The recent sharp drop in airfares by foreign airlines for air travellers originating from Nigeria to international destinations is not new. OLUSEGUN KOIKI writes.

 Air travellers emanating from Nigeria to Europe and other parts of the world are enjoying a new travelling experience.

Flights that hitherto cost about N2 million to N3 million in the economy class and N10 million to N15 million in the business class seats, are today sold between N1 million to N1.5 million for economy class and N4 million to N6 million in the business class seat, depending on the airline, time of booking and travelling time.

Foreign airlines operating into major Nigerian international airports had held the travelling public by the jugular with the high air tickets that were more expensive than flights emanating from either Ghana or Benin Republic, while the travelling agencies were groaning and losing staff due to the closure of the lower inventories by the same airlines.

Some Nigerian travellers who could not afford the high-ticket rates, had to travel to neighbouring Ghana and Benin Republic to board flights to their destinations in Europe, America and other continents.

This singular cost-saving decision by the air travellers was a loss for Nigeria as the industry’s contribution to the Gross Domestic Product (GDP) dwindled, the aviation agencies revenues declined, revenues from ground handling, catering services and other auxiliary sectors reduced, among others losses.

But, all these changed in the middle of March, 2024 the moment Air Peace announced its plan to commence direct flight services between Lagos and London and with N1.2 million for economy class ticket and N4 million for business class ticket as starting prices.

Immediately the airline unveiled its plan, foreign airlines dropped airfares by about 25 per cent and opened lower inventories for travel agencies and travellers.

By March 30, 2024 when Air Peace eventually commenced the direct flight services from the Murtala Muhammed International Airport (MMIA), Lagos to London Gatwick Airport, United Kingdom, the airfares further dropped. Today, most of the foreign airlines have reduced fares by almost 50 per cent.

This drastic drop in airfares by the airlines, prompted some players in the industry to accuse the foreign airlines of price war targeted at Air Peace.

Most recalled how the same foreign airlines wrestled Virgin Nigeria, Bellview, Arik Air and recently Med-View Airlines from international routes and compelled them to close shop.

But, the stakeholders and professionals in the industry however, wanted the government to intervene in the situation in order to save Air Peace from the jaws of the conspiracy of foreign airlines and play the aeropolitics.

Already, Mr. Festus Keyamo, the Minister of Aviation and Aerospace Development is asking Nigerians to fully patronise Air Peace and other local airlines flying regional and international routes.

Keyamo in a recent interview with the media, said that the only way local airlines could survive stiff competition from foreign carriers was through patronage by Nigerians.

He also assured that the Federal Government could continue to assist local entrepreneurs, but was silent on the policy change the government would embark upon to support the indigenous carriers.

He said: “The first thing is for Nigerians to fully patronise not only Air Peace, but all indigenous airlines on international routes. Before the Federal Government does anything, let Nigerians patronise him (Air Peace and Allen Onyema) and know that this is our indigenous airline.

“As for the government, I cannot make any policy statement for the government now because I am a minister. Whatever we can do, we will discuss that behind the scenes. As I have said earlier, one of my main goals in office is to help Nigeria’s domestic airlines grow and improve, supporting President Bola Tinubu’s Renewed Hope Agenda.”

Commenting on the development Mr. Obi Mbanuzuo, the former Chief Operating Officer (COO), Dana Air, said that the foreign carriers are jittery by the entry of Air Peace into the UK.

Mbanuzuo in an interview with Daily Independent, explained that the Lagos-London route flight of Air Peace was a threat to the hegemony of foreign carriers on the Nigerian route, which he said prompted them to react by undercutting the airline’s fare to London.

According to the aviation expert, the aim of the foreign carriers was to prevent Air Peace from gaining a foothold in the international route, while also creating a pool of loyal customers ensuring its entrenchment in the market.

He posited that using low fares by the foreign carriers, the airlines hoped that Air Peace would not be able to sustain the service and would be forced out of the market prematurely, thereby giving them the opportunity to continue with the previous high fares.

Mbanuzuo, emphasised that for Air Peace to remain on the route, it needed the continuous support of the travelling public and the Federal Government, especially in quick access to forex and loans at single digit interest.

He added: “I’m sure they have calculated that they can withstand a period of reduced profits with the aim of removing the competition. This is where Nigerian travellers need to support Air Peace by patronising the airline so long as their service standards are comparable – irrespective of price.

“The Federal Government has been doing a lot recently, but where they can assist Nigerian airlines operating international routes most would be to ensure that foreign countries and airport operators are aware that the Nigerian Government is always behind its carriers whenever underhand activities are taking place against Nigerian airlines. They need to come out forcefully anytime a Nigerian carrier alleges underhand activities against it in a foreign country.

“That way, our carriers will feel protected and foreign airports will desist from underhand actions. A case in point is the fact that Gatwick Airport took two weeks to announce the start of Air Peace flights. Something they do as a matter of course for much smaller and less consequential airlines. Is the start of direct London to Lagos flights from a major London airport by a Nigerian operator, not big enough news that the airport operator ‘forgot’ to announce it? The usual calls for access to forex and access to single-digit loans remain.”

Mbanuzuo, however, ruled out conspiracy against Air Peace by the foreign airlines, but expressed that the airlines adopted a market strategy to push out the Nigerian carrier from the route.

Also, Capt. Mohammed Badamasi, aviation expert, said that the government needed to adhere strictly to the Bilateral Air Service Agreement (BASA) arrangement it has with other countries for Nigerian airlines to survive in international routes.

Badamasi called on Keyamo as a legal consultant to study the existing agreement and determine whether it’s fair to Nigeria or to some Nigerians only.

The former pilot with the defunct national carrier, also pointed out that the recent reductions of airfares by foreign airlines because of the emergence of Air Peace was a normal phenomenon and not sabotage.

He clarified that competition and production affect markets, maintaining that in a competitive market, people would choose products of the same quality, but lower prices than the ones with high prices.

Badamasi emphasised that the reduction in the airfares by the foreign airlines was the beginning of competition in the industry, but insisted that the emergence of Air Peace on the lucrative Lagos-London route was a destabilising blow to the continuous stealing of our foreign reserves by the foreign airlines.

He further advised the management of Air Peace to stick strictly to operational rules of engagement and abide by the law.

In his submission, Grp. Capt. John Ojikutu, aviation security expert, explained that the reluctance of the Federal Government to designate Air Peace as a flag carrier was partially responsible for the challenges confronting it in some of its international routes, especially in London.

Ojikutu, insisted that the Nigerian Government and its agencies were aware of the difficulties of the airline on the London route, but are more interested in continuous multiple frequencies to foreign airlines.

He also purported that the proponents of a national carrier for Nigeria may also be working behind the scene to frustrate the expansion of Air Peace.

“Secondly, there are other interest groups in the establishment of the national carrier. Air Peace has two battle fronts, the insider threats and the external. The airline needs industry experts to fight for it.

“If Air Peace did not envisage these problems it is facing with those in the administration of our government and the management of the agencies, it seems to me that Allen Onyema trusted too many people around him. I have said it to him in the past that you cannot go to London and face the British Airways on that route without the government support designating you as a Nigerian flag carrier.

Air Peace definitely needs the support of all, especially the Federal Government in the area of favourable policy formulation and aeropolitics to survive the most lucrative route out of Nigeria.

The price war waged against the airline by most of the airlines is not new. Previous Nigerian airlines in some of the Western and Middle East routes were equally frustrated out through the same antics, but with resilience and support, Air Peace would stabilise in its international