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A COMPARATIVE STUDY OF THE USE OF BILLING AND SETTLEMENT PLAN “BSP” BY TRAVEL AGENCIES IN KANO METROPOLIS
CHAPTER ONE
INTRODUCTION
1.1 Background of the study
The subsequent sections of the proposal initially illustrate the problem statement together with justification and the objective of the study. This is then followed by a literature review and methodology. A project plan for the research is also illustrated with a Gantt chart.
The airline industry can be related to many areas of businesses ranging from operations, to finance, to marketing and right through to engineering and technology. It is a fascinating industry to look at both from views of those who work in it and those who utilise it. In Nigeria, government ownership of airlines started on May 15 1946 under the aegis of West African Territories – Air Transport. The operation was called the West African Airways Corporation (WAAC). Nigeria owned the largest share holding of 68 percent equity and British Overseas Airways Corporation (BOAC) was the technical partner. WAAC metamorphosed to Nigeria Airways Limited in 1971, which ran at a loss up to 2004 when it was eventually liquidated. Before the liquidation, six unsuccessful attempts were made within the last twelve years of its existence to privatize the company (The Guardian Newspaper Nigeria, 2010)
Nigeria Airways Limited despite being a loss maker performed tremendous economic service to the nation and it was this important responsibility that the private sector fully stepped into at the exit of the national carrier. The Nigerian government and Virgin Atlantic Airways signed an agreement to establish a new airline for Nigeria, to be called Virgin Nigeria Airways on 28 September 2004. Nigerian institutional investors own 51% of the company and Virgin Atlantic Airways owns 49%. On 19 August 2008, Virgin Atlantic announced that it was “in talks to sell its 49 percent stake in Virgin Nigeria”. It is also reviewing “whether it is appropriate that the Virgin brand should remain linked to Virgin Nigeria”. The dispute arose after Virgin Nigeria’s domestic operations were moved against its will by the Ministry of Transportation to Terminal 2. All long haul flights to Johannesburg and London Gatwick Airport were suspended and effective from 27 January 2009. Nigerian Eagle Airlines (formerly Virgin Nigeria Airways), is the national flag carrier of Nigeria. Virgin still owns 49% of the new Nigerian Eagle Airlines with the remaining 51% by Nigerian investors. The airline is a replacement for defunct Nigeria Airways. Nigerian Eagle Airlines also stated that they plan to focus on domestic and regional flights with further expansion into Europe and eventually the United States of America (Virgin Nigeria website).
1.2 Statement of the problem
There may have been researches in this subject area. This project highlights and gives further information in the use of billing and settlement plan “BSP” by travel agencies in kano metropolis
1.3 Objectives of the study
1. To understand the chances of survival for a newly established ‘low-cost’ airline in Kano metropolis?
2. To know which ‘low-cost’ airline business model will be adopted that suits Nigeria’s business system?
3. To evaluate valuate the willingness of passengers to accept low-cost airline in Kano metropolis?
1.4 Research questions
1. What are the chances of survival for a newly established ‘low-cost’ airline in Kano metropolis?
2. Which ‘low-cost’ airline business model will be adopted that suits Nigeria’s business system?
3. Evaluate the willingness of passengers to accept low-cost airline in Kano metropolis?
1.5 Research hypothesis
H0: There is no relationship between the use of billing and settlement plan and the efficiency of travel agencies in kano metropolis
H1: There is a relationship between the use of billing and settlement plan and the efficiency of travel agencies in kano metropolis
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