NANTA Tackles Foreign Airlines Over Dollar-only Ticket Sales

The National Association of Nigeria Travel Agencies has again relaunched its fight against dollar-only ticket sales and city sales practices of some foreign airlines operating in Nigeria.

Speaking with our correspondent on Wednesday, NANTA President, Dr Yinka Folami, described the practices as not just a disrespect to the sovereignty of Nigeria; he maintained that the practice also negates the rules of the Nigeria Civil Aviation Authority.

While lauding some foreign airlines adhering to the laws and regulations of the CAA, he appealed to the others to join the train to achieve a more flourishing aviation industry in Nigeria.

He said while NANTA recognised that some foreign airlines operated under agreements permitting dollar transactions, there was no longer sufficient justification for excluding the naira from ticket sales in Nigeria.

He said, “City sales is the one in conflict with the NCAA regulations. About a week ago, I did an updated report concerning the trade and our market. In it, I commended airlines that have responded positively to the NCAA regulations, either through the appointment of GSAs, which is fine, or by shutting down city sales.

“Now, an encouraging number of airlines no longer operate city sales despite not having a GSA. So, yes, we thank the airlines that are cooperating. We are also seeing airlines appointing GSAs. All these are part of compliance with the NCAA regulations.”

Findings by The PUNCH showed that some of those who currently have GSAs include: British Airways, Virgin Atlantic, Air France, KLM, Etihad Airways, Saudia, EgyptAir. Others are: Delta Air Lines, United Airlines, Air Côte d’Ivoire, Kenya Airways, RwandAir, South African Airways, among others.

The NANTA President also said the relative stability of the naira, improved foreign exchange liquidity and greater transparency in the remittance process had significantly changed the economic circumstances that previously informed the practice.

According to him, only about three foreign airlines out of more than 30 operating in and out of Nigeria currently engage in dollar-only ticket sales, representing about 10 per cent of the market.

He argued that conducting transactions in Nigeria exclusively in foreign currency was unfair to local businesses and could create the impression that the naira had little value.

Folami stressed that NANTA’s position was not intended to create confrontation with foreign airlines or the Federal Government, but to promote greater inclusion and stability in Nigeria’s aviation and travel market.

He said dollar-only ticket sales had particularly affected small and medium-sized travel agencies, which make up a significant proportion of NANTA’s membership.

NANTA has approximately 4,000 members, including 1,621 IATA-certified members. Of the IATA-certified members, the association said 1,274, representing more than 80 per cent, are Go-Lite members whose Billing Settlement Plan transaction wallets do not permit dollar sales.

Folami said the arrangement effectively shut out about 75 per cent of NANTA members from direct trade with the airlines.

He stated, “We can’t completely relegate our currency; it’s our national identity. If you undertake your business in Nigeria in total execution of the naira, we think it’s unfair. We don’t want to say it’s unacceptable because it is not something that you will permit. We are not happy about it.

“There is no reason for it anymore; there is no further justification for it again. If you look at the naira, you will see that the currency is finding stability, there is liquidity and there is transparency in the process of remittance.

“Over 30 airlines operate in and out of Nigeria and only very few have continued to sell only in dollars. Aside from disrespecting our sovereignty, dollar sales exclude over 75 per cent of our members from direct trade with the airlines. These are participants in the SME segment, and we all know what SMEs mean to every economy.”

He appealed to the affected airlines and the Federal Government to address the issue, stressing that travel agencies operating in Nigeria should be given access to naira sales channels.

The NANTA president also rejected suggestions that the Federal Government should be blamed entirely for the continued practice, particularly where Bilateral Air Service Agreements or other arrangements permit certain foreign carriers to sell tickets in dollars.

He noted that having a contractual right did not necessarily mean that it must always be exercised, particularly when economic circumstances had changed.

Folami further commended the Federal Government and the Central Bank of Nigeria for the relative stability of the naira and improved foreign exchange liquidity. He said industry stakeholders had a responsibility to translate the macroeconomic gains into tangible benefits for the aviation sector.

On city sales, NANTA said the practice by foreign airlines was contrary to existing Civil Aviation Regulations.

Citing parts 18.6.1.1(c) and (d) of the regulations, which provide that a foreign airline operating scheduled international air services into and out of Nigeria, the NANTA President said the provision of the CAA Act clearly preaches against airlines opening city sales offices or outlets in cities.

The regulation only allows international airlines to operate a ticketing office within the airport.

He said NANTA welcomed the growing number of foreign airlines appointing Nigerian General Sales Agents, describing the development as consistent with the regulatory framework and beneficial to the local travel trade.

He also commended Etihad Airways for its recent decision to appoint a Nigerian GSA as the Middle Eastern carrier prepares to return to the Nigerian market.

Folami said, “Top echelons of Etihad met me, and at that meeting I raised the issue of dollar sales very strongly. They understood what I was saying, took firm note of it, and today I am happy and also not surprised that Etihad is coming into the Nigerian market with a Nigerian GSA.

“I will not expect a Nigerian GSA to engage in dollar sales in Nigeria, and for that I say kudos to them.”