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Arik Air 'Banned' From Abuja To London Route - Travel - Nairaland

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Arik Air 'Banned' From Abuja To London Route by Krucifax(m): 10:56pm On Nov 01, 2011
Arik Air Banned From U.k To Nigeria Route!

The U.K government and aviation authorities have managed through clever bureaucratic maneuvering to ensure that the National fliers would enjoy the monopoly of the highly lucrative Nigeria to U.K route. The government should really be doing more to protect such companies from strong arm techniques used by the Tory govt. Full story below.

"Arik Air, one of Nigeria ’s flag carriers designated on the London route by the Federal Government has given graphic details of how the United Kingdom government, in a bid to protect its carriers, tactically drove it out of the Abuja-London route.
The company also said the unequal playing field is in total disregard to the Bilateral Air Services Agreement (BASA) binding both nations.

Speaking at a press briefing to announce its discontinuation from the Abuja-London service on Friday, the Executive Chairman of Arik Air, Sir Joseph Arumemi-Ikhide said the BASA deal between Nigeria and UK gives each country 21 frequencies each to fly into each other’s main airports unhindered.
“Out of 21 slots each country enjoys unhindered, British Airways and Virgin Atlantic have utilized theirs’. BA enjoys seven daily frequencies out of Lagos and another seven out of Abuja to London , while the remaining seven is utilized by Virgin Atlantic for its Lagos-London service. On our own part. We’re doing daily Lagos-London Heathrow, which is seven slots and another twice weekly out of Abuja . Even at that, we were still losing nine slots out of the 21”, he said.

The unlevel playing field aside, the Arik Air boss also lamented that when it was time for the airline to fly from Abuja to London, the British government told them in harsh terms that there are no slots in London Heathrow and that if it was bent on flying into Heathrow, the only available option was to rent slots from the British Midland International ( BMI ) at a whopping cost of £1.4 million (N357 million) between 2009 and 2010, commencing from the winter season.
He said the airline paid an initial deposit of £600,000 (N153 million) and then pays £52,250 (N13.3 million) monthly to BMI and after the expiration of that, the company increased it from £52,250,000 monthly to £90,000 per month and that when the airline tried to negotiate the amount, BMI refused to shift grounds.
“Is this fair? Their own carriers come here unhindered so where is the level playing field? These unfair treatment and slots issues are not contained in the BASA deals we have with them” this is unfair.

Arumemi-Ikhide wants the Presidency to wade into the matter, describing it as a national oppression.
However, the Aviation Minister, Princess Stella Oduah , has waded into the matter, adding that appropriate action is being taken to redress the situation.
The Ministry also said it has investigated British Airways and Virgin Atlantic with respect to the discriminatory and unacceptable prices of air fares between the Lagos-London and Abuja-London routes, assuring that plans are afoot to protect Nigerian citizens from exploitation that arises from a price regime that is highly restrictive and discriminatory. Furthermore, the Honourable Minister has observed with utter dismay the inequitable treatment meted out to Arik Air in denying its fleet access into Heathrow Airport from Abuja . As a result, the airline has been compelled to discontinue its flight operations from Abuja to Heathrow, which has impacted negatively on the passengers on this route

http://news2.onlinenigeria.com/news/top-stories/118148-arik-air-arik-air-route-by-united-kingdom-government.html
Re: Arik Air 'Banned' From Abuja To London Route by ifyalways(f): 11:07pm On Nov 01, 2011
This is some badt news.What happens to people that have got advance and unused return tickets?

I'm hoping the FG wud be able to handle this with the interest of Nigerians @ heart.Arik UK fares are cheap when compared to BA and VS.
Re: Arik Air 'Banned' From Abuja To London Route by DisGuy: 11:45pm On Nov 01, 2011
I read this news before its very very poor , the greasy reporter should have tried to get the other side of the story, when did bMI become a govt?

The unlevel playing field aside, the Arik Air boss also lamented that when it was time for the airline to fly from Abuja to London, the British government told them in harsh terms that there are no slots in London Heathrow and that if it was bent on flying into Heathrow, the only available option was to rent slots from the British Midland International ( BMI ) at a whopping cost of £1.4 million (N357 million) between 2009 and 2010, commencing from the winter season.
He said the airline paid an initial deposit of £600,000 (N153 million) and then pays £52,250 (N13.3 million) monthly to BMI and after the expiration of that, the company increased it from £52,250,000 monthly to £90,000 per month and that when the airline tried to negotiate the amount, BMI refused to shift grounds.
“Is this fair? Their own carriers come here unhindered so where is the level playing field? These unfair treatment and slots issues are not contained in the BASA deals we have with them” this is unfair.

When did BMI a private company become the british Government?
Was this the same company that was reported to be ferrying only about 10 passengers-almost empty planes to UK from Abuja
their expansion is too fast, it doesnt make any business sense- big time money miss bad management road

The Abuja - London route is not lucrative enough for them, they could get a better deal with Gatwick and other Airport near London, at least offer Customers competitive prices!!
Re: Arik Air 'Banned' From Abuja To London Route by Krucifax(m): 1:55am On Nov 02, 2011
Mr Dis Guy the 1st paragraph says "govt AND aviation authorities". Secondly i'm not sure where u get ur facts but being a frequent traveller between Abuja and London i can assure you they have lots of passengers and not the absurd number of 10 u mentioned.

How is a London(Heathrow) to Abuja (Zik) route not good business sense I'm abit shocked at how u arrived at this one, as Nigerians are one of the biggest migrant groups in London who do lots of travelling to and from home.
Lastly the bit on prices is open debate.All i can say is last time i came back to London, Arik was offering the cheapest one way ticket on all the flight comparison websites i normally use.
Re: Arik Air 'Banned' From Abuja To London Route by DisGuy: 2:15am On Nov 02, 2011
Krucifax:

Mr Dis Guy the 1st paragraph says "govt AND aviation authorities". Secondly i'm not sure where u get your facts but being a frequent traveller between Abuja and London i can assure you they have lots of passengers and not the absurd number of 10 u mentioned.

How is a London(Heathrow) to Abuja (Zik) route not good business sense I'm abit shocked at how u arrived at this one, as Nigerians are one of the biggest migrant groups in London who do lots of travelling to and from home.
Lastly the bit on prices is open debate.All i can say is last time i came back to London, Arik was offering the cheapest one way ticket on all the flight comparison websites i normally use.

I still maintain the headline is alarmist and skewed to get some patriotic sentiment involved- surely if you sign a deal in 2009 when that deal expires it's quite common prices will change, especially when there are no shortage of buyers

Sure they have lots of passengers they also have absurd numbers during the off seasons, Yes Nigerians are one of the biggest (really?) migrants in london, the vast majority actually travel from Lagos- politicians and business men travel in Abuja and we all know Business are mainly based in Lagos, politicians are not looking after the pennies and their customer service isn't exactly top notch-they'll readily opt for the competitors whose got that on locked down more experience and they definitely know how to absorb the down turn.
Re: Arik Air 'Banned' From Abuja To London Route by DisGuy: 2:53am On Nov 02, 2011
http:///index.php/economy/transport_-and_aviation/6290.html

Two years after it began operations on Abuja-London (Heathrow) route, Arik Air, West Africa's biggest airline in terms of fleet size and passenger base ,

will on October 28 end direct operations on that route. In what looks like clear air turbulence, Arik Air had said it would not be able to continue on that route since its profitability is increasingly in doubt.

“This is simply a suspension. Arik Air will review the route viability at a more appropriate time. Once the issues outlined above have been satisfactorily resolved, we will begin to assess operations again and in line with our long-term business plan . However, there are many other determining factors such as the very high operating and infrastructure costs at London, Heathrow. From a commercial objective, we need to take into account the profitability of this route to the airline. We serviced a much needed connection since November 29, 2009, but it has not fully reflected our expectations and that has been taken into consideration as well,” said Johnson Arumemi-Ikhide, Chairman of the airline.
Arik air had in November 2009 launched the route with pomp and pageantry with a brand new Boeing 737-800 aircraft but industry analysts were sceptical of its success considering the competition on that route and the airline's ruggedness to compete.

Unprofitable Route Foretold

When Arik made the move, it ignited excitement within the industry- at least a Nigerian airline is reciprocating the 2008 Bilateral Air Services Agreement signed between Nigeria and the UK. But within a few months of its operations, the excitement turned into nervousness. Most analysts and industry insiders knew that it would be difficult for the airline to make economic gains on that route since it lacked the capacity and competence to compete with other more viable airlines like British Airways (BA). Besides, it was paying too much in forex to keep its foreign crew. Meanwhile, BA, a world-class airline has been consolidating its gains on that route.
Re: Arik Air 'Banned' From Abuja To London Route by ifyalways(f): 11:34am On Nov 02, 2011
^Abuja Heathrow have not been all too rosy for them.I noticed it was even cheaper than LOS-LHR and for the past few months they do abuja-los-heathrow.

Anyhoos,any news or updates.If this is not sorted out,what happens to folks that have already bought advance tickets ?
Re: Arik Air 'Banned' From Abuja To London Route by djustice: 11:34am On Nov 02, 2011
Me, I am boycotting both VA and BA from today. All my flights now na with Emirates, until normal service is resumed to Arik and any other Nigerian airline under the BASA agreement.

These oyinbo idiots think they're smart. Ethiopian airline is still flying too, abi? Only small stop-over in Dar-es-Salaam. That's another option. If only other Nigerians could join me in this boycott, they would quickly find reasonable space for Arik at Heathrow, and not some corrupt middle-man arrangement with BMI, are those ones still flying?
Re: Arik Air 'Banned' From Abuja To London Route by ifyalways(f): 12:00pm On Nov 02, 2011
LOL@Djustice.

Arik is the only Nigerian airline plying JFK,JNB and LHR on their own without code sharing with any foreign airline.

Air Nigeria is comfortable with it's "local champion" slot.Between them and Asky,I dunno which fits perfectly as the "W. and Central Africa taxi" lolz.
Re: Arik Air 'Banned' From Abuja To London Route by agabaI23(m): 2:13pm On Nov 02, 2011
proud of you? yes!
Re: Arik Air 'Banned' From Abuja To London Route by DisGuy: 2:34pm On Nov 02, 2011
Me I'm boycotting any company that can afford to pay its oyinbo staff their dollarize salary promptly and keep its nigerian staff waiting for 3-6months before being paid!

A company that will easily pay models and celebrities millions whilst its staff get pay cuts after pay cuts
Re: Arik Air 'Banned' From Abuja To London Route by DisGuy: 2:36pm On Nov 02, 2011
Even before Arik decided to fold up its UK operations, aviation experts had predicted a gloomy future for that operation. “We do not have an airline that has 10 aircraft that can go to continental USA and when competition comes on the route, we cannot survive it. Emirate did it to Virgin Nigeria on Dubai route, they increased the luggage allowance, reduced the fare and brought in more comfortable aeroplanes. The customer will go for the best bargain…I am even worried for Arik because the traffic volume can drop and if it does, they will run at a loss and it's a matter of time and they would not be able to sustain it”, Sam Akerele, Secretary General, Aviation Roundtable had said in an earlier interview with BH. Akerele said the only way Arik could be saved is for government to make it compulsory for its official going to the UK or America to fly it. It did not happen and now, Arik's operations on that route has failed.

“We need to say ok, fly the Nigerian flag. All civil servants working in ministries, presidency, Parastatals, anytime you are going to the US or London, you must fly Arik. Let there be a circular. That is when the fortune of Arik can improve. But I don't know why government is afraid to say that. It is not new. They do it even in the US, they fly their national flag so that their money stays in their pocket”, he said.
Re: Arik Air 'Banned' From Abuja To London Route by Akanbiedu(m): 2:39pm On Nov 02, 2011
ifyalways:

LOL@Djustice.

Arik is the only Nigerian airline plying JFK,JNB and LHR on their own without code sharing with any foreign airline.

Air Nigeria is comfortable with it's "local champion" slot.Between them and Asky,I dunno which fits perfectly as the "W. and Central Africa taxi" lolz.

Why can't Air Nigeria and Arik merge? One side to concentrate on local while the other pays full attention to international flights.
Re: Arik Air 'Banned' From Abuja To London Route by DisGuy: 2:48pm On Nov 02, 2011
Akanbi_edu:

Why can't Air Nigeria and Arik merge? One side to concentrate on local while the other pays full attention to international flights.

You want to reduce the oga-ism, and owner syndrome

They bought aircraft first before setting up the airline structure. But in the real sense it should have set up the structure and this will determine how many aircraft, the type, and the development programme. But when you acquire aircraft first before deciding where to fly to, it becomes a problem. That is why it does not have a formidable airline structure, it does not have a marketing structure, route development structure is not there. Its engineering and maintenance department were set up after the aircraft have been acquired. It's not done. Before you acquire your aircraft, you set up an engineering department to make sure there is capability. Before you acquire an aircraft, you look for the crew how and where you can get them. Arik did not do that. Now it depends on foreign crew for some of its equipment. And it pays through its nose to remain afloat”, Aligbe said.

Arik Air is managed by its owner, a factor that has over the years accounted for the high mortality rate of Nigerian airlines according to experts. Besides this, even before it hatches, corporate arrogance has begun to set in and passengers are beginning to look for alternatives. Customer service is poor, cabin crew could be highly inflammable while flight delays and outright cancellations are frivolous.

A highly placed source in the company who would  not want to be named confirmed to BH that the airline in recent times has passed through severe liquidity squeeze which however is not peculiar to it. However, the airline seem to have bitten more than it could chew. The source nevertheless told us that the airline's liquidity crisis is easing and within a short while, it may regain lost altitude.


Bizhallmark/economy/transport 17/10/2011
Re: Arik Air 'Banned' From Abuja To London Route by Akanbiedu(m): 3:07pm On Nov 02, 2011
Dis Guy:

You want to reduce the oga-ism, and owner syndrome

They bought aircraft first before setting up the airline structure. But in the real sense it should have set up the structure and this will determine how many aircraft, the type, and the development programme. But when you acquire aircraft first before deciding where to fly to, it becomes a problem. That is why it does not have a formidable airline structure, it does not have a marketing structure, route development structure is not there. Its engineering and maintenance department were set up after the aircraft have been acquired. It's not done. Before you acquire your aircraft, you set up an engineering department to make sure there is capability. Before you acquire an aircraft, you look for the crew how and where you can get them. Arik did not do that. Now it depends on foreign crew for some of its equipment. And it pays through its nose to remain afloat”, Aligbe said.

Arik Air is managed by its owner, a factor that has over the years accounted for the high mortality rate of Nigerian airlines according to experts. Besides this, even before it hatches, corporate arrogance has begun to set in and passengers are beginning to look for alternatives. Customer service is poor, cabin crew could be highly inflammable while flight delays and outright cancellations are frivolous.

A highly placed source in the company who would not want to be named confirmed to BH that the airline in recent times has passed through severe liquidity squeeze which however is not peculiar to it. However, the airline seem to have bitten more than it could chew. The source nevertheless told us that the airline's liquidity crisis is easing and within a short while, it may regain lost altitude.


Bizhallmark/economy/transport 17/10/2011

This is one issue that bothers me a lot. Our people are too individualistic in approach to business. They need to outgrow this may be there is a way government can help by legislation. They need to be BIG before they can compete at the international level and if mergers are what will make them big, they should go for it.

This superman approach like Adenuga and Dangote are doing will not help in the long run. What if they die? They need to start building structures that can sustain itself even if they are no longer directly involved in the business.
Re: Arik Air 'Banned' From Abuja To London Route by babyboy3(m): 3:14pm On Nov 02, 2011
(1) its not Nigerian governments problem since Arik is a private enterprise
(2) Flights from Abuja could head to Gatwick if BA refuse to play ball at the end of the day Arik are as bad as BA and Virgin thats been treating Nigerians like tea mugs,

When Virgin started the aim was to have flights the same price as London to New York but in the end Virgin started screwing Nigerians, then Arik came into one of the most lucrative routes in the aviation world (london to Lagos) with the opportunity of having almost 95% market share flying on the route, instead of breaking the stronghold BA and Virgin have over its customers they decided to join the party. This give Nigerians once more the chance to shop around,  I could remember back in 2009 paying £378 to fly to Lagos on Arik when BA was still charging between 520 - 620 Then Arik is pack to the brink, but 4 months ago I paid £620 to fly Arik it was half full, and I guess if I get a better deal next time I would kiss Arik Good Bye
Re: Arik Air 'Banned' From Abuja To London Route by xcaper(m): 3:17pm On Nov 02, 2011
Pls which airline offers the cheapest fare from lagos to kano, I need the information urgently to be to make an infromed decision as regards the airline to patronize for my journey to and fro lagos to kano on saturday and sunday.
Re: Arik Air 'Banned' From Abuja To London Route by begwong: 3:20pm On Nov 02, 2011
why is this post making the front page twice undecided undecided
Re: Arik Air 'Banned' From Abuja To London Route by begwong: 3:20pm On Nov 02, 2011
why is this post making the front page twice undecided undecided
Re: Arik Air 'Banned' From Abuja To London Route by DisGuy: 3:30pm On Nov 02, 2011
Akanbi_edu:

This is one issue that bothers me a lot. Our people are too individualistic in approach to business. They need to outgrow this may be there is a way government can help by legislation. They need to be BIG before they can compete at the international level and if mergers are what will make them big, they should go for it.

This superman approach like Adenuga and Dangote are doing will not help in the long run. What if they die? They need to start building structures that can sustain itself even if they are no longer directly involved in the business.

I guess we just dont know how to build strong instituions , we only do strong men- I have an uncle who's been running a business for years but he's scared of going on only- why employ people you cant train or trust ? undecided



baby-boy:

(1) its not Nigerian governments problem since Arik is a private enterprise
(2) Flights from Abuja could head to Gatwick if BA refuse to play ball at the end of the day Arik are as bad as BA and Virgin thats been treating Nigerians like tea mugs,

When Virgin started the aim was to have flights the same price as London to New York but in the end Virgin started screwing Nigerians, then Arik came into one of the most lucrative routes in the aviation world (london to Lagos) with the opportunity of having almost 95% market share flying on the route, instead of breaking the stronghold BA and Virgin have over its customers they decided to join the party. This give Nigerians once more the chance to shop around, I could remember back in 2009 paying £378 to fly to Lagos on Arik when BA was still charging between 520 - 620 Then Arik is pack to the brink, but 4 months ago I paid £620 to fly Arik it was half full, and I guess if I get a better deal next time I would kiss Arik Good Bye

the accusation then was the the nigerian govt couldnt stick to a long term policy; always changing policies to suits it inexperience local competitors who run to the govt every year for favourable policies

Nigerian wont mind other airport as long as they get a very good deals, even birmingham will be a big hit! for £300, its only an hour by train to london or manchester then again there's the customary excess luggage
Re: Arik Air 'Banned' From Abuja To London Route by amtheone(m): 3:33pm On Nov 02, 2011
When u have government that is weak and corrupt to its root, this is always the resultant effect. They(Arik) better beg them b4 they will stop refining the aviation fuel for them. The president does not even have a say. When he is still thinking of fuel subsidy, now u want him to talk about agreement that was mutually signed.

The whites always think that they are doing us a favor. That is raw true. Again, am saying that Arik should re-negotiate because we dont have leaders that can fite for interest of this nation. Don't be surprised that those u think should defend aviation matters like this, have already been bribed by BA. Dont forget we are talking about pounds here not even dollars.
Re: Arik Air 'Banned' From Abuja To London Route by daywatcher: 3:34pm On Nov 02, 2011
simple, Nigeria ban BA/Virgin from Lagos.

They can retaliate when Ghana start using protectionist tactics, but when the UK does so they let it happen. Colonial mentality.

There are other countries desparate to trade with Nigeria if the UK do not want to.
Re: Arik Air 'Banned' From Abuja To London Route by DisGuy: 3:48pm On Nov 02, 2011
daywatcher:

simple, Nigeria ban BA/Virgin from Lagos.

They can retaliate when Ghana start using protectionist tactics, but when the UK does so they let it happen. Colonial mentality.

There are other countries desparate to trade with Nigeria if the UK do not want to.

but do you really think its a government issue, th eairport is not even owned by the british government!! heathrow is amongst the busiest in the world, they should renogiate time slots
Re: Arik Air 'Banned' From Abuja To London Route by dalebutt1: 3:57pm On Nov 02, 2011
For goodness sake why cant we have a national flyer God!!, yes arik would be treated by the UK government with less importance while they would be cautious at dealing with a national airline owned and run by the Nigerian government. Arik in its entirety is privately owned the FG would not be interested in causing a political row with the UK as it stands. Nigerian is run by a whole bunch of jackass. The National obligtion to protect the interest of the general public of Nigeria has never been in the governing handbooks if they ever had one.

If  Nigerians could stage a massive disobedience in droves and send all these nonentities away from office aside that we would only nag and thats it,  nothing would change i detest the leaders of this so call Nigeria they lack common sense to understand basic national dignity which comes before personal priorities
Re: Arik Air 'Banned' From Abuja To London Route by babyboy3(m): 4:00pm On Nov 02, 2011
but do you really think its a government issue, th eairport is not even owned by the british government!! heathrow is amongst the busiest in the world, they should renogiate time slots

Nigerians didnt complain about flying from Gatwick they should leave Heathrow for BA, and Gatwick Airport is not owned by BAA anymore (theirs a rumour that its owned by a Nigerian)
Re: Arik Air 'Banned' From Abuja To London Route by DisGuy: 4:05pm On Nov 02, 2011
yea an Ogunleye something-Global infrastructure, he might cut them a deal yea right he'll probably have a heart by the time they start giving him the runaround

the main problem is they cant even get enough customers to break even for their Abuja bound travellers, an unlike BA that has its own jet fuel on locked down Arik is battling some local oil barons, sometimes buying fuel on pay as you go basis
Re: Arik Air 'Banned' From Abuja To London Route by daywatcher: 4:07pm On Nov 02, 2011
Gatwick will be better as most 9jas in UK are in South London anyways
Re: Arik Air 'Banned' From Abuja To London Route by dalebutt1: 4:08pm On Nov 02, 2011
Its not a rumour actually, adebayo ogunlesi  is his name it was published last year august on the redeemed magazine in London. but something needs to be done to break the monopoly of these westerners they see us as total fools
Re: Arik Air 'Banned' From Abuja To London Route by MurderX: 4:35pm On Nov 02, 2011
The British govt is only trying to ensure the safety of their airspace. Arik air is not fit to fly Naija road, talkless of onyibo airspace. These bastards go cancel flight, refuse refund, refuse temporal hotel accomodation + Beat dem passengers on top, now dem wan our sympathy. Thunder fire their yansh, their downfall is inevitable.
Re: Arik Air 'Banned' From Abuja To London Route by dalebutt1: 4:46pm On Nov 02, 2011
murder-x grin grin grin grin grin grin grin not gona stop laughing
Re: Arik Air 'Banned' From Abuja To London Route by Claus(m): 4:51pm On Nov 02, 2011
I'm not entirely sure about the validity of the accusations levied against the British govt. BAA which owns Heathrow and a couple of other airports in the U.K. is not a public or government agency. It is a limited company with it's own Board of Directors who make decisions in the best interest of the shareholders.

Everyone knows that Heathrow is one of the busiest airports in the world. It is not inconceivable that they don't have free landing slots, regardless of whatever bilateral agreement was reached between the British and Nigerian govt.

BMI as well is not a public or government agency.

The government or aviation authorities are not the ones that give out landing slots. Many other airlines face the same issue with the scarcity of landing slots at Heathrow. They improvise by choosing Gatwick or Stansted. I'm not sure there's much the govt on either side can or will do to help Arik.
Re: Arik Air 'Banned' From Abuja To London Route by daywatcher: 4:57pm On Nov 02, 2011
Dis Guy:

but do you really think its a government issue, th eairport is not even owned by the british government!! heathrow is amongst the busiest in the world, they should renogiate time slots

so you are saying that the British government cannot twist the arm of the the owners BAA? Heathrow is the UK's flagship airport, you seriously think BAA is entirely autonomous when running the airport?

The price of a litre of petrol in Nigeria right now is N65, is that not due to govenrnment interferrence?

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