Travel News

*Africa tops list of EU visa rejections 

*Singapore re-crowned world’s most respected travel document

Emmanuel Addeh in Abuja

Nigeria has emerged as the country with the world’s 92nd most powerful passport, falling from 62nd position in 2006, but rising from 97th position in 2023, according to the Henley Passport Index, 2024. The Henley Passport Index ranks all the world’s passports according to the number of destinations their holders can access without a prior visa. The index is based on exclusive data from the International Air Transport Association (IATA).

The Henley Passport Index compares the visa-free access of 199 different passports to 227 travel destinations. If no visa is required, then a score with value = 1 is created for that passport. The same applies if one can obtain a Visa On Arrival (VOA), a visitor’s permit, or an electronic travel authority (ETA) when entering the destination.

According to the latest report by the organisation, Nigeria was 62nd in 2006; 64th in 2007; 67th in 2008 and 2009 and 76th in 2010. Falling to an all-time low of 103rd position in 2021, Nigeria’s ranking on the Henley index picked up steam in 2022, rising to 98th position and then 97th in 2023, before the current 2024 ranking of 92nd most powerful travel document.

Africa also topped the list of the European Union (EU) visa rejections, according to a new research conducted for Henley & Partners, Prof. Mehari Taddele Maru, Adjunct Professor at the School of Transnational Governance at the European University Institute, and Johns Hopkins University in Italy. The survey compared Schengen visa rejection rates for African applicants to those from other regions. The results showed that around 3 in 10 or 30 per cent of African Schengen visa applicants were rejected, compared to 1 in 10 applicants worldwide, despite the continent having the lowest number of visa applications per capita.

The report  also found evidence that the poorer the African country of origin, the higher the rejection rate for its nationals. According to Maru’s research published in the Henley Global Mobility Report 2024 July edition, Africa accounted for seven of the top 10 countries globally with the highest Schengen visa rejection rates in 2022. Algeria was (45.8 per cent), Guinea-Bissau (45.2 per cent), Nigeria (45.1 per cent), Ghana (43.6 per cent), Senegal (41.6 per cent), Guinea (40.6 per cent), and Mali (39.9 per cent).

Nigerians faced almost three times the rejection rate of Turkish applicants (15.5 per cent) and twice that of Iranians (23.7 per cent). The report said that despite justifications based on apparent security or economic concerns, the European visa system clearly demonstrated a pre-determined bias against African applicants.  “While factors such as per capita income, the incidence of illegal overstays, and the low rate of return and readmission of Africans illegally present in Europe partially explain these higher rejection rates, they do not fully account for the significantly greater restrictions against African Schengen visa applicants, and, for that matter, the passport strength itself.

“It is highly likely that European migration policies, shaped by national identity politics, play a more significant role in these discriminatory restrictions than is officially acknowledged,” Maru stressed. He added: “Africans face a triple whammy: Lower passport power, higher visa rejection rates, and consequently, limited economic mobility. In short, the poorest individuals face the greatest difficulties when seeking to travel or move to more prosperous countries.

“I would argue that weak economies and discriminatory policies based on identity and culture explain the high rate of rejection for African Schengen visa applicants.”

But overall, Singapore broke away from the group of six countries that shared the top spot on the Henley Passport Index before now, reclaiming its title as the world’s most powerful passport in the latest ranking.

The city-state also set a new record score, with its citizens now enjoying access to 195 travel destinations out of 227 around the world visa-free.

France, Germany, Italy, Japan, and Spain dropped to joint-2nd place, each with visa-free access to 192 destinations, and an unprecedented seven-nation cohort, each with access to 191 destinations without a prior visa — Austria, Finland, Ireland, Luxembourg, Netherlands, South Korea, and Sweden — now sit in 3rd place on the ranking, which is based on exclusive and official data from IATA.

The UK hung onto 4th place along with Belgium, Denmark, New Zealand, Norway, and Switzerland, despite its visa-free destination score falling to 190.

The US on the other hand, continued its now decade-long slide down the index, dropping down to 8th spot, with access to just 186 destinations visa-free.

Former passport powerhouses, the UK and the US jointly held 1st place on the index 10 years ago in 2014.

 Afghanistan remained firmly entrenched as the world’s weakest passport, losing access to yet another destination over the past six months, leaving its citizens with access to only 26 countries visa-free — the lowest score ever recorded in history of the 19-year-old index.

By Daniel Adaji

Many residents in the Federal Capital Territory struggle to afford decent housing as rents continue to rise. This report by DANIEL ADAJI examines the causes of homelessness in the FCT, its consequences, and potential solutions

The Federal Capital Territory Abuja is Nigeria’s capital city and a symbol of national pride. However, beneath the city’s gleaming infrastructure and sprawling estates lies a stark reality: many residents are struggling to afford decent housing.

The FCT is notorious for its exorbitant rents, which have skyrocketed in recent years. “A two-bedroom apartment in a decent neighbourhood can cost upwards of N5m per annum,” a real estate agent, Udochukwu Unoh, noted.  A sum out of reach for many Nigerians.

The high demand for housing, fuelled by the city’s growing population and limited supply, has created fertile ground for exploitative landlords and property developers.

In a recent meeting at the State House in Abuja, the Senate President, Godswill Akpabio, called on the Nigerian Institution of Estate Surveyors and Valuers to checkmate the activities of real estate agents whose stock in trade was to take advantage of tenants in the city and the country at large.

Homelessness

As rents continue to soar, many residents are forced to seek alternative accommodation, often in informal settlements or on the streets.

Homelessness is a growing concern in the FCT, with many individuals and families struggling to access necessities like shelter, sanitation, and healthcare.

A street view of some parts of the FCT showed how many youths and children loiter around abandoned buildings and under the bridges. Many of them have either been evicted by their landlords or cannot afford to secure decent accommodations.

For instance, the Mabuchi, Banex, and Berger bridges in the FCT have become shelters for many homeless residents.

Our correspondent observed the legs of one Abdul Yunusa, whose legs festered as a result of the untreated injury he sustained during an attack on him on one of the days he was sleeping under the Banex Bridge.

Apart from lacking a secure accommodation, he was also unable to afford to treat himself.

In Galadimawa, Abuja Municipal Area Council, our correspondent observed several families taking shelter in some uncompleted buildings without doors, or windows, and having just sacks to keep the rooms enclosed.

Speaking with one of the residents, a father of three, who preferred anonymity, said, “This is where I live with my family. The condition is no good, but this is the best we can get for now.”

While some were fortunate enough to afford accommodations, the services are inadequate, from improper placement of the buildings on drainage systems to the lack of water and electricity.

From interactions with stakeholders and residents, our correspondent gathered that the high rents and homelessness in the FCT were complex issues that could be attributed to several factors. Some of the key contributors to this problem include:

Rapid urbanisation and population growth

The FCT has experienced rapid urbanisation and population growth in recent years, leading to an increased demand for housing. This growth has put pressure on the existing housing stock, leading to higher rents and a shortage of affordable housing options.

Limited housing supply and inadequate planning

According to experts, the housing supply in the FCT has not kept pace with the growing population, leading to a shortage of affordable housing options. This shortage has driven up rents, making it difficult for low- and middle-income households to access decent housing.

The influx of people from other parts of the country

The FCT has become a magnet for people from other parts of the country seeking better opportunities. While this influx has contributed to the economic growth of the territory, it has also put pressure on the housing market, leading to higher rents and a shortage of affordable housing options.

Corruption and exploitation in the housing sector

As the Senate President noted, corruption and exploitation in the housing sector have also contributed to the high rents and homelessness in the FCT. Unscrupulous landlords and property developers have taken advantage of the housing shortage to charge exorbitant rents and engage in other exploitative practices.

Consequences

The consequences of high rents and homelessness in the Federal Capital Territory are far-reaching and devastating, affecting not only individuals but also broader society.

Many residents are forced to live in squalid conditions, exposed to health risks, and vulnerable to crime and exploitation.

Living in squalid conditions can have severe health implications, including the spread of diseases, mental health issues, and a higher risk of accidents and injuries. The lack of access to basic amenities such as clean water, sanitation, and hygiene facilities further exacerbates the situation.

Moreover, the situation perpetuates poverty and inequality, as those who cannot afford decent housing are often relegated to the margins of society. This can lead to a cycle of poverty, where individuals are unable to access better job opportunities, education, and healthcare due to their housing situation.

Strain on public resources

Homelessness places a significant burden on public resources, including healthcare, law enforcement, and social services. Homeless individuals often rely on emergency services, such as emergency rooms and shelters, which can be costly and inefficient. Additionally, law enforcement agencies spend a significant amount of time and resources addressing homelessness-related issues, such as loitering and vagrancy.

Economic impacts

High rents and homelessness can lead to reduced economic activity, as individuals and families are forced to allocate a larger portion of their income towards housing. This can lead to reduced consumer spending, decreased economic growth, and increased poverty. Furthermore, homelessness can also lead to a loss of productivity, as individuals struggling with housing insecurity may be less likely to be employed or engaged in education and training.

Social cohesion

The lack of affordable housing can lead to social segregation, as those who cannot afford decent housing are often forced to live on the periphery of society. This can lead to increased social isolation, reduced social mobility, and decreased community engagement. Moreover, homelessness can also perpetuate systemic inequalities, as marginalized communities are disproportionately affected by the housing crisis.

Political instability

The failure to address the housing crisis can lead to social unrest, political instability, and a loss of faith in government. As the housing crisis persists, frustration and anger among the affected population can grow, leading to increased protests, activism, and political polarization. Moreover, the government’s inability to address the crisis can erode trust in institutions and undermine democracy.

Solutions

Experts have suggested a multifaceted approach that addresses the root causes of the problem. Some potential solutions include:.

Akpabio called on the NIESV to take the lead in curbing the exploitation of tenants by real estate agents.

Speaking at the inauguration lecture and ceremony of the 26th President and Chairman of the Council of NIESV in Abuja recently, the Senate president emphasised the need for the institution to establish integrity and discipline in the industry.

“I implore you to lead the charge in curbing the exploitation of tenants by real estate agents and establishing integrity and discipline in the industry,” he said.

Increasing the supply of affordable housing

The government and private sector can work together to increase the supply of affordable housing in the FCT. This can be achieved through initiatives such as subsidized housing programmes, public-private partnerships, and community land trusts.

The Chairman of the Council of Registered Builders of Nigeria, Dr Samson Opaluwah, called on the government to provide free land to Nigerians to address the issue of affordable housing in the country.

The chairman of CORBON in an exclusive chat with The PUNCH stated, “We would call for the government to take the issue of access to land of citizens as a critical component of affordable housing. Let people have direct access to land.”

Opaluwah emphasised that the cost of building construction was largely affected by the cost of land and imported building materials and that addressing those two issues would significantly reduce the cost of building.

He also highlighted the need for a national programme to address the housing deficit in the country, stating, “Housing is a very basic requirement of man. Next to feeding is housing, food and shelter.”

“CORBON has been working to promote the adoption of smart technologies in Nigeria’s building industry, including training and capacity building programs, and has established a training centre to conduct capacity building for builders across the country,” he said.

Improving planning and coordination

Better planning and coordination are essential to addressing the housing shortage in the FCT. The government-established housing authorities should ensure the development of more housing policies and programmes.

The Permanent Secretary of the Federal Ministry of Housing and Urban Development, Dr Marcus Ogunbiyi, restated the ministry’s commitment to sustainable communities, social cohesion, and economic growth.

In a recent interview with journalists in Abuja, Ogunbiyi highlighted the ministry’s efforts, saying, “We are laying the foundations for sustainable communities, fostering social cohesion, and stimulating economic activities.”

He remarked that that those initiatives were not just about building structures, but about improving the quality of life for all Nigerians.

“All of us in Nigeria are contributing in one way or another towards achieving these goals,” he added.

“These initiatives represent a commitment to ensuring access to affordable housing and essential amenities for every Nigerian.”

Addressing corruption and exploitation

The government must take decisive action to address corruption and exploitation in the housing sector. This can be achieved through measures such as rent control, stricter regulation of property developers, and increased transparency in the housing market.

It is essential to provide support services to those affected by high rents and homelessness. This can include emergency housing assistance, counselling, and job training programs.

The Renewed Hope Housing Programme, aimed at delivering 50,000 housing units across Nigeria, has raised concerns about affordability and its impact on citizens’ living conditions.

Despite the programme’s ambitious goals, including the development of seven Renewed Hope Cities and 250-unit Renewed Hope Estates, Nigerians worry about the rising inflation and poor purchasing power that may render the housing units unaffordable.

Commenting on the project, a resident in the FCT, Nathaniel Adole, noted, “It is great to know that the government is working to put these housing units together but my concern is, how we can afford it as citizens? The government should develop a scheme that puts the poor and middle class into consideration so that, we can also fully benefit from this initiative.”

The high rents and homelessness in the FCT are complex issues that require a multifaceted approach to address. By increasing the supply of affordable housing, improving planning and coordination, addressing corruption and exploitation, and providing support services, the government can make progress in addressing this challenge and ensuring that everyone has access to decent and affordable housing.

BY  Isaac Anyaogu

LAGOS, July 29 (Reuters) – Fuel queues lengthened across major Nigerian cities on Monday after state-oil company Nigerian National Petroleum Corp. faced problems supplying gasoline to local traders and depots.

Last year President Bola Tinubu’s government opened up gasoline imports to private companies but foreign currency shortages and a cap on the price of petrol has mean that NNPC remains the only importer. Nigeria’s new Dangote Refinery is yet to start processing gasoline.

“The NNPC Ltd wishes to state that the tightness in fuel supply and distribution witnessed in some parts of Lagos and the Federal Capital is as a result of a hitch in the discharge operations of a couple of vessels,” Olufemi Soneye, NNPC spokesperson said in a statement over the weekend when queues began forming.

Gasoline prices at retail stations have risen to over 800 naira ($0.5063) from around 617 naira per litre in May 2023 when the government announced it was ending gasoline subsidies. The price surge has added to already high inflation in Nigeria and a cost of living crisis.

The NNPC Ltd owes gasoline suppliers over $6 billion, thus affecting supplies, and is seeking to raise financing to settle the debts.

($1 = 1,580.0000 naira)

(Reporting by Isaac Anyaogu; Editing by Susan Fenton)

BY  CHINEDU OKAFOR

Namibia is on the verge of implementing a new visa policy, some have described as fair. Namibians looking to travel to some countries have to go through very lengthy, pricey and stressful processes. In response, citizens from those countries would now have to go through a comparable procedure should they choose to visit Namibia.

Starting April, 2025, citizens from 33 countries, which currently do not need a visa to travel to Namibia, would have to attain one should they choose to visit the Southern African tourist nation.

According to a report by the BBC, these countries, described as “non-reciprocating countries,” (countries that require Namibian passport holders to have a visa), include the US, UK, Germany, Canada and 29 others.

“Namibia has extended gestures of goodwill and favorable treatment to nationals of various countries. However, despite these efforts, certain nations have not reciprocated,” Namibia’s immigration ministry said.

“In light of this disparity, the government has deemed it necessary to implement a visa requirement to ensure parity and fairness in diplomatic interactions,” the ministry continued.

However, unlike African passport holders who need to obtain their visas in advance, these visitors will be able to purchase their $90 90-day visa upon arrival.

Charles Moore, the British High Commissioner to Namibia, remarked that he respects Namibia's authority to enact new laws.

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“[The UK] unfortunately imposed a visa regime on Namibia last year due to the number of asylum seekers we were receiving. That was impacting our relationship with Namibia,” the commissioner stated.

While many have lauded this decision, the tourism industry is a little skeptical. The Hospitality Association of Namibia said it was concerned about how the decision would be received by tourists.

This industry accounts for around 7% of the country’s GDP, it is the third largest contributor to the economy. The countries which are now required to apply for visas, make up most of its revenue.

“It will not change much; you can still get on a plane without a visa. It’s just when you get to the airport you will fill a form, pay the fees and enter,” tourism expert, Soni Nrupesh, stated.

BY  Olasunkanmi Akinlotan and Princess Etuk

Many air passengers of Arik Air were left stranded at the Murtala Muhammed Airport, Lagos, and the Nnamdi Azikiwe Airport in Abuja on Tuesday.

The trips were abruptly stalled after the Nigerian Airspace Management Agency grounded an aircraft owned by the airline over a court order instituted by the airline’s creditor and billionaire businessman, Arthur Eze.

PUNCH learned that Eze went to court in protest against his unpaid $2.5m by the founder of Arik Air, Johnson Arumemi-Ikhide.

In a statement by the spokesperson of NAMA, Abdullahi Musa, on Tuesday, the agency said this development stems from an enforcement action by the FCT High Court on July 19, 2024, which involved attaching Arik’s planes to secure the debt.

“Arik was further given a notice of public auction of the planes by the court which was slated to hold on July 26, 2024 if they fail to pay the judgment debt,” the statement partly read.

While Arik has since obtained an ex-parte order stopping it from further execution, NAMA has yet to be formally served. In response, NAMA decided to ground the aircraft to preserve the subject matter of the dispute.

“We have decided to comply with the effect of the Supreme Court order, by grounding the aircraft (subject of dispute) so that they are not taken out of the jurisdiction of the court or tampered with in a way as to frustrate the courts,” the statement stated.

 “The minister, being a member of the inner bar himself understands the implication of the Supreme Court order dismissing the motion for leave to appeal and will not risk his license as a legal practitioner or his privilege as a Senior Advocate of Nigeria by engaging in acts that will frustrate an order of the Supreme Court of Nigeria,” NAMA affirmed.

This development dashed the hope of many travellers who had planned their movements to other destinations on Tuesday through the airline.

A passenger who simply identified himself as Mr Adeniran, said he had planned to attend a business meeting in Abuja on Wednesday morning but had to return home after the news got to him at the airport around 4:02pm.

“I am very disappointed, I will not only lose money for not making the appointment in Abuja, my company will also be surcharged for suddenly pulling out of a meeting we planned together in the last three weeks. What kind of a disappointment is this?

“Please as a journalist if there is a way you can appeal to them for us, let them fix us on another plane today. I am so frustrated now, I am not happy at all. As I speak with you I am on my way home. “

Also, a father of three, Aina Oluwaseun, whose children had gone on a holiday to Abuja, had bought tickets for the trio’s return on Tuesday afternoon but that did not happen.

Expressing his frustration, Aina said he had gone to the airport to speak with the officials of Arik Air in Lagos if his children could be put on another flight but met disappointment as the officials said there was nothing they could do to salvage the situation at the moment.

“I really do not know what to do. They are yet to refund our money, or are they expecting me to pay another airline to bring my children home? I am using this medium to appeal to them to either put my children on another aircraft or refund my money in 72 hours.”

 The Chief Executive Officer of Arik Air, Capt Roy Ilegbodu (in receivership) expressed shock over the grounding of the airlines.

According to him, the decision was made without warning or consultation, saying it would affect its operations.

Ilegbodu who spoke through a statement he personally signed, said, “Our priority has always been to connect people and facilitate commerce, especially on critical domestic routes. The grounding of our fleet disrupts these vital services, leaving passengers stranded and inflating already high travel costs.

“This decision hurts everyday Nigerians who rely on our flights for business, family, and essential activities.”

He added that the decision also disregards ongoing judicial processes.

He said on February 26, 2016, a judgement was made in favour of Atlas Petroleum International Limited and Arthur Eze. However, there is an ongoing case in the Federal High Court, where the Asset Management Corporation of Nigeria is asserting its secured interest in Arik’s assets.

 “Despite this, a writ of attachment was issued on July 18, 2024, targeting its aircraft, after which, further to an originating motion filed by AMCON, the High Court of the FCT on July 25, 2024, clearly instructed all parties to maintain the status quo.

“We therefore are perplexed as to the grounding of our fleet, which is an overreach of the ongoing judicial processes and directives of court.

“We believe this action undermines the rule of law and sets a dangerous precedent, prioritising unsecured private interests over the public good and the rights of secured creditors. We are committed to following the legal process and have full faith in the judiciary to resolve these matters fairly.”

He disclosed that Arik has always been a proud partner in Nigeria’s growth, providing reliable and safe air travel.

“We urge the authorities to reconsider this decision, lift the grounding order, and allow us to continue serving the public and supporting the economy. We stand with our passengers and employees during this challenging time and are working tirelessly to resolve this situation. Your support and understanding are greatly appreciated.”

However, a source hinted the PUNCH that on July 19, 2024, the enforcement department of the FCT High Court enforced an order made by the court regarding a debt of $2.5m owed by Arik Air to Atlas Petroleum International Limited by attaching their aircraft.

BY Bethel Olujobi 

More Nigerian-trained nurses are passing their professional exams in Nigeria but submitting the results abroad.

A recent report from the Nurses and Midwifery Council (NMC) in the UK reveals that up to 13,656 Nigerian-trained nurses were registered in the 12 months ending March 2024, a 28 percent rise from the same period in 2023 when 10,639 Nigerians were recorded.

The figure reflects the UK’s highest pull of Nigerian-trained nurses in almost a decade and positions Nigeria as the third largest international population intake after India and the Philippines which recorded 62,413 (+28.9 percent) and 49,092 (+7.9 percent) respectively.

There are more nurses, midwives and nursing associates on the NMC register this year than ever totalling 826,418, 4.8 percent more registered professionals than 12 months ago, and 18.4 percent more than five years ago.

“These record numbers are welcome given the challenges of increasing demand for health and social care services, changing needs and workforce pressures,” the NMC reported.

During the Covid-19 pandemic in 2020, the UK experienced a surge in demand for more healthcare workers resulting in an elaborate plan to increase the number of nurses in the country by 50,000 by 2025. The government offered additional cost of living support of £5,000 for registered professionals and it was in the same period that the Health and Care skilled worker visa was introduced to encourage international applications.

These attractive packages have continued to draw many nurses away from Nigeria where health professionals battle poor working conditions, as medical institutions in the country struggle to meet the healthcare demands of a saturating population.

Nigeria, Africa’s most populous nation with over 218 million citizens, is one of the countries deemed by the World Health Organization (WHO) to have a critical shortage of health workers.

According to the Nigerian Association of Nurses and Midwives (NANNM), Nigeria’s nurse-to-patient ratio is 88 nurses per 100,000 Nigerians or 1:1,135,  which falls short of the World Health Organisation (WHO) recommendation of 83:10,000 or one nurse to about 120 patients.

On registered midwives, NANNM revealed the ratio to be 60 midwives per 100,000 patients or 1:1,666, a far throw from the WHO’s recommendation of 2.5 midwives for 1000 people.

Despite a code of practice outlined by the Department of Health and Social Care, which states that employers in the sector should not actively recruit from “red list” countries including Nigeria with a shortage of healthcare staff, the UK continues to experience an influx of Nigerians to make up for its own shortages.

“We continue to see proportional rises in first time joiners from several ‘red list’ countries from which active recruitment is not permitted,” reported the NMC. The year-on-year growth shows an increase of more than 18 percent in international takers compared to the previous year.

The organisation says the continued rise in internationally educated midwives joining this year following initiatives by the National Health Service (NHS) including the NHS England’s Maternity International Recruitment Programme, part of the NHS Maternity Workforce Programme.

To keep its talent for longer, the Nursing and Midwifery Council of Nigeria (NMCN) now insists that applicants seeking the verification of certificates to foreign nursing boards like the NMC and councils complete two years of practising in Nigeria after receiving their licenses. A move that has since been a topic of debate among nurses and healthcare professionals in the country.

The UK is at risk of having to fight for highly skilled workers in industries such as technology and banking, according to new research.

It is among the top five countries to face a prevalent shortage of talent, recruitment firm Hays said in a report.

Alongside New Zealand, Portugal, Canada and Switzerland, the UK could face major challenges in finding people to fill in-demand and emerging roles in the future.

On the other hand, the US, China, India, Germany and Brazil rank in the top five talent networks across all the sectors it analysed.

Hays said it collected a large global dataset using job adverts and candidate profiles from 31 countries.

To ensure the UK can continue to compete on the global stage, it needs a steady supply of talent with the right skills

Nigel Kirkham, Hays

It then examined five sectors it viewed as the strongest in terms of how they are adapting to rapid digital transformation. These were technology, engineering, manufacturing, life sciences and financial services.

The analysis found that the UK has a “pressing need” to address its skills shortages or it risks falling behind international peers.

“To ensure the UK can continue to compete on the global stage, it needs a steady supply of talent with the right skills,” said Nigel Kirkham, the chief executive of enterprise solutions at Hays.

The competitiveness of the UK as a place for growth and innovation has been a focal issue for both the current and former government.

Chancellor Rachel Reeves said delivering economic growth is “our national mission” and identified the financial services sector as being “at the heart” of its growth agenda.

Meanwhile, recruitment firms including Hays have flagged a slowdown in hiring over the past year.

They say many employers have been cautious to take on new staff as a result of economic and political uncertainty, and wider cost pressures squeezing their finances.

BY Lewis Jackson and Lisa Barrington

SYDNEY (Reuters) -Australian airline Regional Express Holdings will cut hundreds of job after it entered voluntary administration, the second small airline to do so this year, in a move that will further concentrate the country's aviation market.

Traditionally focused on servicing Australia's vast regional areas with small planes, Rex in 2021 began larger jet flights in the lucrative "golden triangle" between Sydney, Brisbane and Melbourne, which is dominated by Qantas Airways and Virgin Australia.

However the airline failed to meaningfully dent their control of the overall market, which was over 90% in March, according to the competition regulator. On Tuesday, Rex called in administrators Ernst & Young.

The administrators will shutter the subsidiary which operates Rex's Boeing 737 flights between major cities and make 360 workers redundant, according to the Transport Workers Union (TWU). A further 250 jobs will be cut elsewhere, it said.

Regional flights on its fleet of Saab 340 aircraft will continue.

Rex investor and private equity group PAG Asia Capital has provided bridging finance to help keep regional flights running, according to a source not authorised to speak with media.

PAG, which has one board seat, helped bankroll Rex's expansion into major cities in 2021 with a A$150 million convertible bond.

PAG declined to comment.

Transport Minister Catherine King said the government had provided Rex some support to keep its regional flights in the air but stopped short of guaranteeing a rescue package.

"I think it is fair to say that we would be reluctant to just throw money at the problem," she said. "What we would want to do is ensure that there is a long term solution to the security of regional aviation."

AVIATION REFORM

The collapse, which comes only three months after budget airline Bonza closed down, is likely to put a spotlight on the barriers smaller airlines face breaking into the vast, sparsely populated market dominated by Qantas and Virgin.

In March 62% of domestic passengers were carried by Qantas and subsidiary Jetstar, 31% by Virgin Australia, 5% by Rex and 2% by Bonza, according to the Australian Competition and Consumer Commission (ACCC).

The regulator has previously said Bonza and Rex presented opportunities for a more competitive domestic industry.

Adrian Schofield, an analyst at CAPA Centre for Aviation, said both Bonza and Rex's jet operations were too small to be really competitive.

"They weren't able to grow their fleets quickly enough to generate efficiencies of scale required to produce the kind of revenues and profit needed for their parent companies to continue to support them," Schofield said.

The ACCC has called on the government to reform how airlines are allocated flight slots, especially on busy state capital journeys, where critics have argued that Qantas and Virgin's control of profitable routes keeps out new entrants.

The company which administers flight slots is majority owned by the two airlines, which reject the accusation.

The regulator said in May that Rex needed a larger fleet and more slots at Sydney airport to grow to the point where it could meaningfully compete with Qantas and Virgin.

In February the government announced reforms to slot management at Sydney airport, including greater reporting requirements. A government review into the aviation sector is due later this year.

AVIATION DEMAND

While slot availability at Sydney airport was an issue, Rex's failure also comes down to a general slowdown in aviation as leisure travellers cut back, according to Morningstar analyst Angus Hewitt.

Aviation saw high demand and fares as aviation bounced back from the pandemic, but airlines globally are seeing a weaker-than-expected quarter due to costs and falling revenue per passenger because of pressure on ticket prices.

Virgin, which had flight slots at Sydney, had not reported an underlying profit since 2012 when it filed for bankruptcy in 2020, Hewitt added.

(Reporting Lewis Jackson and Renju Jose in Sydney; Additional reporting by Rishav Chatterjee in Bengaluru and Lisa Barrington in Seoul; Editing by Sonali Paul and Christopher Cushing)