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Unlocking Domestic Airlines’ Profitability, Efficiency

Last week, Dana Air and Ibom Air signed an all-encompassing codeshare agreement to work together for better satisfaction of their customers. Chinedu Eze writes that if fully embraced it would boost the revenue of the domestic carriers

Last week two Nigerian carriers, Dana Air and Ibom Air signed full codeshare agreement, the first major airline alliance for over a decade in Nigeria.

A codeshare agreement, also known as codeshare, 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 as part of their published timetable or schedule.

It is also related to interline, which is a voluntary commercial agreement between individual airlines to handle passengers travelling on itineraries that require multiple flights on multiple airlines.

These alliances are what made many airlines in different parts of the world successful and it has become a tradition in more advanced societies like the US and Europe, where a passenger with a ticket from one airline could travel with other airlines, connecting flights with other operators.

The codeshare agreement between Dana Air and Ibom Air was historical because it was comprehensive and broke the jinx that had lingered over the years because of apprehension and suspicion, largely whelped by stiff and unhealthy competition among domestic carriers.

The Nigerian Civil Aviation Authority (NCAA) had at different occasions canvassed for airlines alliance, seeing it as the key to reduce flight cancellations, flight delays and low load factor, whereby two or three airlines would airlift passengers small number of passengers to the same destination instead of putting the passengers on one flight and having a full load factor.

THISDAY had spoken to airline managers who would conceitedly say that they won’t partner with other airlines because they have different ideology,…

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