Foreign carriers engage in price war to frustrate Air Peace out of London
In the fast-paced and ferociously competitive airline sector, price wars have become like Siamese twins that can not be separated by the actors, as a surviving strategy.
While price wars are a common occurrence in the airline sector, they represent intense competition that sees airlines cut prices in an attempt to snatch passengers from their competitors.
The subsequent implication may automatically trigger reduced margins and profitability. To thrive amid these price wars, airlines need strategy and competitive intelligence, specifically competitive flight price data to survive.
This is what is presently playing out in Nigeria’s air transport sector with focus on international flights since Air Peace, a Nigerian carrier, commenced flights to London Gatwick on March 30, 2024.
Prior to the entrance of Air Peace to the Lagos/London route, foreign carriers had, for many years, not only monopolized the lucrative route, but exploited the Nigerian travelers who were made to pay the costliest fares in the region while neighboring countries like Ghana, Togo and Benin Republic enjoyed very low fares.
The exorbitant fares by the foreign carriers reached its peak following the over $800 million of their proceeds trapped in Nigeria with the mega carriers withdrawing their lowest inventory fares, leaving the highest inventory fares for Nigerians to grapple with.
The withdrawal of low inventory fares by the foreign carriers saw airlines like Virgin Atlantic increase fares on the economy class to N2.353,200 for just a seat while the business class skyrocketed to N5,345,700 on the Lagos-London route.
Curtesy: Sola Adekola
