The Federal Government is working on registering four additional airlines in a bid to eliminate the existing near-monopoly situation where two airlines dominate domestic services, the airlines are expected to commence operations next year.

 

The Nigeria Civil Aviation Authority (NCAA) has been advised to register airlines that meet the required guidelines without unnecessary obstacles, hindrance, or delays, since the monopoly in the sector is causing untold hardship and exploitation on Nigerians in the hands of airline operators in the country.

 

The situation has worsened since First Nation Airways stopped operation and Dana Air was grounded. People now rush to buy tickets in snake queues, fares have skyrocketed, sometimes as high as N40, 000 for an hour flight especially in Abuja were the market is controlled by touts. With Dana expected to come back by the end of October and the introduction of Med View Airlines, very little difference will be made because they both have little capacities to meet needs of the population.

 

Nigerians at present pay the highest airfares in the world, irrespective of the fact that, the country has a safe airspace with modern instrument landing system and radar.

 

It is expected that the domestic market will develop, competition will grow within the industry, and fares will come down if government carries this plan out.

 

The Ministry of Aviation is making plans to give single digit long terms loans to airlines to help them get aircrafts to boost the market next year, the plan covers even operators who have temporarily stopped services. The funds will be made available to them to get modern aircrafts from manufacturers, the Ministry of Aviation is expected to monitor every transaction that will be done using the funds.

http://businessnews.com.ng/2012/10/12/fg-to-introduce-four-airlines-next-year-as-duopoly-bites-deep/