Foreign Airlines prices are lower than Air Peace as war continues on London Route; Competition on the popular Lagos-London
route has continued to intensify as foreign airlines continue to slash fares with some airlines now charging below rates by
Air Peace Airline, the only Nigerian carrier operating the route.
Air Peace started the Lagos-London flight on March 30, 2024, fully booked by Nigerians who have since sought cheaper tickets to London.
The airline had pegged its economy class ticket at N1.2million, thereby slashing fares on the route.
According to the airline, a return economy class ticket goes for N1.2 million while a return Business Class Ticket sells for
N4million naira, as Nigerians studying in the UK accessed their special 15 percent rebate on the already reduced economy fares.
As at Tuesday, the International Air Transport Association (IATA) rate for sales of ticket rate for ticket sales in Nigeria
dropped from almost N1,800 few months ago to now N1,505 to a dollar.
These factors have seen the prices of tickets drop on the Lagos-London route.
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For instance a one way economy class ticket from Lagos to London on British Airways which cost N3.5 million for Economy
and N11 million for Business Class few months ago has seen a sharp drop to N605,000 for economy and N7.6million for Business Class.
Other airlines that had pegged their tickets between N3.5 million to N2.5 million have also reduced fares, with some airlines currently selling lower than Air Peace.
Susan Akporaiye, former president National Association of Nigerian Travel Agencies (NANTA) told BusinessDay that all airlines
have now opened up low inventories.
Akporaiye said the release of inventory has created competition, making almost all airlines prices at the same range.
She argued that the reason some airlines have cheaper tickets than Air Peace is because Air Peace has sold all its cheap
tickets and the classes of ticket it now has is selling for more than N1 million.
“Air Peace said they have sold out seats till September. This means they are doing very well. It is after September that we will know.
After last week, we got a circular that Air Peace has opened up their availability up to March next year.
Air Peace’s Market Strategy
“If sales from Air Peace’s side is not much, it is because the cheap fares have been sold out. What is now available are tickets
of over one million naira, which makes it more expensive than the other airline because the other airline still have cheap tickets.
Air Peace has sold all their cheap ticket classes,” Akporaiye said.
Airlines released low ticket inventories and the rate of exchange came down. Two things were happening at the same time. Airlines released low ticket inventories and at the same time, the rate of exchange was coming down. When they released all their
inventories and rate of exchange came down to N1,200 to a dollar, that was when we were seeing N800,000 to N1 million
tickets rates to London,” Akporaiye said.
John Ojikutu, industry expert and the CEO of Centurion Aviation Security and Safety Consult, Nigeria said he had earlier
predicted that Air Peace’s commencement of Lagos-London flight would bring about competition on the route.
“This is the beginning of the competition for scrapping the exploitation of the foreign airlines on the Bilateral Air Service
Agreement (BASA) routes. We hope those in the administration of our government and the management of the agencies
will give the necessary support to Air Peace?,” Ojikutu said.
He said as Mexico is doing, federal government will need to restrict the foreign airlines operate into to Lagos or Abuja airports only to create a healthy competition.
“Let foreign airlines make as many frequencies as they wish daily but they must interline with the domestic airlines,” he said.
In Conclusion
Air Peace, Nigeria’s leading airline, has been striving to capture a significant share of the transcontinental market. However, the aggressive pricing strategies of established international carriers have created a challenging environment. Foreign airlines, leveraging their extensive networks and economies of scale, can afford to slash ticket prices, enticing a large segment of budget-conscious travelers
Despite this, Air Peace remains committed to maintaining its presence on the London route. The airline emphasizes its unique value propositions, such as direct flights, Nigerian hospitality, and convenient schedules. Additionally, Air Peace is focusing on enhancing its service quality to attract and retain customers.
The ongoing price war is a reminder of the intensely competitive nature of the aviation sector. For passengers, it translates into more options and potentially lower travel costs. For airlines, it underscores the need for strategic planning and differentiation to navigate the turbulent skies of international air travel.
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