“The appointment should not even be political, Buhari should please give deep consideration to all these issues in order to develop the economy.
“The United States, Britain, UAE , will not even allow you to penetrate their air transport market.
“They put in place serious hurdles to protect their own carriers.
They will tell you they are not going to agree to the terms of your air services agreement , but they will put done hurdles to prevent you from gaining market access.
“They know what to do. Why do we allow foreign carriers dominate our market.”
Allegations of lack of
indigenous capacity
Over the years, passengers have complained of alleged poor services offered by indigenous carriers on International routes.
Some passengers argue that until indigenous carriers raise the bar in service delivery, it may be difficult to compete with foreign carriers.
Onyema said: “I know the campaign some people are mounting against indigenous operators is that we do not have operational capacity to compete with foreign carriers. That is untrue, it is totally misleading, people spreading such information do not mean well for the growth of aviation and its airlines in Nigeria.
“I must reaffirm that Nigerian carriers have the technical and operational capacity to operate to any destination or foreign route they ate designated to. What they need is government support. Nigerian carriers can offer any quality of service like their foreign counterpart.
That is the truth of the matter.
“Nigerian airlines can offer the same level of service if they enjoy the kind of assistance such foreign carriers ate getting from their government.
“Even without the assistance of the government to domestic carriers, if the government puts an end to multiple entry point into Nigeria foreign carriers will be forced to have a kind of understanding with local airlines on possible areas of partnership.
“If they do that, it will help to build the capacity of local airlines in many ways, other than government financial assistance.
“Those people running down local carriers that they cannot compete on international routes with foreign airlines is like saying we need a foreign president to run our country.
“Are they saying they cannot trust that domestic carriers can render services as mete as carrying passengers from one country to another? That is an insult on our airlines and nobody should accept it.
“That if it is not foreigners it will not work that is a perception problem we have. That is how they want to mould our psyche. That is a serious problem in our hands.
Why must we accept that unless services are rendered by foreigners only then will it be the best? We are doing ourselves in.
It is like saying we need a foreign government to become our president and ministers and everything. We have the capacity to deliver if given an enabling environment.”
