Various carriers across the world are looking ahead and seeking new and more effective approaches to rebuilding their networks in the future through code-share and interline arrangements.
For the Nigerian aviation industry, such collaboration could ensure the stability of carriers that is lacking as experts in the aviation sector see codeshare pacts among airlines as a panacea to the trouble of connectivity, low capacity, and serious flight delays currently experienced in the country.
To underscore the seriousness the lack of partnerships has caused passengers and the entire aviation value chain, aviation think-tank group, Aviation Round Table (ART), in collaboration with the Nigerian Civil Aviation Authority are planning a one day conference with the theme “Utilising Interlining and Codeshare Agreements As Tools For Domestic Airlines’ Profitability And Passenger Comfort.” The summit comes up on April 29th, 2021 in Lagos.
President, ART, Dr. Gabriel Olowo, who is a strong advocate of airline mergers, consolidation and codeshare pacts among airlines told AirInsight that the nation’s airlines are not strong, further fueling the call for mergers. He noted that at a time when passenger traffic had considerably reduced by over 60 percent, airlines should think in that direction to save not just costs but to eradicate or minimize flight delays or cancellations as a result of a shortage of operating aircraft.
Another expert, who asked for anonymity, stated that the new strategy should be collaboration through codesharing, which is an arrangement whereby airlines place their passengers going to one destination on one flight. This, he said, would save airlines money because instead of three airlines putting three aircraft from Lagos to Abuja on Monday afternoon, for example, they would put it in one flight and save about 8000 liters of fuel and N5 million operational cost, maintaining that would be huge savings, as they share the revenue after the airline that operated the flight has deducted its costs.
Director of Engineering, Ibom Air, Lookman Animashaun disclosed that his carrier had put in place arrangements with Dana and one other airline for a codeshare arrangement. He observed, however, that it would be easy to codeshare with airlines that operate from the same terminal like MMA2.
Linus Benjamin Bauer, Managing Director of Bauer Aviation Advisory, describes how airlines must work together in order to achieve a strong recovery. According to him, various carriers across the globe are looking ahead and seeking new and more effective approaches to rebuilding their airline networks in the future. Low-cost carriers and full-service network carriers with hub-and-spoke networks alike, he reiterated, are establishing tactical partnerships to shore up their connectivity to key destinations and broaden their market reach.
Airlines could be in a position to successfully navigate the recovery – and meet their long-term growth and revenue targets – only if they work closely together. However, the legacy interline system doesn’t meet the needs of today and the post- COVID-19 air travel landscape.