To eliminate the existing near-monopoly where two airlines are dominating the domestic services, the Federal Government is facilitating the registration of four additional airlines, which would fully commence operation by next year.

The Nigeria Civil Aviation Authority (NCAA) has been urged to register airlines that met outlined conditions without impediments or delays as Nigerian air passengers are suffering and paying exorbitant fares for local travel.

Since Dana Air was grounded in June and First Nation Airways stopped operation, air fares have skyrocketed and people scramble to buy tickets and sometimes have to bribe their way to get seats in flights, especially in Abuja where touts hold sway and at peak periods fares could rise as high as N40,000 for one hour flight.

Although it is expected that Dana Air would resume operation by end of October and Med View Airlines, which recently joined scheduled air operation, would also resume this month but these airlines have few aircraft in their fleet so they would not have enough capacity that could help to cut down the fares.

Presently air transport is the costliest in Nigeria, which is the highest in any peaceful country in the world and why this is considered anti-development is because the country has a safe airspace with modern instrument landing system and radar and the high cost of fuel is not peculiar to Nigeria.

An industry insider told THISDAY on Wednesday that if government carries this plan out it would encourage the development of the domestic market and sharpen competition among the domestic carriers and of course, knock down fares.

“In the last few months the situation has been dramatic due to the grounding of Air Nigeria, Dana Air and when Arik stopped operation for three days Aero’s lack of capacity led to the suffering of passengers.”

The source said that Nigeria is quickly losing the West and Central African market to Asky and Kenya Airways which now operate as local airlines in the region because it is only one Nigerian airline that operates in the sub regional routes.

“Also in the domestic routes Arik and Aero can be described as a duopoly because of their relatively higher capacity. IRS does not have the capacity now so if anything happens to one of its aircraft it will shut down its routes like when that truck damaged its flight on Wednesday.”

The source said that it would be a welcome development if government would encourage the establishment of more airlines, “as long as the issue of effective regulation is there.”
Also by next year the Ministry of Aviation must have concluded plans to give single digit long terms loans to airlines to assist them to acquire aircraft.

It has outlined plans to assist the operators, including those that have temporarily stopped services, to acquire modern aircraft from manufacturers and lessors with funds that would be made available by that arrangement.

This fund, THISDAY gathered, would be provided solely for aircraft acquisition and the bank and the Ministry of Aviation would monitor its disbursement and the acquisition of the aircraft.

http://www.thisdaylive.com/articles/fg-plans-to-introduce-four-airlines-next-year/127473/

Great development but let them keep the grabbing hands of people like Ibrahim JUMOH, etc from their consideration list when thinking of the management of these proposed airlines

Stallion77: Great development but let them keep the grabbing hands of people like Ibrahim JUMOH, etc from their consideration list when thinking of the management of these proposed airlines

Good talk

Plan to fail or fail to plan

2 increase more plane crash?

BrutusOj: 2 increase more plane crash?

lol. no na. to hep d aviation industry. because many airlines are no longer functioning. some are no longer abi to cope d system.

This FG still does not realize that any business they run is dead on arrival and very dangerous for the consumer. . Just encourage and empower national airline operators. have high standards, and high penalty for any FG staff trying to play ludo with our lives through bribe

Stallion77: Great development but let them keep the grabbing hands of people like Ibrahim JUMOH, etc from their consideration list when thinking of the management of these proposed airlines

@Stallion : May God continue to shower your ENTIRE HOUSEHOLD, GENERATION AND CHILDREN WITH BLESSINGS, GOOD TIDINGS, UPLIFTMENT, GRACE AND JOY! u removed d words from my mouth!! Thunder wld fire dem if dey give dat WICKED SOUL anoda opportunity to render thousands out of job witout SALARIES, PENSIONS, TAXES AND COOPERATIVE MONIES!!!!

2mch: This FG still does not realize that any business they run is dead on arrival and very dangerous for the consumer. . Just encourage and empower national airline operators. have high standards, and high penalty for any FG staff trying to play ludo with our lives through bribe

@2mch, from the article they wud nt be govt owned.

Killer airlines? Lol. Good idea

Wow i guess its time 4 me to start my own airline after i don win mtn aeroplane

Talk Iڪ cheap

They neva manage one successfully, na four dem wan introduce at the same time. Yeye tok.

Four airlines - to do what the existing ones have they been able to manage it - ask dem o

My able prezido..... Please don't raise our hopes for nothing.
I've still not heard anything solid about d refineries u promised.

Good development but anoda way to pack ghana must go bags

Oh right.
This makes sense.

Jimoh wakes up one morning.
Fires his staff
Claims a strong team of 50 trusted associates have been setup with view to commencing operation next year.

FG announces she will speed up registration process for new airlines to commence operation next year

Hmmm. It does make a whole loada sense

I tought fg is trying to stay out of running businesses, why on earth are they planning to introduce four airlines that will seize to work after 1 year? This is not necessary for now.

i know we need more airlines in nigeria but what goverment needs to address is the facors responsible for the collapse of many airlines ,if those factors are still there and not fully address no matter the number of new airlines they will continue to go under after sometime.the issue of loans and tax reliefs and also measures that can reduce the cost of air travelling so that existing ailines and the new ones coming can enjoy profitable patronage

This is what is called fire brigade approach. What happened to the existing airlines? Or why are they folding up, if the business environment is not conducive to do business, if you like establish 200 airlines, they will all collapsed.
What the government needs to do is to make the environment conducive, provide adequate infrastructures and enhance the monitoring/supervision exercise and see the industry rapidly growing. These are what obtainable in advance economy. Corruption too in all facets of life should be eradicated

FOUR, at once! Okay o.

Going by some of the post so far, some posters are just in haste to comment on the topic without reading and digesting the content of the post.

Nice concept tho.

the problem isnt innovation or new invention or stuffs like that, its maintaining what we already have on ground

Presently air transport is the costliest in Nigeria, which is the highest in any peaceful country in the world and why this is considered anti-development is because the country has a safe airspace with modern instrument landing system and radar and the high cost of fuel is not peculiar to Nigeria.

I disagree with this statement. In the UK, a local flight goes for as high as £250. When I went there for my masters I was just a jjc and didn't know about the trains and had to book a flight from London to Manchester... The cheapest flight I got was a 6am flight and it went for £55. The rest had flights going for as much as £185 &£250...

All the same we need more reputable airlines. The others that are not too strong could merge and stop running at a loss... (just a thought)

Corruption is the problem. PERIOD. Virgin Nigeria would still have been here, and perhaps even Nigeria Airways, if not for our corrupt practices. If care is not taken, the so called 4 new airlines may be sponsored and owned by CIVIL SERVANTS!

Only the Rich patronise airlines in dis country.
FG should invest in railway transptn.

hmmmmmmmmm,more flying cofins.....GOD help us

Its certainly a welcome development that's if the airlines are privately owned and not government owned as this govt don't have the intellectual competence to successfully manage any establishment especially airlines going by the rather sad and disappointing experiences of Nigeria Airways and Virgin Nigeria.

Why don't we create a single world class airline like Ethiopian Airlines? If Ethiopia can do it why can't we? I'm sure there's corruption there too. But it seems they just said ''OK as far as this our airline goes, NO corruption or mismanagement will happen here. We'll make it work.''

We should do the same.

Why some of una dey rush to post comment sef? shey dey give gold medal ni? going by what is in that article and the comment some of you are posting is making to begining to wonder for the furture of this country. The article said; the govt are proposing, to "REGISTER 4 NEW AIRLINE COMPANY, NOT OWNED OR RUN BY THE GOVT FOR THE DOMESTIC ROUTE". so in other word they are inviting YOU to come and invest in the aviation sector if YOU feel, you have the means and can meet the set requirement.

enm: Why some of una dey rush to post comment sef? shey dey give gold medal ni? going by what is in that article and the comment some of you are posting is making to begining to wonder for the furture of this country. The article said; the govt are proposing, to "REGISTER 4 NEW AIRLINE COMPANY, NOT OWNED OR RUN BY THE GOVT FOR THE DOMESTIC ROUTE". so in other word they are inviting YOU to come and invest in the aviation sector if YOU feel, you have the means and can meet the set requirement.

90% of ppl on nairaland dont read the body of a story they only look at the topic and start posting their contributions