The recent decision of Ethiopian Airlines and British Airways to reduce their previously “exorbitant” airfares has sent ripples through the market, raising questions about the sustainability of local carrier Air Peace.
Only two weeks ago, Nigerians celebrated Air Peace’s feat in securing the Lagos-London route and were especially pleased to have a more affordable alternative. For most, it was even more pleasing that the alternative was a local carrier which could have positive ramifications for the nation’s economy.
“I will encourage every Nigerian citizen to patronise indigenous companies like Air Peace that’s the only way we can grow the Naira and build a better economy,” wrote Elvis Odese, a Public Health Specialist on X.
Air Peace charged N1.2 million for its economy-class return tickets, significantly lower than Virgin Atlantic’s N3.1 million and British Airways’ N4.7 million. It would mean that Air Peace’s flight was 61% cheaper than Virgin Atlantic and 74% cheaper than British Airways.
However, in a dramatic turn of events this past week, British Airways and Ethiopia Airlines significantly reduced their airfares in an attempt to undercut Air Peace, their new competitor. Air Peace, which shortly took centre stage in the Nigerian aviation industry, has now had its role reduced to a local player which is helping to restore rationality to flight pricing in the country.
“Air Peace has put everyone on their toes again. All airline prices have crashed even lower than when the dollar was at 700. This is the positive effect of good competition in an economy,” Alex Onyia, CEO of Educare, wrote on X last Sunday.
Social Media Divide: The Dilemma of Patriotic Allegiance vs Economic Realities
Several Nigerians are gravitating towards foreign airlines, now considered more affordable, due to the ongoing price war among the airlines. The switch in loyalty to the now cheaper foreign airlines is stirring a debate between protecting one’s finances and protecting the Nigerian industry.
In most cases, the conversation has turned from “We are talking about protecting our economy” to “People will always choose the one that best fits their budget” and “I will be flying with the cheapest available option at the time.”
“I support Air Peace but when I’m booking a flight and see a cheaper option, I support my finances,” A X user, @XBrianDennis wrote.
Air Peace’s bold entry into the Lagos-London route won’t be the first for a Nigerian carrier. The experiences of Arik Air and Medview, both of which previously attempted the Lagos-London route but withdrew due to politics, serve as a reminder for Nigerians to exercise care in their decision-making in these times.
“Choosing to fly air peace in the midst of these price wars going on is not just about you, it’s about boosting the Nigerian economy, empowering domestic businesses and contributing to the growth of the nation,” one user weighed in on X.
Aviation expert Dr Gbenga Olowo noted that Air Peace must take lessons from the “baptism of fire” Arik and Medview faced from foreign airlines before they eventually succumbed to the might of aeropolitics.
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“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.
Economic analyst Kalu Aja explained the recent behavioural pattern of Nigerians and the preference to choose the pocket-friendly alternative in a tweet last week: “When Nigeria plays South Africa in soccer, I am patriotic, I want the Super Eagles to win. When I trade $, I want my balance sheet to win,” he wrote.
“I don’t mix business with patriotism. You can if you want. It’s a democracy.”
Government Intervention and Protecting Low-Cost Competitors in the Aviation Industry
When faced with the choice of patriotic allegiance and cost-friendly alternatives, we can expect the majority of Nigerians to choose the option that best suits their pocket, even in the face of potential serious economic implications for the country and its products.
Despite numerous appeals from aviation experts, some financial analysts have weighed that such a response is only a natural reaction to the dynamics of demand and supply within the industry.
For Air Peace, however, this venture into the Lagos-London route represents more than just a lucrative destination or competing with international giants. It signals a pivotal point that will likely shape the company’s trajectory.
Aviation expert Dr Gbenga Olowo explains that while the Lagos-London route represents a significant entry into the global aviation space for any Nigerian airline, a sizable number of passengers from Nigeria, more than 60%, use London as a transit point rather than their final destination.
This could mean that Arik Air and Medview, as local carriers, struggled to secure a sizable share of the Lagos-London market, which accounted for many of the challenges they faced.
According to stakeholders and members of the Aviation industry, the government must quickly step in to protect low-cost competitors such as Air Peace. “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,” said former education minister, Oby Ezekwesili.
“The reason these airlines listed above can offer rock-bottom prices is because they have the support of their governments. Without the support of the Nigerian government, Air Peace will lose the price war on the Lagos-London route,” said Reno Omokri, a special assistant to the President in the Goodluck Jonathan presidency.
In addition, Dr Olowo advised Air Peace to consider forming foreign alliances with foreign airlines that would allow it to expand its network, increase market share and ensure long-term sustainability in the industry.
The National Association of Aircrafts Pilots and Engineers (NAAPE) echoed this sentiment in a recent statement on the pricing war between Air Peace and foreign airlines. “Air Peace is also encouraged to quickly build alliances and focus on customer satisfaction rather than getting distracted by aeropolitics.”
