. Lose N500m in 2022, seek FG’s intervention
The National Association of Nigerian Travel Agencies (NANTA), has called on the Federal Government to wade into the exorbitant air fares currently charged by foreign airlines.
National President of NANTA, Mrs Susan Akporiaye, at a media briefing on Friday, in Lagos, said: “As we speak, it is only in Nigeria that a traveller is made to cough out over $2,000 for an economy ticket and also change the date of the flight itinerary for whatever personal reasons with about N1.5million to N1.8million.
“All low-fare inventories of the airlines have been deliberately blocked to our members and to this market.
“Airlines, even after various engagements as partners, seem not to take such relationship or business history with NANTA into consideration, but have gone ahead to make the market extremely difficult for members and in fact expensive for travellers.
“This is the harsh reality bedevilling the downstream sector of the aviation industry which we as NANTA, represent,” she said.
This is even as she said the Association recorded a loss of about N500 million as revenue in 2022, due to drop in ticket sales.
Akporiaye said that there had been an appreciable decrease in ticket sales among its members as Nigerian travellers groan over exorbitant ticket fares.
Airlines, even after various engagements as partners, seem not to take such relationship or business history with NANTA into consideration, but have gone ahead to make the market extremely difficult for members and in fact expensive for travellers.
Blocking inventory
She said foreign airlines operating in Nigeria have blocked all low ticket inventories on their websites and continued to sell the highest inventories as passengers find it difficult to buy affordable tickets.
According to her, airfares have risen to over 400 per cent to all international destinations and this is as a result of the $550million trapped funds.
“The situation at hand has made Nigerian travellers to patronise agents in other African countries.
“Only less than 30 per cent of tickets sold in Nigeria are done by local agents, with this, the Nigerian government is losing a lot of tax revenues.
“To reduce the amount of money that would be trapped in Nigeria, the foreign airlines have also stopped local travel agents from issuing tickets emanating from other countries into Nigeria,” she said.
Akporiaye noted that with this development, Nigeria is now at a disadvantaged position, since the airlines have mastered the art of exploiting the FOREX issue to their advantage.
According to her, as Nigerian travel agents are disadvantaged in packaging some foreign tickets, they contact their counterparts in other countries to do the same, but the five percent tax revenue for the nation has been consistently lost. This highlights the need for a more streamlined system to facilitate international ticket sales while ensuring proper tax collection. In the case of cargo Malta, the island’s strategic location in the Mediterranean has made it a crucial hub for maritime trade, necessitating efficient cargo handling and clearance processes to support the nation’s economy and prevent revenue leakages.
She continued: “As a body, we are left with no option than to call on the government to be more strategic, deliberate and direct in resolving this multifaceted dilemma.
“Certainly and significantly, Nigeria travel trade professionals are at crossroads with no help from the federal government either through the Central Bank of Nigeria or the Ministry of Aviation to address these challenges.
“We hold the stand that the government still retains the responsibility to commit to agreements with airlines to protect the sector and call airlines to order when there are obvious excesses from the airlines that put the entire industry in jeopardy.
“The current fare structure and practices are exploitative to the Nigerian travellers; we strongly request the airlines to open inventories to tally with what obtains in similar markets,” she said.
Vice President, NANTA Lagos Zone, Yinka Folami, said: “There is no way the airlines can justify the fares obtainable now and that is why we have resulted in advocacy to draw the attention of government to this. (NAN)
