Flight delays in domestic schedule service can be mitigated if airlines work effectively together in the sense that during none peak hours, airlines can collectively put their passengers together and designate one aircraft to each destination with full passenger load; instead of each airline deploying aircraft to the same destination with less than 40 per cent load factor.
This can happen if domestic airlines like many international airlines, can collaborate, interline and code-share. In many occasions, Nigerian airlines have announced collaboration among themselves but in practice, it is discernible that competition and rivalry tend to outweigh the desire to collaborate.
That lack of togetherness has also impaired their operations in many other ways. They cannot get together to fight policies that are inimical to their collective interests and because of their gullibility they yield easily to divide and rule which government inadvertently has used to weaken the airlines as a collective entity in Nigeria’s aviation industry.
The Group Managing Director of Finchglow Holdings Limited, Bankole Bernard, threw light on the issue recently during interaction with journalists to mark the New Year, 2025. Bernard noted that if domestic airlines were working together they would have a common clearing house, so that when passengers that have bought tickets from different airlines but have to travel with airlines other than the ones they have their tickets, tickets and fares can be reconciled in the clearing house.
So, despite the claims that domestic airlines are working together, the fact that there are no effective clearing house casts doubt on the efficacy of their collaboration. In the past, efforts had been made by concerned parties and individuals to make Nigerian airlines work together to harness the opportunities at their behest. If they worked together it will mitigate passenger delays in the sense that instead of one airline hoping and waiting to get more passenger to fill its aircraft and generate enough revenue to cover cost of operation of one flight, they can come together to deploy one aircraft and share the cost and the gains.
Bernard referred to the International Air Transport Association (IATA) clearing house, saying that such can also be replicated in Nigeria for domestic carriers, even with the help of IATA. This will not only save time for travellers, it will also reduce airline losses because instead of carrying 40 passengers using Boeing 737 meant for 120 passengers, the airline can offload the 40 passengers to another airline that would be approved to take everyone to that destination. In this case, the airline with 40 passengers will not incur losses in that movement.
Bernard also spoke about Nigerian airlines joining the IATA clearing house, saying that it makes them stronger carriers that could be approached by international airlines for partnership.
He lauded the Nigeria Civil Aviation Authority (NCAA) for improving safety of flight operations in Nigeria and said that Nigerian carriers should now get ready to join IATA clearing house.
Clearing house for airlines is commercial. It is when you are safe that you can start to address commercials. So, it’s step by step. We have created safety, then we will now start to look at commercials. Air Peace has gone to the IATA Clearing House; they have tasted it and see how it is. Maybe in their wisdom, they will be able to enlighten others. To get access to the clearing house, there are certain things you have to do and some of them involve you having to tie down money because they know Nigeria will default and walk away. So, you have to deposit and if anything goes wrong, they will take your money and use it to settle others. That is the major challenge with our airlines.
“The greatest challenge with Nigerian airlines is the cash flow that creates impression of huge revenue, but that money is not for you. It’s for maintenance of your aircraft and other necessary things. Being in IATA Clearing House means that you can expand your inventory. Your inventory becomes the reach for everybody even for those outside the country. It means that other people in other regions can have access to you. You can even get forex in that regard..
When you are in the clearing house, you can give somebody in South Africa to sell “Lagos-Abuja-Lagos and they will remit to you in dollars, but the initial cost is what is driving away a lot of them. You can see an opportunity for foreign exchange, expand your inventory, worldwide recognition and opportunities for investors to come into your business. You can also see an opportunity for code-share and partnership. So, you will sell beyond point-to-point. Any airline that wants to survive and grow, should not limit itself to point-to-point. The idea of ‘I can do it alone,’ is what is killing most of our local airlines. There is nothing stopping me from selling my tickets beyond point A to Point B,” Bernard said.
He also spoke about how the Minister of Aviation and Aerospace Development, Festus Keyamo, has revamped the image of Nigeria in the global aviation community through recent policies he has made, saying “Keyamo has created some level of awareness; you might say it counts for nothing, but for me, it counts for everything because every day, we are becoming more visible. We are being perceived as one of the active industries in Nigeria. Our Minister has made himself extremely visible. Part of the visibility he’s creating for us is what is making some people say they want to look at what is happening in Africa. Whether we like it or not, the Cape Town Convention (CTC) has yielded results and the impact is enormous and you can see this in certain areas. Let’s keep on being hopeful that in no time, we shall get there.”
He also said that export business through air freighting in Nigeria is not organized and noted that more people export goods overseas but the government is not harnessing the benefits.
When you are in the clearing house, you can give somebody in South Africa to sell “Lagos-Abuja-Lagos and they will remit to you in dollars, but the initial cost is what is driving away a lot of them. You can see an opportunity for foreign exchange, expand your inventory, worldwide recognition and opportunities for investors to come into your business. You can also see an opportunity for code-share and partnership. So, you will sell beyond point-to-point. Any airline that wants to survive and grow, should not limit itself to point-to-point. The idea of ‘I can do it alone,’ is what is killing most of our local airlines. There is nothing stopping me from selling my tickets beyond point A to Point B,” Bernard said.
He also spoke about how the Minister of Aviation and Aerospace Development, Festus Keyamo, has revamped the image of Nigeria in the global aviation community through recent policies he has made, saying “Keyamo has created some level of awareness; you might say it counts for nothing, but for me, it counts for everything because every day, we are becoming more visible. We are being perceived as one of the active industries in Nigeria. Our Minister has made himself extremely visible. Part of the visibility he’s creating for us is what is making some people say they want to look at what is happening in Africa. Whether we like it or not, the Cape Town Convention (CTC) has yielded results and the impact is enormous and you can see this in certain areas. Let’s keep on being hopeful that in no time, we shall get there.”
He also said that export business through air freighting in Nigeria is not organized and noted that more people export goods overseas but the government is not harnessing the benefits.
