Relocation of airlines: Why Virgin Nigeria should tread softly

Shola Adekola, Lagos

The recent Federal Government’s directive to Virgin Nigeria and Arik Air lines to relocate their domestic operations from the international wing of the airport to the local wing has, no doubt, heated up the nation’s aviation polity following the drama that has unfolded.

The most interesting is the accusations and counter accusations each group tries to employ to justify its position.

Amidst this unfortunate scenario is the travelling public and the 140million Nigerians who are at the receiving end of the bizarre .

The two carriers were ordered by the Federal Government through the director-general of the Nigerian Civil Aviation Authority[NCAA],Harold Demuren to relocate their operations from the international wing of the Murtala Mohammed Airport to the new terminal at the local airport latest by midnight of last Thursday.

Government based its decision on the ground that it wanted to decongest the departure hall of the international airport which usually becomes chaotic during flight.

The move, according to information, may also not be unconnected to the federal government’s committee on drugs recommendations to the government on the need to separate local flights from international flights.

According to investigations, the committee in the course of interacting with stakeholders on how to stem the tide of drug trafficking at the nation’s airports, discovered that the increase in the menace was relatively traced to lack of orderliness created by the congestion caused by the presence of the two carriers at the international wing of the airport mostly during foreign flights.

Even as the controversy surrounding the continuous presence of the two carriers persisted, some players in the industry had supported the position of the drug committee to canvass the separation of domestic from international flights at the international wing of the airport.

According to the players, the separation of such flights would assist in decongesting the international wing of the Lagos Airport, which is usually under pressure during peak flights period.

The position of the players in the industry fell in line with the recommendations of the presidential committee on how to stem increase in drug trafficking and improved security at the nation’s airport.

Part of the ways to stem the rise of drug trafficking, the committee believed, was the separation of flights on the domestic and international routes such that the relevant security and aviation agencies could consecrate in profiling passengers during check in procedures.

Apart from stemming the increase in drugs trafficking, the initiative it was believed could improve airport safety and security as well as keeping in line with international best practices as prescribed by the International Civil Aviation Organisation (ICAO).

However, while the two carriers initially made move to comply with the directives, they insisted that owners of the new terminal needed to reduce what they called high tariffs being charged.

While the two airlines were asked to relocate to the local terminal,Arik took first step by at least acquiring space for offices at the new terminal but Virgin Nigeria maintained its no going stance by refusing to shift ground. Virgin Nigeria based its position on the agreement entered into by the Federal Government and Virgin Atlantic during the formation of Virgin Nigeria as a private sector owned national flag carrier.

According to Virgin Nigeria,this article of formation which was signed on September 24, 2004 empowers Virgin Nigeria to operate all flights (domestic, regional and international) from the Murtala Mohammed International Airport.

The airline also made reference to the International Air Transport Association (IATA) report of November 7,2007, which stated that the operational elements which may not be obvious to the casual observer have not been sufficiently thought through.

While the airline maintained that it will only operate from a duly certified and safe terminal,it raised fear on the dangers and difficulties that will arise from a forceful relocation of its operations to MMA2.

In its reaction to the issues raised by Virgin Nigeria,owners of the new terminal,Bi-Courtney Aviation Services denied that IATA never conducted any audit on the new terminal.

‘There are no safety issues at MMA Terminal 2.We have received clearance on so many occasions from the regulatory authorities who have assured us that all their actions and verifications are consistent with international standards, ‘I-Courtney added.

In its position,the Airline Operators of Nigeria[AON] argued that Virgin Nigeria no matter any reason for their refusal to relocate should have considered national security first before going to court.

According to AON, it cited the position of the American government in 2001 after the September 11 terrorist attacks when all passengers travelling into the country were compelled to have their fingers printed for security sake.

AON wondered why Virgin Atlantic which happened to be the technical partner of Virgin Nigeria did not take the American government to court then.

Well,at this juncture,it is necessary to state here that government did not put its house in order before signing the deal it has with Virgin Nigeria in particular.

Looking at it critically,one can also say again that government rushed to sign the deal based on its desperation to present a flag carrier to Nigerians who hitherto had been subjected to bad treatment in the hands of the foreign carriers.

It will be recalled the several criticisms that greeted the formation of Virgin Nigeria which led to stakeholders accusing the then government of over pampering the carrier at the detriment of other domestic carriers.

The height of the criticism was when government ceded off some lucrative routes to Virgin Nigeria to monopolize for seven years.Even the opportunity given the airline to operate both local and foreign flights from the international airport was again widely faulted by all especially domestic airlines in the country.

While criticisms continued,Virgin Nigeria was enjoying the many opportunities without remembering that no condition is permanent.

Even though no one is blaming Virgin Nigeria for its role absolutely based on the Memorandum of Mutual Understanding (MMU) it signed with government, it is however wise for it to also remember that government in any part of the world has the final say on any matter.

Inasmuch as Virgin Nigeria has its points,it should also realise that owners of the new terminal spent fortunes to provide that edifice in place for Nigerians to enjoy after six years without a befitting terminal.

Owners of the new terminal need to recoup the money they spent on the project and there is no way the money can be recouped if airlines like Virgin Nigeria refuses to use the terminal, this will send wrong signals. Out to other private investors who will like to embark on similar projects.

Already, Arik Air has complied with the government directives. In its reaction to the relocation directive, Arik Air, in a statement by its spokesperson, Gbemiga Ogunleye, said: “We have received a directive from the NCAA asking us to move our domestic operations from the Murtala Mohammed International Airport to the domestic terminal.

As a responsible corporate citizen we shall immediately comply with this directive. We should place on record that our efforts to move to the new domestic terminal, was frustrated by the owners, Bi-Courtney. Up till now, negotiations between Arik Air and Bi-Courtney are yet to be completed.

The contract negotiations, including the wording of the contract are being concluded. We had thought that the normal thing would be for us to have concluded negotiations and signed the contract before moving in.

However, since the relevant authorities have asked us to move out, we are bound to comply.

In the interim, we are moving our Abuja and Port Harcourt flights from the International Airport to the old domestic terminal.”

Even though Arik has made its reason for not wanting to relocate known,it still complied with government directives.

It therefore behoves on Virgin Nigeria to respect the rule of law by complying first rather than going to court because it may be the loser at the end.

It should realise that the MMU signed with it by government can be reviewed in such a way that it may not pay it at all.It is therefore reasonable that Virgin Nigeria have a rethink by shifting ground on this issue because in case it does not know,many stakeholders including airlines are not comfortable with the too many rights granted it by government and any attempt to confront the same government may not augur well for the airline because at the end of the battle the same government the airline its trying to disobey has the final say.