Air Service Agreements Airlines

Separate bilateral negotiations method: revision of amendments with 73 partner countries representing 340 bilateral agreements. Since 1992, the Ministry has adopted an “open skies” policy to eliminate government involvement in airline decision-making in international markets through routes, capacity and pricing. Outdoor agreements also contain provisions for business opportunities, security and security. The United States has negotiated “open skies” agreements with more than 100 aviation partners. It is clear that some BASAs have been negotiated or renegotiated without fully considering the trade elements necessary to enable the industry to benefit from the proposed targeted benefits of BASA, and the focus has not been on the economic conditions in which the country operates. For example, most agreements provide for the payment of royalties to the Nigerian government if Nigerian designated carriers are unable to return the favour under the agreement. This may be a reasonable way to increase government revenues under the agreement, but it does nothing commercial for the industry. In some cases, agreements have been signed to stop the payment of these royalties. In contrast, in 2014, Emirates reached an agreement with the South African authorities for additional frequencies between South Africa and Dubai. It was reported that the additional frequencies were granted on the condition that the airline pay 40 per cent of the cost of each ticket to South Africa Airways. As such, there was a commercial advantage for the national airline and the nation, through enlargement. It is recommended that the government consider similar or other business options to encourage domestic carriers to continue their operations and possibly expand their operations internationally.

The idea is not to reduce the frequencies or entry points of foreign airlines, but to elevate the domestic aviation industry to a level of competitiveness that would compete with any foreign country. In addition, government and industry stakeholders need to look internally at improving air transportation infrastructure and other related areas to strengthen our bargaining power before trying to renegotiate existing agreements or negotiate future agreements. The Chicago Convention established that no international air service without authorization can be operated on or on the territory of a contracting state. In the following years, ICAO developed a number of traffic rights known as Freedoms of the Air. These freedoms remain the basis of the rights traded today as part of the air services negotiations (the Australian government. Ministry of Infrastructure and Transport, 2009)2. Harold Demuren, former Director General of the Nigerian Civil Aviation Authority, said in a statement to the press, following BASA`s renegotiations between Nigeria and Qatar in 2016, that the agreement reached by the Qatar-designated airline, which had seven frequencies to Nigeria at the time, gave more entry points to the country. , thus exacerbating the problems of national airlines. His argument was that the country did not have a local airline capable of competing with Qatar Airways, which made the agreement unilateral, despite the confidence of Finance Minister Kemi Adeosun, that signing the agreement would result in much more investment and business opportunities between Qatar and Nigeria.

Commission decision approving the standard clauses for inclusion in bilateral air services agreements jointly established by the Commission and Member States by the Commission and Member States.” Horizontal negotiation method: changes with 41 countries and a regional organisation of 8 Member States, representing 670 other bilateral agreements.