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New airlines: Domestic fares crash by 56%

By on June 20, 2014

The entry of some new airline operators into the domestic segment of the Nigerian aviation industry has led to a crash of over 56 per cent in airfares on domestic routes; investigations by our correspondent have shown.

For instance, a one hour flight, which usually costs between N18,000 and N25,000, depending on when the ticket is bought, is now going for between N7,000 and N12,000.

Using the average of N21,500 for the old airfare and N9,500 for the new fare, the percentage decrease is 55.8 per cent.

Popular airline destinations that take an average of one hour include Lagos to Abuja, Uyo, Port Harcourt, Calabar and Asaba.

Investigations by our correspondent revealed that while most new airlines had crashed their fares in order to get a foothold in the market, some older operators had been forced to bring down their prices so as not to be chased out of the market.

This year alone, two new carriers, Discover Air and Azman Air, have joined the domestic market.

Analysts and market watchers are of the opinion that the fares may crash even further as more airlines are likely to enter the market before the end of the year.

Azman Air and Discovery Air, which began operations in May and June, respectively, are selling tickets for the one-hour flight for between N7,000 and N10,000 depending on the time of purchase and travel.

Some of the old airlines that have reduced their fares include Dana Airlines, which recently returned to the market after it suspension a few months ago, and Aero Contractors.

Both airlines have slashed the fares on the Lagos-Abuja route, offering a single seat for between N9,000 and N12,000.

However, operators such as Arik Air, Medview Airlines and Overland Air have maintained their old fares ranging between N18,000 and N25,000 for the one-hour flight.

Speaking on the fare reduction, a businessman, Mr. Udom Ekpeyong, who is a frequent flyer between Lagos and Abuja, said it was a welcome development.

“Competition is good in any line of business and is welcome; the more the merrier; I think it is a healthy development. I only wish that the government does what it should do to ensure that the airlines do not run at a loss,” he said.

Another traveller, Ms. Bunmi Daji, said it was essential for the regulators to protect consumers in a time like this, adding that the airlines should be closely monitored to avoid further mishaps in the industry.

“I believe the regulators should insist that things are put in place to ensure that passengers are protected at all times and that these airlines are in a good shape to transport passengers,” she said.

The Chairman, Airline Operators of Nigeria, Capt. Nogie Meggison, commended the coming of the new operators into the industry, stating that it was a good development and healthy for the growth of the sector.

 

 

[Punch]