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Nigerian airlines earn N73bn from ticket sales

By BusinessNews Staff on November 14, 2014

Nigerian owned airlines realised N73bn from ticket sales in 2013, while international counterparts operating in the country made over N231bn in the same period.

The Director, Consumer Protection, Nigerian Civil Aviation Authority, Mr. Adamu Abdulahi, disclosed these to our correspondent in an exclusive interview on Tuesday.

He explained that Nigeria had signed Bilateral Air Services Agreements with 78 countries, which allowed its airlines to fly into foreign territories but most of these were not fully utilised, adding that this could have accounted for the lower amount made by airlines owned by Nigerians.

Abdulahi said, “About 1.4 million passengers were transported in 2013 on the intercontinental routes, and this was achieved with the domestic airlines operating 63,000 frequencies across the country.

“Our domestic airlines carried over five million passengers in 2013, thus realising about N73bn from ticket sales in that period, while N231bn was earned by international airlines in the same year. Nigeria has, therefore, become an attractive destination for foreign airlines which make regular applications for additional frequencies.”

Abdulahi said there was a need to strengthen activities and to ensure that Nigerian operators were fully equipped and given the necessary support to be able to compete favourably with international airlines so as to contribute meaningfully to the economy.

Accordingly, he said the NCAA was putting things in place to boost travel experience and bring more business to the domestic players.

He said, “In recognition of the increase in the volume of passengers, the Directorate of Consumer Protection has intensified efforts to process complaints and ensure the comfort of air travellers.

“In order to strengthen and widen our existing BASA and sign more with other countries, Nigerian delegates will be attending the International Civil Aviation Organisation’s Air Services Negotiation Conference in Indonesia later this month.”

Reacting to this, the Managing Director, Medview Airlines, Alhaji Muneer Bankole, said the government had a lot to do if Nigerian airlines were to compete favourably with their foreign counterparts, adding that it was important for the government to look inwards in order to boost their capacity.

Bankole said, “The amount that the foreign operators are making from Nigeria may even be more than the amount quoted. The truth is that these international operators are not adding value to the Nigerian economy.

“For instance, Emirates Airline has about 779 frequencies to Lagos only. They have also been given entry into Abuja. So, if in one state they are doing almost 800 frequencies, what will be left for the domestic airlines?

“These foreign airlines do not even employ Nigerians; they are not bringing investments here; they just come in here, discharge passengers, carry others and leave. This is why we say that the government has to rethink and make some adjustments in this situation, because all the routes we are supposed to be operating in have been taken over by foreign players.”

[Punch]

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