The recent entry of Nigeria’s leading carrier, Air Peace, into the highly lucrative Lagos-London route has triggered a fierce price war among foreign airlines, drastically reducing airfares. The move by Air Peace, which began direct flights from Lagos to London on March 30, offering round-trip economy tickets at N1.2 million, significantly undercut the prices previously charged by foreign carriers, which soared as high as N3 million.
As a response to Air Peace’s competitive pricing, foreign airlines swiftly slashed their fares to an average of N1.4 million for a round-trip economy ticket last week. However, further investigations revealed that some foreign airlines have further reduced their prices to an average of N841,732.
Egyptair, for instance, has dropped its Lagos-London economy ticket price to N585,620, while Air Peace now offers London to Lagos tickets for N816,130. British Airways, Virgin Atlantic, and Royal Air Maroc have also adjusted their fares to N981,848, N1.1 million, and N569,422, respectively.
Comparing current airfares to those before Air Peace entered the market shows a significant drop. British Airways, for example, previously charged N3 million for an economy class ticket from Lagos to London, but now offers it for N1.7 million. Similar reductions are observed across various carriers, indicating the impact of Air Peace’s presence.
However, the Association of Foreign Airlines and Representatives in Nigeria (AFARN) refuted claims that the fare reduction was solely due to Air Peace’s entry. AFARN President Kingsley Nwokoma attributed the lower fares to improved forex rates and the repatriation of trapped funds, emphasizing ongoing discussions with government and international aviation bodies to address inventory challenges.
On the other hand, Air Peace Chairman and CEO, Dr. Allen Onyema, expressed concerns about a coordinated effort by foreign airlines to drive Air Peace out of the market. He accused them of employing predatory pricing strategies and suggested governmental support for local carriers to counter this threat.
Former Director General of the Nigeria Civil Aviation Authority (NCAA), Benedict Adeyileka, echoed similar sentiments, highlighting the need for patriotism and government intervention to protect Nigerian carriers. Adeyileka warned that if foreign airlines succeeded in driving Air Peace out of the market, they would exploit their monopoly to hike fares significantly.
In light of these developments, stakeholders emphasize the importance of safeguarding Nigerian carriers and promoting a competitive aviation industry that benefits both passengers and the economy. They call for strategic measures to support local airlines and ensure fair competition in the market.
