The hues and cries elicited by the brazenly slashed 60 per cent in the airfare from Lagos to London by Air Peace airline poses no threat to the airline’s survival and growth rather, the measure has helped the airline succeed in capturing a critical mass of Nigerian travellers on that route.
Dr. Alex Nwuba, President of the Pilots and Aircraft Owners Association of Nigeria, PAOAN, made the statement while fielding questions as a guest on a national television station, Arise, on its Global Business Report, over the weekend.
He said Air Peace had entered the market with an excellent pricing strategy to create a niche market by caring for those armies of passengers subjected to agonizing stopovers in a secondary airport thus spending as much as 21 hours for six hours flight and also paying through their noses.
Nwuba noted the fare strategy employed by Air Peace has caused a measure of tremor in the market as the fare slash strategy was more of economics rather than patriotism.
He expressed the opinion that no sane traveller would close his/her eyes to a fare that would not tear his/her pocket or break the bank to procure a flight ticket but proceed to patronize premium carriers of various genres such as British Airways, Virgin Atlantic, and the likes.
The President of PAOAN, further enunciated that what propels the success of an airline is good economics and not patriotism as air transport is purely about financials via the alchemy of passenger numbers with cost of operations to generate positive differentials.
Nwuba alluded to the purported threat from the premium airlines who have begun advertising lower fares than Air Peace, that those airlines will be more preoccupied with their highly gilded and often time suave customers in that segment of the market which they have all along been servicing.
He wondered if any Nigerian traveller after calculating what he would save flying with Air Peace for a direct flight to London, in comparison to the other airlines’ fares especially those with disconcerting stopovers and the man-hours that would be lost, would not bat an eyelid in getting into wedlock with Air Peace for their trips to London.
Another factor adduced by the guest for raising the thumb for Air Peace’s brazen fare slash is that 65 per cent of passengers heading to UK from Nigeria often travel with the secondary airlines. This group of travellers are often compelled by the airlines to a stopover at secondary airports hence, Air Peace’s positioning for a direct 6-hours flight, and at 60 per cent fare reduction in comparison to other airlines, has transformed Air Peace to the airline of choice which has continued to earn kudos from most Nigerians.
Dr Alex Nwuba explained that the much-vaunted premium airlines are on their lane with studious attention to their premium customers. He said the pattern of loading their aircraft revealed the ultra-high end of the market they serve.
He added that the mode of loading their aircraft leaves no one in doubt where their priority lies. Since only 35 per cent of the passengers can afford such premium fare by British Airways and Virgin Atlantic for a direct, non-stop flight to the UK, while 65 per cent will surely settle for Air Peace and others of its likes.
Another factor Nwuba identified that will not augur well for the nation’s economy is the fact that 75 per cent of Air Peace flights out of the country will be flown by foreign carriers who will be paid in USD.
While he also noted that a mere 25 per cent of London-bound passengers will be available for Air Peace to fly yet, he frowned at the situation and described it as bad economics that deserves very urgent attention by Air Peace management to reverse the trend.
On further interrogation of Dr. Nwuba by Nigeria Transport Hub, NTH, for him to elucidate on his observation which he described as bad economics, he said the commercial arrangement with the Norse Air is skewed to the disadvantage of Air Peace and the nation.
The renowned management consultant passionately urged Air Peace management to promptly review the arrangement as the partner is in a vantage position to fleece Nigeria as a state, and the travelling public of the very scarce foreign exchange.
Nwuba, however, conjectured on the prospect of Air Peace revisiting the arrangement perhaps after delivery of the 33 brand new aircraft ordered.
It is hoped that the Nigerian flag carrier would be better positioned to operate the route exclusively with its equipment thus eliminating the fleecing of the nation and her citizenries of their hard earn forex.
Nigeria Transport Hub
