Nigerian Airlines and International Operations

Air Peace receives first E195-E2

Many industry stakeholders, including airline operators have over the years lamented how Nigerian carriers have failed in international flight service, where they offer the cheapest fare and largely without robust load factor on business class.

Many of the industry observers now said that without effective interline arrangement with other international carriers that can take their passengers farther, Nigerian airlines would not only continue to grope darkly on international routes, they will barely make profits on such ventures.

In fact, THISDAY learnt that the airlines that have operated international destinations in Nigeria recorded losses, which were assuaged by revenues they were making on domestic services and canvassed that Nigerian airlines should develop local destinations and make them profitable, noting that with over 200 million population and road transport threatened by insecurity, air transport holds great optimism for Nigerian carriers.

Travel expert and organiser of Akwaaba African Travel Market, Ambassador Ikechi Uko told THISDAY that with effective collaboration through interline and codeshare Nigerian airlines can operate profitable international service. He said that one airline cannot go it alone so they need to work together and take advantage of the market in West, Central Africa and more distant destinations.

He said that dollar access and exchange rate also play significant role in international flight service.

The travel expert said that for Nigerian airlines to succeed Nigeria has to build a hub in one or two of the major airports with transit logistics so that passengers from other countries in West and Central Africa can transit from Lagos or Abuja.

“We have to build hub and feed the hub from other countries around Nigeria. That is what Ghana is doing with fifth freedom, bringing passengers from different parts of West and Central Africa and connecting them to other international destinations.

“Interline is the best option for everybody. In that way you work with other airlines and bring passengers to the hub and take them from there to other destinations. For example, if Air Peace will fly global, other airlines have to feed it with passengers. But no one airline will have the capacity to run it alone but working together they can make efficient and profitable international flight operation. Another example is what Asky is doing with Ethiopia Airlines. Asky brings in passengers in time for Ethiopian to take them to the United States.  Asky fully utilises its aircraft operating in the West and Central Africa. The airline has eight aircraft and operates to 23 destinations. The defunct Virgin Nigeria Airways was feeding passengers to Virgin Atlantic and British Airways from the West Coast. They would bring passengers in the morning that would follow Virgin Atlantic and others will follow BA to London in the night,” he said.

He said that countries in Central Africa (SEMAC) nations are 25, while ECOWAS countries are 15 and Lagos and Abuja are at the centre of these countries with three hours equidistance to all the other nations, adding that these countries can be serviced from Lagos and Abuja.

An official of one of the international carriers in Nigeria told THISDAY that flying point to point for airlines is unprofitable and that is what Nigerian carriers do because they don’t have interline with other major carriers and for them to succeed they would have to also be members of the International Air Transport Association (IATA), which will provide them clearing house because they would have deposits with the global body.

“Most Nigerian airlines lose money on international operations because they charge cheap fares and their business class is most often empty and they operate point to point. Airlines like Emirates may have 200 passengers, only about 80 will drop in Dubai but the others will connect flight to other destinations.

Chinese Terminal at MMIA

“Also for Nigerian airlines to succeed, Nigeria should have developed airport with good transit facilities where passengers can stay overnight and connect their flight the following day. You cannot successfully operate international flights when your passengers don’t even have a place they can brush their teeth,” he said.

He also said that it costs so much to operate international destinations that Nigerian airline that operates to Ghana, for example, would pay high landing charges, calculated by the weight of the aircraft and $80 service charge per passenger, noting that without making profits international flight service is a waste of funds for Nigerian carriers.