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Reduced airfares boost passenger traffic by 9%

By BusinessNews Staff on July 23, 2014

The number of passengers who travelled by air to destinations within the country in the first quarter of this year rose by nine per cent compared to the same period a year ago.

Passenger traffic volume refers to the number of people travelling by air across the nation’s airports.

Figures made available to our correspondent by the Federal Airports Authority of Nigeria showed that 3.389 million passengers travelled through the nation’s airports between January and March 2014.

This represents a rise of 267,773 passengers or nine per cent, compared to the 3.121 million recorded between January and March 2013.

The PUNCH had earlier in the year exclusively reported that the entry of some new airline operators into the domestic segment of the Nigerian aviation industry this year had led to over 56 per cent crash in airfares on the domestic routes.

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

A one-hour flight, which before their entry cost between N18,000 and N25,000, depending on when the ticket was bought, is now going for between N7,000 and N12,000.

According to the FAAN statistics, 563,180 arrivals were recorded in January this year, while 564,199 departures were recorded in the same month.

In February, 524,941 arrivals were recorded as against 546,036 departures, while 589,769 arrivals and 600,969 departures were recorded in March.

Experts in the aviation sector, including airline operators, who spoke with our correspondent in separate interviews, attributed the rise in the number of passengers travelling by air to lower airfares since the beginning of the year.

They explained that the reduction in airfares was largely as a result of increase in the number of operators in the industry, especially as more airlines had received their operating licences from the Nigerian Civil Aviation Authority.

This, according to them, has contributed significantly to reduce the cost of the airfares, and it is expected that before the end of the year, the number of passengers will rise even further.

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.

However, the President, Sabre Travel Network, West Africa, Mr. Gbenga Olowo, expressed fears about the lower fares being charged by most domestic airlines and advised the regulators, including the NCAA, to ensure that the situation was properly monitored so as not to be abused.

“I read with shock that a one-hour tariff will be selling for between N7,000 and N15,000 due to the emergence of new airlines and competition in the market. Beyond the misconception of being capitalist, this should worry Nigerians and the regulator,” he added.

[Punch]

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