… As Ticket Sales Dwindle To $151m In Q1 2020
BEVERLY HILLS, February 14, (THEWILL) – Recent safety protocols enforced by many countries across the world, particularly those instituted by both the Nigerian and its United Arab Emirates counterpart by way of flight restrictions, are affecting both nations’ carriers economically.
Only last week Emirates for the second time canceled flights, leaving passengers stranded for two consecutive days. Emirates Airlines had halted its flight out of Lagos and Abuja amid concerns that the pact reached by Nigeria and the United Arab Emirates (UAE) over the latter’s suspension of Rapid Antigen Testing (RDT) , was yet to be resolved
With the row, it seems that both the airline and the Federal Government are trying to outwit each other on the different positions taken by the two parties. Beyond the disagreements between UAE and Nigeria, the effects on COVID-19 on air travel generally, and its attendant effects on Nigeria for example, have indicated total tickets sold for the Q1 2020 decreased by $132 million.
This is a huge reduction compared with $282.35 million sold in Q1 2019 by foreign carriers that operated in and out of the country. Data obtained from the National Association of Nigeria Travel Agencies (NANTA), captioned, “BSP Nigeria-R&S Monthly Reports-Market Data April 2020”, shows that $57.79 million worth of tickets were sold in January 2019 alone.
Ticket sales figures for February of the same year stood at $51.52 million; March $80.55 million; April $92.59 million bringing the total to $286.36 million.
In contrast, the January 2020 figure was regarded as the best month for air travel and one that surpassed the expectations of travel agents and other catalytic interests in aviation and travel industry as the month saw high travel demand that amounted to $70.03 million. February 2020 saw ticket sales of $59.16 million; March figure stood at $23.26 million when the COVID-19 pandemic got to its peak and nations started closing their borders including restrictions that crippled travels.
April 2020 saw a sharp decline of air travel as tickets sold amounted to $-1.36m, a deficit for that month as the BSP recorded more refunds than new sales in April. As a result of that, the month of April became negative. The total tickets sold for first quarter 2020 decreased to $151 million.
Speaking at a media forum recently, President of National Association of Nigerian Travel Agents (NANTA) , Mrs. Susan Akporiaye lamented that the COVID-19 brought the entire sector to a halt, stressing that January 2020 was one of the best months for aviation because of huge sales made by foreign carriers.
She said the sales had never happened in recent times because the first quarter of every year is usually slow for business but expressed joy that the month was good. Akporiaye further stated that February of last year was also good till the second week in March when nations started taking measures to limit the spread of coronavirus by shutting borders. According to her, “The whole of last year, especially from March, was a difficult one as we have never had it so bad. Even the International Air Transport Association (IATA) recently disclosed that 2020 was the worst year for aviation in many years.
“Surprisingly, January 2020 was the best month for aviation in Nigeria in recent years. January of every year is usually very difficult for travel. First quarter is usually slow for business but January 2020 was a windfall followed by the month of February. After March 2020, the industry took a tumble for the worst because of COVID-19”.
Akporiaye condemned the attitude of United Arab Emirates (UAE) over the controversial Rapid Antigen Testing (RDT), saying it was not a full-proof for detection, adding that the PCR test was more comprehensive and far better than the Antigen test, which she said puts a lot of strain on travelers with additional costs.
Meanwhile, stakeholders have opined that adaptability, harmonized and consistent measures are key to the global sector’s survival in post-Covid-19 era. They made this known at the World Bank and World Resource Institute (WRI) 3-day Transforming Transportation Conference aimed at the rethinking of global transport systems to build an inclusive more resilient and sustainable cities post- Covid-19. According to the stakeholders, while the future changes in the aviation sector arising from the ongoing pandemic are unknown, adaptability rather than stability are key to building a sustainable and green global air transport.
At the local level, stakeholders in the nation’s aviation industry have equally advised domestic airline operators to consider merger so as to survive the challenging period. According to them, merger is the only way domestic airlines can function smoothly and stay afloat.
Speaking on the need for the local airline to merge, former Commandant, Murtala Muhammed International Airport (MMIA), Group Captain John Ojikutu (retd), noted that there is urgent need for domestic airlines to merge. According to Ojikutu, a review of the policy should restrict their operations in the domestic routes for a minimum of four years and with good economic or commercial audit reports of another four years, before they can be approved for regional routes.
Explaining further, Ojikutu, who is an aviation security expert said “further progression into continental routes should also be considered only with clean economic or commercial audits of another four years for approval into intercontinental routes. For any airline to enjoy government financial intervention or designation as a flag carrier, it must sell a minimum of 40 percent of its shares to the public, quoted on the Nigerian Stock Exchange, and showing consistent good returns to the shareholders”.
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