Airline survival: Aviation expert urges airlines to adopt codeshare

Domestic airline operators in the country have been advised to synergize by embrace code sharing in their operations to help the industry save cost and move forward.

An aviation consultant and former Chief Operations Officer with the Nigerian Aviation Handling company Mr Hubert Odika, who gave this advice in Ikeja, while analysing the state of the aviation industry in Nigeria said, synergy among airlines will lead to their survival

Odika explained that code sharing among airlines will help domestic airlines to grow financially as there was no room for waste adding that the country has the market.

A codeshare is an agreement between two or more airlines to come together in a flight.

A ticket can be purchased from one airline for a flight that is operated by another, partner airline.

He, however, noted that it was not the best of time for airlines to declare fat profits as global trade are currently down adding that the local airlines with the kind of pricing they have, it will be a tough time

Odika noted that with the security challenges being faced in the country with unsafe roads, new domestic airlines will break even as the majority of passengers travel by air. “In terms of new airlines springing up, it’s a good idea, we have the travelling population. So, there is nothing wrong with having more airlines”
According to him, with the new airlines coming in with smaller aircraft, they were at the advantage of increasing their margins and reducing operating costs

He commended the new domestic airline operators going for smaller aircraft for operation saying that it was the only way to make the airline business viable in the country adding that more airlines should embrace the use of such smaller aircraft

Odika said airlines should back up their operations with competition in terms of airfare pricing adding that to make a profit in the industry, an airline must be operating between 60 to 70 per cent capacity
On the construction of Airports by the state government, Odika described it as a good development geared at providing employment, easy access from one state to another, create opportunity for tourism and movement of general cargo

He said the ability to build state airports showed that Private Participation will work in states and make airports profitable adding that the traditional airport operation generates only thirty per cent revenue while the ancillary services around the airport that generates the bulk of the revenue

He expressed optimism that state governments constructing airports will not only rely on revenue from passengers but look around the airports’ environment to harness areas of revenue generations

On the recovery of the aviation industry after the pandemic, Odika explained that it will take a few years to recover with the introduction of the vaccines as it was not possible to put a timeline for the industry to recover.