Recently six Nigerian airlines announced that they want to work together in a partnership dubbed Spring Alliance.
The announcement was received with excitement and anxiety by the industry. It was received with excitement because it is believed that one of the major challenges that dogged the airlines in the past has been their inability to work together, which gave vent to bitter cutthroat competition. There was anxiety because some industry stakeholders believe that it would not be effectively managed.
The airlines that agree to work together include Air Peace, Azman Air, United Nigeria Airline, Arik Air, Aero Contractors and Max Air.
Besides these operators, other airlines include Dana Air, Ibom Air, Green Africa Airways and Overland Airways. Last year, Ibom Air and Dana Air signed interline agreement and they have been working together since then. So only two airlines are not in such partnership, Green Africa and Overland, which could be described as low cost carriers and which also operate the same aircraft type.
Speaking on behalf of the members of the new alliance, the Chairman and CEO of Air Peace, Allen Onyema said that they formed an alliance, just as it is done in other parts of the world, to work together to improve their service to their customers and also ensure their own survival.
“So, today, in Nigeria, the 8th day of March 2022, some airlines in Nigeria notably, Air Peace, Azman Air, Arik Air, Aero Contractors, Max Air & United Nigeria have decided to come together to form what we call the Spring Alliance.
“The name of this alliance is Spring Alliance. We decided to come together to do this for the benefit of the flying public that use the opportunities provided by these airlines to fly. By this alliance our passengers are protected whenever there is a problem with one airline. It is our response to the complaints of the flying public, so this alliance will enable us to satisfy them.
“With this alliance and what we are going to be doing henceforth, the flying public will reap the benefits. For example if Air Peace has a tech issue on any of its aircraft, the passengers of Air Peace need not to be delayed, if any member of this alliance is going to the same destination, all we need to do is move the passengers over to that other airline, a member of the alliance, at no further cost to the passenger”, he explained.
Before now there have been a clamour for this kind of partnership, as the airlines have refused merger over the years, but the partnership, industry insiders believe, will improve their operations to the benefit of air travellers and it would also whittle the animosity prevalent among Nigerian carriers, which they noted, made it difficult for them to work together in the past.
Managing Director of Flights and Logistics Solutions Limited, Amos Akpan said that the major challenge the airlines in the alliance would face would be sorting out airfares, so they need a clearinghouse to achieve that.
“They should get a financial clearinghouse that pays each member according to the ticket fare she flew as agreed in the alliance. This will relief the members in the alliance the stress of sorting who gets what amount from accepting each other’s ticket. Members can focus on providing safe and quality flight services.
They might need spring alliance desks in the airports for proper documentation and smooth transfers which, I’m sure, the agreement would contain procedures for accepting each other’s ticket,” he said.
Reacting to the new partnership, the President of Aviation Round Table (ART), Dr. Gabriel Olowo commended the six domestic airlines for forming an alliance in a bid to enhance service delivery to air travellers.
Olowo, however, said that for the alliance to work, there must be a clearing house and strong compliance committee, while the terms and conditions must also be well spelt out and described the alliance as a welcome development, which must be made to work by all the parties involved.
Olowo emphasised that the alliance remains the only surviving strategy for the domestic operators to deliver strong players and compete internationally, remarking that the alliance would reduce waste, ensures harmonisation by the airlines, while their economies would also improve.
The airlines in a joint statement had said that the alliance would enable them to mutually support each other’s operations and surpass the expectations of the flying public.
“Alliance remains a key factor as they will not be the first experiment in the market. Clearing House is a major factor and strong compliance committee must be set up to oversight internal processes. It is not a duty of the Nigerian Civil Aviation Authority (NCAA). They could be invited to give advice on processes.
“Economies of scale and schedule harmonisation will minimise waste from excess capacity, frequent schedules and seamless connections for passengers, tariff flexibility among others. Alliances will work despite passenger preferences because alliance partners offer near similar products and services to the extent that passenger may not be able to tell the difference except individual prejudices.
He added that processes must be established and respected, suggesting that erring members should be removed without rancor.
Olowo, however, observed that he expected some challenges in implementation of the alliance, but said that such was not insurmountable.
