Nigeria Auctions International Routes
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Nigeria Auctions International Routes
Lagos January 21, 2001:
The Ministry of Aviation has invited bid from independent Nigerian operators interested in international operations.
Penultimate week the Minister of Aviation Dr. Mrs. Kema Chikwe informed us that the advertisement was to be published in Nigerian newspapers last week. Perhaps due to the labour unrest last week, that was not possible. She also said the routes would be auctioned.
Some of the conditions applicants must meet are the submission to a committee set up by the Ministry to designate some local operators are, details of routes to be operated, number and type of aircraft to be operated, fares to be charged as well as points of departure and entry into Nigeria and the country to be operated to.
Others are copy of valid Air Transport License [ATL], Air Operators Certificate [AOC] and a two-year business plan containing in formation about cashflow, revenue potential, route viability, projected balance sheet, and projected liquidity plans for first three months of operation.
One of the most important conditions is that such airlines must show proof that they can meet its “actual and potential obligations for a period of 24 months from start of operation”.
Applicants must also provide operational conditions, like Computer Reservation Systems [CRS], fuelling, catering, security, alliances/code-share arrangements, etc.
No closing date was given for the submission of the applications which are to be made to the Minister’s office.
Some of the routes that may be designated are, New York, Atlanta, Chicago, Rome, Amsterdam, Paris, Dubai, Johannesburg, Zurich Frankfurt and may be London. Recently the minister hinted that London might be reserved for Nigeria Airways under the arrangement being worked out with Airbus/Emirates.
Now that the arrangement appears to be hitting the rocks, London might be auctioned as one of the routes to be designated to a second carrier since Nigeria already has a double designation with UK; which allows two carriers from either both countries. Currently British Airways, Virgin Atlantic and Nigeria Airways serve the Lagos - London route. Nigeria also has an Open skies agreement with the US which gives Nigerian unlimited access to that market.
. . Bellview Airlines was the only local airline that operated internationally; Mumbai, Rio de- Janeiro and Amsterdam. The airline had to pull out in summer of 2000 due to difficulties in maintaining the service.
This would be a cheering news for Nigerian operators who have been agitating for government approval to ply international routes made dormant by Nigeria Airways' inability to ply most of them. There are fears that Nigerian operators may not meet the tough requirements of the regulatory bodies of European civil aviation organizations and the US federal Aviation Administration [FAA].
The Ministry of Aviation has invited bid from independent Nigerian operators interested in international operations.
Penultimate week the Minister of Aviation Dr. Mrs. Kema Chikwe informed us that the advertisement was to be published in Nigerian newspapers last week. Perhaps due to the labour unrest last week, that was not possible. She also said the routes would be auctioned.
Some of the conditions applicants must meet are the submission to a committee set up by the Ministry to designate some local operators are, details of routes to be operated, number and type of aircraft to be operated, fares to be charged as well as points of departure and entry into Nigeria and the country to be operated to.
Others are copy of valid Air Transport License [ATL], Air Operators Certificate [AOC] and a two-year business plan containing in formation about cashflow, revenue potential, route viability, projected balance sheet, and projected liquidity plans for first three months of operation.
One of the most important conditions is that such airlines must show proof that they can meet its “actual and potential obligations for a period of 24 months from start of operation”.
Applicants must also provide operational conditions, like Computer Reservation Systems [CRS], fuelling, catering, security, alliances/code-share arrangements, etc.
No closing date was given for the submission of the applications which are to be made to the Minister’s office.
Some of the routes that may be designated are, New York, Atlanta, Chicago, Rome, Amsterdam, Paris, Dubai, Johannesburg, Zurich Frankfurt and may be London. Recently the minister hinted that London might be reserved for Nigeria Airways under the arrangement being worked out with Airbus/Emirates.
Now that the arrangement appears to be hitting the rocks, London might be auctioned as one of the routes to be designated to a second carrier since Nigeria already has a double designation with UK; which allows two carriers from either both countries. Currently British Airways, Virgin Atlantic and Nigeria Airways serve the Lagos - London route. Nigeria also has an Open skies agreement with the US which gives Nigerian unlimited access to that market.
. . Bellview Airlines was the only local airline that operated internationally; Mumbai, Rio de- Janeiro and Amsterdam. The airline had to pull out in summer of 2000 due to difficulties in maintaining the service.
This would be a cheering news for Nigerian operators who have been agitating for government approval to ply international routes made dormant by Nigeria Airways' inability to ply most of them. There are fears that Nigerian operators may not meet the tough requirements of the regulatory bodies of European civil aviation organizations and the US federal Aviation Administration [FAA].
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Considering at least 2/3rds of Nigerian operators currently cannot/will not either meet the Economic Regulation requirements as required by ICAO Statute and being implemented by NCAA...and also most lack acceptable standards of both infrastructure/operations/airworthiness...then very few will actually be eligible for award of a route licence or then be capable of flying them successfully.
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The last time I saw a requirement for something like the required "two-year business plan containing in formation about cashflow, revenue potential, route viability, projected balance sheet, and projected liquidity plans for first three months of operation" it was a Caribbean island government making the pitch.
They accepted bids from all and sundry, then turned around and used the same info to start their own airline operation - which, of course, took it's natural course down the tubes.
If I owned or was running a thriving airline I certainly would not be giving anybody - government or not, and certainly not a government like Nigeria - an inside look at how I conducted my business, whether I fabricated part of it or not.
Good luck, Air Nigeria!
They accepted bids from all and sundry, then turned around and used the same info to start their own airline operation - which, of course, took it's natural course down the tubes.
If I owned or was running a thriving airline I certainly would not be giving anybody - government or not, and certainly not a government like Nigeria - an inside look at how I conducted my business, whether I fabricated part of it or not.
Good luck, Air Nigeria!
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Looks like Anderson Consulting and Nathan and Associates were retained by Govt. to act as WT consultants for the pre-privatization period (12-months according to IFC which pulled out earlier).
Yet on the other hand Obasanjo is throwing them a couple of 737-300s and a 767-300 in March. Shouldn't the new consultants have a say in this???
Yet on the other hand Obasanjo is throwing them a couple of 737-300s and a 767-300 in March. Shouldn't the new consultants have a say in this???
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Hani, there is so much confusion in govt regarding WT. One moment they say privatization, the next they want to invest money and jump start it. The intent may be good, but given the "nigerian factor" some vultures are waiting in the wings to strike.
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I understand that the route licenses are not being 'auctioned' as such...more like they will be allocated to airlines who fulfil the Safety Oversight and Economic Regulation in accordance with ICAO requirements...the airlines will have to make a full route application as would be done in the UK or any other country if applying to operate any route (external to any Open Skies treaty)...for 'auctions' maybe read the words 'application or tender'.
