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

That one non concern me.

So what do I do with this

Pls can someone summarize this story...

Have the find out the cause of the clash?

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.

Notatribalist:
That one non concern me.

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

k

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.

Bg

This is really sad. Nigeria what way?

Meanwhile please check our signature and send a DM if interested

They are indeed dulling while African world from Ghana and Asky from Togo are taking over the African sky/routes.

ayam no understand

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.

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

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

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.

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.

Nigeria government without sense

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

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.

We do not appear to know what to do with the large market we have which is what the world of investors are after.

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

Nigeria Airlines are not safe.

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.

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 shit

Our airlines need to do better