Fare Hike By Foreign Airlines
An avoidable crisis is looming in the Nigerian aviation industry as many intending travellers to Europe and North America this summer season are being confronted with higher air fares in addition to scarcity of passenger seats. Some international airlines have since the beginning of this month increased their out-bound fares while hundreds of passengers get stranded daily at the airport after being overlooked by the carriers.
Lufthansa German Airlines which increased its fares by five per cent effective August 1, 2004, hinged the measure on "the need to provide Nigerians with seats availability during this peak season, which the current fares in the country have been denying them." According to Mr. Michael Wurche, General Manager, Lufthansa West Africa, "between 150 and 200 passengers are on the airline's waiting list everyday due to the current fare that does not allow for interlining." The five per cent increase which according to Mr. Wurche, still puts the tariff in Nigeria at 85 per cent of that of Ghana, is only for the first and business class while the fares in the economy class remain the same.
Although other international airlines including the British Airways (BA) have similarly increased their "charges", they attributed such a move to their efforts to absorb their increasing expenses on security and fuel. But whether the increases are in the air fares or "charges", they are yet unapproved by the appropriate authorities, especially the Ministry of Aviation. Indeed, the Nigerian Civil Aviation Authority (NCAA) has declared the unilateral increases in fares by the international airlines as illegal. The NCCA insists that foreign airlines operations are governed by Bilateral Air Services Agreement (BASA) and that the aeronautical authority on each side must approve any (fare) increase.
For quite some time now, foreign airlines have been complaining that fares out of Nigeria are cheaper than the tariff set by the International Air Transport Association (IATA) but the government has been reluctant in granting the request for full harmonisation of fares, citing differences in the economic condition of Nigeria and other countries. Yet, only last year, the Federal Government granted the international carriers some tariff increases in response to pressure by these airlines.
This is why it is curious that these airlines are still increasing their fares under all manner of excuses. As it is, they are taking advantage of Nigerians and the inadequacies imposed on them by the environment. Not having a functional national carrier (with the death of the Nigeria Airways) and therefore not having the right competition (in place) against the foreign airlines is a major handicap for Nigerian international travellers.
Government is not even bothering to consider allowing any of the local airlines to ply the very lucrative international routes. This has obviously emboldened the foreign airlines and enhanced their leeway to exploit Nigerians' penchant for travelling in droves to especially Europe and North America during the summer season. It is also known that Government has refused to allow foreign airlines like the BA, Lufthansa, Air France and others which have been asking to do several flights per day to do so. This also seems inexplicable, given the avoidable suffering a good number of Nigerian travellers are subjected to every year owing to the high volume of intending passengers.
Meanwhile neither the liquidation of the Nigeria Airways nor the take-off of its successor (Nigerian Eagle) is being expedited, even as a monthly wage bill of about N175 million is being incurred on the over 18,000 staff of the moribund national carrier. This further gives room for the latitude which the foreign airlines have been enjoying, a situation that is obviously instrumental to their present resort to blackmail.
The seeming collusion between aviation authorities and the foreign airlines which explains the apparent reluctance of the Ministry of Aviation to call the airlines to order, hardly helps matters. This gives cause for worry because it is only these aviation authorities that can check the antics and excesses of the foreign airlines. Nigerian travellers cannot be left indefinitely to the overly exploitative tendencies of foreign companies under the pretext of international aviation business practices.
Whether it is increase in air fares or "charges" that is at issue, the foreign airlines must observe due process by applying for the necessary approvals and wait to obtain same. Increasing the burden and hardship of Nigerian travellers through unilateral hike in fares or charges is unacceptable. Furthermore, the Government must take other urgent steps to alleviate the suffering of thousands of Nigerians who on a daily basis, get stranded at the airports. The situation is already bad.
