The Federal Government of Nigeria and the United Arab Emirates (UAE) have finalized a new Bilateral Air Service Agreement (BASA), which has sparked concerns about its impact on Nigerian carriers.
The agreement, which was amended two months ago, allows for unrestricted operations by designated airlines from both countries, including full fifth freedom traffic rights. This means that airlines can operate flights to and from any intermediate or beyond points without restrictions.
The agreement stipulates that "designated airline(s) of both contracting parties are entitled to exercise, in any type of service (passenger, cargo, separately or in combination), full fifth freedom traffic rights to/from any intermediate or beyond point(s) without any restriction whatsoever."
Additionally, it states that "neither contracting party shall unilaterally limit the volume of traffic, frequencies, regularity of service or the aircraft type(s) operated by the designated airlines of the other contracting party."
Despite these provisions, there are growing fears that the agreement may place Nigerian carriers at a disadvantage. Industry analysts have expressed concerns that the deal resembles an "Open Skies" policy, which could potentially expose Nigerian airlines to intense competition from UAE's well-established carriers like Etihad Airways, Emirates Airline, and others.
A senior official, speaking anonymously, noted, "This appears like an Open Skies," highlighting the potential challenges for Nigerian airlines in competing with larger, more established foreign carriers.
The agreement also includes reciprocal rights, allowing Nigerian airlines such as Air Peace to resume flight operations to the UAE. However, the document assessed by industry experts suggests that Nigerian carriers might not enjoy a level playing field compared to their UAE counterparts. The agreement's terms have led to apprehensions about whether Nigerian airlines can effectively compete in this newly liberalized environment.
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