Finchglow GMD: IATA Clearing House Essential for Airline Growth, Survival

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BY ANTHONY OMOH


Nigerian entrepreneur Bankole Bernard emphasized that the IATA Clearing House essential for Nigerian airlines to survive and thrive in the competitive global aviation sector. The Group Managing Director of Finchglow Holding warned that airlines focusing solely on point-to-point operations would face difficulties in staying competitive.

Bernard said this during a discussion about the Holding’s 2025 trajectory, stressing, “Any airline that wants to survive and grow should not limit itself to a point-to-point operation.” By joining the IATA Clearing House essential for their growth, airlines can expand their inventories, access foreign exchange, and pursue codeshare opportunities with international carriers. Bernard mentioned that one airline has already joined the clearing house, and its success will likely inspire other Nigerian carriers to follow suit. He believes that this collaboration will provide the necessary tools for local airlines to compete on the global stage.

Beyond joining the IATA, Bernard highlighted the need for transparency and collaboration within Nigeria’s aviation industry to foster sustainable growth. He urged airlines to explore new opportunities beyond traditional operational models. Furthermore, Bernard called for a strategic shift in how state airports are developed, suggesting they be repurposed into cargo hubs to meet the growing global demand for cargo transport. Bernard acknowledged the efforts of states in building airports, but questioned their strategic direction, saying, “We might say they don’t know what they are doing, but it’s a major investment with significant opportunities.”

In addition to the issue of airport development, Bernard stressed the growing global demand for cargo and Nigeria’s untapped potential for exports. “The business is changing,” he stated. For state airports to succeed, Bernard urged authorities to collaborate with industry experts to create effective packaging systems and preservation facilities. With proper restructuring, Bernard is confident that state airports could play a crucial role in boosting Nigeria’s non-oil exports and supporting economic diversification.

Reflecting on the challenges Nigerian airlines faced in 2024, Bernard mentioned trapped funds and soaring inflation as major obstacles. However, he acknowledged that the introduction of the floating exchange market has provided stability to the economy. Bernard noted that this stability has contributed to growth in the business sector, particularly for airlines, enabling them to plan for the future.

“The issue of airline trapped funds can never come up again in this country. That is gone for good,” Bernard said. He further explained that the floating exchange rate has created opportunities for growth, particularly in the airline industry. Bernard also emphasized that airlines must adapt to changing trends, including the growing demand for cargo services. He called on states to repurpose their airports into cargo hubs, a move that could significantly boost Nigeria’s non-oil exports and aid economic diversification.

In conclusion, Bernard stressed that Nigerian airlines must evolve to stay competitive. Airlines should embrace collaboration, explore new business models, and adapt to global trends for long-term success. Airlines that fail to innovate may struggle to keep up in an ever-evolving industry. The future of Nigerian aviation relies on embracing collaboration and a broader vision for the industry.

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