Newsfront Online …Telling the Public as it is
…Economy fares reduced to N1.5m from N4m
Flight tickets of foreign airlines have crashed significantly in the last few weeks from N4 million for returned economy class to N1.5 million, LEADERSHIP can authoritatively report.
LEADERSHIP gathered that Air Peace airline entrance into the Lagos- London market and the Nigerian Civil Aviation Authority (NCAA) circular to foreign airlines to open lower inventories have been identified as factor responsible for the crash of foreign airlines tickets in the country.
Recall that Air Peace airline, on February 28, 2024 announced the launch of its Lagos -London route, thereby, announcing a Return Economy Class Ticket for N1.2m naira while a Return Business Class Ticket sells for N4 million. The airline also slashed the air fare by 15 percent for Nigerians studying in the UK.
Also, the NCAA acting DG, Chris Najomo, set up a committee, chaired by the agency’s director of Special Duties, Horatius Egua, to ensure foreign airlines comply with government directives to unblock low-inventory tickets that have been inaccessible for over 18 months, as well as recommend appropriate pricing of tickets in Nigeria compared to similar markets in the West African sub-region.
However, speaking exclusively to LEADERSHIP, the president, National Association of Nigerian Travel Agencies (NANTA), Susan Akporiaye, said the crash in foreign airlines ticket fare was due to the consistent advocacy embarked upon by the association against foreign airlines closing their lower inventory against Nigerians.
According to Akporiaye, the association advocacy attracted the NCAA and made them issue a circular to all airlines to open their lower inventory to Nigerians. “It’s about the circular issued by NCAA that lower inventories of airlines should be opened to Nigerians. That was what brought down the fare because before now, the foreign airlines shut the lower inventories and we could only access the higher inventories so NCAA expressed readiness to work with us due to our advocacy and they did release a circular asking all foreign airlines to open up their lower inventories.
“Also, that coincided with the Air Peace coming into the London market, that is what competition can achieve. I believe we can also have lesser fare with consistency of Air Peace. Air Peace was doing promo and was slashing air fare for students so that is what we will get when more players come into the market. Before now, economy class ticket used to be between N3 million or N4 million but now, it has reduced to between N1.5 million to N1.8million. Also first class and business class fare have reduced drastically and traveling has been made affordable,” she stated.
Also speaking, the former Vice President, South West, NANTA, Yinka Folami, said to sustain the achievement, government through the NCAA should sustain monitoring and regulatory functions on the foreign airlines.
He also advised that the government and stakeholders should support Air Peace to succeed on the route saying, “Nigerians must buy and patronise local service for the naira to grow”.
He also confirmed that ticket price has been slashed to between N1.4million to N1.5million depending on their availability. “Presently, it depends on availability because on some of the airlines, we can get tickets for an average region of N1.4million and N1.5million and that depend on availability and that’s what competition does.
“Two things is responsible for the opening up of the lower inventory and lowering of sales by the airlines. One, there is a government directives to open up lower inventories and that was given through NCAA and Federal Competition & Consumer Protection Commission (FCCPC), so the directives from both FG organization helped to open the lower inventory and that is one of the cause of fare reduction.
“Also, Air Peace coming to the market also contributed and that’s what competition does all over the world because with Air peace, we can get N1.2 million or N1.5 million and it depends on availability and when we have new players coming in, we will see reaction.
“Before now, it used to be the economy class ticket between N3 million and N4 million and sometimes, we can get economy class ticket for an average of N1.4million also as a function of availability we can get N1.1million or N1.2million on Air Peace.
To sustain this initiative, government should sustain the monitoring effort and support Air Peace to be successful enough to take on more capacity so as to crash the price,” Folami stated. On his part, former South West Public Relations Officer, NANTA, Olaleye Ajibade, said urged the federal government to encourage indigenous airlines to go on international routes.
According to Ajibade, local airlines flying into China, United States, Canada, will further crash foreign air tickets “There are a lot of things responsible for the stash in Air fare and one of them is Air Peace plying Lagos to London. Also, the advocacy of NANTA had attracted NCAA to direct Foreign Airlines to open lower inventory. Turkish and Egypt Air have opened their lower inventories and I know others will follow suit,” he stated.
Also, the FG should encourage more local airlines to operate internationally and work on our national carrier. Most of the routes such as China, Canada, US for instance if local airlines operates, would crash ticket price,” Ajibade stated.
