Travel News

BY  Ifeoma Okeke

United Airlines is returning to Lagos airspace in November five years after its voluntary exit.

The return of the airline was disclosed by Nigerian Aviation Handling Company, (NAHCO ) Plc, in a statement.

According to NAHCO, it would be handling contracts for United States-based United Airlines for the next three years, adding that it is the preferred partner, providing passenger and ground handling services.

The airline exited Nigeria following challenges with crashed oil prices and a flailing economy. The Lagos – Houston route which was once a favourite especially for oil sector workers and executives has suffered a major decline in patronage.

In addition, airlines operating in Nigeria at the time faced a hard time with foreign exchange restrictions.

Prince Saheed Lasisi, NAHCO’s group executive director, Business Development and Commercial, who expressed excitement on the feat while making the announcement, described it as a boost for the industry, ‘’NAHCO is excited to be the chosen one, we welcome United Airlines back to our airspace, and we are ever ready to provide the airline quality handling at all times, as being currently provided to our numerous client airlines’’.

In the same vein, the company recently signed a five-year contract with Qatar Airways in Abuja, as well as renewed the Lagos contract for another five years.

According to Prince Lasisi, ‘’with the new contracts, which run for five years and coupled with the additional frequencies of Qatar flights to Nigeria and Ghana, we are glad to go even further to provide the top-notch services for which we are known and have offered the airline for the past nine years’’.

The renewed contracts cover all service areas, as it will see NAHCO provide passenger, cargo, and ground handling services to Qatar Airways. It also includes the provision of crew transportation and other ancillary services to the respected airliner.

...starts in July

Under the post-study work visa rules by the United Kingdom government, Nigerians and nationals from other countries will be allowed to stay in Britain looking for work for up to two years after they graduate.

The graduate route which will be open for applications on 1 July 2021 will allow the UK to retain the brightest and the best international students to contribute to its society and the economy post-study.

“The Graduate route will be available to international students who have completed a degree at undergraduate level or above at a Higher Education Provider with a track record of compliance, and who have valid Tier 4 or Student permission at the time of application,” the Home Office said on its website.

While the Graduate route does not count towards settlement, the policy explained that graduates will, however, be able to apply to other routes at the end of their 2-3 year stay.

According to the statement by the British Government, graduates will be able to “apply to the Skilled Worker route from within the UK, once they have found a suitable job.”

Under current rules (which will expire on July 1), introduced by former prime minister Theresa May when she was interior minister, students are only allowed to stay for four months after they finish their degree.

According to a statement by the British Government, the launch of the route demonstrates its support for the UK’s education sector, and commitment to the International Education Strategy, which sets out an ambition to increase education exports to £35 billion and the number of international higher education students in the UK to 600,000 by 2030.

“The important contribution international students make to our country and universities is both cultural and economic. Their presence benefits Britain,” Education Secretary Gavin Williamson said in a statement.

Nigeria’s outbound student mobility which greatly exceeds that of other African markets is expected to benefit from the UK’s post-study policy. Data from ICEF monitor, market intelligence for international student recruitment puts the number of Nigerian students in the UK at over 10,540 in 2018. But, the prevailing economic challenges coupled with a weak exchange rate is a threat that might restrict many Nigerians from tapping from the UK Graduate route.

Nigeria’s foreign-currency shortage forced the Central Bank to devalue the local currency two times in 2020 and has recently adjusted the exchange rate in May 2021.

On the back of naira depreciation, new and continuing Nigerian students who will be resuming schools abroad for the 2021/2022 academic session could be paying as much as an additional N2 million or more to complete their tuition fee. Similarly, Nigerians planning to study abroad would also be facing a higher living cost.

Though many Nigerian students may have a hard time paying their way through schools abroad, enrolling in Nigerian universities, especially public ones, is not an option for many as the country’s education standard has been constantly called to question.

Anthony Kila, professor of Strategy and Development and international director of studies at the European Centre of Advanced and Professional Studies, said the government is to blame because it has not done its best to make Nigeria’s education system attractive.

“Nigerians tend to travel abroad for studies because the education system is bad in the country and those that go abroad are the ones that can afford it,” Kila said.

The United Nations Education, Scientific, and Cultural Organisation (UNESCO) recommend that 15 to 20 percent of a nation’s total budget should go to the education sector. Nigeria’s 2020 budget only allocated 6.48 percent to its education sector. It was 7.11 percent in 2019, 7.14 percent in 2018, 7.27 percent in 2017, and 9.20 percent in 2016.

Breakdown of the new UK post-study policy reveals that graduates whose Tier 4 or Student visa leave expires before the route is introduced will not be eligible, “however, most of these students will have did not expect benefitting from such a route when they applied to study in the UK.”

The Graduate route will require a new visa application, which will only be possible from inside the UK. It will include the payment of a visa fee of £700 and the Immigration Health Surcharge at the full rate of £624 per year. Students will also need to know the Confirmation of Acceptance for Studies (CAS) they used for their most recent Student (or Tier 4) application to apply for the Graduate route, the document said. “Individuals applying to the Graduate route will not need a sponsor.

Student sponsors will not need to fulfill any sponsorship duties for their students once they switch onto the Graduate route and students will not need a Certificate of Sponsorship (CoS) to apply under this route,” the Home Office said, adding that students sponsors will, however, need to notify the Home Office that a student has completed their course.

By Kelvin Osa Okunbor

Nigerian Aviation Handling Company (NAHCO) Plc, has clinched the handling contract for United State based United Airlines for the next three years.

United Airlines, having voluntarily exited the Lagos airspace since 2016, is making a return in November, with NAHCO as its preferred partner, providing passenger and ground handling services.

According to NAHCO’s Group Executive Director, Business Development and Commercial, Prince Saheed Lasisi, who expressed excitement on the feat while making the announcement, described it as a boost for the industry.

He said: ‘’NAHCO is excited to be the chosen one, we welcome United Airlines back to our airspace, and we are ever ready to provide the airline quality handling at all times, as being currently provided to our numerous client airlines.”

The company recently signed a five-year contract with Qatar Airways in Abuja, as well as renewed the Lagos contract for another five years.

Lasisi said: “With the new contracts, which run for five years and coupled with the additional frequencies of Qatar flights to Nigeria and Ghana, we are glad to go even further to provide the top -notch services for which we are known and have offered the airline for the past nine years.”

The renewed contracts cover all service areas, as it will see NAHCO provide passenger, cargo, and ground handling services to Qatar Airways.

It also includes the provision of crew transportation and other ancillary services to the respected airliner.

Also, NAHCO has renewed its contracts with Egypt Air and Royal Air Maroc for another three years. The new signings and renewals signal NAHCO’s commitment to service excellence and reaffirm its leadership position in the nation’s ground handling business.

BY  Kyunghee Park and Siddharth Philip, Bloomberg News

(Bloomberg) -- Fresh Covid-19 outbreaks and lockdowns have further delayed an international travel revival in Asia, where movement remains tightly restricted even in places where the virus has been contained.

While Hong Kong has brought new cases down to practically zero, its draconian quarantine regime makes travel unappealing for the masses. A plan for quarantine-free travel with Singapore was shelved after an outbreak there. Malaysia went into a two-week lockdown from June 1 following a jump in infections. Low vaccination rates haven’t helped get things moving. 

“The slow rollout combined with a commendable but equally near impossible desire for a zero-based level of infections has resulted in authorities being ultra-cautious in their market reopening,” said Mayur Patel, head of Asia Pacific at OAG Aviation. “In Europe and North America, there is a much wider acceptance that we will have to learn to live with Covid as much as we live with other common diseases and viruses.”

Like Taiwan, Singapore has long been lauded as one of the best places to be during the pandemic, only for infections to flare recently. Prime Minister Lee Hsien Loong said Monday that school children would be inoculated and every adult who wants a shot would have one by early August, pledging to not get left behind as the world begins to reemerge from the pandemic.

“We will have to learn to carry on with our lives even with the virus in our mindset,” Lee said in an address to the nation. Singapore is under tight social-distancing measures until June 13 following a recent outbreak. About 40% of the population has received at least a first vaccine dose.

Almost 2 billion vaccines have been administered globally, with the U.S. and U.K. among those leading the way. China has given out more than 680 million doses, but rates are much lower in other parts of Asia, including tourist destinations Thailand and Vietnam, where enough shots have been given to cover only 2.6% and 0.6% of the populations, respectively.

/What’s Happening in Air Travel This Week

With summer holidays approaching in the northern hemisphere, global aviation capacity rose to almost 60% of 2019 levels -- a 3 percentage-point jump in a single week, the most in at least a month, according to Bloomberg’s weekly flight tracker, which uses OAG data to monitor the pulse of the comeback.

Some markets even managed to claw back modest gains: Capacity in Russia has almost returned to 2019 levels, while Nigeria is up 7.3% from that year. The U.S. recovery picked up speed -- it’s now down 23% from 2019 levels.

Memorial Day gave the U.S. a significant bounce, with airlines carrying the most passengers in almost 15 months on the Friday before the long weekend.By contrast, Asia — long the leader in the global aviation recovery — slipped again in recent weeks, falling behind the U.S. rebound, the data show.

With an envious eye on vaccine progress and borders opening in other parts of the world, some businesses in Asia are rolling out unusual incentives to encourage people to get inoculated. Among them, a brand new, $1.4 million, 42-square-meter Hong Kong apartment is up for grabs in a lucky draw for vaccinated residents, while Australia’s Qantas Airways Ltd. is offering “mega prizes” including unlimited flights for a year.

“The relatively slow pace of vaccinations continues to undermine the region’s economic recovery, in particular, the travel and tourism sectors,” Subhas Menon, director general of the Association of Asia Pacific Airlines, said Monday as data showed international air passenger volume in the region in April was 3.5% of the level reported in the same month in 2019.

A Collinson survey of 46,830 people globally found about 78% of respondents would travel as long as more people get vaccinated, though it didn’t specify a number. People were also willing to use vaccine passports and take pre-departure tests if it meant they could travel. Quarantine was easily the biggest deterrent for respondents everywhere.

Flights within Asia to popular beach and cultural destinations are still way off pre-pandemic levels, and in some cases have slid further since the start of 2021. Hong Kong-to-Bangkok flights have fallen by about 85% from their level this time two years ago. Singapore to the tropical Thai island of Phuket is even lower, though the route has picked up from the start of the year when there were no flights at all, Cirium data show. Bali routes have flatlined as the Indonesian island remains shut off to international arrivals. 

Thailand has been battling to overcome virus outbreaks and revive tourism, a critical part of the Southeast Asian nation’s economy. Phuket is due to reopen to fully-vaccinated foreign visitors on July 1 — Qatar Airways for one said it will resume four weekly flights there — followed by other destinations in October. Even so, Thai authorities have warned it could take another five years for tourism to fully recover in the country. 

Cargo services out of Asia are proving more resilient thanks to continued demand for products from major exporters such as China and Japan.

/Airport Challenges

As Asia’s tourism recovery has stalled, restrictions are easing in places like Europe. That will bring challenges, with passenger traffic in the region set to almost triple from 47 million in May to 125 million in August, Airports Council International Europe said Monday.

Managing the increase will “amount to an unprecedented operational challenge” due to factors including space constraints from physical distancing measures, longer passenger processing times and multiple Covid checks.

While airlines and airports are grappling with the problems of too little service, for others there are concerns of being overwhelmed.

“The level of both uncertainty and complexity in planning for the restart is just mind blowing for now,” ACI Europe Director General Olivier Jankovec said. “With each passing day, the prospect of travelers enduring widespread chaos at airports this summer is becoming more real.”

BY  Okechukwu Nnodim

The Lagos, Abuja, Port Harcourt and Kano airports will be on concession for a minimum of 20 to 30 years, the Federal Government said on Wednesday.

It provided the explanation in a document on frequently asked questions about airport concession released by the Federal Ministry of Aviation in Abuja.

In a document on the status of the road map/public private partnership projects concession of airports, made available to our correspondent, the government named the airports/parts that were up for concession.

They include the Murtala Muhammed International Airport, Lagos: international and cargo terminals; and Nnamdi Azikiwe International Airport, Abuja: international, domestic and cargo terminals.

Others include the Port Harcourt International Airport, Port Harcourt: international, domestic and cargo terminals; and Mallam Aminu Kano International Airport, Kano: international, domestic and cargo terminals.

Providing additional explanation on the duration of the concession in a separate document, it said, “Infrastructure concessions of this nature come with a significant financial obligation which any responsible concessionaire will no doubt be keen to recoup.

“To this end we envisage a minimum of 20) to 30 years for the programme, which may be extended depending on performance and Nigeria’s best interests.

“That said, the duration is not set in stone and will be subject to negotiation and then final approval by the Federal Executive Council.”

The aviation ministry stated that although the airports had huge potential, they were currently operating at a sub-optimal level.

It said the government was starting with the most strategic assets because successful delivery of this concession programme would give all stakeholders the confidence required to consider other possibilities in the sector.

The ministry said the concession applied to the non-aeronautic assets of the airports located in the passenger and cargo terminals.

It said these comprised the assets from the entry door of the airport to the point of embarking and disembarking from an aircraft to the exit doors.

The ministry explained that this space commonly referred to as the passenger terminal comprised of retail spaces, waiting and seating areas, airport and airline lounges, baggage collection, check-in counters as well as administrative offices.

It added that the cargo terminals were comprised of the facilities between the point of entry and up to loading and off-loading points, including administrative offices within said facilities.

LONDON (AP) — The European Union unveiled plans Thursday for a digital ID wallet that residents could use to access services across the 27-nation bloc, part of a post-pandemic recovery strategy that involves accelerating the shift to an online world.

The European Digital Identity Wallet proposed by the EU's executive commission is a smartphone app that would let users store electronic forms of identification and other official documents, such as driver's licenses, prescriptions and school diplomas.

The bloc's 450 million residents would be able to use the wallet to access public or private services both online and offline while maintaining control of their personal data.

Officials envision the wallet allowing a customer renting a car at an airport, for example, to complete the necessary ID checks and documents digitally and thereby skip the usual wait at an agency counter. Nightclub-goers could show the app to security guards at the door to prove their ages.

Other potential uses include opening bank accounts, signing apartment leases and enrolling in universities outside an individual's home country.

The digital wallet “will enable us to do in any member state as we do at home without any extra cost and fewer hurdles,” Margrethe Vestager, the European Commission's executive vice president for digital, said. "And do this in a way that is secure and transparent.”

All EU residents would be entitled to an e-wallet, but they won’t be mandatory, according to the EU Commission.

But dominant online platforms would be required to accept the wallet, a provision that aligns with the commission's goal of reining in big tech companies and their control of personal data.

Vestager said people would be able to use their EU digital wallets to access Google or Facebook instead of their “platform-specific” accounts.

“Because of that, you can decide how much data you want to share - only enough to identify yourself,” the commissioner said from Brussels during a virtual media briefing.

Digital is a key part of the EU's post-COVID 19 recovery package: A 750 billion-euro ($915 billion) stimulus fund includes benchmarks for member countries to spend one-fifth of the money on digital projects such as digitizing public administration.

Some EU countries already have their own national digital ID systems, and the wallet Brussels is developing would work with them.

The commission plans to discuss the wallet with the EU's 27 member countries and aims to get them to agree on technical details by fall 2022 so pilot projects can begin.

Qatar Airways marked a significant milestone in the rebound of international leisure travel with the resumption of four weekly flights to the famed holiday destination of Phuket, Thailand, starting 1 July.

The airline said in addition to its 12 weekly Bangkok flights, the airline will operate a total of 16 weekly flights to Thailand, providing seamless connectivity for its passengers travelling from Europe, the Middle East and United States. As Thailand reopens to holidaymakers from around the world, fully vaccinated travellers will soon be able to visit once again whilst also enjoying the award-winning hospitality and service available on Qatar Airways and at its hub, Hamad International Airport, the first and only 5-Star COVID-19 Safety Rated Airport in the Middle East.

Qatar Airways Group Chief Executive, Mr. Akbar Al Baker said: “With the resumption of flights to Phuket, Qatar Airways marks a significant milestone in the recovery of international tourism. We are proud to have lead the industry, setting the benchmark for safety, innovation and customer service throughout the pandemic.

“We know many of our customers are eager to get back flying and return to some of their favourite holiday destinations, such as Phuket. Famed for its many exotic beaches, family friendly atmosphere, turquoise waters and delicious local cuisine, Phuket is an ideal destination for a summer getaway. We look forward to working with our partners in Thailand to support the recovery of their tourism sector.”

By Chinedu Eze

Check-in for hundreds of international air travellers to various destinations was on Tuesday delayed for several hours when the airlines reverted to manual system for passenger facilitation.

This was because on May 31, 2021, Societe International Telecommunication Aeronautiques (SITA), which provides Common Use Terminal Equipment (CUTE), withdrew its services and the company, Arlington Securities Nigeria Services, which was supposed to replace SITA, was yet to install its own equipment to migrate airlines to the new system.

CUTE is IT solution that enables multiple airlines to use existing airport facility to check in passengers.

THISDAY learnt that the Federal Airports Authority of Nigeria (FAAN) rejected SITA after it provided the agency service for over 10 years and chose Arlington, but as at the time SITA withdrew its services as was agreed with FAAN, Arlington was not ready to provide unobstructed succession, thus forcing airlines to revert to manual check in that is fraught with delays.

A senior official of FAAN who spoke to THISDAY on the condition of anonymity, disclosed that Arlington and SITA bided, but FAAN preferred Arlington, so SITA having known that its services would no longer be renewed allegedly pulled out on May 31, as FAAN had already said Arlington would take over.

“But from all indications, Arlington is not ready and they have not installed their self-check-in machine. Recently there was trial for their equipment but what they brought in did not work. So those airlines like Air France, which did not have back-up equipment resorted to manual services and this caused so much delays,” the official said.

Country manager of a major international airline told THISDAY that globally it is the airport that provides CUTE system for passengers, saying that when SITA was to pull out, FAAN management arranged a meeting with airlines on Tuesday but later cancelled it.

“The major devastating effect of what has happened is the delay in passenger processing and the major reason why airports are necessary is for passenger processing.

“Security came up because airports are seen as targets. What is happening inconveniences passengers. Ideally it should take three minutes to process each passenger, using Advanced Passenger Information Service (APIS).

“You know that when you are travelling from country A to country B, the destination country should get information of the passenger ahead so that countries like the United State’s Transport Security Administration (TSA) will profile the passenger. If he is a security risk you will not get his boarding pass. Manual check in is cumbersome,” he said.

The official suggested to THISDAY that what might be behind the rejection of SITA with its well-known experience globally might not be unconnected to the revenue involved in providing such service.

“The in-coming company has 1999 technology, which is even behind the equipment provided by Bi-Courtney Aviation Services Limited (BASL), which operated the domestic terminal, MMA2,” he further alleged.

However, when contacted, the General Manager, Corporate Communication of FAAN, Mrs. Henrietta Yakubu said that most of the airlines have migrated to Arlington equipment, stressing that the company is efficient and would provide the needed services.

“Most of the airlines have migrated to the new company and we are going to have a meeting today (Wednesday) with the airlines. So there is no cause for alarm,” she said.

The new company would also provide services to the five international airports in the country, including the Murtala Muhammed International Airport, Lagos, Nnamdi Azikiwe International Airport, Abuja, Mallam Aminu Kano International Airport, Kano, Port Harcourt International Airport, Omagwa and Akanu Ibiam International Airport, Enugu, but SITA only provided service to Lagos and Abuja only.

Chinedu Eze writes that the new players in the aviation sector may tame current outrageous fares, boost capacity and make domestic market more competitive

What is ironic is that when many airlines in other parts of the world are shutting down and aircraft being rested due to the devastating effects of the COVID-19, Nigeria is witnessing the emergence of new airlines.

It is also at a period when aircraft maintenance facilities overseas are not working at their peak due to the pandemic, forcing aircraft due for maintenance to queue, prompting the call for major maintenance facility in Nigeria.

This is also a period when the naira is under pressure and has depreciated against the dollar, forcing the costs of goods and services up the ceiling, including airfares.

But the coming of new airlines gives hope to air travellers that competition in the air travel market would bring down the fares.

This is one of the benefits identified by aviation experts who said new airlines that are being registered by the Nigerian Civil Aviation Authority (NCAA) would boost the contribution of the sector to the nation’s GDP, reduce the cost of flight tickets, create more jobs and develop new flight routes and destinations.

According to them, it is surprising that despite the devastating effects of the pandemic on the global economy, including Nigeria, investors are still being attracted to the aviation industry to establish new airlines at the time other parts of the world are scaling down air travel.

New airlines have been emerging in Nigeria since the coming of Ibom Air, which started operations in 2019, United Nigeria Airlines, which started in February 2021, Green Africa which is poised to start operation in June, Chanchangi Airlines, which has staged a comeback when it obtained Air Operator Certificate (AOC) in April, NG Eagle, Binani Air, Obike Airways and Cardinal Airlines, which are in line to join the market.

More Jobs

Experts noted that more airlines joining the domestic market means that there would be more jobs for Nigerians as well as manpower development, adding that contribution of the aviation sector to the nation’s economy would increase.

Travel expert and organiser of Akwaaba African Travel Market, Ikechi Uko told THISDAY that establishing new airlines means new investment into Nigeria’s economy, new jobs for Nigerians and development of new routes, which would benefit air travelers.

But, he noted that existing airlines are facing the problem of capacity.

“Most of the airlines are using smaller aircraft, those that have large fleet most of them are not operational so you have an increase number of passengers. The airlines have limited supply of equipment so when the supply is not meeting the demand there is going to be a lot of problems of flight delay, flight cancellation and there will be so many reasons for aircraft on ground.

“Until the Nigerian airlines come back to full health, these problems will remain with us,” he said. On his part, former CEO of Aero Contractors, Captain Ado Sanusi, told THISDAY that the emergence of new airlines was good for the nation’s economy. This, he said was made possible by government which created conducive environment by introducing zero tariff for imported aircraft and spares, removal of VAT, which is a huge burden off domestic carriers.

“Government has put a lot of policies in place to enhance new investment in the aviation industry with the introduction of zero duty on imported aircraft and spares and the removal of VAT. We also look forward to improved foreign exchange access,” he said.

He said more airlines joining the market do not mean that they would concentrate on already established routes but many of them would develop the secondary airports, develop new routes and also enhance manpower development.

Aircraft Choice

However, Sanusi noted that the new airlines have chosen short haul aircraft because they already know the routes they want to operate and are acquiring the aircraft type that would suit those routes and disclosed that acquiring these short haul aircraft is possible because currently regional aircraft are available and affordable, as airlines in other parts of the world are resting such aircraft types due to the effect of COVID-19.

So they are available for sale and for lease and in addition, the coming airlines have done their studies and matched the aircraft types to the routes they intend to operate.

“The new airlines are acquiring small body aircraft. These are the airplanes that are available now for lease and for purchase. The airlines that are coming up have carried out studies and have chosen the routes that need smaller aircraft. Some routes have changed over time, some are no more functional so new routes would have to be developed.

“Smaller aircraft are less expensive to run, the cost of operation is lower than bigger aircraft, but the only challenge they will face is the expertise.

“They will have to train new engineers, which means providing more jobs for Nigerians. Nigeria has engineers who have expertise for Boeing 737, ATR, and Bombardier; so they would train more engineers that will specialise in the new aircraft types like Embraer 145, the Airbus A2020. Emergence of new airlines means more jobs, manpower development and better service to the passengers,” Sanusi said.

He said some airlines might build their major operations on new airports like the ones in Kebbi, Asaba, Osubi and others and build a very good network, like flying from Yola directly to Calabar, from Owerri to Kano without a stop in Abuja, noting that the short haul aircraft can deliver high load factor with about 40 passengers.

Industry analyst and the publicity secretary of Aviation Round Table (ART), Olu Ohunayo, said it was the best decision for emerging airlines to choose small body aircraft because they are appropriate for the market.

He said it enables airlines to increase their frequency, as it carries relatively fewer persons on every flight and enables airlines to break even with 50 per cent load factor.

“It will attract more customers because it is the right aircraft that fits the domestic and regional market, but what the airlines should ensure is that there is reliability, passenger satisfaction and safety.

“It costs less to maintain, especially at this time of low forex access. What the airlines with smaller aircraft need is to build maintenance facility in Nigeria so that it will cost less to maintain their aircraft,” Ohunayo said.

Low Capacity

In his contribution, the President of Aircraft Owners and Pilots Association of Nigeria and Managing Director/CEO of Smile Air, Alex Nwuba said the new airlines would provide the needed capacity and this would help to reduce the cost of airfares, noting that existing airlines have not been able to meet the needs of the market.

“Existing airlines capacity to meet the market needs has been significantly degraded so artificial demand is created which results rather in the opportunity for carriers to increase prices. The problem however is that a new entrant may push a disruptive price strategy and reduce prices to capture market share which results in reaction from other carriers which will lead to losses and industry failure.

“However this is how free markets should operate except when a national carrier is introduced, which is meant to live off on special incentives and anticompetitive practices with dire consequences for a thin margin industry like aviation.

“With respect to employment more airlines should create additional jobs, which will initially absorb the large numbers of professionals out of work. If the market grows it will have long-term benefits but a disruption will have further dire consequence.

“Oxford economics reports that aviation contributes only 0.4 per cent to the Nigerian economy, this should grow under the right circumstances with the emerging airlines,” Nwuba said.

More Alternatives

To the Managing Director, Flight and Logistics Solutions, Amos Akpan, emerging operators mean more airlines with more aircraft have come to provide services for air travelers, so existing customers will have choices from these new services.

“Operators will become innovative in the services they offer. They will create services to attract more customers. Nigerians need more air travel options. We have to increase flight frequencies to most secondary airports: Kebbi, Bauchi, Akure, Osubi, Asaba, Eket, Ibadan, Makurdi, Minna, Kaduna, Jos, Ilorin, Calabar, Sokoto need increased flight frequency.

“Travel by road is no longer the preferred choice and won’t be for a long time in Nigeria. What the new and incoming operators need is to design operational module to suit the environment. Choice of aircraft type, route network and size of operations is key to viability.

“One may cultivate the business class traveller, another may cultivate traders and economy travelers, another may choose to cultivate the mixed market, some may synchronise their schedule to distribute international passengers from the hub airports (Lagos/Abuja/Kano/Port Harcourt). Each operator will chose how to present her Service with the aircraft cabin outlay, the aircraft type, and the route,” Akpan said. He also noted that there are also various business ventures for new airlines to pursue, especially in the general aviation sector.

“The entrance of new airlines will create employment in the sector, it will generate training needs which will improve skilled manpower. We need to stress on business modules that will make the new airlines sustainable.

“Cooperation amongst the operators will eliminate excess capacity on specific routes at certain times. Hub and spoke is good using modern propeller aircraft.

“There are also various business ventures for new airlines to pursue especially in the general aviation sector. The entrance of new airlines will create employment in the sector; it will generate training needs, which will improve skilled manpower.

“We need to stress on business modules that will make the new airlines sustainable. Cooperation amongst the operators will eliminate excess capacity on specific routes at certain times. Hub and spoke is good using modern propeller. Yes! Nigerian aviation industry can take up to 50 operators and more if the business opportunities in general aviation is exploited,” Akpan added.

Airfares

On whether the emerging airlines would drive down fares, the Chief Operating Officer and Accountable Manager of Dana Air, Obi Mbanuzuo warned that it is economic parameters, not having more airlines that determine airfares.

He said that airfares are dependent on cost of operation and noted that no airline would sell ticket that would keep it unprofitable.

“To be honest with you, we have to look at more of the input into, because the fare is dependent on the cost of the operation. No airline will sell a ticket that keeps them unprofitable.

“So, a lot of the input in the airline business in Nigeria is dependent on foreign maintenance of its aircraft for the input, let me give you an example, two of our aircraft is in Europe now for maintenance.

“So, 99 per cent of all the maintenance is done abroad. Yes we have MRO (maintenance facility) locally but the level of service it can offer is limited and there is a lot of aircraft parked here and there, queuing for checks.

“The situation is not always ideal. Maintenance is largely done overseas, all the spare parts are acquired in foreign currency; so the question of when people will have affordable fares is a function of the economy of the country. If the foreign currency is rising day by day; then I am afraid I cannot give you any hope that things will get better until the general economic situation gets better. “Unfortunately the operating environment is not conducive. And apart from the input, we always talk about leasing, purchasing aircraft, when those things are sourced from abroad in foreign currency, I don’t see light at the end of the tunnel soon,” he said.

From sporting events to international travel, it may become more common for businesses and countries to start asking people to show proof of vaccination. Find out where you'll need a vaccine passport here.

AMA DAETZ: This week, as part of our efforts to build a better Bay Area, we're focusing on Bay Area tourism, how it's changed through the pandemic and how it's bouncing back this summer. An index-sized card that more than half of you have right now could be your key to a hassle-free experience.

DAN ASHLEY: Yeah, we're talking about your vaccine card, your vaccine passport. "7 On Your Side's" Michael Finney looks at how it might come in handy.

MICHAEL FINNEY: I hope everybody hung onto their card. You're going to need it. And if you've received at least one COVID shot, a medical professional likely handed you your vaccine passport. Now, here's where you'll need it and where you likely won't.

From sporting and other live events to international travel and even some college campuses, having proof of vaccinations, even if not mandatory, will make your life easier.

SCOTT KEYES: What they're saying with the vaccine passport is, essentially, creating not a do not enter sign, but a fast lane for folks who have been vaccinated.

MICHAEL FINNEY: Scott Keyes of Scott's Cheap Flights says that vaccine passport means not having to go into quarantine or undergo testing to fly to Hawaii and many other countries. Airlines flying overseas will likely ask for proof of travel eligibility. Sharon Pinkerton is with the trade group Airlines of America.

SHARON PINKERTON: And that means either a vaccine or potentially-- again, only in the context of international travel-- can demonstrate that they've had a negative COVID test.

MICHAEL FINNEY: Trader Joe's and Walmart are among the first retailers to ease the mask mandate for customers in locations where local ordinances will allow it. Mike LeFever is the CEO of the risk management consultancy firm Concentric. He predicts retailers will enforce the new rules much the same way they are enforced at live sporting events.

MIKE LEFEVER: And it's all about, you know, I think, managing risk for the individual or mitigating risk, what they feel comfortable with.

MICHAEL FINNEY: Cruise lines may be the next big industry to require vaccine passports. Stewart Chiron, also known as The Cruise Guy, is a consultant for the cruise industry. Chiron doesn't think cruises will resume out of California until late fall or early winter.

STEWART CHIRON: The cruise lines that are sailing from those ports are requiring all passengers and crew to be fully vaccinated at this point.

MICHAEL FINNEY: Will the use of vaccine passports expand beyond any of this? The airline industry says no.

SHARON PINKERTON: We, essentially, don't believe somebody should be required to have a vaccine in order to travel.

MICHAEL FINNEY: Employers are also unlikely to require proof of vaccination, except in a few limited areas.

MIKE LEFEVER: Again, based on the industry, if it is-- involved, you know, close interaction and social interaction, I foresee that there may be a requirement.

MICHAEL FINNEY: For those who decide they won't get vaccinated, they may have to live with the consequences.

MIKE LEFEVER: Here's a decision that you may have made that these are the impacts, based on your decision.

MICHAEL FINNEY: The US Travel Association encourages everyone to get fully vaccinated.

TORI BARNES: We're actively encouraging folks to get the COVID vaccine as soon as possible. We think that that's the best way to move this country forward.

MICHAEL FINNEY: The first cruise out of a US port will be on Celebrity out of Fort Lauderdale into the Caribbean. It's at the end of this month. Royal Caribbean and Celebrity have announced cruises from Seattle to Alaska that will begin in July. Now, our experts say the use of COVID passports could expand further if any COVID variants take hold and we see another surge in the cases. You get a surge, you're going to start using that card more and more. That's what the experts think.

DAN ASHLEY: OK. Let's hope we don't have to use it.

MICHAEL FINNEY: Yeah.

DAN ASHLEY: Michael, thank you.