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David Cameron Writes Jonathan Over FG & British Airways Faceoff by homerac7: 6:18am On Nov 09, 2011
FG/BA face-off: Cameron writes Jonathan
On November 9, 2011 · In News


 



By Rotimi Ajayi, Regional Editor, North & Kenneth Ehigiator
ABUJA — British Airways lobbyists have pressured the British Prime Minister, David Cameron, to intercede on behalf of the airline to save it from losing more than 50 per cent of its flight frequency to Nigeria following the treatment meted out to Nigeria airline, Arik Air, at Heathrow Airport.

This came as Managing Director of the Federal Airports Authority of Nigeria, FAAN, Mr. George Uriesi, said yesterday that the Federal Government’s action on British Airways was informed by the need to protect the country’s domestic airlines.

A dependable government source disclosed that Mr. Cameron had waded in last Friday following the insistence of the Ministry of Aviation that British Airways should restructure its London-Lagos flight frequency from seven to three weekly.


British Prime Minister, David Cameron and President Goodluck Jonathan during his two-day official visit to Nigeria.

According to the source, the Prime Minister had written a strong letter of appeal to President Goodluck Jonathan, seeking a resolution of the matter in more beneficial manner to the two countries.

It was learnt that sequel to Cameron’s letter, the President had directed the Minister of Aviation, Princess Stella Oduah-Ogiemwonyi, to grant a week extension to BA to allow both Nigeria aviation authorities and that of Britain sort out the disagreement

The source said: “The British Prime Minister actually wrote to our President on this. So discussions are now at the highest government level and this is why a week extension was granted BA to comply with new flight schedule given to the airlines.

“The import of the letter is to see how to find a way to resolve the issue diplomatically in a manner that Nigeria will not be shortchanged and this can only come if Arik is restored its full flight schedule.”

A statement in Abuja, Monday, by Joe Obi, Special Assistant (Media) to the Minister of Aviation, had underscored the need to allow the bilateral discussion end before the commencement of the new flight schedule of the British Airways to Murtala Mohammed International Airport.

Why BA cut Arik’s flight

The source revealed that the BA had taken the decision to cut Arik flight from Abuja to London following the realisation that the passenger load of Arik had risen sharply since the commencement of the Abuja-London direct flight.

It was learnt that following the downward review of fare by Arik and the upsurge in the passenger load of the airline, BA felt threatened on the route.

Nigeria had been awarded 21 flights on the Nigeria-UK flight, of which Arik uses 12 while the remaining nine belong to Air Nigeria and the defunct Bellview Airlines.

Abuja airport domestic terminal for renovation

Meantime, all domestic operations at the domestic terminal of the Nnamidi Azikiwe Airport Abuja are to be moved over to the International Terminal as from next week.

It was learnt that the present domestic building would undergo renovation to make it suitable for handling of cargo and pilgrimage operations.



FAAN MD explains decision on BA



Uriesi, who spoke in an interview on AIT’s Kakaki programme, said the Federal Government was not comfortable with the manner Arik Air was edged out of Heathrow on its Abuja-London operations, saying the fact that the slots denied Arik were given to British Airways angered the government.

According to him, though the issue of slot allocation at Heathrow was determined by commercial considerations, the sudden increase in the cost of slots to Arik at the airport gave the impression of a deliberate plot to muscle the airline out of the route.

He said failure of government to take action might spell doom for the country’s airlines in future, as other foreign airlines would be encouraged to do a similar thing to a Nigerian carrier.

He said: “When you have a bilateral air services agreement between two countries, it is about accessing your market, it is about exchange to that market. The reality of the situation is that the government provides the framework for the access to that market.

“The United Kingdom has 21 frequencies, which gives room for British carriers to access our market 21 times a week, and Nigerian carriers can access the British market 21 times a week, it is all about exchange to access market.

“Now, on the side of the British carriers, it is exchange to your market and what I will exchange for it into your own market. The agreement sort of specifies how that access will work out. For the British carriers, they are utilising the entire 21 slots as they have two carriers, BA and VAA, but on the Nigerian side, only Arik Air is exercising that right.

Rights of indigenous carriers

“It is not really about Arik Air, it is about Nigerian designated carriers, which happens to be Arik Air, which has seven frequencies from Lagos to Heathrow, but a couple of weeks ago, with its five slots a week from Abuja into Heathrow, its slot got taken rather suddenly in the middle of October, they were left high and dry.

“To a large extent, it is one thing to have 21 frequencies, but if you do not have slot at the airport, it is generally about trying to defend a Nigerian carrier. I only want to de-emphasize the Arik part of it: it is about defending Nigerian designated carrier; it is trying to protect the rights of indigenous carriers.

“In the bilateral air services agreement, it is a convoluted arrangement that we have two British carriers at the detriment of one Nigerian carrier. It is one thing to have frequency into the airport without a slot, which makes it difficult. It is good for government to protect the rights of indigenous carriers.

“Slots into Heathrow is probably the most valuable commodity in the air transport industry, and there is a lot of acts associated with access to Heathrow. There are so many countries across the globe, many countries engage the British authorities to get slots into Heathrow.”

“Arik Air quietly went to negotiate five slots a week into Heathrow from Abuja, paying about £600,000 to have the opportunity to lease the slots, and the airline was paying about £52,000 per month for the operations, but all of a sudden, the British authorities informed Arik Air that from the end of October, it will not be able to lease slots to the airline.

“Coincidentally, it turns out that British Airways bought those slots, and even more and began to use six slots about the time Arik Air was elbowed out. There is a whole trade of slots going on in Heathrow, it is almost an essential commodity in the industry.

“One thing is to be able to access the leasing of slots. You can even buy them out right, then they become yours, the other thing is to show a competitive arrangement to elbow some one out of the market, but I think what is important for us to stress is that a lot of people are watching this.

“Other carriers and their owner nations , if a Nigerian registered carrier , could be elbowed out of that market , it means that other Nigerian carriers could be edged out of any other route by the authorities other than the British market. The access to the Nigerian market is prime for British Airways , so in elbowing out Arik Air out of Abuja – London is enough indication that British Airways will have to face some consequences.”

Already, management of FAAN had said it would restrict British Airways’ operations into the Murtala Muhammed International Airport, Lagos, with effect from next week, citing operational reasons.

This is seen as additional retaliatory measure to the federal government’s slash of the airline’s frequency from seven to three on the Abuja-London route.

thing is to show a competitive arrangement to elbow some one out of the market, but I think what is important for us to stress is that a lot of people are watching this.

“Other carriers and their owner nations , if a Nigerian registered carrier , could be elbowed out of that market , it means that other Nigerian carriers could be edged out of any other route by the authorities other than the British market. The access to the Nigerian market is prime for British Airways , so in elbowing out Arik Air out of Abuja – London is enough indication that British Airways will have to face some consequences.”

Already, management of FAAN had said it would restrict British Airways’ operations into the Murtala Muhammed International Airport, Lagos, with effect from next week, citing operational reasons.

This is seen as additional retaliatory measure to the federal government’s slash of the airline’s frequency from seven to three on the Abuja-London route.





http://www.vanguardngr.com/2011/11/fgba-face-off-cameron-writes-jonathan/
Re: David Cameron Writes Jonathan Over FG & British Airways Faceoff by homerac7: 6:28am On Nov 09, 2011

Chike_Afanna Collapse
The low point of this report is it believes the allocation of Heathrow slots is done purely on commercial (market driven) considerations, but that's not entirely the truth. There is something bigger than economics going on at Heathrow and it took America’s deep peering to see beyond Heathrow's commercial facade. Back when Americans had similar squabble they (Americans) figured that airlines that bought aircrafts from Europe's Airbus magically got the highly coveted Heathrow landing slots. Thus airlines that ordered aircrafts from America's Boeing got the cold shoulder when it came to London Heathrow landing slots - compared to Airbus aircraft buyers. When Americas threatened to pull the plug on British carriers - imagine shutting British carriers from New York, Newark, Chicago, Dallas, Los Angeles, Miami, Atlanta, Boston, Washington DC, Seattle, Anchorage and the rest busy American airports. Well Britain blinked of course,

Now to the BA versus Arik. What this report failed to say is that British Airways was in on the deal that muscled Arik out of Heathrow all along. International consolidated Airlines Group (IAG) the owner of British Airways just reached an agreement to buy BMI (the airline that jacked up Arik's Heathrow landing slot) for 305Million pounds. Of course for a deal to be reached this month November 2011, means there's was talks between BMI and IAG (the parent company of BA) for months and it is obvious IAG leveraged BMI to knock out Arik BA’s major competitor on the London-Abuja and London-Lagos route. That certainly explains why BMI asked for astronomical increase from 52, 000 pounds to 92,000 plus pounds per month. BMI had hoped that the astronomical increase (which can’t be justified using market forces logic) would force Arik to backpedal and that would have been the end of the matter.

But when Arik persisted indicating they (Arik) wanted further negotiation BMI slammed the door on Arik. Thus it is not hard to connect the dots. IAG wanted Arik out so their airline - BA - would have no competitor. So what we have here is not only tenant versus landlord issue but something that hinges on insider trading and anti competitiveness, so Arik, if they have the money could file a lawsuit against IAG, BA and BMI citing prejudice in forceful termination of their Heathrow lease. It is also believed the only reason IAG bought money losing BMI is to acquire BMI’s Heathrow slots. Right now Virgin – BA’s UK competitor is protesting the sale and subsequent BA grab of the majority Heathrow landing slots, So I think Arik should make its voice heard in Britain because I think they have a case.

Meanwhile, Nigeria government should pursue its case so vigorously back home. Nigeria government should not listen to BA who is behaving like they are the victim who had nothing to do with Arik’s Heathrow ouster, when in fact their parent company IAG orchestrated the whole thing to benefit BA. Also IAG owns Iberia so Nigeria government needs to move against Iberia too and restrict their flight to Nigeria (if they still fly to Nigeria). The way this was orchestrated and the way Arik was muscled out is so despicable so I hope Nigeria’s government does not stop at just getting Arik Heathrow landing
Re: David Cameron Writes Jonathan Over FG & British Airways Faceoff by babaowo: 11:47am On Nov 09, 2011
i knew that fg will reverse the action,had said b4.
Re: David Cameron Writes Jonathan Over FG & British Airways Faceoff by SSaemoenl(m): 11:49am On Nov 09, 2011
British Wahala. They don't want any competitor as they want ALL those cash inside them. Rubbish as they think others are fools.
Re: David Cameron Writes Jonathan Over FG & British Airways Faceoff by Kx: 11:50am On Nov 09, 2011
Imagine Cameron wading into this issue.
if it was d other way around, would our leaders step in like Cameron did?
Re: David Cameron Writes Jonathan Over FG & British Airways Faceoff by babyboy3(m): 11:59am On Nov 09, 2011
I have said it all along London - Abuja route could be moved to Gatwick because Gatwick airport does not belong to BAA anymore! all these tit for tat is not worth it
Re: David Cameron Writes Jonathan Over FG & British Airways Faceoff by agabaI23(m): 12:10pm On Nov 09, 2011
Kx:

Imagine Cameron wading into this issue.
if it was d other way around, would our leaders step in like Cameron did?

Your leaders stepping in for Arik was the reason why Cameron had to step in. May be you didn't realise because your leaders took the lead.
Be positive!
Re: David Cameron Writes Jonathan Over FG & British Airways Faceoff by Kx: 12:11pm On Nov 09, 2011
agabaI23:

Your leaders stepping in for Arik was the reason why Cameron had to step in. May be you didn't realise because your leaders took the lead.
Be positive!
I see.tnx
Re: David Cameron Writes Jonathan Over FG & British Airways Faceoff by daywatcher: 12:22pm On Nov 09, 2011
And some people are still argueing that the British government has no say in this dispute because Heathrow is owned by a private comapany (BAA)
Re: David Cameron Writes Jonathan Over FG & British Airways Faceoff by ortopazz(m): 1:15pm On Nov 09, 2011
Atleast we folow get groundz, ckameran, or wateva, if thz issue was d oda way round, I doubt if kamara wud have lztnd. JOHNATHAN DO WAT U FIL ITZ WRÎGHT.
Re: David Cameron Writes Jonathan Over FG & British Airways Faceoff by deelobe: 1:36pm On Nov 09, 2011
Do you know thatGatwick is owed by a Nigerian. They should move some of the flights to Gatwyick. So these flights are important to England and they treat us with so much disrespect that I wonder at times. The Nigerian govt should demand not only better treatment for the airlines but also for Nigerians.

When flights arrive from Nigeria it is treated as though some being from space that coming with plagues have arrived.
Re: David Cameron Writes Jonathan Over FG & British Airways Faceoff by babaowo: 2:02pm On Nov 09, 2011
Adebayo Ogunlesi Nigerian Who Owns London Gatwick Airport•First
en.wikipedia.org/wiki/Gatwick_Airport - its a nigerian man by face but na oyinbo by heart.
Re: David Cameron Writes Jonathan Over FG & British Airways Faceoff by ideylaff: 2:17pm On Nov 09, 2011
Do you know thatGatwick is owed by a Nigerian

He his the Chairman of the company that owns/runs Gatwick not the owner of gatwick. LOL

Adebayo Ogunlesi is currently Chairman and Managing Partner of Global Infrastructure Partners, a $5.64 billion joint venture formed by Credit Suisse and General Electric.
Re: David Cameron Writes Jonathan Over FG & British Airways Faceoff by Kx: 2:20pm On Nov 09, 2011
ideylaff:

He his the Chairman of the company that owns/runs Gatwick not the owner of gatwick. LOL
Honestly most peeps used to think that the Chairman of any coy is d owner.
Re: David Cameron Writes Jonathan Over FG & British Airways Faceoff by demmy8: 2:21pm On Nov 09, 2011
Nigerians Please click on this link, to like this picture to put Nigeria on the world great scene again thanks
https://www.facebook.com/photo.php?fbid=309160292443937&set=pu.127636357262999&type=1&permPage=1
Re: David Cameron Writes Jonathan Over FG & British Airways Faceoff by ideylaff: 2:32pm On Nov 09, 2011
David Cameron Writes Jonathan Over FG & British Airways Faceoff

Not reported anywhere except the Nigerian Press, hmmmmmm, is this true or just made up, even the contects of the story does not add up at all. Hope we are not jumping up over nothing, like we always do when we have a face off with another country. we that we have nothing to do yanga with, are now trying to do big boy, over that yeye Arik Airline,

No awa people dey full the BA plane,


A dependable government source disclosed that Mr. Cameron had waded in last Friday following the insistence of the Ministry of Aviation that British Airways should restructure its London-Lagos flight frequency from seven to three weekly.


British Prime Minister, David Cameron and President Goodluck Jonathan during his two-day official visit to Nigeria. when was this, 2day visit? and what does that have to do with this story that all 9ja press are carrying all over the internet embarassed undecided

According to the source, the Prime Minister had written a strong letter of appeal to President Goodluck Jonathan, seeking a resolution of the matter in more beneficial manner to the two countries.
Re: David Cameron Writes Jonathan Over FG & British Airways Faceoff by babyboy3(m): 2:48pm On Nov 09, 2011
Re: David Cameron Writes Jonathan Over FG & British Airways Faceoff by nagoma(m): 2:50pm On Nov 09, 2011
have said it all along London - Abuja route could be moved to Gatwick because Gatwick airport does not belong to BAA anymore! all these Bosom for tat is not worth it

What is Bosom for tat please? This is the first time I am coming across this expression!
Re: David Cameron Writes Jonathan Over FG & British Airways Faceoff by babyboy3(m): 3:18pm On Nov 09, 2011
I wrote T1T for TAT

The moderator might have changed it
Re: David Cameron Writes Jonathan Over FG & British Airways Faceoff by highland(m): 3:34pm On Nov 09, 2011
ok
Re: David Cameron Writes Jonathan Over FG & British Airways Faceoff by homerac7: 6:54pm On Nov 09, 2011
@ ideylaff  

dat was about 3 months ago. It was around d UN house bombing but can't remember if it was before or after, because he was is lagos all through and never stepped abuja, even Jonathan had to come down to lag too. He delivered lecture at Pan-African University then too.
Re: David Cameron Writes Jonathan Over FG & British Airways Faceoff by ideylaff: 7:01pm On Nov 09, 2011
@ ideylaff 

dat was about 3 months ago. It was around d UN house bombing but can't remember if it was before or after, because he was is lagos all through and never stepped abuja, even Jonathan had to come down to lag too. He delivered lecture at Pan-African University then too.

@ homerac7 thanks 4 that, I remember that very visit , in fact it was only for a few hours I think,  (stop over more like) that's why I was asking in my post that was does ds imaginary 2 day visit of Cameron have to do with the letter they are saying Cameron  wrote to "dull master Joe G",

conflicting reports hennnn, can u just imagine

and then I ask for authenticity of this so called Camerons letter to Uncle Dull Joe G and someone sends me a link 4rm newsnow.com which
links me to 9ja's daily star, LOL

No newspaper is reporting that Cameron wrote any letter ooooo, na 9ja paper they talk so, Strange,
Re: David Cameron Writes Jonathan Over FG & British Airways Faceoff by JimmyBoy1: 7:38pm On Nov 09, 2011
Good one from the government for once, usually you will have a government official who has been settled by the britons and Arik will be allowed to die , it seems we are at learning now.
Re: David Cameron Writes Jonathan Over FG & British Airways Faceoff by Johnpaul2k2(m): 10:31pm On Nov 09, 2011
fvck them grin grin grin grin grin
Re: David Cameron Writes Jonathan Over FG & British Airways Faceoff by PHIPEX(m): 10:39pm On Nov 09, 2011
Good move
I DEY LAF in my village language cheesy grin grin cheesy
Re: David Cameron Writes Jonathan Over FG & British Airways Faceoff by BootyOnMe: 10:44pm On Nov 09, 2011
This came as Managing Director of the Federal Airports Authority of Nigeria, FAAN, Mr. George Uriesi, said yesterday that the Federal Government’s action on British Airways was informed by the need to protect the country’s domestic airlines.

How?
Does BA fly domestic routes in Nigeria? undecided

*scratchin' my arzzz*



“Other carriers and their owner nations , if a Nigerian registered carrier , could be elbowed out of that market , it means that other Nigerian carriers could be edged out of any other route by the authorities other than the British market. The access to the Nigerian market is prime for British Airways , so in elbowing out Arik Air out of Abuja – London is enough indication that British Airways will have to face some consequences.”

A-ha!I get it!
Serves them right!
Nigeria nor be moo-moo after all! kiss
Re: David Cameron Writes Jonathan Over FG & British Airways Faceoff by yommysomguy(m): 11:05pm On Nov 09, 2011
Ask BA!
Re: David Cameron Writes Jonathan Over FG & British Airways Faceoff by tlops(m): 11:30pm On Nov 09, 2011
good moves.
Re: David Cameron Writes Jonathan Over FG & British Airways Faceoff by iz2much: 12:23am On Nov 10, 2011
from seven to 3?
nooo i want it to be reduced to 1 or even 2
british pple r d most foolish pple on earth, they always think they r wiser
Re: David Cameron Writes Jonathan Over FG & British Airways Faceoff by DPRINCEO: 3:24am On Nov 10, 2011
Of-course, what do you get from a weak Head and Body, when the HEAD is absolutely weak, then the entire BODY will follow. British are wise compared to weak 9ja. the matter is cleared, if the market (bi-lateral) says 21 for both, then the case is settled. if is only ARIk from 9ja for now, then the 21 slots should be made available to them pending when others, Bellview, Air Nigeria etc will resurate and the slots will be shared amongst them, as well, BA and VS is currently using theirs, 21 slots which BA operates more of it. Well, FAAN, Aviation Minister and Baba GEJ, this is your call, for once, please make 9ja`s proud, stand and defend our rights, please call spade SPADE, this is the TIME
Re: David Cameron Writes Jonathan Over FG & British Airways Faceoff by BootyOnMe: 5:18am On Nov 10, 2011
After careful consideration. . . I will rather fly BA than Arik airlines.
Reason: As much as I detest BA for their so-so-similar Nigerian attitude. . .of selfishness, Arik airlines does not meet safety standards.
They have to be in service for a while before I can trust my life in the hands of ANYTHING Nigerian.
BA has proven to be safe and experienced.
Arik has worse 'customer service' EVEN TO NIGERIANS.
I can only fly 'locally' for short distances. . . as A LAST RESORT! kiss

No apologies, no sentiments attached! cool
Re: David Cameron Writes Jonathan Over FG & British Airways Faceoff by DPRINCEO: 6:21am On Nov 10, 2011
Well i dont think the agitation here is based on safety, but by a Bi-Lateral aggreement btw both Countries. if it is safety wise, ARIK would`nt be flying into UK today how much more Bellview then, notwithsatanding ARIK`s Airbus from EU.

is just a 50/50 thing, if 9ja has carriers that meets flying requirement to UK, they can, but with limitations on slots (agreement) btw both countries. this is applicable to flight emaneting from UK aas well or any other country

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