Airline fares remain stable amid oil subsidy removal

Despite the fuel subsidy removal announced by the Federal Government, fares for both local and international airlines have remained stable.

A visit to the Murtala Muhammad Airports (MMA) shows that airfares on Lagos – Abuja and Lagos – Port Harcourt, two of the busiest routes flown by Nigerians, have remained stable amid the increase in fuel pump.

BussinessDay checks reveal that Arik Air, which had previously charged about N22,000 or less, for an economy class ticket from Lagos to Abuja, weekend charged 21,500.

Azman Air, which charged an average of 20,000 for an economy class ticket from Lagos to Abuja, also charged 19,000, while Dana Airline charged 19,800 for economy class ticket on the same route.

Travellers going from Lagos to Port Harcourt are seeing similar situation as fare for Dana Airline, Azman Air, Peace Airline and First Nation for economy class ticket from Lagos to Port Harcourt remained unchanged, as the airlines charge an average sum of N17,000 to N20,000, at the weekend.

Fares of international airlines had increased before now to cushion declining sales and strains from forex scarcity.

BussinessDay checks reveal that British Airways, which had previously charged about N350,000 or less, for an economy class return ticket from Nigeria to London when the exchange rate was N150 to a dollar, now charges N834,976.

Furthermore, Virgin Atlantic that previously charged below N300,000 for a Lagos – London economy class return ticket, now charges N801,796, while Arik Air, which plies local and foreign routes, charged a sum of N400,000 for the same destination.

British Airways and Virgin Atlantic, which had previously charged below N500,000 for premium class return ticket from Nigeria to London, now charge N939,756, while Virgin Atlantic charge N903,006.

John OJikutu, secretary general, Aviation Safety Round Table Initiative, told BusinessDay that for operators and regulators in the aviation industry, the subsidy removal should not necessarily be the concern of Nigerians but the open cheque given to whoever want to import fuel into the country, which could be an invitation to disaster.

“The government decision arose because it felt it could no longer subsidise the pump price of fuel as well as provide foreign exchange to support the importation.