Nigerian airlines missing in US-Nigeria travel rebound

Relaxation in COVID-19 protocols by the American government, increased activities in the oil and gas market, with oil surging pass $85 per barrel, as well as improved trade relations between Nigeria and the United State (US), are among the factors driving the boom in US-Nigeria travels. As from December, passengers on the US-Nigeria route would […]

Relaxation in COVID-19 protocols by the American government, increased activities in the oil and gas market, with oil surging pass $85 per barrel, as well as improved trade relations between Nigeria and the United State (US), are among the factors driving the boom in US-Nigeria travels.

As from December, passengers on the US-Nigeria route would begin to enjoy more flight options and connectivity to the US, with American carriers expanding frequencies to Nigeria.

This is in line with the Bilateral Air Service Agreement (BASA) between Nigeria and the US, signed over 15 years ago and renewed last year.

Nigeria has also attained the category one rating by the US Federal Aviation Administration (FAA), which signifies compliance with international standards.

Delta Airline on Tuesday announced the resumption of its nonstop service between the Murtala Muhammad International Airport (MMIA), Lagos and New York’s John F. Kennedy International Airport three times a week, effective December 8, 2022. This is in addition to its daily Lagos-Atlanta flight. 

With the planned Lagos-New York flight, the airline would be expanding its frequencies in Nigeria to 10, crossing the pre-pandemic level.

This comes with connections to 46 cities at Delta’s JFK hub, making it easy for customers to reconnect with family, friends and enjoy new experiences across the United States.

Daily Trust on Sunday reports that another US carrier, United Airlines, is set to resume operation the same December, five years after suspending flights to the country following shrinking passenger demands on its Houston-Lagos route. 

But the airline is starting new nonstop service from Lagos to Washington D.C on December 1, 2021.

In preparation for the Nigeria-US service re-launch, the airline recently appointed Oluwatomi Bola-Sadipe as country sales manager for Nigeria and Ghana. 

Stakeholders and experts say the scrambling for the lucrative Nigerian routes by the US carrier is a testimony to the rebound in air travel after the COVID-19 lockdown, as well as the increasing economic activities between the two countries.

Factors driving American airlines’ interest in Nigeria market

Daily Trust on Sunday reports that the value of US goods and services with Nigeria hit $10bn as at July this year, according to data from the office of the US trade representative, with exports valued at $5.3bn and imports into the US, worth $5.1 billion.

The US foreign direct investment in Nigeria (stock), meanwhile, was $5.5bn in 2019, a 21.5 per cent increase from 2018.

All these factors have made the Nigerian market attractive for US carriers, according to analysts, in addition to the holiday season in December. 

Speaking on the development, the chief executive officer, Aglow Aviation Support Services, Mr Tayo Ojuri, said improvement in trading activities between Nigeria and the US was one of the factors pushing the US-Nigeria travel rebound.  

He added, “After Europe, the US is the continent where you have a lot of Nigerians in the Diaspora. Then United Airlines used to concentrate on the oil and gas market, and oil and gas is picking up again and also manufacturing; and all the other investments. If you look at the volume of trade between Nigeria and the US, it is one of the top factors that is driving it as well.

 “Also, we have Nigerians in the Diaspora coming for Christmas and New Year and some other life-changing events.”

On his part, the director of Research and Corporate Travels, Zenith Travels, Mr Olumide Ohunayo, said the lowering of COVID-19 barriers, in addition to the change of government in the US, coupled with the relaxation of immigration rules imposed by the Donald Trump government are driving US-Nigeria travel rebound.

He said, “Again, the US airlines have all been in the domestic market, expanding domestic market, and with this opening, the US airlines are either operating directly or increasing commercial negotiations and discussions with other foreign airlines, mostly European airlines and airlines that share the same business ethics with them.

“Apart from operating directly, they are increasing commercial agreements with other airlines of like-minds, which has also increased the number of opportunities open to passengers to fly and at a cost. That also has encouraged travel.”

Nigeria lags behind, 15 years after

Ohunayo, however, said he would want to see Nigerian carriers reciprocate the BASA by operating to the US. 

Daily Trust on Sunday reports that Nigeria and the US signed an open sky agreement 15 years ago, enabling the two countries and their airlines to fly directly to the US or Nigeria as the case maybe, but since then, only the American carriers are taking advantage of this.

But as American airlines increase frequencies in Nigeria, no Nigerian carrier has been able to reciprocate in recent times to the US.

Arik Air, which used to be the largest airline in Nigeria, as well as West and Central Africa, used to be the only airline to operate to the US after the liquidation of the defunct national carrier, Nigeria Airways.

But Arik suspended the flight in February 2017 after the airline was taken over by the Assets Management Corporation of Nigeria (AMCON).

Also, Med-View Airline was designated to the US, precisely Houston, by the federal government but did not open the route before the suspension of its operations.

Also, Nigeria’s biggest airline, Air Peace, has also been designated to fly to Houston, but it was not clear when the airline would give effect to this.

The spokesman of the airline, Stanley Olisah, in a chat with our correspondent said, “Everything is planned, we are launching these routes one after another. India is in the work, and we will be starting very soon.

“Yes, we have been designated to the US-Houston, Guangzhou-China. We have been designated. You know how it is. International flight operation has to be well planned. The next international destination we are starting very soon,” he added.      

Ohunayo, however, lamented that Nigeria rushed to sign an open sky with the US when its airlines were not ready or strong enough to reciprocate.

“It is a lesson for us that when you are not ready, don’t jump into it, and if you are getting into it, get some concession that would be profitable for you. If we had gotten some concession, I am sure a US carrier would have come to set up here or looked for an airline that they can build here and use that airline to act as their partner within Nigeria,” he added. 

On his part, the managing director of Belujane Konzult, Mr Chris Aligbe, said the renewed interest in the Nigerian market by the American carriers shows “increasing acceptance that there is a sprawling market on the route between Nigeria and the US. The market is large and enough to offer valuable operations to airlines. This is also an affirmation of faith in the aviation infrastructure development in Nigeria.

“The truth of it is that our airlines are not yet firmed up enough to be able to respond. The fault is in us, not in the US, because after signing the open sky agreement, the US gave us five years to establish and begin to exploit it before their airlines would start coming in. For five years, we did nothing. Then Arik eventually got to start operating but stopped. With the open sky agreement, they (American airlines) have a right to come in at any point in time.

“What this tells us is that that route is profitable and we need to get an airline operating it. This is why some of us are talking about a new flag carrier that would be properly established with a strong technical carrier. If that happens, we will go to the US.”