Emirates Flights Suspension: Stakeholders Fear Price Rise In Foreign Tickets, Revenue Loss

The suspension of flight operations into Nigeria by Emirates airlines will lead to increase in the prices of international flight tickets out of Nigeria, LEADERSHIP has learnt.

The suspension of flight operations by the airline will also lead to a drop in earnings by the Nigerian Civil Aviation Authority (NCAA ), Federal Airports Authority of Nigeria and the Nigerian Airspace Management Agency (NAMA) and job loss in the aviation sector.

LEADERSHIP recalls that for the second time in two months, Emirates airline has to announced suspension of flight operations into NIgeria from 29rh October, 2022.

Emirates Airline had earlier announced the suspension of its flight operations in Nigeria in August.

The airlines, however, reiterated same concern in a statement, on Thursday, saying the airline has no option than to suspend flights to/from Nigeria from 29 October 2022 to mitigate against further losses moving forward.

The statement reads, “Emirates has continued to actively seek a solution for the repatriation of the remainder of its blocked funds in Nigeria. We were encouraged by the Central Bank of Nigeria’s efforts of reviewing our request, and considered that this critical issue would be swiftly resolved with the subsequent clearance of our remaining funds.

However, speaking exclusively to LEADERSHIP, the assistant secretary general Aviation Round Table Initiative (ARTI), Olumide Ohunayo, said due to the schedule of Emirate Airlines into Nigeria, there will be increase in fare of routes outside Nigeria.

According to him, 80 per cent of Emirates airline passengers use Dubai as a transit point, hence, capacity will be lost due to the suspension.

He said, “Emirates had two frequencies into Lagos, one into Abuja and 80 per cent of their passengers go beyond Dubai that mean the withdrawal of their service mean there will be increase in fare on routes outside Nigeria, because capacity is lost by the withdrawal of Emirates, other airlines will feast on it and increase their fares.

“Again, there will be international community backlash because this is is not aeropolitical issue but remitances of fund and remitances of fund is part of Bilateral Air Service Agreement (BASA) which is allowing airlines to remit their funds and when airlines cannot remit their funds, international countries are looking at you and when it’s time for leasing of aircraft, buying of spares, and things that required funding they look at your credit rating which is presently downgraded by moody and other international organisation.

“The govt should address nonremitances as quickly as possible because this is becoming embarrassing and government should look on how to improve the industry because there will be a slight increase in international flight tickets, jobs will be lost and other value chains that depends on Emirates airlines will be affected. That will reduce part of contribution to the Gross Domestic Product (GDP) and other government agencies that get revenue from Emirates airlines will lose the revenue and agents working for Emirates will have to lay off staff.

Ohunayo, however, stated that Emirates had to halt operation to stop further losses and to save the airlines from bleeding.

Despite the challenges, we are not afraid. The private sector is Africa’s growth accelerator. We must mitigate real and perceived risks and persuade the private sector that investing in Africa is safe—AfDB President, Dr Akinwumi Adesina

Adesina