Nkem Osuagwu takes a look at some issues highlighted by the Bilateral Air Services Agreement dispute between Nigeria and the United Kingdom.
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Though the controversy over what some people have referred to as the lopsided implementation of Bilateral Air Services Agreement (BASA) between Nigeria and Britain appears to be dying down, the dispute has however, highlighted certain aspects of the BASA where Nigeria appears to have had major shortcomings in their implementations.
Industry analysts have identified these areas to include – the slot allocation process, giving airlines a free hand to hike airfares without consulting the regulatory authority and the inability of government officials involved in signing some of these agreements to make issues involved, transparent enough for Nigerians to understand the issues at stake.
BASA agreements are made possible because of the growth of air transportation which has enabled economic growth around the world.
This is in addition to technological advances in aircraft and airports which have increased the flow of goods, people and ideas from one country to another, thus turning the world into what people now call, ‘a global village.’
As people’s need for travel either for business or leisure grows, countries sign treaties or agreements with each other. In the aviation industry, governments must first negotiate and come to an agreement before an airline can operate international services to another country.
What is BASA?
A Bilateral Air Services Agreement is an agreement signed by two countries to allow international commercial air transport services between their territories. In Nigeria, the Bilateral Economic Cooperation Division of the Foreign Affairs Ministry is responsible for “overseeing Nigeria’s international economic relations through regular consultation with other federal ministries and agencies.
The Division assists in monitoring the implementation of Nigeria’s international economic commitments. It provides political and diplomatic advice to them in the conduct of bilateral and multilateral economic relation with a view to protecting and promoting Nigerian’s national interest.” However, the aviation ministries, in this case the professionals in the aviation ministry and the requisite agencies in the aviation industry make input, as well as represent Nigeria in signing BASA Agreements, of course in consultation with the Foreign Affairs Ministry.
It was in this line that the recent air row between Nigeria and Britain helped to increase people’s awareness on issues pertaining to trade agreements and how they affect them. The Minister of Aviation, Princess Stella Adaeze Oduah while striving to ensure that the spirit of the Bilateral Air Services Agreement signed with the British Government is respected, insisted that the issue at stake is the fair and equitable treatment of all Nigerian flag carriers in line with Bilateral Air Services Agreements (BASA). According to her, BASA Agreement is predicated on the principles of equity, fairness and reciprocity.
Basically, those involved in negotiating bilateral air services agreements are guided by some goals, which include the provision of a framework that encourages competition and the development of new and expanded international air services to benefit travellers and the tourism and business sectors etc. They also ensure that the agreement provides opportunities for the airlines, especially the indigenous airlines, to grow and compete successfully in a more liberalised global environment, as well as, provide the needed support that will facilitate international trade objectives among others.
Though the Nigerian government has yet to make public the BASA agreement it signed with the British Government, analysts have however, highlighted some of the ingredients that could be seen in such Agreements. Usually, Bilateral air services agreements or arrangements, contain provisions on; Traffic rights – specifying the routes airlines can fly, including cities that can be served within, between and beyond the bilateral partners. It also contains issues pertaining to capacity, which specifies the number of flights that can be operated or passengers that can be carried between the bilateral partners. Another aspect of the BASA is Designation – which deals with the number of airlines the bilateral partners can nominate to operate services and the ownership criteria airlines must meet to be designated under the bilateral agreement. Also, some agreements require airlines to submit ticket prices to the regulatory authorities for approval.
While the agreement between Nigeria and the British Government seems to have covered some of the listed criteria, some issues that have to do with slot allocation and getting approval from the regulatory authority before increasing airfare was not part of the issues contained in the agreement.
This of course, industry watchers have said, may be the reason behind the abuse of the agreement by the British side. They believe that the British Authorities are capitalising on the inability of Nigeria to meet up with the dictates of the agreement to rip off the Nigerian traveller, as well as make things difficult for any Nigerian carrier with the effrontery to begin flights on the London route, considered to be the most lucrative route in the Nigerian airline’s market.
Slot Allocation
Slots refer to the permission to land and take-off at a specific date and time at designated airports. In Europe, the European Union has a regulation which specifies that: “Slots will be distributed in an equitable, non-discriminatory and transparent way. The aim of the EU framework is to ensure the fullest and most efficient use of existing capacity at congested EU airports while maximising consumers’ benefits and promoting the competition.”
The issue of slot allocation and the way the only Nigerian flag carrier was handled on its operation from Abuja to London before the air dispute, showed that lack of transparency on the British side with regards to slot allocation.
Also, the revelation that Nigerian carriers have to pay for slots, and in most cases, these slots are purchased from third parties at very exorbitant prizes, are indications that the aviation authorities in Nigeria are still living in the past and have to wake up to the realities of modern day aviation management; that is, if we are to base our argument on reciprocity of operations, especially, as it relates to BASA agreements.
This not withstanding, things are beginning to look up; thanks to the aviation minister, who made the Federal Airports Authority of Nigeria (FAAN), to realise the need to implement and review its slot allocation system, especially for the Lagos Airport, considered to be the busiest in Nigeria.
Oduah had said because of the renovation and upgrading of airports, FAAN will require a review of current slot allocations as a means of additional funding to handle projects. “Towards this end, FAAN is considering applying commercial slot rates for slots into Murtala Mohammed International Airport in the spirit of Bilateral Air Service Agreement”, she had said.
However, when FAAN’s General Manager, Public Affairs, Mr. Akin Olukunle was approached to disclose when the airport authority will start the implementation of the reviewed slot arrangement, he said the authority is still working on it. He nonetheless assured that it will soon come out with a position.
Disparity in Airfares
Aviation watchers were not surprised when the Federal Government announced that British carriers to Nigeria – British Airways and Virgin Atlantic Airways are involved in implementing discriminatory air fares between the Lagos-London and Abuja-London Routes, thereby creating regional fare disparity and imbalance. The same also goes for the airfare prize fixing allegation against the two airlines. Though British Airways attempted to deny these allegations which the Federal Government said it has facts to back up her stand based on investigations, the recent slash in the airline’s fare by 20 per cent, therefore, goes to prove a point.
It is noteworthy, that the Christmas and New Year holidays mark what the airlines call the high season because of the increased number of passengers that fly on the route to Nigeria.
The Nigerian Civil Aviation Authority (NCAA) who drew up the fines against British carriers over price fixing deals, also accused British Airways of trying to undermine its authority to regulate the industry. The Director General of the regulatory authority, Dr. Harold Demuren also accused British Airways of adopting a confrontational approach, adding that the airline condescends and undermines the regulator’s authority.?
“It again, demonstrates the repeated and continuing disregard BA has for Nigeria’s constituted authority and its exclusive desire to ensure that absolutely nothing, interferes with its ability to continue to take advantage of our business without the reciprocal regard and deference required.
“This kind of acrimonious approach to communication and interaction with the regulator neither promotes nor conveys the type of mutual respect required for a mutually beneficial resolution of differences between the Federal Government and British Airways”, said Demuren why taking highlighting the disregard of BA to the Nigerian people.
Despite the fact that the government said it did accept British Airways offer to reduce airfares by 20 a per cent slash, for its ‘Business Class,’ the airline still went ahead to implement such, attributing the slash in fares to the airlines promo for the Christmas reason. Nothing was said of the demand by the government that the airline should reduce its fares to achieve a balance in airfares in the region.
This type of situation further goes to show that our government has yet to get a firm grip on the conducts of airlines to Nigeria; another aspect of the BASA agreement that needed to be enforced.
Conclusion
The International Civil Aviation Organisation (ICAO), the body that regulates aviation globally has continued to develop a series of traffic rights, known as ‘Freedoms of the Air’ in line with the growth industry. These freedoms continue to form the basis of rights exchanged in air services agreements. According to statistics, the international civil aviation is ‘regulated by a complex web of over 3000 interlocking bilateral air services agreements’.
To be in tune with global trends in the industry, governments must continually negotiate new agreements to allow international aviation to grow and expand their carriers’ access to new and emerging markets. And for Nigeria, the future remains bleak, as the demise of Nigeria Airways seems to have ended the will of the indigenous airlines to become strong enough to ensure reciprocity on the various Bilateral Air Services Agreements which the Nigerian Government has with several other countries. For now, foreign airlines are still dictating the pace, but then, Nigeria must not allow the current situation to control the affairs of the industry in future.
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