Two months after the Nigerian government revised its Bilateral Air Service Agreement (BASA) with the United Arab Emirates (UAE), concerns have emerged about the potential impact of the new terms on Nigerian airlines. The revised agreement, which was announced on September 27, 2024, introduced reciprocal rights and laid the foundation for what some experts believe closely resembles an “Open Skies” arrangement rather than the traditional BASA framework.

Highlights of the Revised Agreement

The new agreement was finalized during a meeting in Dubai on September 30, 2024. The Nigerian delegation included key figures such as Minister of Aviation and Aerospace Development Festus Keyamo and representatives from the Nigerian Civil Aviation Authority (NCAA), Federal Airport Authority of Nigeria (FAAN), and Airline Operators of Nigeria (AON). The UAE delegation was led by senior officials from the General Civil Aviation Authority (GCAA).

Under the amended terms, both countries’ airlines have been granted unlimited rights to operate on any routes between Nigeria and the UAE. Additionally, the agreement allows airlines from both nations to exercise full “fifth freedom” traffic rights, enabling them to carry passengers and cargo from intermediate or beyond points without restrictions.

Key Provisions of the Agreement

• Unrestricted Operations: The agreement permits airlines from both countries to determine their frequencies, capacities, and aircraft types without unilateral limitations.
• Grant of Rights: Designated airlines from both nations are allowed to fly across and make stops in each other’s territories for international passenger, baggage, and cargo transportation.
• Fifth Freedom Rights: Airlines from either country can pick up passengers and cargo from intermediate or beyond points en route to their destinations.

Industry Concerns

Aviation experts and industry stakeholders have raised alarms over the potential disadvantages for Nigerian airlines. Critics argue that the agreement appears to favor UAE carriers, which have significantly larger capacities and stronger operational networks than their Nigerian counterparts.

One senior aviation official expressed skepticism about the wisdom of opening Nigeria’s aviation market to such competition without adequate protection for local carriers. “You don’t open your market when you cannot compete. This agreement puts Nigerian airlines at a disadvantage, as they lack the capacity to compete with mega-carriers like Emirates and Etihad,” the official noted.

Another industry analyst questioned the rationale behind granting fifth freedom rights to UAE airlines while Nigerian airlines lack the capacity to reciprocate. “Our airlines should be protesting this arrangement. The UAE carriers could dominate the market, operating multiple flights to various Nigerian cities and eroding the market for local operators.”

Calls for a Review

Amid these concerns, calls for a review of the agreement have intensified. An industry observer highlighted that while agreements can be renegotiated, the impact of the current deal could be severe if not addressed promptly. “When carriers like flydubai and Etihad start operating to Nigeria, we’ll begin to see the full effects of this deal. However, agreements are not permanent and can be renegotiated if one party feels disadvantaged,” the observer stated.

Implications for Nigerian Airlines

The fifth freedom rights granted under the agreement have raised fears that UAE carriers could siphon off significant market share from Nigerian airlines. By operating multiple flights to various Nigerian cities, UAE airlines could dominate passenger and cargo traffic, further weakening the already struggling local aviation sector.

Despite the inclusion of Nigerian carriers such as Air Peace and United Nigeria Airlines as designated operators, industry experts question their ability to match the operational scale and reach of UAE carriers. While Nigerian airlines technically have reciprocal rights under the agreement, their limited resources and market presence make full utilization of these rights unlikely.

Looking Ahead

As the aviation industry anticipates the rollout of these revised terms, stakeholders have urged the Nigerian government to closely monitor the agreement’s impact on the local market. There are growing calls for strategic interventions to protect Nigerian airlines and renegotiate terms that ensure a level playing field.

For now, the revised BASA agreement underscores the need for stronger support for Nigerian carriers, better infrastructure, and policies that prioritize the growth of the domestic aviation sector. Whether these steps will be taken remains uncertain, but the long-term implications of the current agreement could shape Nigeria’s aviation industry for years to come.