Nigerians are likely to face more hardship in the coming weeks. This is as a hike in airfares across the country looms.
Aviation experts hinted that a hike in airfares is imminent considering that carriers have shut down their global distribution services in Nigeria. According to them, this was in spite of the Central Bank of Nigeria’s (CBN) disbursement of $265 million trapped funds belonging to foreign airlines.
The experts argued that the development had led to the knocking out of travel agents, which had left passengers at the mercy of black market rates when purchasing tickets.
Capt. Roland Iyayi, who’s among the stakeholders that predicted the hike in airfares, said the crisis with foreign airlines create unemployment and a hike in air tickets.
He said, “What is happening now is that with the airlines shutting down access to the GDS, travel agents will not be able to sell directly to passengers, and as a passenger, you might have to pay the travel agency monies in foreign exchange to buy tickets.
“The other major effect is the fact that airline tickets will continue to rise in price in Nigeria. Because the airlines in the guise of trying to ensure they recover all the monies, would invariably use rates on their online platforms that will be higher than the first-year rate issued by the central bank.”
Iyayi said Nigeria was not prudent with its extra reserves and foreign exchange.
“We are required to guarantee reciprocity. Foreign airlines should be able to take their monies out of the country. They should not be exposed to double taxation and all sorts of things enshrined in a typical bilateral or multilateral air services agreement,” he stated.
Another aviation expert, John Ojikutu, also spoke on the underlying issues between foreign airlines and Nigeria
He said, “If you are importing more than you are exporting, your balance of payment is to the advantage of the sources of your imports.
“That is why we are always unable to pay the foreign airlines that make more flights to our country than we make to theirs because we have neither national nor flag carriers to reciprocate the signed BASA (Bilateral Air Service Agreement) routes.”
