FG to review Bilateral Air Service Agreements to favour indigenous airlines

The Federal Government of Nigeria has expressed readiness to review all Bilateral Air Services Agreements with foreign airlines to address imbalances in favour of indigenous airlines.

Nigeria’s Minister for Aviation and Aerospace Development, Festus Keyamo disclosed this during a courtesy visit of the Airline Operators of Nigeria (AON) to his office in Abuja recently.

Recall that the indigenous airlines have been agitating for review of all BASAs with their foreign counterparts to address reciprocity imbalances which leave them (indigenous airlines) at a disadvantage. 

During the visit, Keyamo noted that the government is ready to help the airlines operate profitably, assuring of a possible review of all BASAs to accommodate their agitations.

He, however, stressed the need for AON to increase their fleets in order to compete against their foreign counterparts and attract more patronage.

The Minister also said the Federal Government is ready to partner and support the Airline Operators of Nigeria (AON) once they are ready to raise the standard of their services. 

According to Keyamo, the visit by the AON was a follow up to a private visit made earlier by the association, saying “…….  I don’t want to operate as a ghost, I said one of my policies is to operate an open policy… I said, bring up your challenges so that Nigerians would understand exactly where Government and Airlines Operators stands.’’ 

Disclosing his readiness to support the growth and sustenance of the indigenous airlines while holding them to the highest international standards in the aviation industry, Keyamo noted that they are a critical part to the growth and development of the aviation industry and the country at large.

He, however, pleaded with the airline operators to cooperate among themselves to find a way to establish their businesses such that it will have enough capital to survive instances like Covid 19 pandemic.

The Minister promised to suggest to the government the possibilities of AON accessing facilities at single digits, including Associated Foreign Exchange (AFEX) to meet their foreign obligations. 

While welcoming investors to establish commercial MROs in Nigeria,

Kayamo noted that during his administration, a futuristic master plan will be developed to accommodate everything that will make Nigeria an aviation hub in Africa while employing all airlines to utilise their Bilateral Air Service Agreements (BASA) routes to reduce the prices of airfare.

Earlier, the President of AON, Dr. Abdulmunaf Yunusa presented a paper through Captain Roland Iyayi which highlighted some of the constraints and challenges and probable solutions to Nigeria’s aviation industry.  

Among the challenges highlighted are:  foreign exchange, Jet A1 fuel, cost of capital and funding options, infrastructure, taxes, fees and charges as well as government policies.

AON while proposing a solution requested for licenses for Jet A1 importation and distribution through strategic partnership and an immediate review of all industry taxes, fees and charges.

They also called for immediate renegotiation of all existing BASA’s and Multilateral Air Service Agreements (MASA) in line with provision of Single Africa Air Transport Market (SAATM), with emphasis on the principle of reciprocity in favour of domestic airlines.