ASRT Advocates Interlining, Codeshare Between Nigerian Airlines - By Daisy BARRO

 

Dr. Gbenga Olowo, President, ASRT.

Aviation Safety Round Table (ASRT) has advocated for interlining and codeshare between Nigerian domestic airlines as a means of increasing their profitability. This was the core message of the recently concluded Quarter 1 Aviation Safety Round Table Initiative (ASRTI) Breakfast Webinar which held on April 29, 2021.

During the meeting, it was noted that interlining and codeshare between airlines can minimize the losses airlines incur due to flight cancellations and unused seats on an aircraft. Elimination of these factors can potentially provide a better travel experience for passengers and generate more revenue for airlines; which is a win-win situation for both parties.

It was acknowledged that despite the above advantages of partnership between airlines, it is an herculean task to attain any sort of collaboration between airlines that do not consider themselves peers; do not have mutual trust and do not operate similar business models.

It is therefore crucial for carriers looking to interline or codeshare to advance models that can be seamlessly integrated by all parties involved. The establishment of a Billing and Settlement Plan (BSP) platform was also suggested to be a starting point to enhance trust between partners.

Drawing on what has happened in the banking sector, it was also noted that though it is not within the powers of the Nigerian Civil Aviation Authority (NCAA) to initiate alliances between airlines, the regulator can play an essential role in setting the stage for this to happen by introducing strategic policies that will trigger the process.

According to aviation experts, this can be done without compromising the stipulated annual economic audit on all domestic airlines to determine their state of health as Part 18 of the NCARs enjoins.

Interlining and codeshare are voluntary commercial agreements between individual airlines to share the responsibility of transporting passengers and their luggage from one destination to another, rendering hassle-free travel for passengers and increasing airlines’ profitability in the process.