Despite High Jet A1 Price, Forex Scarcity Airlines Crash Fares
In spite of the continuous fall of the Naira against major currencies, high operating costs and exorbitant price of Jet A1, some indigenous airlines are embarking on various promotions to lower fares and attract passengers.
Jet A1, also known as aviation fuel, sells for between N230 and N250 per liter.
From Dana Air to Air Peace, Azman, Green Africa, United Nigeria and Max Air, all have numerous promotional strategies and fares to lure air travelers to their airlines despite the harsh operating environment.
For instance, a start-up carrier, Green Africa, about two weeks ago announced N16, 500 as introductory fare on some of the routes it intended to serve, while other established carriers unveiled various promotions to further attract air travellers to their services.
Checks on the website of Green Africa by Daily Independent indicated that one-way ticket on Lagos-Enugu route was advertised at N17,500, while Abuja, Akure and Port Harcourt still stood at N16,500.
Besides, search on some of the airlines’ websites showed that one-way ticket on Lagos-Port Harcourt flight for instance goes for between N42,000 and N60,000, while Lagos-Enugu flight was between N29,900 and N80,000, depending on the date of travel.
But stakeholders said any airline selling an hour air ticket, Lagos-Abuja for instance, below the equivalent of $100 (about N48, 000) may not breakeven, due to the various factors that influence flight ticket pricing. Read More
KLM Announces New Destinations to Intercontinental Network
The Dutch carrier, KLM, has announced that it will be adding new destinations to its intercontinental network on the commencement of its winter schedule from October 31, 2021, to March 26, 2022.
The development, the airline said, falls in line with “KLM’s strategy of first expanding its network where recovery will be quickest, offering customers the broadest possible choice of destinations. The new destinations include Mombasa, Orlando, Cancun, Bridgetown, Port of Spain and Phuket.”
According to KLM, “The Kenyan beach destination of Mombasa will be served twice a week, operating Boeing 787-9 equipment. This aircraft type will also be used to operate flights to Orlando in Florida and to the Mexican beach resort of Cancun. The Airbus A330 will fly customers to Bridgetown and Port of Spain, Trinidad and Tobago. The Thai Island of Phuket will be served with four flights a week, operating Boeing 777-300 equipment.”
The airline emphasized how it, during the pandemic, did everything possible to maintain its network of destinations in order to continue carrying cargo and enabling passengers to travel when necessary, in accordance with the rules and regulations prescribed by both the Dutch Government and local authorities. Read More
Green Africa Airline Takes Delivery of Third Aircraft
Green Africa, a new entrant into Nigeria’s domestic airline business, has completed acceptance of three ATR 72-600s aircraft from ACIA Aero Leasing company in preparation for entry-into-service.
The development came just as the airline took delivery of its third aircraft marked ZS-XZC /5N-GAD which touched down at the Murtala Muhammed Airport last week.
Amid the pandemic-induced market disruption, the airline said it had laid out a roadmap for market entry by “deploying ACIA’s ATR aircraft to deliver affordable, short-haul connectivity between Nigerian cities to stimulate the region’s economic development and business activity.”
Reacting to the development, the Founder and Chief Executive Officer of Green Africa, Mr Babawande Afolabi said: “Receiving our third aircraft today signifies Green Africa’s readiness to enter into service and start serving our customers. ACIA Aero Leasing has been a very supportive partner and we are proud of this relationship.”
In the same vein, the ACIA Aero Leasing Chief Executive Officer, Mick Mooney declared: “We are thrilled to have partnered with Green Africa’s experienced management team to get their airline off the ground while supporting their ambitious mission to use the power of air travel to create a better future for customers and other key stakeholders,”.
Green Africa had earlier launched ticket sales on greenafrica.com with flights as low as N16,500 and a ‘gFlyer Special Offer’ which takes 10 per cent off the first booking of gFlyer Community members. Read More
Airfares to Drop as More Planes Arrive
Passengers are set to enjoy lower air fares as more domestic airlines received more aircraft, many of which were trapped at maintenance facilities abroad following the outbreak of COVID-19 pandemic and restrictions.
Over the past few months, air fares to most routes in the county rose by more than 100 percent across all the domestic airlines, as passengers groaned with one way economy tickets moving from an average of N25, 000 on Lagos to Abuja to about N60, 000 and sometimes N70, 000 depending on when the ticket was purchased. Many of the airlines said the reason for the price hike was a combination of factors from low capacity as many of the domestic operators had their aircraft trapped abroad, to lack of access to forex. Others had posited that the high rate of kidnapping increased the demand for flying and had contributed to the surge in air travel.
Chief Operating Officer of Air Peace, Mrs. Toyin Olajide, had said passengers can now heave a sigh of relief as more planes are beginning to come into the country, including brand new aircraft and those returning from maintenance. She said more planes would mean higher capacity and lower airfares , noting that besides the aircraft coming in from maintenance facilities overseas, airlines like Air Peace have made payment for over 10 brand new planes.
Air Passengers to Benefit from Competition – Stakeholders
Stakeholders in the aviation industry have said that competitions among airlines will be beneficial to passengers.
Among the new airlines that emerged this year in the aviation industry with over 20 airlines on the waiting list; the United Nigeria Airlines received its Air Operators Certificate on 1st February, 2021, while Green Africa Airways announced on the 3rd of June the arrival of its third aircraft.
In a time where airlines were still trying to recover from the outbreak of COVID-19, Green Africa Airways said it had special packages reserved for its prospective customers.
Aside from having three ATR 72-600s, the airline offered 10 per cent off first bookings with pre-sales code.
Aero Contractors Company of Nigeria Limited recently extended its network routes to Bauchi and Maiduguri, using Boeing 737-400 aircraft released from C-Check.
Other airlines that joined the race of attracting customers are Air Peace Limited and Azman Air Services Limited.
Air Peace Limited in April offered some gifts to its customers. Read More
Sources: Tribune Newspaper, Leadership Newspaper, The Sun News Online