Experts opens up on dollar charges to airline’s customers

• Aviation experts have endorsed Emirates Airlines' decision to bill passengers in US dollars
• They cited the US dollar bills for the airline and the Nigerian cash on hand as reasons for this
• They argued that setting prices in US dollars was a fair reaction to the persistent economic challenges

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

Aviation experts have supported Emirates Airlines' choice to bill customers in US dollars, pointing to the airline's expenses denominated in US dollars and cash held in Nigeria.

Aviation experts argued that dollar pricing made sense given the current economic challenges. Photo Credit: Emirates, Contributor
Source: Getty Images

They maintained that pricing in dollars was a reasonable response to the ongoing economic difficulties, considering the financial strains foreign airlines operating in the nation faced.

Olumide Ohunayo, a member of the Aviation Round Table, told The PUNCH that it was challenging to enforce naira pricing due to the inconsistent aviation policies in Nigeria and the requirement for airlines to pay in dollars for a variety of services.

“Emirates comes here, they pay for services at the International Airport to the agencies in dollars. They pay for fuel in dollars,” Ohunayo said.“If you can charge them in dollars in Nigeria, what will hold them back from charging in naira? You cannot have a law that you will enforce on others, and you will not implement. If the agencies of the government are collecting dollars at the international airport for services rendered— from NAMA to FAAN to NCAA and to fuel regulators — why will they not also sell in dollars?”

Airlines experience finncial lose

Ohunayo added that airlines had experienced financial losses as a result of monies being stranded in Nigeria and fluctuating exchange rates.

He contended that it makes sense for airlines to charge in dollars if they deem it to be competitive, noting that in certain instances, tickets bought in dollars were even less expensive than those priced in naira.

“I have gone to an airline’s website recently. I also had to check with Emirates. Emirates’ dollar-denominated ticket that was on the website was cheaper than the other airline that was selling in naira.“So, I would prefer to go and buy the dollar ticket rather than the naira, which is more expensive… but you cannot force them when they are paying for services in Nigeria in dollars,” he noted.

Kingsley Nwokoma, President of the Association of Foreign Airlines and Representatives in Nigeria, emphasised that any grievances on the matter ought to be directed through the appropriate means.

He emphasised that clients ought to have the option of paying for their tickets in dollars or naira.

“There will be disruption in the system because imagine if all airlines in Nigeria insist that tickets should be bought with USD; there will be problems. Everybody making a complaint should go to the right source, and we will take it from there,” he said.

John Ojikutu (retd), the CEO of Centurion Security Limited, also endorsed international airlines charging Nigerian passengers in dollars, arguing that the practice was appropriate given the economic climate in which such aircraft operate.

He emphasised that international airlines should not be expected to sell tickets in naira in such circumstances because they pay for services at Nigerian airports in dollars.

FG gives new order for passengers of suspended airlines

Legit.ng reported that Festus Keyamo, the minister of aviation and aerospace development, has given the Nigeria Civil Aviation Authority a 24-hour deadline to act on the unpaid air ticket balances of certain airlines, particularly those that have halted flights in recent months.

At the NCAA Consumer Protection Portal's opening on Thursday at the Murtala Muhammed Airport in Lagos, Keyamo issued the directive, guaranteeing that travelers may file complaints in real time.

Recall that Dana Air was grounded by the NCAA for both financial and safety concerns while Azman Air halted operations due to incapacitation in August 2023.

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Source: Legit.ng