Some domestic carriers are missing out on benefits that the International Air Transport Association (IATA) certifications present, including exposure to the global market.
The IATA Operational Safety Audit (IOSA) certification enables airlines to be rated among those with high safety standards.
The IOSA Program is an internationally recognised and accepted evaluation system designed to assess the operational management and control systems of an airline.
According to the IATA IOSA registry, out of 12 domestic airlines operating in Nigeria, only five airlines are IOSA-certified. They include: Air Peace, Ibom Air, United Nigeria Airlines, Overland and Arik Airline.
Benefits for airlines with this certification include: quality audit programme, continuous updating of standards to reflect regulatory revisions and best practices, elimination of audit redundancy, as well as structured audit methodology and standardised checklists.
Olumide Ohunayo, industry analyst and director of research, Zenith Travels, told BusinessDay that the IATA IOSA certification should be a priority and every airline must work towards getting it to boost its safety rating globally.
John Ojikutu, industry expert and the CEO of Centurion Aviation Security and Safety Consult, said the implications of not having IATA IOSA certification is that the airlines cannot fly international routes.
“It also means the foreign airlines cannot interline with them even on the domestic routes,” he said.
“Such airlines cannot be considered as flag carriers. It is only the Nigeria Civil Aviation Authority (NCAA) that can define their certification for the domestic passengers and so convince their insurance companies,” Ojikutu added.
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Susan Akporaiye, managing director and CEO, Topaz Travels and Tours, told BusinessDay that the IATA IOSA safety certification is a high-level safety certification recognised globally.
“Since Air Peace flies international destinations, this license has placed Air Peace in the position to have interlining agreements with any airline in the world into and out of Nigeria,” Akporaiye said.
The former president of the National Association of Nigeria Travel Agencies (NANTA) further said that the certification should be a challenge to other airlines.
“It is left to other airlines to take up the challenge and up their game and make themselves ready for international business, partnerships and collaborations,” she added.
Stakeholders have argued that while most domestic airlines are not flying international routes yet, the IATA certifications can help them get codeshare agreements with other foreign airlines to help distribute their passengers locally.
A codeshare agreement is a business arrangement, common in the aviation industry, in which two or more airlines publish and market the same flight under their own airline designator and flight number (the airline flight code) as part of their published timetables or schedules.
Another IATA resource that airlines across the world leverages for smooth operations is the IATA Clearing House (ICH).
The IATA Clearing House (ICH) provides fast, secure and cost effective billing and settlement services in multiple currencies for the air transport industry.
It enables the world’s airlines and airline-associated ‘suppliers’ to settle their passenger, cargo, UATP and miscellaneous/non-transportation billings by applying the principles of set-off/netting, thus reducing cost, risk and increasing speed.
BusinessDay’s checks show that out of 12 operating airlines in Nigeria, only Air Peace is in the IATA Clearing House.
Bankole Bernard, group managing director, Finchglow Holdings Limited and chairman of Airlines and Passengers’ Joint Committee (APJC) of IATA, said the clearing house for airlines is basically commercial.
“It is when you are safe that you can start to address commercials. So, it’s step by step. We have created safety, then we will now start to look at commercials. Air Peace has gone to the IATA Clearing House; they have tasted it and seen how it is. Maybe in their wisdom, they will be able to enlighten others.
“To get access to the clearing house, there are certain things you have to do and some of them involve having to tie down money because they know Nigeria will default and walk away. So, you have to deposit and if anything goes wrong, they will take your money and use it to settle others. That is the major challenge with our airlines,” Bernard explained.
He said being in IATA Clearing House means that airlines can expand their inventories.
“Your inventory becomes the reach for everybody, even for those outside the country. It means that other people in other regions can have access to you. You can even get forex in that regard.”
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