How Nigerians are maltreated on board by foreign airlines
By Chukwuemeke Iwelunmo
Facts have shown that Nigerians are the most widely travelers in the African continent, and with the highest airfares across the globe, foreign airlines operating into the country have evolved means of ripping off travelers from Nigeria.
Nigeria has remained a gold mine to the majority of the foreign carriers operating in the country, recording huge turnout of passengers on daily basis. This has forced the airlines to continue increasing their fares arbitrarily without caution.
Airlines advertise fares and Nigerians rush for it even more expensive than any other country in the region, a traveler from Nigeria will pay thrice what an Accra passenger will pay for the same destinations, especially with the issue associated with interconnectivity.
In view of this, stakeholders in the aviation industry have, therefore, urged the federal government to enforce the full implementation of the Bilateral Air Service Agreement (BASA), which stipulates that foreign airlines should pay royalties to the government, especially when the Nigerian carriers cannot reciprocate the same service to the host countries of their foreign counterparts.
A source, who pleaded anonymity told The Daily Times that the high fares on the Nigeria routes may not be unconnected with the inability of the government to settle the airline’s trapped funds. As a result, they jerk up their fares to ensure that they generate more funds
Aviation industry stakeholders have however described the exorbitant fares as a rip-off. It was gathered that travelers from other countries where airlines are also yet to repatriate their revenues do not pay such outrageous fares.
Only recently, the National Association of Nigeria Travel Agencies alerted that Nigerian travelers will pay over N1.2 million for a one-way economy ticket for about six to eight hours of flight and over N4 million for a business class ticket, while round-trip tickets are going for N3 million for the economy and N7 million for business class tickets, respectively.
Foreign airlines have resorted to selling tickets for economy class up to between N3 million and N4 million in a perceived retaliation for their inability to repatriate their trapped funds of over $465 million.
Vexed by this development, the National Association of Nigeria Travel Agencies, NANTA has described this as a ‘High Fares Pandemic’.
It was gathered that an economy ticket of N300,000 is now sold for N1.5 million, N3 million, and up to N 4 million. The airlines in between these strangulating circumstances, withdrew lower inventories across the board, selling at the highest possible openings as a way to cushion their funds being trapped”.
Regional Vice-President, Africa and the Middle East, International Air Transport Association (IATA), Kamil Alawadhi stated at a recent IATA conference in Doha, Qatar, that the airfares charged by international carriers are three times higher than what they charge in other countries that do not retain airlines’ revenues.
He expressed fear that the fares might continue to rise until Nigerians would not be able to afford international travel, stressing that such development could eventually weaken the nation’s economy.
Alawadhi explained that airlines were charging higher fares to Nigeria so that they could make a profit from one leg of the trip, as most trips are charged on return-ticket.
On why Nigerians are maltreated on board foreign airlines, some stakeholders explained that lack of competition and inability of the government’s political will are the major reasons.
Comrade Olayinka Abioye, former General Secretary of the National Union of Air Transport Employees told Daily Times that many reasons could be attributed to the maltreatment of Nigerian travellers by foreign airlines.
He said: “Irresponsible behavior of our elites and failure of government to put proper structures in place. Recall the British Airways hike in fare and our invitation to the National Assembly. What came out of it? The same legislators went out of Nigeria to Accra, Ghana where the same BA flight is cheaper and flew out from there”.
“Cost of doing aviation business in Nigeria is stifling such that if not for providence, maybe there might have been no local carrier due to high cost of Jet A1”
However, industry analyst and Director, Research, Zenith Travels, Mr Olumide Ohunayo explained that Nigerians are being charged higher rates because the country’s debt is the highest.
“Secondly, we cannot reciprocate those routes; so, the dominant carriers determine the fares. Nigeria has a very strong travel population; so, we have a lot of supply, which outweighs the demands currently as airlines cut frequencies. Also, the Naira’s continuous spiral fall is affecting the overall costs of the tickets,” he added.
Ohunayo, charged the CBN to do the needful by allocating dollars to the airlines to repatriate money made from the sale of tickets in line with the dictate of BASAs.
It said, “In all Bilateral Air Services Agreement an Article in the agreement — transfer of earnings, clearly states that “each designated airline shall have the right to convert and remit to its country on demand, local revenues over sums locally disbursed. Conversion and remittance shall be permitted without delay by the prevailing foreign exchange regulations”.According to ART, international trade is bonded by agreements, which are sacrosanct and respected. It said Nigeria cannot do otherwise if we crave the attention of investors in our industry.
The statement added: “It’s important to state that foreign airlines sold these tickets at the official IATA rate and cannot be expected to go the parallel market to source, convert and remit as opined in some quarters, the central bank should do the needful as enshrined in the BASA agreements.“These funds should have been remitted at the official rate on the date of Sale immediately after the Airlines get clearance after paying all the local obligations including taxes.
For two decades now, the Nigerian route has remained the most lucrative to foreign airlines, while Nigerians are being maltreated on the route, the airlines are smiling to the banks.
A one-time country manager of Emirates Airlines confessed that the Nigeria route has greatly boosted the airlines profile as its customer base in Nigeria increased with the opening of routes.
“The Nigerian market is exciting, what makes it interesting is that apart from businessmen, some families go to China and some far east countries for leisure. This has increased the volume of traffic to China and the far east.”
With all these, Nigerians are not well treated on board but according to an aviation analyst Ohunayo, the absence of competition especially from the home carriers remained the reason for the ill-treatment as that was no alternative.
For Ohunayo, there has been complaints about the quality of aircraft they are bringing into the country. That can only be improved on when there is competition and that is why we need to step up our Flag carrier, our Flag carrier begin to have partners and government begin to create a critical market to entice airlines that they want to partner with our Flag carrier
“It is when there is a competition that they will begin to improve the quality of aircraft and service but when you don’t have a career you will be a Kung in the pond”.
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He noted that demand was pushing up the airfares but added that the non-remittance of funds to foreign airlines has led to the airlines closing and opening the higher fares which Nigerians are also grabbing. “The airlines are not even giving agents the opportunity to sell tickets, they are selling directly to customers”.
Ohunayo, noted that as the rush by the Nigerian political class to travel out remained uncontrolled, foreign airlines were at liberty to increase fares at will.
Only the political will and a strong flag carrier will reduce and stop further maltreatment of Nigerians on board foreign airlines.
