News

November 8, 2011

Slot allocation crisis: FG extends deadline to British Airways

By Kenneth Ehigiator
THE Federal Government, yesterday, gave British Airways a week extension of the ultimatum given it to address the slot allocation crisis which compelled Arik Air to shut down its operations into London Heathrow airport on October 29, 2011.

Aviation Minister, Princess Stella Oduah, had given the British authorities nine days within which to remove all obstacles in the way of Arik Air’s operation into Heathrow or face a slash of British Airways’ frequencies on the Lagos-London route by three from seven weekly flights. The ultimatum is to expire on Thursday, November 9.

Special Adviser, Media to the Minister, Mr joe Obi, said the extension was informed by an appeal by the British government.

 

Appeals by British

government

 

Obi said in a statement last night: “Following discussions between the British and Nigerian authorities on the reduction of British Airways’ slots into the Murtala Muhammed International Airport, Lagos, and appeals by the British government, the Minister of Aviation, Princess Stella Adaeze Oduah, has graciously granted the foreign airline an extension of one week. By this development, BA can continue to utilize its full slots into MMI Lagos up till Tuesday, November 15, 2011.

“This extension is to give way for further discussions on all the issues under consideration. The Ministry of Aviation, however, assures that Nigeria’s national interest will strongly be protected in the on-going negotiations.”

The minister had earlier indicated government’s commitment to reviewing the Bilateral Air Services Agreement, BASAs, with not just British Airways, but all foreign airlines operating into the country, which have used multiple entries and frequencies to exploit bilateral air services agreement at the expense of the country.

This is the first time a government in the country would be attempting to redress obvious imbalances in the air services agreement between Nigeria and other countries of the world, caused by compromised former officials of the Ministry of Aviation who granted frequencies and multiple entries to foreign airlines without recourse to the principle of reciprocity espoused by BASAs.

The BASA between Nigeria and UK, as it is currently, allocates 21 equal flight frequencies between both countries, which their airlines could maximise. Two of UK’s leading carriers, British Airways and Virgin Atlantic Airways have used up UK’s 21 frequencies, with BA having 14 (seven each from Lagos and Abuja) and Virgin Atlantic Airways seven from Lagos to London. Arik Air, Nigeria’s only carrier on the London route was operating 12 frequencies, including five from Abuja which it stopped on October 29 as a result of the slot allocation crisis at London Heathrow and seven from Lagos.

Stoppage of the frequencies from Abuja by Arik was occasioned by the slot allocation crisis at London Heathrow, which caused the present row between the Federal Government and its British counterpart. The minister is said not to be comfortable with the present arrangement because of the trade imbalance it had caused the country.

Vanguard gathered that the minister’s current stance on the issue was informed by the need to use aviation to drive the development of the nation’s economy in the manner reminiscent of what the Ethiopian government had done with Ethiopian Airlines.

A source told Vanguard: “There are many reasons the government wants the BASA with the UK and, indeed, other countries reviewed. One of them is to see to the development of local airlines in the country. For instance, the government wants the issue of multiple entry, which allows BA to fly into Lagos and Abuja stopped, so that our local airlines can serve as feeder carriers and grow.”

It was learnt that government had been looking for a way to have the agreement with the UK and, in fact, other countries tinkered with so the country could maximise the gains of commercial aviation, and that the slot allocation crisis faced by Arik at London Heathrow provided the opportunity to re-invent the industry.

The government is said not to be satisfied with the situation where Nigeria received a paltry royalty paid by foreign airlines for the country’s inability to fully utilise its BASAs with other countries. Vanguard also gathered that the aviation ministry is just waiting for expiration of the ultimatum given British Airways on Thursday to come up with another shocker, and not to give up on review of bilateral services agreement.