The Chief Executive Officer of Air Peace, Allen Onyema, says the significant reduction in international airfares by foreign airlines operating the Nigeria-UK route is an attempt to prematurely remove Air Peace from the route.
Onyema made this revelation on Tuesday during an exclusive interview on the Channels TV evening program, Politics Today, where he shared insights into his airline’s experience after launching the Lagos-London route.
The CEO of Air Peace pointed out that prior to his airline entering the Nigeria-UK route, foreign airlines charged exorbitant prices, with business class tickets costing as much as N17 million and economy class going to N5 million, attributing these high fares to the exchange rate.
However, just weeks after Air Peace started operating on the Lagos-London route, the same foreign airlines drastically reduced their fares in an attempt to oust Air Peace, even though there was no significant change in the exchange rate between the dollar and the Naira, Onyema claimed.
- “The foreign airlines were taking between N15-N17 million for business class, N6 million for premium economy, and N5 million for economy.
- “Then Air Peace came on, charging N4.5 million for business class, and economy class starting from N1.2 million.
- “Now Air Peace did this, everybody has came crashing their prices from N18 million to N5 million.
- “Dollar did not change,” Onyema said.
More insight
Onyema further elaborated that foreign airlines are conspiring to cut their fares to levels below their break-even point, aiming to push his airline out of the Nigeria-UK route. He warned that if these foreign airlines succeed, Nigerians would face considerably higher fares than the current rates.
- “It is a very devilish conspiracy.
- “All of a sudden, airlines are underpricing.
- “The idea is to take Air Peace out.
- “The moment they succeed in taking Air Peace out, Nigerian will pay 20 times over,” he stated.
While Onyema acknowledged the Federal Government’s support, especially from the Minister of Aviation and Aerospace Development, Festus Keyamo, in launching Air Peace’s Lagos-London route successfully, he called on the government to intervene.
He highlighted the need for action against foreign airlines that are slashing fares below their break-even points, aiming to force Air Peace out of the Nigeria-UK route prematurely.
Onyema suggested that the government could assist Air Peace by reducing its operational charges, thus providing the airline with a better opportunity to compete against foreign carriers backed by their governments.
Back story
- Air Peace launched its Lagos-London route on March 30 to provide quality travel experience and make international trips affordable.
- Since commencing its UK service, Air Peace has offered competitive rates, starting economy class fares at N1.2 million, significantly less than the N3-5 million usually charged by foreign carriers.
- The airline priced its business class tickets at around N4.5 million, far below the N15-N18 million foreign airlines’ rates.
- This pricing strategy garnered praise from Nigerians for its affordability, leading to a price reduction by foreign airlines on the Nigeria-UK route.
AirPeace CEO should take a chill pill. Surely he knew he was going to be up against the big players. Oga BUSINESS is WAR as the Japanese say. Build your market and sell your brand Nigeria and your customers will stick with you. It will never be easy battling the big boys so tighten your seat belt for the task ahead. Naija Jollof, Goat Meat Peppersoup and Oha Soup is a huge motivation for your target flyers.
I want to fly AirPeace but I am worried now. I plan to do London-Lagos route at the end of May. When I first checked on Mar 31, it would cost £575. Last week (around Apr 5), it had gone up to £680 and when I checked 2 days ago, it was now £883, which is even more than BA. Can anyone explain to me why Air Peace ticket would increase by over £300 in less than 10 days? I don’t get it. I’m all for supporting Nigerian businesses but this hike in price has put me off.
Well said!
May i appeal to Nigeria government to please slash operation charges for Air Peace.
This will enable Air Peace to compete very well with foreign airlines.
May I also appeal to Air Peace, please stop increasing your fares for local flights during festive periods, especially on Southeast & Southsouth routes. Please!
Yes ooo, this is good to hear, we must support our own this time. Government abeg no fall our hand oooo. Please it is also important we look into other countries like Spain, Liberia and other European and African countries alike.
Peace Airline for continuous expansion!!!
Cheers
Yes, the government has promised to adopt a policy of reciprocity to protect Nigerian airlines flying foreign routes. However, the Nigerian government cannot be propping up your business at your every whim. After all, it was your company that started the price war to win over passengers, hence you have to expect a reaction from your competitors. As a business man, you have to find a way to counter and compete, it’s the name of the game.
Nigerians should be smart this time. Boycott the foreign airlines. It is clear they have been fleecing you guys for so many years. You will hardly see an Ethiopian flying foreign airline.
Hello Mr onyema, that is what is called competition. It’s good fir the market. You have to prepare to fight the battle. The more competition the better for the populace.
Wale, I agree with you to some extent. But the thing is, these foreign airlines are being subsidised by their home countries one way or another – e.g., reduced corporation taxes, extremely low interest rates on loans, the list goes on.
I think the government should encourage Airpeace and reduce applicable charges inorder to keep them afloat and competitive. The country has no national carrier and we should support ours in this price gang up. So the foreign airlines know that tickets can be this cheap and the keep ripping us off. Too bad.