Competition is expected to deepen for airlines going to Dubai, Sharjah and London routes as one of Nigeria’s leading airlines AirPeace will commence flight operations into these locations this year.
Emirates airline is currently the only airline operating direct flights to Dubai. Medview hitherto commenced the Dubai route in December 7th but suspended operations barely two months afterwards.
Medview, British Airways and Virgin Atlantic are the only three airlines that currently fly directly from Nigeria to London.
Experts in the aviation sector have said that this development will increase competition on these routes, reduce air fares, increase revenue for the country and create employment opportunities for Nigerians.
Speaking on the arrival of the new B777- 200 aircraft, Allen Onyema, Chief Executive Officer of Air Peace, said : “Air Peace is ready to begin operations on these routes as soon as we get the cooperation of our aviation agencies, our home governments, and the outside governments of the countries we are going to. As soon as we get their cooperation, we will make it happen,” Onyema said.
The feats Air Peace had recorded in just three years of its flight operations, he insisted, were a proof that Nigerian airlines could compete with and even outperform the legacy airlines if there was a level-playing field.
According to Onyema, “This is the first time a Nigerian carrier is acquiring a B777. What we have had in the past were through leases which were not favourable to the airline operators. So, I don’t believe that Nigerian airlines cannot compete favourably with others. What we have been lacking is the necessary support.”
Chris Iwarah, Corporate Communications Manager told BusinessDay that the first routes the airline will commence are Dubai, Sharjah and London, adding that the goal of the airline is to show that Nigerian airlines can go out there and compete given the same conditions and level playing field that others have been given.
“Nigerians are suffering on these routes and we have a lot of passengers from Nigeria going on these routes. Most of the airlines that go to Dubai and Sharjah depend on Nigerians for their traffic. If foreign airlines are allowed to come into Nigeria and operate, we should also be able to reciprocate.
“Nigeria is losing out if there is no airline out there reciprocating. Some airlines have said they will operate three frequencies into Nigeria from Abuja, Lagos and Port Harcourt. Nigerians pay fares on these routes. We cannot determine the prices we will charge at the moment but whatever happens, we will definitely give lower fares than other airlines. All Nigerian airlines that have operated on these routes before, charged a much lower fare than the international airlines,” Iwarah added.
BusinessDay’s checks show that the average price for a return ticket from Nigeria to London on British Airways and Virgin Atlantic is between N800,000 to N1.2million. On the other hand, a return ticket from Lagos to London using Medview, a domestic airline cost between N350,000 to N500,000.
A return ticket from Nigeria to Dubai on Emirates cost between N380,000 to N500,000. When Medview commenced operations to Dubai, its return ticket on the route cost between N250,000 to N300,000.
However, Tayo Ojuri, an industry expert and Chief Executive Officer, Aglo Limited, an aviation support service told BusinessDay that with the new route, AirPeace will create job opportunities and revenue since their earnings will be domiciled in Nigeria but the route may not bring competition.
Ojuri recalled that Medview started the Dubai rouite and in less than two months, they suspended their operations into Dubai.
“What is the demography of the passengers that fly emirates? 60percent of the passengers that fly Emirates do not terminate in Dubai, they go to India, China and other Asian countries and AirPeace does not have that connection yet. Even if it brings its fares low, how many people fly directly to Dubai?” Ojuri inquired.
He advised that the only way AirPeace could break even is if it enters into code share agreements with other international airlines to ferry passengers who are not terminating in Dubai to their final destinations.
He added that customer service and on-time departure, which is reliability, is also vital for the airline to survive on the route.
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