THESE are, indeed, hard times for the United Kingdom as the Nigerian government last week came hard on British carrier, British Airways, over what it termed violation of the Bilateral Air Services Agreement (BASA) between her and the UK.The BASA agreement, signed years ago, regulates commercial air transportation between both countries. Under that agreement, Britain and Nigeria agreed that each country would give each other 21 weekly frequencies for their commercial airlines.The Nigeria-UK BASA, like others, is based on the principle of equal opportunities and reciprocity.Experts reasoned that, as a result,there is no issue of lopsidedness as alleged by many with the BASA.To them, operationally, Nigeria is unable to meet its capacities of 21 weekly frequencies into two UK points of entry as UK carriers (Abuja and Lagos) due to obvious reasons.The ideal thing is for a Nigerian carrier to set up its operation and acquire its slots, either in the primary or secondary markets.Both countries have already begun talks with a view to resolving the feud, which is capable of straining diplomatic relations.Chairman of Arik, Mr. Joseph Arumemi Ikhide, had, last week, at a press briefing in Lagosexpressed his frustration at having to pay for slot to land at London Heathrow Airport.He explained that he had to rent landing slots from British Midland International at 1.4 million between 2009 and last year.In a swift reaction, the Minister ordered the cut in the airline's frequency to three from seven.Determined to cripple the airline's services to Nigeria, the airline, apart from the reduction in service was also given a new and difficult schedule.The new schedule is that BA which arrives at 6pm every day from London will now arrive Lagos at 6am and remain on ground till 10pm, while the third frequency of the airline for the week departs Lagos at 23.20pm. The new schedule is now Wednesday, Friday and Sunday.Contrary to the claim in certain quarters that the British Midland was owned by British Airways and that it was the airline used as fronts to scuttle Arik's slot at London Heathrow Airport, it has been discovered that BMI is owned by Lufthansa German Airline.The Guardian investigation shows that Lufthansa initially owns 50 per cent and later 100per cent of BMI, which it bought in 2008 from the previous Chairman, Sir Michael Bishop, who, at the time, owned 80 per cent.Lufthansa is just about selling British Midland (BMI) to International Airlines Group (IAG), which owns British Airways and Iberia.A very dependable source in government circles said that there 'is no where you keep an aircraft at 6am on ground till 10pm. It is not done anywhere and this is primitive.'Ever since the decision was taken, condemnation have continued to resonate in many quarters, while many others blamed government for not being able to differentiate between BASA and airport slots allocation.Others have expressed surprise over the decision to penalise BA over a matter it has no input, as BASAs'are air pact between two countries.President, chief Executive of Sabre, West Africa, airlines' travel solution firm, Gabriel Olowo, queried the seeming penalisation of BA for airport issues bordering on slots.Slot acquisition and its management, according to him, has no bearing with BASA and flight frequencies.'Besides, two flag carriers or national carriers of Britain utilise the Nigeria/UK BASA. Why is one atoning for the diplomatic sin if at all there is any''Arik Air and our flag carriers need to understand the aero-politics and workings of slots globally. Schedule reliability is key. I guess we've not been told the whole story. Coercing BA as we are doing is against business ethics and, in the long run, Nigerian traveling public will suffer higher tariffs arising from reduction in capacity, which our airlines put together cannot provide during holiday season just approaching.'Analysts said the action of the government 'is using an unorthoodx method to solve a simple problem'.Chief executive of Financial Derivatives limited, Bismarck Rewane, said it was wrong for the Federal Government to punish British Airways for the British Airports Authority (BAA) decision.'Rather than slam BA, the government could have asked BA to help Arik Air to secure slots at the secondary markets to land at Heathrow', he said.Contrary to the claim in certain quarters that the British Midland was owned by British Airways and that it was the airline used as fronts to scuttle Arik's slot at London Heathrow Airport, it has been discovered that the claim is a incorrect.Aviation analyst, Simon Tumba, said it wasa pity that the Nigerian government 'acted ignorantly and in an embarrassing fashion.'Tumba explained that slots are high-priced assets in Europe, especially Heathrow with operations of over 90 airlines, and an airport throughput of 67 million passengers.In a recent research, Delloite, the accounting firm he reiterated had recommended for airlines to include slots as assets in their balance sheets.His words, 'Unfortunately many of the aviation experts often quoted by the media, do not have an idea about this issue. They often misinformed the government to take wrong decisions'.'The Nigeria-UK BASA, like others is based on the principle of equal opportunities and reciprocity. Therefore there's no issue of lopsidedness as alleged by many with the BASA, but operationally, Nigeria is unable to meet its capacities of 21 weekly frequencies into two UK points of entry as UK carriers ( Abuja and Lagos) due to obvious reasons The ideal thing is for a Nigerian carrier to set up its operation and acquire its slots, either in the primary or secondary markets.He further explained that the longer an airline is able to maintain its schedule, the more it is given recognition and opportunities in the primary market to acquire slots.'BA would purchase slots in its hub, that tells the story about how slots are pricey. Compared to all EU carriers BA has the least share of slots in its Heathrow hub (estimated at nearly 50 per cent). Because of its dominance of the slots it controls, Lufthansa with its Star Alliance partners, controls 75 per cent of the market in Frankfurt, KLM controls 62 per cent of slots in Amsterdam, and Air France over 70 per cent of slots in Paris'.Nigeria, he noted, does not operate the slot system because the airports are under-utilized, compared to London Heathrow that operates at 98 per cent capacity, adding that the best option was for government to seek the help of the UK government along with BA to assist Arik and any Nigerian carrier with interest in serving the UK market.
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