Will Nigeria leverage bilateral air service agreements in 2025?

Nigeria's aviation industry is on the brink of transformation as the country finalizes Bilateral Air Service Agreements (BASA) and collaborates on Code-sharing Agreements with countries like Jamaica and Canada. Chukwuerika Achum, CEO of Vivajets, shared insights on the potential of these agreements, expected ticket price movements, and trends shaping the industry in the coming year. Achum acknowledged the challenges faced by Nigerian airlines in reciprocating some of the BASA agreements due to capacity limitations. However, he emphasized the emergence of Code-sharing Agreements as a strategic move to enhance connectivity and expand route networks. Airlines like Airpeace have already leveraged such agreements by partnering with international carriers like Emirates to improve last-mile bookings, offering passengers seamless travel experiences. The recent Code-sharing Agreement with Canada is poised to further enhance connectivity, enabling airlines to issue tickets on participating carriers for routes like Lagos to Toronto. With the global aviation landscape witnessing shifts in market dynamics, Achum highlighted the increasing interest of countries like Canada and the United States in exploring new markets, with Africa emerging as a promising destination. The Code-sharing Agreement with Canada signals a new chapter in airline collaborations and market expansion. On the pricing front, Achum addressed the challenges around ticket pricing, attributing sharp price spikes to factors like airport taxes, aircraft leasing costs, and the supply constraints of Jet A1 fuel. The entry of Dangote refinery as the sole provider of Jet A1 fuel in Nigeria has brought some stability to fuel supply, but the industry continues to face uncertainties regarding price movements. Achum expressed optimism in the Minister's efforts to improve Nigeria's image in the aircraft pricing market, paving the way for Nigerian airlines to access foreign markets for aircraft leasing. Looking ahead, Achum discussed the investment appetite in the aviation sector, highlighting the growing demand for cargo movement and the positive market outlook for the year. The implementation of the Single African Air Transport Market and increased cross-border interactions are expected to drive growth for African carriers and operators. Vivajets has initiated debt-raising measures to capitalize on the market opportunities and expand its presence in the Asian market. As the aviation industry gears up for a transformative year, stakeholders are optimistic about the growth prospects facilitated by strategic agreements, market trends, and investment opportunities. The evolving landscape presents both challenges and opportunities for Nigerian airlines, encouraging them to innovate, collaborate, and capitalize on the changing dynamics of the global aviation market.