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Thursday, March 31, 2016

Minister Dragged Into Airlines Proxy War

sirikaMinister of state for Aviation, Senator Hadi Sirika, has been accused of championing the fight by foreign airlines to blackmail the federal government for preferential treatment.

Industry sources said yesterday that Sirika is seeking audience with President Muhammadu Buhari to discuss the alleged plans by foreign airlines to sack 2,000 Nigerians on their staff.

The plans have, however, been found to be a ruse as all foreign airlines in Nigeria have less than 400 employees, a fact that could not have been lost on the minister.

In a series of blusters to force the Nigerian government to release about $1.3billion foreign exchange allegedly held in Nigeria, the foreign airlines have leaned on domestic labour unions, threatened to raise fares by 100 per cent, and even instigated the European Organisation for the Safety of Air Navigation (Eurocontrol) to issue a warning that it could impound any aircraft belonging to Nigerian carriers.
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Two Nigerian carriers, Medview and Arik Air, currently fly the Nigerian-UK route, and while Medview was forced to accept London -Gatwick against London-Heathrow, which is the preferred destination of many Nigerian travellers, Arik Air has been battling for years to obtain slots from Abuja to London.

British authorities have denied the request, citing lack of funds.

But the minister appears to see nothing wrong with what insiders described as “the strong-arm tactics and blackmail” of the foreign airlines.

A source said yesterday that “while foreign airlines get forex from the banks and set their fares at parallel market rates, local airlines use official CBN rates. The foreign airlines are creaming off the difference between both rates, while Nigerians are suffering. Yet they still are still holding us by the throat to repatriate the so-called pending forex with CBN. In this era of change, that is what we thought the minister would fight to correct.

“Nigeria and the UK,” the source continued, “have 21 slots under the Bilateral Air Services Agreement (BASA). While Nigeria approved all the slots to British Airways, the British authorities have refused to approve the corresponding slots to Nigerian carriers, pushing Medview to Gatwick and giving them all sorts of unnecessary problems, and denying Arik Air slots from Abuja.

“Who does not know that the so-called slot allocation committee in the UK is chaired by the chairman of the board of British Aviation Authority and the vice chairman is from Virgin Atlantic, with another member from Monarch. How can a committee comprising competitors treat the Nigerian carriers fairly?

“The Indians have 32 slots in London Heathrow. It is sad that the minister, a pilot who ought to know better, is dancing to the tunes of the foreign airlines, even co-opting the unions. Many are beginning to wonder if there is more to it than meets the eye. Is it for nothing? Is anyone collecting commission from the foreign airlines at the expense of suffering Nigerians?”

In his reaction, the spokesperson of the Ministry of Aviation, James Odaudu, said he did not have the facts of the matter; hence, he could not speak on it. And text messages and calls placed to the minister of state remained un-replied by the time of going to press.

Tensions have been high between foreign airlines and the Nigerian government over the latter’s refusal to release hundreds of millions of dollars held in the country since last year.

The government has maintained that releasing the funds would have negative impact on its efforts to stem the slide of the naira.

The woes of the foreign airlines have been worsened by the campaign to save the naira and the growing number of price-sensitive travellers choosing the local carriers over the foreign airlines.

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