Air Peace to gain first mover advantage as US-Nigeria ‘Open Skies’ kicks in

• On back of US-Nigeria air transport agreement

Business a.m. Reporter, with wire report

Air Peace, the largest airline across west and central Africa by fleet size, is in line to benefit from first mover advantage following the execution of the United States-Nigeria air transport agreement that births an ‘Open Skies’ arrangement between both countries.

Ahead of the execution of the agreement the Nigerian government had licensed Air Peace to take necessary steps to begin direct flight operations to the United States, which the airline has since taken up and is getting ready to operate Lagos-New York-Lagos flights soon.

The approval for the airline to fly to John F. Kennedy International Airport in New York was granted in February a month after it wrote to the Ministry of Aviation and Aerospace Development seeking permission to start US operations. The ministry had then responded with the following reply:

“Conveyance of approval to Messrs Air Peace Limited to operate commercial international flight operations into and out of New York.”

According to wire reports, the US-Nigeria air transport agreement aims to liberalise the sector and promote economic and commercial ties. Only two US airlines, United Airlines and Delta, currently operate direct flights between the two countries.

Experts see the signing and implementation of the agreement as a step forward as it would create new opportunities for airlines and travellers, with opportunities to promote tourism and commerce between Nigeria and the United States.

The agreement had been in existence for decades as it was provisionally applied 20 years ago with Nigeria unable to take advantage of its provisions due to its lack of local airline capacity.

Now, with only two US airlines connecting the US with Nigeria, this agreement is expected to liberalise the aviation sector further, easing the entry of more players, particularly from Nigeria, for which Air Peace seems all set to make the first move on the Nigerian side.

The US is a major advocate of a liberalised global aviation policy and this is entrenched in its US Open Skies international aviation policy. But the agreement between the US and Nigeria dates back 24 years ago to 2000 when it was provisionally applied.

Experts say the current enforcement will allow unrestricted capacity and frequency of services, open route rights, a liberal charter regime, and open code sharing opportunities.

“This agreement with Nigeria is a step forward in liberalising the international civil aviation sector in Africa and further expands our strong economic and commercial partnership, promotes people-to-people ties, and creates new opportunities for airlines, travel companies, and customers. With this agreement, air carriers can provide more affordable, convenient, and efficient air services to travellers and shippers, which in turn promotes tourism and commerce,” said the US Department of State.

Data shows that there are 500,000 Nigerian-born US citizens and legal residents, with another 17,000 Nigerian students, making the implementation of the agreement a right move that would strengthen these ties further and create new economic opportunities.

Although the agreement with all its ‘Open Skies’ is now in force, there are only two airlines that travellers can look to for direct flights between the two countries. United Airlines flies thrice weekly between Washington Dulles International Airport (IAD) and Lagos’ Murtala Muhammed International Airport (LOS), while Delta flies daily to Lagos from Hartsfield–Jackson Atlanta International Airport (ATL).

It is for this reason of not having Nigerian airlines immediately able to take advantage of the agreement that some experts are still unsure if Nigeria can truly take full advantage of the inherent benefits of the agreement.

Olumide Ohunayo, an aviation industry analyst and director of research, Zenith Travels, is quoted to have expressed his reservations thus:

“In that agreement, we were given 10 years head start advantage that Nigerian airlines can go to the USA for 10 years before the American airlines start coming. That was blown away because we didn’t even have an airline that was ready to go to the U.S.

“By the time Virgin Nigeria was ready, their ownership structure and the problem they were having with the U.S. and British Bilateral Air Service Agreement stalled Virgin Nigeria from operating and till today we are still stuck with no Nigerian airlines going to the U.S. Arik tried at a time but stopped.”