Nigeria’s Minister of Aviation, Hadi Serika has said granting of multiple entries foreign airlines into the country’s domestic market could have negative implications for domestic carriers in the Nigeria.
He said although the country might be generating a lot of revenue from foreign airlines through multiple entry, it does not allow the domestic airlines to generate the much needed revenue that would help in their growth.
Speaking at the Aviation Round Table Initiative Business Breakfast meeting for the first quarter of the year, Serika said grant of multiple entry points to foreign airlines into Nigeria has been an issue of contention by the airline operators of Nigeria and experts in the Aviation industry for quite a while.
He pointed out that granting of multiple entry into a country’ aviation market is based on the nature of Bilateral Air Service Agreement (BASA) entered by parties involved.
He added: “ As we all know, a Bilateral Air Service Agreement (BASA) between two countries and not between airlines. In a BASA, we have the sharing of frequencies and not the allocation frequencies. We also have single entry and multiple entries into each other’s countries for passenger and also cargo flights.
“Our Nation’s domestic airlines operate within Nigeria, while the capable ones in addition operate as the nation’s flag carriers. They could operate along with a national carrier or without one. As we are all aware, our domestic airlines are made up of healthy and growing airlines.
“Multiple entry Points are granted to Foreign Airlines based on the nature of their BASAs. It expands the business and grows the economy of the foreign airlines. It also generates revenue for the country as foreign airlines are able to land at different airports connecting different area of the country to foreign countries thereby promoting commercial trade, tourism and friendly relations.
“The grant of entry into more than 2 airports in Nigeria exposes foreign airlines to domestic routes and therefore into the domestic markets of the domestic airlines and this has its negative implications which include the following:
a. It is against the Carbotage act.
b. It does not allow the airlines to generate much needed revenue that would help in their growth.
c. Although, it expands the business and grows the economy of the foreign airlines, it also puts pressure on demand for forex as need to repatriate funds which they require for their smooth operations. Technically, its create capital flight from Nigeria.
“Nevertheless, there are prospects for domestic airlines as they have opportunity for improved domestic markets by distributing international passengers for connection with these airlines.
The grant of entry points to foreign airlines should also be such that they are giving multiple entries, to either Lagos or Abuja and not Lagos and Abuja, in addition, to any other airport outside the geographical area of the 1st choice of Lagos and Abuja e.g Port Harcourt, Kano and Enugu. In this way they do not take over all the business on all the international Airports
“As we all work and help to build a viable aviation Industry in Nigeria, I am sure the above actions would help improve its growth”.
