President of Association of Foreign Airlines’ Representatives in Nigeria (AFARN), Dr Kingsley Nwokoma, has said Air Peace is not the reason for the Lagos-London ticket price crash.
Daily Trust reports that Air Peace, Nigeria’s largest domestic carrier, commenced the Lagos-London route on March 30, almost seven years after a Nigerian carrier flew the route.
Many Nigerians had complained about the exorbitant fares on the route even as Onyema confirmed that a Business Class return ticket was being sold for N17m at some point.
But Air Peace’s entry crashed the fares with a one-way ticket coming down to as low as $600 (N738,000 at N1,230/$) from over $2000 it was initially sold.
Speaking with Daily Trust, Nwokoma attributed the reduction in international air fares to the engagement of the federal government with the foreign airlines on the need to reduce lower ticket inventory following the partial payment of trapped funds as well as the reduction in rate of exchange.
Daily Trust reports that the airline’s rate of exchange peaked to N1,900 in February but presently hovers around N1,300.
Nwokoma stated that while the foreign airlines are not afraid of competition, the Air Peace’s entry was a mere coincidence, adding that as the foreign exchange market stabilises, air fares would continue to reduce.
He said, “It is a good thing that Air Peace is in the route and we also want more Nigerian airlines to come in also as flag carriers, the more the merrier.
“But apparently the fares going down wasn’t basically because Air Peace came on board. Before IATA and airlines have been meeting with the government and parts of the trapped funds have been cleared. So, it is logical for the airlines to release the lower fares. If there is coincidence, and people want to read the meaning into it, no problem but the more the merrier.”
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