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Nigerian Airlines Lose Lucrative West Coast Routes - Travel - Nairaland

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Nigerian Airlines Lose Lucrative West Coast Routes by chidima2019: 6:37am On Mar 26
Nigerian airlines are losing lucrative West and Central African markets, which used to sustain them in the past as a result of the creation of open sky policy that allows other airlines free entry and free exit in 23 African countries.

investigations revealed that the Single African Air Transport Market (SAATM), which was ratified by the African Union early last year created open sky for 23 African countries that are already signatories to the policy.
The implication of this policy, it was learnt, is that the airlines of these 23 countries can freely enter and exit these member-countries without hindrance.


It was, however, gathered that while Nigeria allows airlines from the West Coast like African World Airlines (AWA), Air Senegal, Air Cote d’Ivoire and others to operate in the country with minimum charges, other countries over charge Nigerian carriers to discourage them from flying to lucrative destinations such as Accra, Abidjan, Dakar, Freetown and others.

With such strangulating charges and taxes, Akelicious learnt that the Nigerian airlines are forced to charge high fares to these routes to offset operation cost, thus making them uncompetitive.
Investigation has revealed that Medview Airline, Dana Air have stopped operations to West Coast destinations, while Arik Air has cut back its operations in the West and Central African destinations.

The airline, it was learnt, no longer operate to Gabon, Banjul, Abidjan, Freetown, and Douala, and has restricted its destinations to Accra, Ghana, Luanda, Angola, Dakar, Senegal and Monrovia, Liberia.
Also, Air Peace, which started operations four years ago, has launched operations to many destinations in the sub-region, which include Accra, Lome, Abidjan, Banjul, Freetown, Dakar and others.

However, Air Peace had disclosed that it loses about N500 million monthly on those routes due to exorbitant charges that are not reciprocated in Nigeria for airlines from those countries.

The Chairman of the Nigerian carrier, Allen Onyema, told Akelicious that time had gone when the routes were lucrative for Nigerian operators.
“We lose over N500 million monthly to the West Coast. This is the money we make from domestic operations. Except this SAATM is re-addressed, Nigerian airlines will go into extinction. Unless government intervenes, we may leave the routes to these foreign airlines.

“This is because if you continue operating the West and Central routes, it will affect your revenue base on the domestic scene and you will crumble. That is why most Nigerian airlines could not succeed on those destinations,” Onyema said.
He added that if the federal government supports domestic airlines as other countries, it would have reciprocated the high charges by also charging those African carriers the same amount they charge their Nigerian counterparts.

Sources at Arik Air also told Akelicious that all the routes in the sub-region are unprofitable, disclosing that Nigerian airlines incur losses because of high charges heaped on them by the countries they operate to.

“The charges in Accra are too high. After paying them, you cannot get up to N5,000 from the base fare and you have not counted the cost of operation. Their ground handling charges are so high; the same with navigational charges by ASECNA (airspace services provider) and if you don’t pay in time they seize your aircraft,” the source said.

Accra and other airports in the sub-region charge Nigerian airlines for both inbound and outbound passengers, which in Nigeria, the Federal Airports Authority of Nigeria (FAAN) charges only for outbound passengers and all weight charges for landing and then parking, but the total charges, including passenger service charge of $50 per passenger are about 25 per cent of what airports in West Africa charge Nigerian airlines.

Nigeria contributes more than 50 per cent of the total passenger traffic on the West and Central Africa, but now it is other African airlines that are making money from those routes because the host countries exempt their airlines from many of the charges which they level on Nigerian operators.

However, the organiser of Akwaaba African Travel Market, Ikechi Uko, said the only way the West African routes could be profitable to the airlines in the sub-region would be to standardise the charges.
He added that a former Minister of Aviation, Ghana and the International Air Transport Association (IATA), had started moves to make the charges uniform in the sub-region.

He noted that West Africa has the highest population in Africa, adding that for the airlines in the sub-region to maximise the opportunities offered by the high passenger traffic, the countries that form the West Coast must work together and agree on the charges.

“Most airlines in the sub-region are small operators with short lifespan because they have not taken advantage of the high passenger traffic in the area. For SAATM to work, every sub-region should operate like domestic service and the charges must be uniform. That way the airlines can operate profitably in the sub-region,” he said.

https://www.akelicious.net/2019/03/nigerian-airlines-lose-lucrative-west.html

2 Likes 2 Shares

Re: Nigerian Airlines Lose Lucrative West Coast Routes by Notatribalist(m): 7:08am On Mar 26
That one non concern me.

4 Likes

Re: Nigerian Airlines Lose Lucrative West Coast Routes by paddyofboss(m): 7:09am On Mar 26
So what do I do with this

2 Likes

Re: Nigerian Airlines Lose Lucrative West Coast Routes by Britishcoins(m): 7:15am On Mar 26
Pls can someone summarize this story...

Have the find out the cause of the clash?
Re: Nigerian Airlines Lose Lucrative West Coast Routes by Ije004: 7:16am On Mar 26
Why would traveling to a country like The Gambia for a tourist getaway work when I'd have to pay as much as it costs to fly to London?
Africans please help yourselves grow. Stop waiting for oyibo.

28 Likes 2 Shares

Re: Nigerian Airlines Lose Lucrative West Coast Routes by jayfolarin: 7:17am On Mar 26
Notatribalist:
That one non concern me.

Why not ignore the thread then? No one is gonna kill you for not commenting

5 Likes

Re: Nigerian Airlines Lose Lucrative West Coast Routes by Jossy4luv1(m): 7:18am On Mar 26
k
Re: Nigerian Airlines Lose Lucrative West Coast Routes by RTSC: 7:18am On Mar 26
Poor foreign policy of the federal government.
International politics is selfish.

When we talk about needing an intelligent president, buhari supporters claim you only need a good heart.

10 Likes 1 Share

Re: Nigerian Airlines Lose Lucrative West Coast Routes by Truefaith: 7:18am On Mar 26
Bg
Re: Nigerian Airlines Lose Lucrative West Coast Routes by ChessInSlums: 7:19am On Mar 26
This is really sad. Nigeria what way? sad

Meanwhile please check our signature and send a DM if interested smiley
Re: Nigerian Airlines Lose Lucrative West Coast Routes by ifyalways(f): 7:20am On Mar 26
They are indeed dulling while African world from Ghana and Asky from Togo are taking over the African sky/routes.

5 Likes

Re: Nigerian Airlines Lose Lucrative West Coast Routes by Dave0116(m): 7:23am On Mar 26
ayam no understand
Re: Nigerian Airlines Lose Lucrative West Coast Routes by BedLam: 7:29am On Mar 26
Something is not clear here. Is Ghana not a signatory to the SAATM? if yes, why can't they reduce the fair as well ? If not, they should be charged as well.
Something is not right here. I think only countries that are part of the signatories are exempted from charges.

That said, Most Nigerian airlines(like arik) lost their customers because of bad services.

2 years ago, air peace had just 1 flight a day to Ghana and from Ghana.
But as I'm typing they have up to 5 flights per day.

12 Likes 1 Share

Re: Nigerian Airlines Lose Lucrative West Coast Routes by boxypane(m): 7:30am On Mar 26
So many kids on this platform. Must ppl comment thrash!!!?
Anyways, I think the FG needs to intervene urgently, if we can't change the policies, we should do those countries a big favour by increasing our taxes on them. We need to protect our airlines

5 Likes

Re: Nigerian Airlines Lose Lucrative West Coast Routes by purpose32: 7:32am On Mar 26
chidima2019:


Nigerian airlines are losing lucrative West and Central African markets, which used to sustain them in the past as a result of the creation of open sky policy that allows other airlines free entry and free exit in 23 African countries.

investigations revealed that the Single African Air Transport Market (SAATM), which was ratified by the African Union early last year created open sky for 23 African countries that are already signatories to the policy.
The implication of this policy, it was learnt, is that the airlines of these 23 countries can freely enter and exit these member-countries without hindrance.


It was, however, gathered that while Nigeria allows airlines from the West Coast like African World Airlines (AWA), Air Senegal, Air Cote d’Ivoire and others to operate in the country with minimum charges, other countries over charge Nigerian carriers to discourage them from flying to lucrative destinations such as Accra, Abidjan, Dakar, Freetown and others.

With such strangulating charges and taxes, Akelicious learnt that the Nigerian airlines are forced to charge high fares to these routes to offset operation cost, thus making them uncompetitive.
Investigation has revealed that Medview Airline, Dana Air have stopped operations to West Coast destinations, while Arik Air has cut back its operations in the West and Central African destinations.

The airline, it was learnt, no longer operate to Gabon, Banjul, Abidjan, Freetown, and Douala, and has restricted its destinations to Accra, Ghana, Luanda, Angola, Dakar, Senegal and Monrovia, Liberia.
Also, Air Peace, which started operations four years ago, has launched operations to many destinations in the sub-region, which include Accra, Lome, Abidjan, Banjul, Freetown, Dakar and others.

However, Air Peace had disclosed that it loses about N500 million monthly on those routes due to exorbitant charges that are not reciprocated in Nigeria for airlines from those countries.

The Chairman of the Nigerian carrier, Allen Onyema, told Akelicious that time had gone when the routes were lucrative for Nigerian operators.
“We lose over N500 million monthly to the West Coast. This is the money we make from domestic operations. Except this SAATM is re-addressed, Nigerian airlines will go into extinction. Unless government intervenes, we may leave the routes to these foreign airlines.

“This is because if you continue operating the West and Central routes, it will affect your revenue base on the domestic scene and you will crumble. That is why most Nigerian airlines could not succeed on those destinations,” Onyema said.
He added that if the federal government supports domestic airlines as other countries, it would have reciprocated the high charges by also charging those African carriers the same amount they charge their Nigerian counterparts.

Sources at Arik Air also told Akelicious that all the routes in the sub-region are unprofitable, disclosing that Nigerian airlines incur losses because of high charges heaped on them by the countries they operate to.

“The charges in Accra are too high. After paying them, you cannot get up to N5,000 from the base fare and you have not counted the cost of operation. Their ground handling charges are so high; the same with navigational charges by ASECNA (airspace services provider) and if you don’t pay in time they seize your aircraft,” the source said.

Accra and other airports in the sub-region charge Nigerian airlines for both inbound and outbound passengers, which in Nigeria, the Federal Airports Authority of Nigeria (FAAN) charges only for outbound passengers and all weight charges for landing and then parking, but the total charges, including passenger service charge of $50 per passenger are about 25 per cent of what airports in West Africa charge Nigerian airlines.

Nigeria contributes more than 50 per cent of the total passenger traffic on the West and Central Africa, but now it is other African airlines that are making money from those routes because the host countries exempt their airlines from many of the charges which they level on Nigerian operators.

However, the organiser of Akwaaba African Travel Market, Ikechi Uko, said the only way the West African routes could be profitable to the airlines in the sub-region would be to standardise the charges.
He added that a former Minister of Aviation, Ghana and the International Air Transport Association (IATA), had started moves to make the charges uniform in the sub-region.

He noted that West Africa has the highest population in Africa, adding that for the airlines in the sub-region to maximise the opportunities offered by the high passenger traffic, the countries that form the West Coast must work together and agree on the charges.

“Most airlines in the sub-region are small operators with short lifespan because they have not taken advantage of the high passenger traffic in the area. For SAATM to work, every sub-region should operate like domestic service and the charges must be uniform. That way the airlines can operate profitably in the sub-region,” he said.

https://www.akelicious.net/2019/03/nigerian-airlines-lose-lucrative-west.html
Ok
Re: Nigerian Airlines Lose Lucrative West Coast Routes by DeRay98(m): 7:43am On Mar 26
Until Nigerian leaders stops being "father Christmas" to other African countries they won't respect us.
Nigeria sign and implement agreements in the spirit of African unity but these other African countries go behind Nig to hunt and frustrate Nig interest in their countries while using two hands to eat from Nigerian plates.
They do these in almost areas of concerns.
Most of these so-called African brothers are jealous of Nigeria's wealth and influence in the continent.

3 Likes 1 Share

Re: Nigerian Airlines Lose Lucrative West Coast Routes by DeRay98(m): 7:46am On Mar 26
RTSC:
Poor foreign policy of the federal government.
International politics is selfish.

When we talk about needing an intelligent president, buhari supporters claim you only need a good heart.

Don't politicize this, while a change is needed in this area, Buhari didn't start this, it's been the Big brother ego trippings of our leaders over the decades.

2 Likes

Re: Nigerian Airlines Lose Lucrative West Coast Routes by Kingspin(m): 7:53am On Mar 26
Nigeria government without sense

2 Likes

Re: Nigerian Airlines Lose Lucrative West Coast Routes by Kingspin(m): 7:56am On Mar 26
DeRay98:
Until Nigerian leaders stops being "father Christmas" to other African countries they won't respect us.
Nigeria sign and implement agreements in the spirit of African unity but these other African countries go behind Nig to hunt and frustrate Nig interest in their countries while using two hands to eat from Nigerian plates.
They do these in almost areas of concerns.
Most of these so-called African brothers are jealous of Nigeria's wealth and influence in the continent.
Lack of will and vision crippled the country and continue. PDPAPC nothing to show

1 Like

Re: Nigerian Airlines Lose Lucrative West Coast Routes by chymevicks: 7:56am On Mar 26
I bet you all the truth is not being said in this write up.
They should focus on more realistic strategies. I know they are charged more because of their dead airplanes that leave more carbon footprint. They always cut corners and may not be providing accurate freight declarations and all that.
1.How about buying standard planes like other West African countries
2.How about making your prices way more cheaper and snatching back a larger market share and using economics of scale and turnover
3.How about further standardization of procedures (punctuality, Insurance, Customer relations) and better transparency

Solutions are always multidimensional.

11 Likes 1 Share

Re: Nigerian Airlines Lose Lucrative West Coast Routes by zoedew: 7:57am On Mar 26
We do not appear to know what to do with the large market we have which is what the world of investors are after.

3 Likes

Re: Nigerian Airlines Lose Lucrative West Coast Routes by harley88(m): 7:58am On Mar 26
I think Nigeria takes a lot of poo from other African countries just because we want to always play the night brother role. Same way Camerounian military would invade Nigerian villages without any reaction from the Govt.
Fed Govt should also increase fares on foreign airlines

1 Like

Re: Nigerian Airlines Lose Lucrative West Coast Routes by BabaO2: 7:59am On Mar 26
Nigeria Airlines are not safe.
Re: Nigerian Airlines Lose Lucrative West Coast Routes by wolebest: 8:00am On Mar 26
Don't believe the hype. Nigerian airline operators complain a lot, they should reduce inefficiency. Some thing is not right. Other airlines operate effectively on these West Coast routes.

1 Like

Re: Nigerian Airlines Lose Lucrative West Coast Routes by harley88(m): 8:00am On Mar 26
benji80:
nothing can work when the dullard is still i charge

Shut your stupid mouth..... can't you comment with brain. You guys turn every thread here to political poo

1 Like

Re: Nigerian Airlines Lose Lucrative West Coast Routes by vonn09: 8:01am On Mar 26
Our airlines need to do better

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