Friday, April 20, 2012

Airfare probe: Nigeria at a crossroad

By Wole Shadare ngrguardiannews.com

THE uproar and controversy over the astronomical fares charged by all the international airlines was expected. It was expected in the sense that Nigerians would naturally react when they are told that they are being short changed.

But somehow, many Nigerians are coming to terms with the reality that people who profess to defend the rights of Nigerians cannot fool them.

This week, the Senate Committee on Aviation summoned foreign airlines to appear before it to address the issue of high airfares charged and allegations that British Airways and Virgin Atlantic Airways not only violated Nigerian law but also maltreated Nigerians.

The Committee said it could no longer tolerate the high airfares charged by international airlines operating to the country, particularly BA, which is said to be the most preferred airline by Nigerians.

BA appeared to be the only one singled out for condemnation, while Virgin Atlantic could have been joined to make the probe credible.

Not a few are wondering why the two British carriers were singled out for scrutiny when in actual fact, a Nigerian airline that equally flies to London charges the same fare as the two airlines under investigation. Why was the airline and other foreign carriers not invited to explain to Nigerians why their fares are the same or slightly higher than what the two airlines charge?

Behind the noise, condemnation that trailed the public hearing, there could be some underlining factors peculiar to the country, which has led to astronomical rise in airfare.

It sounds so ridiculous that the Nigerian Civil Aviation Authority (NCAA) and the Ministry of Aviation are just waking up to the reality of the rise in airfares.

Why is the government regulating international airfares, when in actual sense it has not been able to do so on the domestic scene? Domestic airfares in Nigeria are inexplicably high, just as domestic airlines have concluded arrangement to raise fares by as much as 30 per cent.

The planned increase could make fares on a one-hour trip from Lagos to Abuja or Abuja to Owerri  go as high as N30, 000. The implication is that a return Lagos-Abuja economy ticket could be as high as N60, 000 while Business Class ticket on the same route could be more than N100,000. A little addition of about N50, 000 could get one economy class return ticket to London.

British Airways’ Country Commercial Manager, Kola Olayinka in his presentation at the public hearing said, “the competition and environment were the factors that determined BA’s fares, just as denied that his airline violated Nigerian law.

“You did not actually tell us which laws were violated. I am a Nigerian and as a Nigerian, I will do everything possible where prices can come down, but we only need to do one thing. Prices are determined by the forces of demand and supply; let more airlines come in. Let more airlines fly into Nigeria many more times”.

The committee was also expected to understand the issue of, ‘anti trust laws’ governing airline business. It is very doubtful if they understood that as their body language suggests of someone on a mission to nail the airlines at all cost over a matter that was thrown out by Justice George Oguntade’s Investigate judicial panel set up by the NCAA.

The only positive from the public hearing is the call to revive Nigeria Airways. Nigeria is facing a very huge challenge in the area of air transport because of the absence of a national carrier.

The airline before its liquidation was credited with the introduction of more baggage allowance for travellers. This made travellers to jettison other foreign airlines because of this.    Sensing that they were losing patronage, the carriers, including British Airways and others had no choice than to go the way of the airline in the weight of baggage allowed.

The liquidation equally set the pace with fare pricing apart from the quality services it offered.
Senate President, David Mark alluded to this when he said the return of the nation’s national carrier-Nigeria Airways- would create employment opportunities for Nigerians as well as restore the country’s image in the global aviation industry.

The Uganda government just last month announced its resolve to revive its national airline, which was liquidated 20 years ago. I see no reason why Nigeria cannot do the same.

Report indicates that BA makes 70 percent of its profits from Premium travel cabins. BA caters primarily to the elite and their pricing and facilities show that; Economy is just a necessary evil for them. Virgin positions itself midway as a good Business airline – below BA, of course – that also does decent Economy travel.
Rather than breath down the neck of airlines over premium air fares increase, the government would do itself a lot of good if it channels all its resources, energy to support a truly national airline.

This is a war Nigeria will find extremely difficult to win because you don’t control what you don’t have.

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