₦airaland Forum

International Airlines to Reduce Flights to Nigeria Next Year

Citing Nigeria’s slowing economy amid scarcity of foreign exchange,international airlines that operate to different destinations in the country plan to reduce flights to Nigeria from early 2016, THISDAY investigations have revealed.

The airlines, according to sources, are aggrieved that they cannot exchange billions of revenue in Naira in their possession to dollars and repatriate to their various countries because of the new fiscal policies of the Central Bank of Nigeria (CBN).

The International Air Transport Association (IATA), recently pleaded with the Governor of CBN, Godwin Emiefele to intervene in the matter and make dollars available to the airlines. Nothing has been gone anything yet; although he gave assurances to the world body, a close source told THISDAY.

The foreign airlines also had met with the Minister of Transportation, ChibuikeAmaechi and urged him to look into their case but nothing concrete has been done on the matter.

THISDAY gathered that from March 2016, British Airways would reduce its flights to Nigeria by bringing in aircraft with smaller capacity than the traditional Boeing 747, which operates the lucrative Lagos-London route.

It was also gathered that other foreign airlines may either change their aircraft type and operate ones with smaller capacity or reschedule and reduce the number of flights to Nigeria and those which have not been recording high load factor in the Nigerian route may stop flights to the country.

An informed source from one of the major international airlines, which operate daily to Lagos told THISDAY that next year would be scary because things are not looking so good.

“The situation is scary. Things are not looking so scary. Some parents whose children are in school overseas are considering withdrawing them as our economy, which has become the strongest economy in Africa is grinding to a halt. We don’t want to make our plan to reduce operations public because we don’t want to cause any panic. This will affect everybody; it is going to also affect my staff because some of them might lose their jobs. BA will definitely reduce service; it is a decision we must have to take,” the source said.

The source noted that failure to repatriate the airline’s revenue is affecting aircraft leases and fuelling as the money so generated is used to pay for fuel and renew aircraft leases.

“We have so much money which cannot be released because there is no foreign currency. Now, we cannot accept dollars from passengers; unless they are paying with credit cards, so if a passenger comes to buy ticket with dollars we will not accept because of the new policies. I do not believe that they want to make us suffer but they should have directed these policies to the areas where they import toothpick, glasses and others, not on air transport and other sectors that are critical for the economy to thrive and grow. It is not only BA that will reduce its operation; every international airline will reduce something,” the source also said.

The source also suggested that CBN should endeavor to provide foreign exchange to the essential service sector so that the economy would not grind to a halt.

“I am worried about all these but we have to be seen to be supporting government so I do not wish to raise any alarm, but the truth has to be said. We need prayers right now; we need to pray for those in government for them to have wisdom to take the right decision for this country,” the source also said.

The source said that marketers had dropped notice that airlines would start paying for aviation fuel in dollars from next year.

“Without fuel, how can we operate? The situation is very scary,” the source added.

“The situation is scary. Things are not looking so scary. Some parents whose children are in school overseas are considering withdrawing them as our economy, which has become the strongest economy in Africa is grinding to a halt. We don’t want to make our plan to reduce operations public because we don’t want to cause any panic. This will affect everybody; it is going to also affect my staff because some of them might lose their jobs. BA will definitely reduce service; it is a decision we must have to take,” the source said.

“I am worried about all these but we have to be seen to be supporting government so I do not wish to raise any alarm, but the truth has to be said. We need prayers right now; we need to pray for those in government for them to have wisdom to take the right decision for this country,” the source also said.

otokx:
Local Airlines can fill the vacancy created by them but we know they are making plenty money of us.
They are going nowhere.

adeaks:
But how many local airlines make international flights and if the international airlines truly reduce their flights to Nigeria are our local airlines equipped enough to handle the shortfall across ALL routes?

aieromon:
Blessing in disguise......

sobastical:
How? or its a good idea to get to neighboring African countries before you get to London or even south Africa

aieromon:
That is never going to happen,bro. Its an opportunity for the FG to partner with investors to revive our moribund national carrier. Those airlines need our business more than we need them.

aieromon:
That is never going to happen,bro. Its an opportunity for the FG to partner with investors to revive our moribund national carrier. Those airlines need our business more than we need them.

Ugosample:
You think? Nigerians like overestimating our importance. Next year, we shall see.

aieromon:
I repeat,nothing will happen. Go and find out how much BA makes on the Nigeria-UK route annually. Should they choose to pull out, Virgin Atlantic will find a way to enjoy the monopoly to the fullest.

Ugosample:
If there airlines choose to pull out, how would the other airlines increase their capacity to accomodate the shortfall? You may know nothing about oligopolies but I tell you this, when those airlines make a decision to reduce their routes because of the status quo, it's Nigeria that would suffer it, or you think this market is the only viable market they have?

let's watch and see.

nefertitiram:
Bros, if you are a frequent flyer, you will know the Nigerian market is a big one internationally.

Emirates flies twice a day from Lagos, and also flies from Abuja. Is it pancake they are carrying?

On all trips, the fullest legs are the Lagos legs.

Ugosample:
I fly, though not frequently, but I do The point I am making is that if the regulators and the economic climate of Nigeria becomes unfavourable to them, they would have no choice than to reduce involvement, afterall you are in business to make profit and if the climate makes it difficult for you to operate, no matter how good the market!is, you would have to reduce involvement. That is the TRUTH.

That is all I am saying. or what do you think?

Facts have emerged that Nigerian passengers pay more for the same travel destinations than their counterparts from other West African countries and the entire continent of Africa.

The differences in airfares could be as high as 50 per cent, according to THISDAY checks from the airlines.
Sources also confirmed that Nigerians pay more for imported cargo by air because oftentimes, the airline that freights the cargo to the country would fly back empty, prompting the airline to charge the Nigerian importer for the cost of aviation fuel to and from the destination.

Foreign airlines claim the high charges were as result of hostile Nigerian operational environment, where airlines are required to pay all kinds of charges, provide security for crew members and pay exorbitant rates for hotel accommodation and other services.

Although, Nigeria is an attraction to international travel because of its high passenger movement, costs of services at the airports are very exorbitant.

In March 2012, British Airways charged $10,070 for a First Class flight ticket from Abuja to London, while the same First Class ticket from Accra to London costs $4,943.

Abuja - London Premium Economy ticket costs $3,208, while Accra - London ticket of the same category costs $2,420. The Economy ticket on the same flight costs $2,840 from Abuja but $2,156 from Accra.

Similarly, Virgin Atlantic charges Nigerians $4,173 and $2,956 for its Lagos -London Premium Economy and Economy tickets respectively; while fliers from Accra pay $1,826 and $1,563 for the same categories of tickets on Accra-London haul.

Lufthansa's rate for Abuja - Frankfurt Economy class ticket is $3,661, whereas Accra-Frankfurt on the same class of ticket is $1,330. For KLM, an economy ticket from Abuja to Amsterdam costs $4,502, while the same class of ticket from Accra to Amsterdam cost $1,181.

Also, Alitalia charges $863 for one of its Accra-Rome Economy tickets and $1,509 for the Lagos - Rome equivalent.

Despite protests from the Nigerian government to reverse the trend, the fares have remained very exorbitant and Nigerian passengers have continued to patronise the foreign airlines because of the low capacity of indigenous carriers. At the moment, only Arik Air operates international destinations.

Ugosample:
I fly, though not frequently, but I do The point I am making is that if the regulators and the economic climate of Nigeria becomes unfavourable to them, they would have no choice than to reduce involvement, afterall you are in business to make profit and if the climate makes it difficult for you to operate, no matter how good the market!is, you would have to reduce involvement. That is the TRUTH.

That is all I am saying. or what do you think?