Omicron as a Threat to the Aviation Sector

It is ironic that when the world thought an end to Covid-19 was in sight, a new variant called Omicron has emerged to dash the hopes of the international community, writes Adeniyi Onifade

The new variant is now proving to wipe off all the gains the aviation sector has made in post Covid-19 recovery. Only recently, a research conducted by Investment Information and Credit Rating Agency (ICRA) stated that another set of lockdowns could disrupt the road to recovery for the domestic aviation sector. 

In detail, the research showed that the corporate traveller segment showed signs of slowing down, with a 19 percent decrease in November 2021, in comparison to pre-covid levels while everything concerning domestic air traffic to the number of departures has increased year on year. The research also showed that airlines’ capacity deployment was around 49 percent higher than November 2020 when 54,132 departures were recorded.

Furthermore, the number of departures in November 2021 was higher by 12 percent, compared to October 21 due to Covid-19 infections, which resulted in a downward trajectory. Superio Banerjee, ICRA’s vice president and sector head, said, “The threat of the new variant, which has pushed back the resumption of scheduled international operations, has the potential to derail the domestic recovery too, if it becomes a source of fresh round of lockdowns/restrictions in the near term.”

He further added, “Though the recovery continued in November 2021, demand continues to be subdued from the corporate traveller segment as reflected by the passenger traffic being lower by around 19% in November 2021 compared to pre-covid levels”

The new Omicron virus has led to a stiffer sanction by the the British and Canadian governments on Nigeria as they initially banned flights entry from Nigeria, a move which has raised many eyebrows. 

In another development, the Nigerian Civil Aviation Authority (NCAA) said Emirates Airlines can only fly once a week into Nigeria due to the refusal of the General Civil Aviation Authority in Dubai to allow Nigerian airlines to fly to Dubai through Sharjah. The development prompted the Federal Government to withdraw the ministerial approval granted Emirates Airlines by the Ministry of Aviation.

The regulatory body stressed that the Federal Government was poised to ensuring that Nigeria’s businesses were protected. With the withdrawal, which takes effect from December 12, 2021, Emirates Airlines can now fly into Abuja (Nigeria) just once weekly on Thursdays, while its Lagos flight is suspended.

The NCAA Director General, Captain Musa Nuhu, said the approval was withdrawn following the refusal of the General Civil Aviation Authority (GCAA) to grant equal rights to the sole Nigerian carrier, Air Peace, flying to Dubai via Sharjah. He explained that the aviation minister had graciously granted Emirates Airlines 21 frequencies weekly to two major airports in Nigeria; Lagos, 14 and Abuja, seven.

However, according to Captain Nuhu, Air Peace only requested for three weekly flights to Sharjah, not even Dubai airport, but the CAA refused the airline. The CAA only approved one weekly frequency to the airline. The only excuse they gave was that they don’t have enough slots. Where is the justice in this? That is capital flight out of Nigeria. Nigeria should protect its own.”

NCAA had in a letter with the reference number: NCAA/DG/AIR/11/16/329, dated December 9, 2021 titled ‘Withdrawal of Ministerial Approval of Emirates Airlines Winter Schedule,’ and signed by Captain Nuhu to the Country Manager, Emirates Airlines withdrawn the initial approval granted the airline.

The letter read: “I write to inform you of the withdrawal of the approval granted to Emirates Airlines winter schedule. This approval was conveyed via a letter with reference number FMA/ATMO/501/C.104/XV/356 dated 1st December 2021.

“The withdrawal becomes effective on Sunday 12th December, 2021 at 23002. Please kindly note, henceforth Emirates Airlines is granted approval to operate only one weekly passenger frequency to Abuja on Thursdays.”

Following the government’s stand not to shift grounds, the United Arab Emirates (UAE) conceded six slots to Air Peace, both at the Dubai and Sharjah airports. Director Public Affairs, Ministry of Aviation, Mr. James Odaudu, who disclosed the resolution, said: “They have approved six slots for Air Peace flights, both in Dubai and Sharjah airports.

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