4 total views, 1 views today
Domestic carriers grapple with a lot of challenges ranging from high cost of aviation fuel, lack of aircraft maintenance facility, foreign exchange rate, multiple taxation amongst others.
However, among these problems is the multiple frequencies operated by foreign airlines in the country; one that has continued to hugely deplete the revenues of local carriers.
Bilateral Air Service Agreement (BASA) is an agreement that allows foreign airlines to operate in the country but the agreement is founded on the principle of reciprocity. It is a deal that enables a country’s airlines to enjoy equal leverage, in terms of flight operations, in countries with which their home country has an air agreement.
In addition to the numerous BASAs signed by Nigeria with other countries, the country recently signed BASA with the Republic of India. The agreement stipulates that passengers being processed from Nigeria would enjoy direct flight to India as a result of the agreement.
While Nigeria has continued to sign various BASAs, experts have raised concerns on the ability of Nigerian carriers to reciprocate these agreements and even if they are able to reciprocate, they often contend with stringent regulations from the host countries, making it extremely difficult to sustain the routes.
It is in the light of these Nigeria needs to find out what went wrong with previous air agreements it signed with other countries and why they are not delivering value before it signs more.
How BASA works against local carriers
No matter how juicy a BASA agreement may seem between two countries, these agreements must be signed on the basis of reciprocity or else the country on the other end may be shooting itself on the foot.
Domestic airlines operating in Nigeria have continued to lose out in revenue and flight frequencies, … Read More...