There are indications that more foreign airlines will reduce flight frequencies to Nigeria following the decision of Emirates Airlines to cut its 11 weekly flights into Lagos, Nigeria to seven. The frequency reduction, which commences on August 15, 2022, according to a statement issued by the airline, has been attributed to the airline’s $85 million funds trapped in Nigeria.
This is just as many other foreign carriers affected by the trapped funds in the country like Emirates may soon reduce their flights into Nigeria.
Information gathered has also indicated that some may be forced to withdraw their services from the country due to the problem the trapped funds has caused on their operational cost.
According to a letter of notification issued by Emirates through one Sheikh Majid Mualla, Divisional Senior Vice-President (DSVP), international affairs for the carrier and addressed to Nigeria’s Minister of Aviation, Senator Hadi Sirika, dated 22nd July, 2022, the UAE-based airline declared:
“It is with a heavy heart that I write to inform you of planned reductions in Emirates operations to Nigeria. With effect from August 15 2022, Emirates will be forced to reduce flights from Dubai to Lagos from 11 per week to seven per week. We have had no choice but to take this action to mitigate the continued losses Emirates is experiencing as a result of funds being blocked in Nigeria.
“As of July 2022, Emirates 85 million US dollar funds are awaiting repatriation from Nigeria. This figure has been by more than US$10 million every month, as the ongoing operational cost of our 11 weekly flights to Lagos and five to Abuja continue to accumulate.
“These funds are urgently needed to meet our operational costs and maintain the commercial viability of our services to Nigeria. We simply cannot continue to operate at the current level in the face of mounting losses, especially in the challenging post-COVID-19 climate.
“Emirates did try to stem the losses by proposing to pay for fuel in Naira which would have at least reduced one element of our ongoing costs. However, this request was denied by the supplier.
“This means that not only are Emirates revenues accumulating, we also had to send hard currency into Nigeria to sustain our operations. Meanwhile, our revenues are out of reach and not even earning credit interest.
“This is not a decision we have lightly. Indeed, we have made every effort to work with the Central Bank of Nigeria (CBN) to grind a solution to this issue. Our senior vice president met with the deputy governor of CBN in May and followed up on the meeting by a letter to the governor himself the following month.
“However, no possible response was received. Meetings were also held with Emirates’ own bank in Nigeria and in collaboration with the International Air Transport Association (IATA) to discuss improving forex allocation, but with limited success.
“Despite our considerable efforts, the situation continues to deteriorate. We are now in the unfortunate position of having to cut flights to militate against further losses going further.
“While we appreciate that this issue is primarily a financial, any support you could hardly provide would be warmly welcomed by the Emirates. We are confident that your valuable involvement would make a real difference in improving this very difficult situation.
“Should there be any positive development in the coming days, we will of course re-evaluate this decision. Meanwhile, thank you for your understanding and please feel free to contact me if you wish to discuss the matter further.”
There are indications that other foreign airlines would be following the footsteps of Emirates which will lead to a spike in cost of air tickets.
Stakeholders across have expressed worries over the latest in view of the impact they claimed Emirates’ action will have on the huge traffic on the Lagos/Dubai routes, concluding that this may be the beginning of similar actions from other foreign carriers operating into Nigeria.
This, according to them, may spell doom for international flights between Nigeria and the home countries of the foreign airlines.
The president of the National Association of Nigeria Travel Agencies (NANTA), Mrs Suzan Akporiaye, while comparing the situation to the era of the dark days of the pandemic, declared:
“I am going to do a reminder letter to the CBN, to the Presidency on this very issue. It is really getting worse and it is not funny. It is like we are back to another era of the pandemic.
“I am using this opportunity to call on the media in Nigeria to please help us. As an association in Nigeria, we may not be able to afford to come on NTA and all other broadcasting stations to speak where all of them sit, to listen to what we are going through.
“Nevertheless, we are going to continue to make noise and I trust that one day we will get there. I don’t think they are ignorant of what is going on and the implications of what is going on, especially the Minister of Aviation.
“The airlines are going to him for help. He is not doing anything and he is not listening to them. He is not even making any effort to help the foreign airlines get their trapped funds.
“He is supposed to help fight for the airlines so that they can get and repatriate their funds, and these funds they are not asking for 100 per cent to be paid once. If they can just clear the backlog, that is what they are asking for.
“It’s very sad and hurtful that we are not a priority as the citizens of this country. For those of us who are not willing to leave the country because we still believe in the country, must we suffer so much because we believe and choose to be patriotic? No.
“Everyone is just paying attention and making noise about the coming elections. Meanwhile, look at us here faced with this kind of huge crisis that may lead us to closing our offices again.
“It is actually disappointing and discouraging, especially with the Minister of Aviation. He is in the eye of the storm in aviation. He knows these things. Why is he not coming out to address us? Why is he not coming out to talk to the foreign airlines?
“Even if he does not want to talk to the travel agents’ community, at least let him talk to the foreign airlines and let them know what he is doing. None of the airlines knows if and when they are getting their money back. So it’s a sad situation.
“All the airlines have all reduced their frequencies in Abuja. So, if they are now facing Lagos to reduce their flights, it is not news they are just starting what they have started in Abuja already.”