Lagos loses aviation hub to Accra

Lagos has lost its quest to become the West African aviation hub to Accra, the Ghananian capital due to liberal interpretation and implementation of aviation agreements by the latter.

A hub in aviation means the effective centre of an aviation activity, region or network. In this sense, it means that Kotoka International Airport, Accra, Ghana has become the regional international airport where long-distance flights are available to the rest of the world, far more in number than Lagos.

By September this year, Air Canada is joining the likes of Lufthansa German Airlines, British Airways, Emirates and Air France , which currently operate from Accra to their countries and beyond.

“The liberal interpretation and application of rules and agreements make for quick implementation of business decisions and the Ghanaian government is making that possible, so the move by international airlines to operate from Ghana”, an analyst told BusinessDay.

Leading economist, Bismack Rewane, told a gathering of academics and business leaders at the monthly breakfast meeting organised by the prestigous Lagos Business School that Air Canada had applied for traffic rights in Ghana (not Nigeria) seeking to penetrate into the West African market, which emphases the fact that Lagos has lost its natural position as hub in West Africa.

According to Rewane,” Accra is effectively the West African hub.”

Other analysts told BusinessDay that other factors that have aided the making of Accra as a hub, include the collapse of Cote D’ivoire , as a result of the political crisis ravaging the country.

“You will recall that many multi-nationals hitherto operating from Cote d’Ivoire moved their offices (regional or headquarters) to Accra . This means more people travelling into and out of Ghana . A hub is a natural centre of aviation activities which Accra has provided”, the analyst said.

In the 90s when the issue of hub for Afica became topical, discussions in the aviation industry, Lagos (Nigeria), Johannesburg (South Africa) and Cairo (Egypt) were said to be the natural hubs for Western, Southern and Northern Africa, respectively.

Unfortunately, while Johannesburg and Cairo have assumed their positions, Lagos has lost it own to Accra . Other reasons are high cost of aviation fuel, obsolete equipment at the Lagos airport and unfriendly policy environment.

“In Nigeria , a change in government means automatic change in policies and rules. Agreements are changed by the second and the interpretations are subject to the moods and feelings of politicians and government officials and not according to the letter and spirit of the law. This is not good for business”, a foreign airline manager based in Lagos told BusinesssDay.

Rewane who also spoke on many issues affecting the airline industry noted that domestic airlines continued to struggle with the 40 percent increase in aviation fuel cost.The airlines have also responded with a hike in fares across all cabins and rationalisation of routes.

Similarly, Air Nigeria , he said, is refining its strategy, hoping to return to the long-haul with resumption of flights on the Lagos - London ; Lagos - Johannesburg ; and Lagos - Baltimore routes.

The airlines are also suffering under the heavy burden of high cost of maintenance and aggresive debt collection by aviation services providers and regulators.

“Most domestic airlines are cash strapped and debt burdened. New strategies include expanding the regional network where yields are higher and competition less intense”, he said.

First Nation Airline, a new airline and offspring of Bellview Airlines, has acquired aircraft, he said, but is yet to start flights.