Open Skies’ albatross for Nigerian carriers

Despite a five-year head start, US carriers trump Nigerian carriers in the unrestricted capacity and frequency of service, writes, WOLE SHADARE

Solidifying ‘Open Skies’

The US-Nigeria ‘Open Skies’, agreement which has been provisionally applied since 2000 entered into force on May 13, 2024.

The agreement includes provisions that allow for unrestricted capacity and frequency of services, open route rights, a liberal charter regime, and open code-sharing opportunities between the two countries.

“This bilateral agreement establishes a modern civil aviation relationship with Nigeria consistent with U.S. Open Skies international aviation policy and with commitments to high standards of aviation safety and security says Matthew Miller, Spokesman for the United States Department of State.

Criticism

The ‘Open Skies’ agreement between both nations had early 2000s came under criticisms that Nigeria had not yet developed its air transport system; a situation they said put the country at a very high disadvantage as the US airline business is very developed and would take advantage of the pact.

At the time the agreement was signed in Abuja by former Presidents Bill Clinton and Olusegun Obasanjo, prominent persons in the aviation industry, including a former President of Aviation Round Table (ART), Capt. Dele Ore, said the country was not ready at the time it agreed with no sign that any of the country’s airlines would take advantage to fly to the United States.

Head start

Based on the argument, the US government gave Nigeria a five-year head-start that could prepare any of the flag carrier airlines wishing to operate to the US under the pact to get ready.

At that particular period also, Nigeria was not Category One aviation rated as the country worked tirelessly under the former Director-General of Nigeria Civil Aviation Authority (NCAA), Dr. Harold Demuren and his team, leading to processes that led to the US Federal Aviation Administration (FAA) granting the country much-coveted category one.

Arik Air was used as the Guinea pig for the experiment of category one was the first indigenous airline after the demise of Nigeria Airways and Dr. Peter Obafemi’s World Airways to operate to New York until the carrier started showing signs of managerial instability coupled with humongous debts that almost crippled its operations.

Losing grip

Obafemi’s Ritetime Airways’ partnership with World Airways tanked so badly it left many Nigerians stranded in the United States some years back, leading to a spectacular end to a business deal that looked promising on paper.

Had Nigerian carriers made a success on the route, they would have consolidated on the lucrative Nigeria-US route under the ‘Open Skies’ pact.

It wasn’t until December 4, 2007, that Delta Air Lines became the first American carrier to launch services to Lagos. The action solidified the ‘Open Skies’ agreement between both nations. United Airlines joined Delta on the route, making it two strong American carriers on the lucrative route.

Delta and United are either in One World, Star Alliance, or other airlines’ networks, which take their passengers to every corner of the globe.

Liberalisation

What critics of the agreement did not understand is that this agreement with Nigeria is a step forward in liberalizing the international civil aviation sector in Africa and further expands our strong economic and commercial partnership, promotes people-to-people ties, and creates new opportunities for airlines, travel companies, and customers.

With this agreement, air carriers can provide more affordable, convenient, and efficient air services to travellers and shippers, which in turn promotes tourism and commerce.

Open skies’ defy the principle of reciprocity, which countries deploy to protect their commercial aviation from exploitation by foreign carriers, especially as it provides parties to the agreement equal stake.

Consequently, the agreement has given the U.S. the liberty to designate to Nigeria as many airlines as possible, provided they have the wherewithal to operate to the country.

Since 1992, United States policy has been to seek, to the fullest extent possible, “Open Skies” air transport agreements, which eliminate government interference in commercial airline decisions about routes, capacity, and pricing, so that airlines can provide more affordable, convenient, and efficient air service to consumers, promoting increased travel and trade, and spurring high-quality job creation and economic growth.

Open Skies agreements expand cooperative marketing opportunities between airlines, liberalize charter regulations, improve flexibility for airline operations, and commit both governments to high standards of safety and security.

They are pro-consumer, pro-competition, and pro-growth, and facilitate countless new cultural links worldwide.

According to the U.S. Travel Association, 75 million international visitors spend nearly $250 billion in the United States annually, benefiting American jobs across the aviation, travel, and tourism sectors, including hotels, restaurants, attractions, retailers, and domestic air carriers.

The United States continues to seek new Open Skies partners, which will continue to drive down costs for travellers and promote people-to-people interactions, information sharing, and international business opportunities.

The idea of ‘Open Skies’ is even spreading so fast with the African Union’s desire to promote easy travel within the continent having seen it push for the Single African Air Transport Market (SAATM).

No show for Air Peace, United Nigeria Airlines yet,

United Nigeria Airlines and Air Peace have more than four years been designated by the Federal Government to operate different routes chosen by the airlines. Years after their designations as Nigerian flag carrier airlines, the carriers are yet to fulfil that obligation.

Considering the huge market offered by the country, it is unknown yet that many more American carriers would ‘invade’ the country to have a share of the market, and there is no corresponding move by more Nigerian airlines to take advantage of the agreement to also fly into the U.S., to reduce the stakes of the Americans.

The United States carriers have unarguably been the leader in the sub-sector for several years. Thanks to the support and consistent policies of its government.

The carriers have several things going for them, while several agreements were signed with other countries in a bid to give their airlines the leverage to continue to dominate the global aviation sector. The U.S. carriers have always been comfortable with the policies and their collaboration with smaller and less developed aviation countries.

Stakeholders and professionals are worried that with the open sky agreement with the U.S., the airlines may eventually turn Nigeria and some other less financially strong countries into their local markets, which may benefit the air travellers, but spell doom for the country and local operators whose passengers would be taken over, especially when there is no national carrier to promote its course.

Last line

Many Nigerian operators seem to be dwelling in the past. Their view about global aviation, many think, should have changed by now.

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Open Skies’ albatross for Nigerian carriers

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