Extra Frequencies: Opposition Mounts Against Foreign Carriers
By Ndubuisi Francis
The continuing granting of more frequencies to foreign airlines operating in the country is drawing the ire of domestic operators who consider the action fraught with negative implications.
Apart from government's recent disclosure that it loses over $2 billion annually in the aviation industry through capital flight, such negative implications include the widening of negative balance of trade, further weakening of the naira, as well as the gross erosion of market share for would-be Nigerian flag carriers.
Besides granting multiple entry points, particularly to European carriers, the Federal Government has in the past few years consistently allowed the airlines more frequencies.
Only last week, the government granted seven extra frequencies each to two British carriers, Virgin Atlantic and British Airways, bringing their total weekly flights to the country to 35.
The development is increasingly drawing opposition by stakeholders. Apart from the Airline Operators of Nigeria (AON), Executive Director of Bellview Airlines, the only Nigerian airline in the International Air Transport Association (IATA) Clearing House, Mr. Gbenga Olowo, has condemned government's action.
Olowo said weekend that "such perennial national shame as overbooking by foreign airlines and stranded international passengers demand more than a fire brigade approach that would further worsen Nigeria's balance of trade".
"Government will be chasing shadows, attempting to solve the perennial problem of passengers suffering en route known destinations like London and US, through the reckless granting of extra frequencies to foreign airlines.
"Bellview Airlines raises serious objection to the gesture and submits that the ultimate solution lies in designating Bellview Airlines, the fully owned Nigerian airline with the most experience in international operations, to provide the needed service on the routes", he said.
He observed that granting seven extra frequencies each to two British airlines amounted to mopping up the market demand in favour of that country to the economic detriment of Nigeria.
Olowo noted that ironically, the foreign airlines in Nigeria, while not discountenancing their services, are zero investors, with minimal contribution to the nation's G.D.P.
The airline operator stated that in 2002 while all the European airlines had a total of 248 workers, Bellview Airlines alone had a workforce of over 500 Nigerians on its payroll.
"It might interest the Nigerian public that even the offices occupied by these airlines are not owned by them. They brought little but capital flight. No investment in hotels, restaurants or related services as it is done in other countries. Are these the interests we should protect above that of Nigerians Olowo asked.
Lending credence to why his airline should be chosen as the second national flag carrier rather than granting more frequencies to foreign carriers, Olowo said the airline which is capitalised to the tune of N1 billion with valid insurance of $500 million is the most conversant with the issues and did apply for the "reserved routes" which include London, New York, Dubai and Johannesburg.
"We are most informed in this by our capability and experience. Bellview is 100% owned by Nigerians, has established integrity and accident free record in 12 years of operations, sound international experience servicing West African destinations since 1995", he said.
Olowo recalled that his airline at a time operated to Amsterdam, Nairobi and Bombay for Nigeria Airways and also operated to London and Dusseldorf for Ghana Airways just as it handled the UN movement for refugees and charters for ECOMOG.
The airline with 46 IATA interline partners, computer reservation system (CRS) and Automated Ticketing System (ATS) is currently operating a fleet of five B737-200 and is to soon take delivery of two B767-200ER.
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