BusinessDay’s checks show that foreign airlines charge an
average of N3.5 million for economy class tickets from Lagos to London. This
indicates that with Air Peace’s 1.2 million economy class ticket, the airline
has slashed ticket price by about 66 percent.
British Airways which had an exclusive advantage of
operating direct flight from Lagos to London now has Air Peace to contend with
as Air Peace also has the same advantage as Air Peace would operate flight from
Lagos to Gatwick London.
Air Peace went live on Wednesday with its flight schedules
for its London service billed to commence on March 30, 2024.
According to the airline, a return economy class ticket goes
for 1,200,000 naira while a Return Business Class Ticket sells for 4,000,000
naira, adding that Nigerians studying in the UK can now access their special 15
percent rebate on the already reduced economy fares.
It can be recalled that the airline had announced a special
fare for Nigerian students in the UK when it hosted travel agents in Lagos last
week preparatory to the launch of the London route.
British Airways Economy class return ticket from Lagos to
London cost $2,698 which amounts to about N4.7 million, using the N1778 to a
dollar International Air Transport Association (IATA) rate on the airline
ticketing platform. British Airways Business class cost $8,598 which amounts to
about N15.2million.
For Virgin Atlantic, Economy classic cost $1,745 which
amounts to N3.1million, Economy delight cost $1,797 which amounts to almost
N3.2million, Economy Premium cost $3,442 which amounts to N6.1 million.
Business class on Virgin Atlantic cost $7578, which amounts
to about N13.5million.
Return tickets on Qatar Airways for
Economy Class tickets costs between ( $973 to $2,095 which
amounts to between N1.7m and N3.2m depending on the ticket class.
Business class ticket on Qatar Airways cost between $3,826,
and $4,757, which amounts to between N6.8m and N8.4million.
Ndukwe Ginika Ogechi, CEO Geena Travels And Tours Ltd told
BusinessDay that Air Peace’s fares are good compared to other airlines, adding
that she envisages intense competition on the route soon.
“My clients are already excited, although they expected the
fares to be cheaper since Air Peace is a Nigerian carrier and the foreign
exchange pressure is not so much on them. However, IATA’s exchange rate on the
platform as at Wednesday is N1,778 to a dollar, which is really high. This
exchange rate will continue to be a key consideration when airlines fix
prices,” Ogechi said.
She said on Monday, the exchange rate on the IATA platform
was N1,805. This also pushed ticket prices up on Monday.
John Ojikutu, industry expert and the CEO of Centurion
Aviation Security and Safety Consult, Nigeria said “competition has started, I
hope, with the foreign airlines and their multiple frequencies and destinations
in our country can gradually get reduced.
“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.
Air fares in the last two years has risen by over 400
percent as a result of accumulating trapped funds of foreign airlines in
Nigeria caused by the foreign exchange rate.
The CBN has directed banks to remove the cap on the
investors and exporters’ (I&E) window of the fore market to allow for the
free float of naira exchange rate.
Last year, Nigeria officially floated its naira currency
after years of sticking with a hard peg that spooked investors and drained
dollars from the economy.
Recalled that since two years now, airlines blocked low
ticket inventories, leaving high inventories to be sold in naira only while the
low ticket inventories on most airlines’ websites can only be bought with
dollar cards only. This was in a bid to cushion the effect of their trapped
funds in Nigeria.
Bankole Bernard, chairman of Airlines and Passengers’ Joint
Committee (APJC) of the International Air Transport Association (IATA) said Air
Peace London flight is a welcome idea, especially as Nigeria would now have its
own carrier creating balance of trade which is not tilted to one side.
“There will be a bit of balance. Air Peace has been given a
daily slot to Gatwick which amounts to seven frequencies, compared to 21
frequencies that the legacy airlines have; 14 in Lagos and seven in Abuja. To
an extend, we have something that will balance it up.
“Air Peace is not going to be faced with challenges of
foreign exchange because the fares will be in naira. It is a welcome idea for
travel agents and Nigeria as a whole. We appeal to Air Peace to try it’s best
to sustain the London route. We are willing to give them all the support to
ensure this is successful. With Air Peace, travel agents envisage a 50 percent
fare reduction,” Bernard said.
Oluwatoyin Olajide, chief operating officer, Air Peace
during the launch of the Lagos-London flight with travel agents said the
service will be operated with the airline’s Boeing 777 aircraft and the Boeing
787 Dreamliner aircraft, one of the most modern and efficient aircraft in the
skies.
She also said the airline will be launching with special
promo fares and attractive plans for agents.
“Operating daily, this service will also offer several other
benefits which give Air Peace an edge over the competition. It’s a direct
flight without stop-overs and offers unbeatable fares. The specifics of these
offers and other Unique Selling Points will be presented as this engagement
progresses.
London will be the Air Peace’s 7th international destination
since kicking off operations less than 10 years ago.
Air Peace currently leads Nigeria’s aviation industry with a
rapidly expanding network of 21 domestic routes, 10 regional routes and 6
international destinations with a growing modern fleet of over 30 aircraft.