Page 39 - World Airnews Magazine April 2020 Edition

AFRICA

the old airlines have no cause for worry. I do not think there However, there are still fears that the size of Nigeria’s travels

is already a tense competition in the Nigerian travel market. market could be too small for what is about to happen. Moham-
Air fares are still very high, higher than most countries of the med Tukur, a former assistant secretary-general of Airline Oper-
world, but we know why this is so: there are fewer airlines and ators of Nigeria (AON), said even though there are still start-ups,

fewer people who are able to fly. Now, I can say we are going to Nigeria has had a number of start-ups and failures.
be having more airlines, more planes, more seats and that could But he said Green Africa, United Nigeria Airways and few others
potentially mean more supply. The trend could lead to a slash in seemed to have bold vision.
fares,” said Udeze.
“It remains to be seen how these new airlines cope in a tough
NO SEAT GLUT CONCERNS airline environment considering the low number of flying public.

On whether there would be seat glut, both analysts said the Not a few had suggested and raised concern that with Nigeria’s

country’s middle class population would fill up the gap. About 23 relatively low numbers for the flying public, it may quickly descend
into a dog fight with no winners,” Tukur said.

percent of the Nigerian population is middle class with spending
power. This represents about 45 million people of the country’s AIRLINES JITTERY
200 million citizens. Investigations by business a.m. showed that airlines are already

Nwobu said nearly all of these 45 million Nigerians could turn to jittery and many refused to comment on the development. Will

air transportation if current ticket rates are halved. airlines be slashing their fares?

“There is going to be a big change if this happens. Any time “We will let you know if there will be any such thing,” said Stan-
change beckons, there are fears. The market actors are engulfed in ley Olisa, a spokesman for Air Peace.
fears. But when the trends start playing out, operators will begin Another airline spokesman who pleaded anonymity said, “We
to fine-tune their marketing and operational strategies. have our fare regime and very ready for competition. We have

“One thing is sure: price will go down nearly, if not by half and been here for 11 years despite the challenges and we believe it’s
this will make millions of Nigerians, especially the middleclass about service. Whoever has the best service or is able to satisfy

businessmen and well-employed people to begin to use air travel. the customers wins. No issues at all.”
If the fare rates go down as much as half what we currently have, The airline spokesman, however, said there may not be available
even students can afford to fly. What I see happening is not a seat hangar space for the new aircraft, considering the huge number.

glut, because if 45 million Nigerians begin to fly, even a hundred
planes will not be enough to lift them. Right now, less than five “Where will they park them? MMA2? No space for such and is

million Nigerians can afford to fly because the cost of flying is too the industry now profitable for such order which is likely to come

high,” said Nwobu. at once or with little spacing? They might have their strategy no
Nweze also said there would not be a likely over supply of seats. doubt, we are watching,” the source said.
“Everyone needs safety and comfort. Our roads are no longer The airline insisted the federal government must remove VAT from

safe, and even if they are safe, they are not good. Currently, local the airlines to ensure a more conducive operating environment.
fare rates are around N35, 000 and N45, 000 one-way on the “But with poor policies killing airlines we asked for removal of
average, depending on if you book well ahead, or you do over the VAT and they are increasing it. How nice,” the airline said, adding,

counter. If we now have the kind of competition the new airlines “The competition will be stiff.
are bringing, operators would be forced to halve their rates and “It now remains to be seen how you outwit the other with your
this will make millions of Nigerians begin to use the airlines,” service, route planning, schedule and fares. It all depends on cre-

Nweze said. ativity,” said the spokesman. Q

World Airnews | April 2020
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