African governments will have gleefully pulled up a chair to watch a riveting battle between Nigeria’s aviation regulator and powerful blue-eyed foreign carriers in what analysts say could trigger a new era of tighter and unpredictable regulation in the $67.8 billion regional air industry.
Nigeria accuses major international airlines plying its routes–chiefly British Airways and Virgin Atlantic– of overcharging its citizens and gave them a 30-day ultimatum, effective March 26, to redress perceived air imbalances or be barred from operating in its airspace.
Industry watchers say African airlines flying to Nigeria were unlikely to be affected by the directive that was clearly targeted at the two giants, which Abuja insists made profits by the bucketload at the expense of Nigerians, forcing some to even travel to neighbouring capitals to take advantage of lower fares to the same destinations– ironically by the same carriers.
It is a continuation of a damaging spat between Nigeria and the British Government over landing rights at Heathrow for local carrier Arik Air and which forced the young airline to last month suspend its flights from Abuja to London.
The Nigerian Government’s bid to rein in the heavy-hitters could set a precedent for more power battles between African regulators and deep-pocketed airlines, observers say.
“If it is confirmed that it is true that fares being sold in Nigeria are higher than fares sold to neighbouring countries, then other countries could begin to review their own fare structures for foreign carriers in their markets,” Mr Raphael Kuuchi, the director for Commercial and Corporate Affairs at industry grouping Afraa, told the Africa Review.
“Similar measures may be introduced, as African countries wake up to the reality that despite the fact that the lucrative traffic on their routes belong to them and their carriers, they are not proportionately benefiting,” said Mr Kuuchi.
The Nairobi, Kenya-headquartered African Airlines Association trade grouping derives its affiliation from the African Union (AU) and currently counts 29 active members.
The British Government said it would retaliate if its carriers were banned, terming the threat as potentially ” heavy-handed” and “catastrophic” for business confidence in Nigeria.