Air Peace: We’ll respond to Nigeria’s threat to bar BA, others, says UK

Festus Keyamo, Minister of Aviation and Aerospace Development

Air Peace: We’ll respond to Nigeria’s threat to bar BA, others, says UK

On August 1, 2024, Nigeria’s Aviation Minister, Festus Keyamo, issued a bold ultimatum to the United Kingdom government, setting the stage for a potential standoff between the two nations in the aviation sector. In his emphatic statement, Keyamo made it clear that unless the Nigerian airline, Air Peace, is granted the much-coveted landing slots at London Heathrow Airport, British Airways and Virgin Atlantic could face the possibility of being denied access to Nigeria’s major international gateways—Lagos and Abuja.

The minister’s warning is contained in a letter to UK Transport Secretary, Louise Haigh and reflects Nigeria’s growing determination to ensure fair treatment for its airlines on the global stage, emphasising that the nation’s aviation sector can no longer be sidelined in key international markets, especially as Air Peace has been forced to fly to Gatwick Airport.

Keyamo’s stance signals Nigeria’s readiness to assert its position, seeking reciprocity in international aviation agreements and standing firm against what is perceived as unequal access to lucrative routes.

This move, if acted upon, could disrupt the long-standing operations of British Airways and Virgin Atlantic, two of the most prominent international carriers servicing Nigeria. At the heart of the issue is Nigeria’s quest for equity and access to competitive markets, a challenge that Air Peace, one of Nigeria’s leading carriers, has faced in securing operational rights at one of the world’s busiest airports.

Keyamo told his UK counterpart giving Air Peace Gatwick airport was a blatant violation of the Bilateral Air Services Agreement (BASA) between both countries, which promotes reciprocal rights for airlines.

Keyamo said that while British carriers enjoy unrestricted access to Nigeria’s tier one airports, which are in Abuja and Lagos, Air Peace has been unable to obtain slots at Heathrow. He demanded immediate action to rectify the situation, warning that Nigeria will not tolerate the unfair treatment of its national carrier.

No response from the UK government

Daily Sun reached out to UK’s Transport Secretary, to verify if she has received Keyamo’s letter and what the UK government intends to do to resolve the dispute. In response, an email was sent by her researcher, Mr. Henry Smith, saying the Daily Sun’s request has been transferred to the Department of Transport. Daily Sun then sent a Freedom of Information request to the UK’s Department of Transport and the department acknowledged receipt of the request, saying a response will be issued in due time.

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Daily Sun also contacted the Minister’s office to verify if there has been a response from the UK government on the issue and his Special Adviser on Media, Mr. Tunde Moshood, said none has been received yet.

Airport slot allocation

Following the demands made by the Minister in his letter, Daily Sun sought to verify the issues raised. This paper analysed the 38-page Nigeria-UK BASA signed in 1988, which is administratively still in force and it revealed a very significant oversight: the absence of provisions addressing airport slot allocation. Though the aspect of frequencies was clearly spelt out in the BASA, airport slot alocation wasn’t. There has been no change of rules since the signing in 1988 and Daily Sun understands that the omission of airport slot allocation may likely be attributed to the non-scarcity of slots at the time of the agreement’s drafting. The allocation of slots at Heathrow airport is managed by Airport Coordination Limited (ACL), an independent slot coordinator in which the UK government has no input and is subject to the International Air Transport Association (IATA) guidelines.

An industry stakeholder who prefers anonymity, echoed Daily Sun’s findings, telling the paper that the Nigeria-UK BASA designates city destinations rather than specific airports. The stakeholder said Heathrow cannot be explicitly mentioned in the agreement as it falls outside the purview of the Department of Transport and that given the UK government’s lack of involvement in airport slot allocation, Air Peace must independently address this issue.

“The BASA specifies city destinations not particular airports. In the case of the UK, this means a bilateral agreement will never specify Heathrow since this is not in the remit of the department of transport. The UK government plays no part in airport slot allocation, so, the onus is on Air Peace to fight this battle. The politics is complicated. It is a matter of fact that considerable debt for Nigerian airlines that operated in London remain as they still owe large sums of money to UK airports. By failing to acknowledge the truth of our circumstances and also the fact that it is our own fault that we are not taking full advantage of the BASA, we do ourselves no favours, “ the stakeholder said.

Daily Sun can also report that there was a review of the BASA in 2008 which allowed for multiple airlines from each country and a substantial number of weekly flights. The UK and Nigeria may designate up to four airlines each and frequencies are restricted to 21 passenger services per week to each side; UK airlines – between any points in the UK and Abuja, Kano, Lagos and Nigerian airlines, between any point in Nigeria and London. While UK carriers have taken full advantage of these provisions, Nigeria’s absence of a national carrier has significantly hindered its ability to capitalise on it. To compensate, domestic carriers are often designated as ‘flag or national carriers’ for the purpose of fulfilling these agreements like in the case of Arik Air.

However, the 2003 International Civil Aviation Oganisation (ICAO) conference highlighted the growing importance of airport slot management due to capacity constraints at major airports. The conference recommended addressing slot-related issues and suggested prioritising countries with non-slot-constrained airports. The body said the principles of fairness, non-discrimination, transparency, and stakeholder consideration should be prioritised for any slot allocation system.

Way forward

Industry experts who spoke to Daily Sun said the minister’s letter to his UK counterpart is a bold move. Their argument is that by limiting Air Peace to Gatwick, while British carriers enjoy access to Lagos and Abuja, the UK is effectively hindering the Nigerian airline’s commercial viability and competitive position. They however pointed out that a collaborative approach involving the aviation authorities of both countries, Heathrow Airport, and Air Peace is essential to resolve this issue. Aviation expert, Amos Akpan said that while potential disruptions to travelers and businesses are a concern, the Minister’s actions aims to level the playing field and ensure fair competition between Nigerian and British carriers. While Alex Nwuba says a resolution that secures Heathrow slots for Air Peace is crucial for the growth of the Nigerian aviation industry.

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Akpan said the Minister’s proposal to relocate British Airways and Virgin Atlantic operations away from Lagos and Abuja should be carefully considered because of its potential consequences. He advised that contingency plans to address the diplomatic tensions likely to arise from such a decision must be developed. Additionally, he said, strategies to minimise the inconvenience for passengers and businesses connecting to destinations beyond London Heathrow should be prioritised.

“Our minister of aviation is well within his role by writing to the UK transportation secretary threatening to stop BA and Virgin from operating to Lagos Abuja unless Air Peace is given slots at Heathrow and he has a strong case. The Lagos and Abuja traffic is a good negotiation tool that will impact BA and VA dislocation on this route. By logic it is also the Heathrow traffic that will make Air Peace gain commercial viability on the route.

“The best option is for UK CAA, Nigerian CAA, Heathrow ACL, and Air Peace to meet and work out solutions. At worst, it may involve extra financial costs in the interim. Limiting Air Peace to Gatwick while BA and VA operates Lagos and Abuja and Heathrow violates the principle in the BASA between the UK and Nigeria. This restriction to Gatwick harms Air Peace potential commercial viability on the London route. It does not position Air Peace to be competitive with BA and VA on the route. Reciprocity is the cardinal principle in BASA. If the BASA is not specific about Heathrow, Lagos and Abuja as the designated entry ports for carriers between the UK and Nigeria, then our minister can use the reallocation to other airports in Nigeria.

“This action may throw up unpleasant consequences like a diplomatic row. The worst may be discomfort to travelers and traders that use London Heathrow airport as their gateway and transit. But they are the reason for the struggle in the first instance. The minister’s action will pressure the British aviation authorities to also pressure the Heathrow airport slot coordinators to find slots for Air Peace,” Akpan said.

Nwuba told Daily Sun that the Minister’s initial public threat to demote British Airways to a lower-tier airport was a strategic misstep, which may create a negative atmosphere for constructive dialogue. He said however that the Minister can achieve his goals through persistence and he must maintain a firm stance as the UK may adopt a tough negotiating position.

“The Minister can get what he wants by being persistent and unrelenting but he must stick to his guns. TheUK will also play hardball with him but Nigeria is a very important market for UK carriers. He however shouldn’t have started with the supposed threat of banishing BA to a low tier airport and publicly because it sets a negative tone to begin serious discussions,” he said.