The World Bank has recommended that for more Nigerians to travel by air at affordable fares and for airlines to operate profitably, the average number of domestic carriers should be 25.

For these airlines to operate profitably, it is expected that the Federal Government should assist in reducing the charges and other taxes; check the high prices of aviation fuel and continue with modernisation of airport facilities.

This is part of World Bank’s report to the Federal Government after the audit of Nigerian airlines, which was made available to the press.

According to a source in the Ministry of Aviation, “This operational audit has shown that the aviation industry in Nigeria needs on average 25 domestic airline operators to serve the growing passenger numbers, which at 2010 stood at 14million serving the major airports: Abuja, Lagos, Kano and Port Harcourt.”

World Bank noted that the recommended number of airlines is in tandem with the population of the country, which would soon over strip 200 million and as at now less than 10 per cent of the citizens travel by air but with more airlines, more competition and government support, fares would crash to a rate that could be afforded by average Nigerian, which would triple the number of air travelers.

Ideally, with the growth of Nigeria’s economy, the working population and growing number of youths, it is expected that at least 40 percent of Nigerians should travel by air, especially as there is limited alternative transport system.

Besides roads, there is no other well developed means of transport, as the rail system is yet to emerge as dependable alternative and only those who live in riverine areas travel by sea, so with over 25 airports located largely at state capitals, it is expected that more people should travel by air if the air fares are relatively low.

It is therefore projected that about 70 million citizens should travel by air but as at today the existing capacity of domestic carriers is grossly low and the fares are outrageously high; that a one- hour flight which is about $80.00 (about N13,500) in other parts of the world could rise to over $300 (N35,000) at peak periods.

The high fares may be described as conspiracy of government policies and the airlines because while the airlines say that government is not giving the domestic carriers the needed incentive, the airlines have refused to carry out measures that would enhance better operating environment, which include the unwillingness to cooperate through interlining and other code sharing measures.
http://www.eturbonews.com/41333/world-bank-nigeria-should-have-25-domestic-carriers

25 airlines may be on the high side. I think 10-12 airlines should be enough for Nigeria's future population. But for now, 5 strong airlines should be in existence.

Does the presidential fleet count as a carrier?

The issue is not about having carriers but is there a market for them? How many Nigerians will prefer to fly with the current cost over going by road even if road transportation will take more time?

25 is on the high side, more like half for now but they need to be aggressively competitive. Furthermore it's about time airlines (major ones like Arik) built their own operating terminals and make it a prime hub for their operations. Few big airlines including Delta did the same in ATL, our govt is financially cash strapped and can't do all these. As for interlining agreements, it's nothing more than greed factor. Every airline wants to keep it all, I guess it's because there aren't too much player yet but Nigeria is on the right path.