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By Chinelo Obogo, Lagos
As the crises caused by the blocked funds belonging to foreign airlines operating in Nigeria persists, Nigerians have now been forced to pay thrice for international flights compared to other countries to same destinations.
The fares advertised on the websites of foreign airlines show that Nigerians now pay three times what travellers in other countries pay to the same destinations.
Nigerian travellers now pay over one million naira for one way economy ticket for about six to eight hours flight and over N4 million for a business class ticket with a round trip ticket going for N3 million for economy and N7 million for business class tickets.
The International Air Transportation Association (IATA) on Thursday expressed disappointment at the Federal Government over the inability of foreign airlines to repatriate $464 million accumulated from the sale of flight tickets which has been trapped in Nigerian banks.
In a series of tweets, the global airline body said that the foreign airlines’ funds being blocked in Nigeria increased to $464million in July from $450 million in May stating that the figure grew by $14 million.
President of the National Association of Nigerian Travel Agencies (NANTA) Susuan Akporiaye had earlier explained why international fares have increased, saying: “What the airlines have done is to remove the lower inventories from the system because they have to source for funds in the black market which we know varies. If you sell at a lower rate and you are buying at a higher rate, it is going to be a massive loss for the airline. For the airlines to be able to break even, they stopped selling their lower inventories.”
However, industry stakeholders believe Nigerians are being ripped off as findings show that travellers from other countries where airlines are yet to repatriate their revenues do not pay such outrageous fares.
As of June 2022, Zimbabwe was owing foreign airlines $100 million; Algeria owed $96 million; Eritrea, $79 million, Ethiopia, $75 million and Ghana.
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IATA Regional Vice-President, Africa and the Middle East, Kamil Alawadhi said airfares charged by international carriers are three times higher than what obtained in other countries that do not retain airlines’ revenues and expressed fear that the fares might continue to rise until Nigerians would not be able to afford international travel and that would eventually weaken the nation’s economy.
He said that airlines were charging higher fares to Nigeria so that they can make a profit from one leg of the trip, as most trips are charged on a return ticket.
Director, Research, Zenith Travels, Mr Olumide Ohunayo, said Nigerians are being charged higher rates because the country has the highest figure among the debtors.
“We are being charged the higher rate because we have the highest figure among the debtors. Secondly, we do not have the capacity to 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 continuous spiral fall is affecting the overall costs of the tickets,” he said.
Also, reacting to the situation, Secretary-General of Aviation Round Table (ART), Group Captain John Ojikutu (retd) said the aviation industry should account for over $1 billion it earned from passenger service charges (PSC) by aviation handling companies.
He said Nigeria is not keeping to the tenets of the Bilateral Air Service Agreement (BASA), whereby foreign airlines pay royalties for their operations in Nigeria, especially when Nigerian carriers do not reciprocate the same service to the host countries of those airlines.
“First, why do we find ourselves among the countries that are not keeping to the articles of the BASAs? Secondly, what happens to our forex earnings on commercial aviation, particularly those that are earned by the aviation services providers like the PSC of $100/pax and those earned on landing and parking? What about the forex earnings by others like the ground handling services companies such as NAHCO (Nigeria Aviation Handling Company Plc), SAHCOL (Skyway Aviation Handling Company Plc) and the fuel marketers?
“My last calculations on all these is over $ 1 billion, but where are they before we start blaming the CBN that can not account for the earnings and deposits from others earnings forex like NNPC (the Nigerian National Petroleum Company), NPA (the Nigerian Ports Authority), NIMASA (Nigerian Maritime Administration and Safety Agency) etc? (Chief Olusegun) Obasanjo said at the first public hearing on aviation ever held by any President in Aso Rock about 2006/2006 that forex earnings by aviation operators including the NCAA (Nigerian Civil Aviation Authority) be domiciled in the CBN, naira equivalent given to the operators but can be returned to the CBN when the needs arise; what happened to that presidential directive?
“What has been happening over the years in the Nigeria commercial aviation policies, regulations and administration are nothing but what I call unilateral exploitation of the systems? We are going to be the loser if the foreign airlines withdraw their services of flights to our country because about 70 to 80% of our earnings in commercial aviation are from foreign airlines. What will happen further will see Nigerians going to Accra, Cotonou, Lome, etc to connect the flights of these foreign airlines making them hubs over Nigeria. I saw these happening to us when a Minister unilaterally cut off the Commercial Agreements between us and them and when we indirectly open the domestic routes and markets for some of them for multiple destinations. The consequences are staring at us all; now who will save us from ourselves?,” Ojikutu said.
