The immediate past president of the Aviation Round Table (ART), Dr. Gbenga Olowo, has shed light on the complexities of international aviation, citing the cases of Arik Air, Bellview Airlines and Medview Airlines as cautionary tales. He said these airlines faced a “baptism of fire” on the lucrative but highly-competitive Lagos-London route before succumbing to the challenges of aeropolitics.
Speaking on how Nigeria’s Air Peace can navigate the current price war being waged by foreign carriers on the Lagos-London route, he urged domestic airlines to consider interlining agreements with foreign airlines to effectively serve passengers traveling beyond London. He noted the significance of the market segment, stating that flights connecting beyond London account for over 60% of total passenger traffic originating in Nigeria.
While praising Air Peace’s efforts in launching direct flights to London, Dr. Olowo highlighted the limitations of a single destination strategy, saying that collaboration with foreign airlines would allow Nigerian carriers to offer seamless connections to a wider network of global destinations. This, in turn, could lead to increased revenue and market share.
He also urged the federal government to immediately add one or two other flag carriers on the route, which he said will settle the argument for a national carrier. Having three flag carriers on the lucrative London route, he explained, will ensure the players understand the operational politics while enjoying the support of various government agencies.
“Nigerian airlines including Air Peace must collaborate or interline with other foreign airlines as passengers going beyond London make more than 60% or more of the traffic from Nigeria. When you’re not a monopoly, the game changes and you endeavour to satisfy the customer nonstop. The foreign airlines are also put in maximum check as their excesses could have untold economic disadvantages.
“Bellview Airlines, Arik Air, and Medview had their baptism before they all went bust. Air Peace must be determined to make a difference. They must be reminded that understanding aero politics is key and be prepared to handle it more maturely while enjoying the government’s support,” he said.
Also commenting on the price war, former education minister, Mrs. Oby Ezekwesili, on her X handle, said hostile pricing models in any competitive market was predatory and usually ruled against and sanctioned by the regulator.
“As one who loves the market competition economic model, I followed the Air Peace Lagos-London route entry with profound interest and excitement at how happy it made Nigerians. Nothing beats consumer satisfaction in any product or service market. Nigerians may not all grasp how market principles and not government control have always served us best but they do enjoy it whenever it happens well, like in telecommunications.
“Hostile pricing models in any competitive market is predatory and are usually ruled against and sanctioned by the market regulator. Predatory pricing is when the dominant airlines try to discourage entry of low-cost competitors or regional players. It is for this reason that I find the latest developments where dominant players on the Lagos-London route appear to be trying to distort the healthy competition occasioned by the entry of Air Peace into the market troubling. The moves of those dominant airlines on that route appear predatory and need to be nipped in the bud immediately, once the regulator gets all the facts. The unhealthy development is worthy of serious regulatory action- establish the facts and act. The market dynamics must be allowed to work according to the basic principles of competition and not predation that will ultimately harm the customers,” she said.
Also reacting to the development, the president of the National Association of Aircraft Pilots and Engineers (NAAPE), AbednegoGaladima said, “We have observed the unfolding dynamics on the Lagos -London route since the debut of Air Peace which is long overdue.
“It has now become clear to Nigerians that we need to develop all facets of our economy to avoid exploitation by the west and international airlines in particular.
“The gains the economy made has reinforced the belief that aviation is indeed a business enabler. The entry of Air Peace into the London market has brought the prices of tickets down across all airlines on that route, thereby putting a stop to the exploitation of Nigerians. This is commendable and Air Peace should be encouraged and protected to sustain the gains.
“NAAPE calls on the Minister of Aviation and Aerospace Development, Festus Keyamo, to continue granting the airline the needed support so they can open other international routes. Air Peace is also encouraged to quickly build alliances and focus on customer satisfaction rather than getting distracted by aeropolitics.”
SOURCE:THE SUN