Business
Stakeholder Urges Nigerian Airlines To Embrace Code-Sharing
A stakeholder in the Nigerian aviation industry says it is important for more airlines to enter into a business alliance called code-share agreement, to enhance airlines operations in the country.
A code-share agreement, he said, is a business alliance between two airlines which allows them to offer flight operations on the same routes.
He said Dana Airlines and Ibom Airlines had in May 21, 2021 signed a code-share agreement, tagged ‘Dana-Ibom Alliance’ at the Victor Attah International Airport, Uyo which offered both airlines the opportunity to jointly offer flights to similar destinations and air services to destinations that are not within the airlines’ routes.
The agreement, according to him, also offered Dana and Ibom Airlines the opportunity to increase profitability in the aviation industry.
The spokesperson for the Nigerian Civil Aviation Authority (NCAA), Sam Adurogboye, who disclosed this in a statement made available to aviation correspondents, described the code-share agreement as a commercial agreement among airlines supported by the NCAA.
“Airlines are at liberty to take business decisions that could engender returns on their investments. But the NCAA must be informed.
“No one can be an island. You will need others somewhere and sometime”, he stated.
The NCAA spokesman said that more airlines needed to come together to form partnerships so as to combat operational challenges.
”Ibom Airlines and Dana Air (deal) is the right step in the right direction and it is needed now, especially because airlines will always have operational challenges. We know what the cost of operations is currently.
“When an airline’s flight is unavailable, it is better to put the passengers on the next airline a partnership exists with, which makes sense for economy of scale.
“What needs to be done is for them to have a niche platform whereby there would be seamless exchange of tickets like the interbank settlement system.
“This is the same platform that the International Air Transport Association Billing Settlement Plan does”, he said.
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