International routes: Limited FOREX, others impede operation – Allen Onyema

The absence of passenger transit facilities across international airports along with airlines’ inability to access foreign exchange from the Central Bank of Nigeria, CBN, are the significant challenges affecting domestic airlines operating on the international route.

This was the submission of the Chairman of Nigeria’s largest carrier, Air Peace Nigeria Limited, Allen Onyema, during a chat with newsmen in Lagos while commending Nigerians and the federal government for their role in making the airline successful in the last nine years.

He disclosed that the federal government owed them about $10 million and also owed other Nigerian carriers that operated the Hajj service.

He stated that the development has impacted both domestic and airlines operating on the international route negatively, thus threatening their survival.

Passenger transit facilities are infrastructure and services that enable travellers to efficiently transfer from one location to another during their journey.

However, the Air Peace boss lamented that not having transit facilities at the Murtala Muhammed International Airport, MMIA, Lagos and the Nnamdi Azikiwe International Airport, Abuja has blunted the competitiveness of Nigerian airlines.

He said that Air Peace operates to destinations in West and Central Africa, so, it ought to bring passengers from Douala, Banjul, Accra, Lome, Monrovia, Dakar, Freetown and others to its hub in Lagos and from Lagos airlift them to India, China, South Africa, Jeddah and other long-haul destinations.

“But unfortunately, we don’t have a transit facility where these passengers will stay until they board their next flight and Nigeria Immigration Service and Nigeria Customs Service are yet to segment this class of passengers who in other countries are made to wait in the transit facility on the airside until they are due to fly again.

“Currently Immigration treats them like other passengers whose final destination is Nigeria and are expected to obtain visas and follow other procedures like other passengers who are arriving in Nigeria. What is usually obtained is that as long as the passengers are not leaving the airport, they do not need visas because they are in transit.

“If Air Peace can bring these passengers from neighbouring countries and take them to farther destinations, the airline will do well on the long-haul routes. It is these kinds of policies that inhibit the success of Nigerian airlines. For example, the Katoka International Airport, Accra has such a transit facility and we take our passengers from there to Monrovia.

“For Nigerian airlines to compete and benefit from the Single Air Transport Market, SAATAM, we must upgrade our airports to include transit facilities and Immigration should adopt a new policy that recognizes transit passengers.

“What we need now is airport infrastructure, not a national carrier. If supported by the government, Nigerian airlines can provide the capacity required. What the airlines need is the support which government in other countries give their airlines.

“We need transit facilities at the Lagos and Abuja airports. Some airports in African countries have these facilities and that is why airlines that operate from those airports are excelling. Suppose we have to maximise the benefits of air transport and the fact that we are the most travelling people in Africa. In that case, we must provide the infrastructure that will enable our airlines to benefit from flight operations. It is only then we shall begin to benefit from SAATAM,” he said.

On other challenges, Onyema lamented that Nigerian airlines cannot obtain dollars even from the CBN, disclosing that Air Peace paid CBN naira to obtain about 14 million dollars for the maintenance of its 15 aircraft at maintenance facilities overseas but that money has not been made available to the airline since the past six months.

He also recalled that the federal government owed Air Peace about $10 million and also owed other Nigerian carriers that operated the Hajj service, noting that these debts impair the operations of the airline and others.

Onyema therefore urged CBN to provide foreign exchange so that Air Peace could bring back its aircraft that were ferried overseas for maintenance.

“We ferried 15 of our aircraft for maintenance overseas. We needed dollars to pay for the maintenance; so, we paid naira to CBN, which is equivalent to $14 million needed to pay and bring the aircraft back to Nigeria after the checks. We have not received this money.

“This is money we borrowed at a 26 per cent interest rate but six months have passed and we are yet to get this money from CBN. The total debt we are expected to be paid to us from the CBN is $24 million. This is why we said that we need a conducive environment and Nigerian airlines will blossom.

“If these monies are made available to us and other airlines, Nigerian carriers will do very well. Nigerian airlines have the capacity, what we need is support from our government,” Onyema said.

The Air Peace Chairman disclosed that Air Peace has secured a Foreign Carrier Operator Permit (FCOP), which allows airlines from other regions to fly to Europe and a Third Country Operator Permit (TCO-UK) that enables airlines to operate to the UK, said that to obtain these permits the airline went through stringent audits to ensure that it met the high safety status, capacity and standard conditions; so, it is now qualified to fly to the United Kingdom.

“We obtained these permits that qualify us to fly to the UK. Before you obtain these approvals, they will audit you very well. You have to go through a stringent audit, which we passed. We obtained the permit last week,” he stated.

Onyema said that contrary to what many in the industry think; Nigerian airlines have the capacity, noting that for the first time in years, Nigerian airlines are ordering brand new aircraft from the manufacturers, reiterating that Air Peace made a firm order of 33 aircraft and purchased the right of 17 aircraft, which brings the airline’s total order to 50. These include 15 Boeing 737 MAX 8 and MAX 10, firm order of 13 Embraer E195-E2 and purchase right of 17 of the same aircraft type and firm order of five Embraer E175 and delivery of these aircraft would start early next year in addition to the five brand new Embraer E195-E2 already delivered.

“The jobs one small Nigerian airline provides are more than the jobs provided by all foreign airlines in Nigeria, so the federal government should deem it very important to support Nigerian airlines,” he said.