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Olisa Agbakoba, senior advocate of Nigeria and former president, Nigerian Bar Association, initiates a bill which, if passed by the National Assembly, will make it mandatory for public officials travelling on government expense to patronise Nigerian airlines

A bill to boost the operation of domestic airlines on international routes is in the offing. The bill, championed by Olisa Agbakoba, former president of the Nigerian Bar Association, NBA, which is titled: ‘Fly Nigeria Act,’ seeks to make it mandatory for public officials and Nigerians travelling outside the country on government expense to fly Nigerian airlines. Another provision of the Act is that Nigerians travelling on international routes not covered by Nigerian airlines must use foreign airlines that have code-share agreements with a Nigerian carrier.

Agbakoba believes that if the necessary framework that would bring about the implementation of the Fly Nigeria Act is put in place by the federal government, it would boost the profitability of Nigerian airlines, stimulate the development of Lagos airport as a hub and cut down the huge sum of money that is repatriated yearly by foreign airlines. “If this bill is passed, the Nigerian market will benefit but right now, if there is no Fly Nigeria Act, nothing; everything goes abroad in capital flight. And the problem is that this country cannot grow if virtually all our industries are dominated by foreigners. For example, MTN makes more money in Nigeria, than all the banks put together. And when they make the money, they send it to South Africa,” he said.

He likened the bill to the “Fly America Act” already in place in the United States of America where the citizens who travel on government expense are made to travel by American airlines, except to destinations where American airlines do not travel to and in such cases they travel with their code share airlines.

He said the implementation of the aviation act compelling public officers and top businessmen and contractors to patronise Nigerian carriers would boost the finances of the domestic airlines, generate employment and help to curb huge capital flight taken out of the country by foreign airlines, which is put at more than N200 billion annually. The renowned lawyer stressed that the aviation act which is also known as aviation cabotage law would assist government to consider ways and means of streamlining flight frequency and multi designation of international airlines in the country.

 Agbakoba said the Fly Nigeria bill is a child of circumstance borne out of the shabby treatment meted out to Arik Air at London Heathrow, which triggered a face-off between the Nigerian government and its British counterpart last year. Arik Air, one of Nigeria’s flag carriers designated to operate on the London route by the federal government, had suspended operation on its Abuja-London route to Heathrow Airport, citing harsh operational conditions given to it by the United Kingdom government.

Olumide Ohunayo, former president, National Airlines Cabin Crew Association, NACCA, supports the proposed aviation cabotage law. He urged the National Assembly and other relevant authorities to fast-track its passage.”  “The government needs to keep the critical public travel expenditure with our carriers by passing ‘The Fly Nigeria Act.” But Mohammed Tukur, assistant secretary, Airline Operators of Nigeria, AON, has some reservations against the new aviation law canvassed by Agbakoba. He said the concept would no doubt help the growth of domestic airlines but if the federal government will have the political will to implement it. Citing an example of the abortive maritime cabotage law which has failed to fly, Tukur stressed that government officials themselves would still prefer to fly the major foreign airlines because of lack of confidence in the Nigerian airlines. This will make nonsense of the law. He said before such a law works, government should assist the domestic carriers to grow by advancing funds to them and ameliorating their debt burden to government agencies and banks.

The concept of the proposed bill aimed at protecting our Nigerian airlines is not entirely new in the country. Although there was no legislation to back it then like what Agbakoba is now canvassing, there was an unwritten rule in practice during the active days of the defunct Nigeria Airways which had Bilateral Air Services Agreement, BASA, with more than 40 countries. All public officials and Nigerians travelling abroad were expected to  use the Nigeria Airways.

Ever since the collapse of the former national carrier, indigenous operators have been playing a second fiddle in the global airline business. That notwithstanding, Nigeria remains one of the strongest and biggest markets for aviation in Africa and top airlines. The British Airways, Lufthansa, Emirates, Delta Airline, Virgin Atlantic, KLM and Air France operate the Lagos, Abuja, Kano and Port Harcourt routes.

At present, the only Nigerian airline operating on the African routes is Arik Air. This development has worked against favourable competition between Nigerian airlines and their foreign counterparts.

A Central Bank of Nigeria report shows that all the foreign airlines operate more than 200 weekly flights into the country with Nigerian registered international carriers playing a nominal role. The report also shows that major international airlines repatriate more than N200 billion from the country every year. Records available give an insight into the fortunes foreign airlines are reaping from the Nigerian routes and repatriating them by way of capital flight. For instance, industry records in the Nigerian Civil Aviation Authority, NCAA, show that foreign airlines repatriated a whopping N200 billion from Nigeria in 2009.

Of the international airlines, the British Airways topped the list of successful carriers operating on the lucrative Nigeria route with ticket sales put at approximately N32 billion in 2009. It is followed closely by Emirates, with N22 billion. Other big earners are Virgin Atlantic with N11, 832,010, 763.40, Air France, N10, 859, 450,927.40; KLM N10, 507, 299, 275.00; Delta Air (N7, 001, 304, 508.00; Qatar Airways N6,799, 302,758.00; South African Airways (N5, 775, 448, 204, Egypt Air N4,831,799,154.60; Kenya Airways N2,807,340, 905,00; and Turkish Airlines N1,825,406,905.40.

The minor players are Alitalia with N931, 339, 519; Iberia N769, 187, 923; and Saudi Arabian Airlines N846, 133, 401.00, China Southern Airlines with earned N769, 187,932; Aero Contractors N241, 438, 780; Afriqiyah N302,496,743.00, and Royal Air Maroc of Morocco which began operations a little over a year ago made N266,627,990.00.

 The precarious state of the nation’s aviation industry which motivated the Fly Nigeria Act has prompted call for the setting up of a national carrier to stem the lopsidedness of the existing BASA agreements between Nigeria and other countries which are tilted in favour of the foreign carriers. Some of the countries that Nigeria has BASA agreement include the USA, the United Kingdom, Switzerland, France, the Netherlands, Germany, South Africa, Brazil, Ethiopia, Dubai, Kenya, Uganda, Egypt, Belgium, Saudi Arabia and the West Coast. Sadly, most of these routes are unutilised by Nigerian carriers because of lack of capable airlines to service them.

Peter Ogaba, a former staff of Nigeria Airways, explains that the only way for the aviation industry to move forward was for the government to consider setting up another national carrier that would help to give direction to the sector in the areas of manpower development, fleet expansion and a reposition for the industry.

He explained that the current gap in manpower development in the aviation sector could be traceable to the absence of a viable national carrier as the existing private airlines do not have the financial wherewithal to train their personnel.

Steve Mahonwu, chairman, Airline Operators of Nigeria, also canvasses for the setting up of a national carrier. He affirmed that the existing private carriers do not have the capacity to fill the vacuum created by the liquidation of the Nigeria Airways. This incapacity, he said is a ghost that will continue to haunt the aviation sector.  Mahonwu also explained that fleet capacity, manpower development and other operational needs are other requirements that the federal government must look out for whenever it decides to set up another national carrier. He said doing so would allow the nation to address the imbalances that have hindered the growth and development of the aviation industry in the country.

Chris Aligbe, former spokesman of the defunct Nigeria Airways, now an aviation consultant, wants government to engage the foreign carriers in negotiations in order to improve market share for indigenous operators. He also canvassed for the strengthening of domestic carriers to enable them compete with the mega carriers. Aligbe stressed that the monopoly enjoyed by foreign airlines was due to the non-existence of a national carrier after the demise of Nigeria Airways.

Over the years, there have been five failed attempts to float a national carrier to replace the Nigeria Airways. The first attempt was in 1991 with the formation of Air Nigeria PLC which was a product of the recommendation of the presidential task force on Nigeria Airways. The airline which was incorporated on April 5, 1993, with a share capital of two billion Naira could not make any impact. So, it was a still birth. The second attempt in 1999, was to be financed by the International Finance Corporation, IFC, but it did not see the light of the day.  Other attempts produced names like Nigeria Global and Nigeria Eagle. The last major attempt to have a national carrier gave birth to Virgin Nigeria in 2004. The airline had Richard Brandson’s Virgin Atlantic Airways as a core investor. It was designated to the lucrative routes. But the airline could not maintain the momentum required of a national carrier. Its fortunes nose- dived in early 2010 when the core investor withdrew its partnership. Thereafter, it was acquired by Jimoh Ibrahim.