What is your take on Nigeria Air industry considering that we lose as much as $2billion yearly



“We have always designated airlines to reciprocate, but they will not go. Besides the fact that they have to meet safety requirements before they are allowed to reciprocate, do they really have the capacity to compete? If a foreign airline brings 777 or A380, how do you hope to compete using a 737?

“That is why people are calling for a national carrier. These people (airlines) are just okay with one-man Nigeria Limited, so they are limited and cannot compete. There is nothing in the BASA that favours one country over another.”

The Chief Executive Officer (CEO) of Air Peace, Allen Onyema, refuted the claims that local airlines are not strong enough to compete on some of the routes, but pointed out quickly that some African nations still engage in bad politics of market protection by stealth.

Onyema revealed that government recently granted his airline the right to operate on the west coast, including Ghana and other countries in Central Africa, coupled with six international routes – China, U.S., U.K., India, Dubai and South Africa.

While expressing joy at the move, he noted that most African countries had not allowed them to reciprocate while their airlines keep feeding fat on Nigeria.

He observed: “African countries are trying to stop us, especially when they think you are a competition. We have right to fly to Cote d’Ivoire since two years, but they are not even answering our mails because they want to protect Air Cote D’Ivoire. Senegal has not even come here in two years to assess our facility. When we threatened to take a legal action to stop them from coming to Nigeria, they opened the door, but gave us one ground handling service at the cost of $4000 per trip! So how are you going to make it?


My question is why is difficult to get the National Carrier issue right once and for all, and why is it that if one is not immediately possible in the short run why innovative ideas to work around it has not been evolved?



[b][b]Nigeria has got to put her house in order.

You have to see business as a war, as every country practice protectionism howbeit stealthily.
Our NCAA must as a matter of fact call for the review of all BASA agreement with all our partners with a Nigeria-centric terms, this terms must be subjected to rigorous review to ensure she benefit from the implementation of these agreement.
These agreement frequencies should be tied to principle of reciprocity and nothing more.

All these can be done by being purposeful, forward looking, smart and showing shrewd business sense.
Yes we do not have a national carrier, but we can find a way around this.
Provide the enabling environment where local heavyweight airline operators can merge under a special investment vehicle to form a consolidated airline operator that will carry the Nigeria brand for 5-10years whilst building the strength, structure, technical know-how, market and human capital
Something similar to the Oil industry JV but without the multinational deceits and crookedness
These has immense benefits for the local airline operators as they will build a strong brand locally, operate at leverage using partner aircraft for transfer flights, more revenue, broader business reach & structure and more experienced/skilled human capital while in return the country earns from reduced risk, less prone to corruption and management team will be made up of representatives from various airlines, more national earning as a result of providing a leg in the BASA agreement and other associated benefits like building manpower and management board to drive the national airline after the termination of the purpose investment vehicle.
Yes, we do no have the funds for aircraft. AMCON should be made to provide the seed capital for this joint venture and they AMCON, should be kept through out the life of the JV as financial auditor and advisor.
It is important, that a separate management team be employed to run the JV but with a special arrangement that sees the JV partners and the FG appointing the JV management team who will be tasked on accountable milestones like brand reach, profitability, airport development and structures[/b]

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This story has lots of typos. Second your title is wrong it's 2 billion yearly. 200 billion is almost half the countries gdp.

do they really have the capacity to compete? If a foreign airline brings 777 or A380, how do you hope to compete using a 737?

I don't see how these smaller jet are much of a big deal. Use them for short flights on less busy routes. It would be better to have access to bigger jets.

The Chief Executive Officer (CEO) of Air Peace, Allen Onyema, refuted the claims that local airlines are not strong enough to compete on some of the routes, but pointed out quickly that some African nations still engage in bad politics of market protection by stealth.

Of course there's a reason African don't trade with eachother. Funny enough they allow these European carriers to scoop up market share.

He observed: “African countries are trying to stop us, especially when they think you are a competition. We have right to fly to Cote d’Ivoire since two years, but they are not even answering our mails because they want to protect Air Cote D’Ivoire. Senegal has not even come here in two years to assess our facility. When we threatened to take a legal action to stop them from coming to Nigeria, they opened the door, but gave us one ground handling service at the cost of $4000 per trip! So how are you going to make it?

Our dear ECOWAS partners doing this. We need to toughen up on them. We shouldn’t be pushes around considering we're bigger market. Then we should be using our sway in ECOWAS to make them change policy.

You have to see business as a war, as every country practice protectionism howbeit stealthily.
Our NCAA must as a matter of fact call for the review of all BASA agreement with all our partners with a Nigeria-centric terms, this terms must be subjected to rigorous review to ensure she benefit from the implementation of these agreement.
These agreement frequencies should be tied to principle of reciprocity and nothing more.

Provide the enabling environment where local heavyweight airline operators can merge under a special investment vehicle to form a consolidated airline operator that will carry the Nigeria brand for 5-10years whilst building the strength, structure, technical know-how, market and human capital
Something similar to the Oil industry JV but without the multinational deceits and crookednes

Why don't you guys just merge on your own? Then you guys have option of forming alliances, ticketing agreements and other things like that. Star alliance and one world alliance example. The idea isn't bad though.

Yes, we do no have the funds for aircraft. AMCON should be provide the seed capital for this joint venture and kept through out the life of the JV as financial auditor and advisor.

Like if you think the guy above made sense or Share if you want to see a National carrier in our country once again