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.
