Air Peace, Nigeria’s leading airline, made a significant stride in the aviation industry with the introduction of a new direct flight route from Lagos to London. The launch of this route brings about a ripple effect in the market, prompting other airlines to adjust their airfares in response to the heightened competition.
The impact of Air Peace’s new direct flight on the aviation market is evident in the subsequent adjustments made by other airlines to remain competitive. Recognizing the potential threat posed by Air Peace’s entry into the Lagos to London route, rival airlines have responded by reducing their airfares to attract passengers.
The announcement by Air Peace of a N1.2 million fare for the economy class on the Lagos to London route has sent shockwaves through the airline industry, particularly unsettling foreign carriers who have long dominated the route. The introduction of Air Peace’s low fares poses a significant threat to their established market dominance.
In response to Air Peace’s competitive pricing strategy, foreign carriers, led by Virgin Atlantic, have initiated what is commonly referred to as a “price war.” Virgin Atlantic swiftly reduced its economy flight fare to N980,654, effectively undercutting Air Peace by N400,000.
This aggressive response from Virgin Atlantic signals the beginning of a fierce competition among airlines operating on the Lagos to London route. It is anticipated that other foreign carriers, including British Airways, will soon follow suit in slashing their fares in a bid to maintain their market share and thwart Air Peace’s expansion efforts.
The price war unleashed by Air Peace’s disruptive entry into the market is not merely a battle for ticket sales but a struggle for supremacy in the highly lucrative Lagos to London air travel corridor. Foreign carriers recognise the significance of Nigeria’s air travel market and are unwilling to cede ground to a newcomer without a fight.
While this price war may result in short-term benefits for travelers, including lower fares and increased options, it also underscores the fierce competition and high stakes involved in the aviation industry. Passengers stand to benefit from the ensuing price competition as airlines vie for their patronage by offering more affordable and competitive fare options.
In an exclusive interview with Arise TV, Allen Onyema, the Chairman and CEO of Air Peace, voiced his concerns over what he described as a “devilish conspiracy” orchestrated by rival airlines to undermine Air Peace’s operations. Onyema alleged that competitors were deliberately underpricing their services, well below cost, in a bid to drive Air Peace out of the market.
“This is a devilish conspiracy,” Onyema emphasized during the interview, expressing his frustration with the unfair tactics employed by other airlines. He warned that if successful, this strategy could have dire consequences for Nigerian travelers, who may end up paying significantly higher fares in the long run.
Onyema went on to highlight what he sees as a disparity in government support for Nigerian airlines compared to their foreign counterparts. He claimed that foreign airlines operating in Nigeria receive substantial backing from their respective governments, enabling them to artificially lower prices and undercut local carriers like Air Peace.
According to Onyema, Nigeria has become a lucrative market for foreign airlines, with little regard for the impact on domestic carriers. He argued that the influx of foreign carriers operating in Nigeria has resulted in a “cash out” scenario, where profits are repatriated out of the country, rather than reinvested to benefit the local economy.
Allen Onyema, has further raised concerns over what he perceives as deliberate efforts by foreign airlines to undercut his company’s pricing strategy on the Lagos to London route. Onyema disclosed that some foreign carriers have significantly lowered their fares, with prices as low as N375,000, in what appears to be a concerted effort to undermine Air Peace’s competitive edge.
The Air Peace CEO’s remarks shed light on the challenges faced by Nigerian airlines in a fiercely competitive industry dominated by well-established foreign carriers. Despite Air Peace’s efforts to provide reliable and affordable air travel options for Nigerians, the alleged unfair practices of competitors pose a significant threat to its sustainability and growth.
Onyema’s interview underscores the need for greater regulatory oversight and support for domestic airlines to ensure a level playing field in the aviation sector. He called on the Nigerian government to take decisive action to address the issues raised and protect the interests of local carriers, thereby safeguarding the accessibility and affordability of air travel for Nigerian consumers.
As Air Peace continues to navigate the complexities of the aviation industry, Onyema’s outspoken advocacy serves as a reminder of the challenges faced by Nigerian airlines and the importance of fair competition and regulatory intervention in fostering a thriving and sustainable aviation sector.
