Air Peace Voices Concern Over Reduced Lagos-London Fares by International Airlines

Air Peace, the prominent Nigerian airline, has recently expressed concerns over the significant reduction in international airfares by foreign airlines operating the Nigeria-UK route. 

According to Allen Onyema, the Chief Executive Officer of Air Peace, this move is perceived as a deliberate attempt to prematurely oust Air Peace from the route.

The price war begins

During an exclusive interview on the Channels TV evening program, Politics Today, Onyema shared insights into his airline’s experience after launching the Lagos-London route. He revealed that prior to Air Peace’s entry, foreign airlines charged exorbitant prices, with business class tickets soaring as high as N17 million and economy class tickets at N5 million. These high fares were attributed to the exchange rate.

However, within weeks of Air Peace commencing operations on the Lagos-London route, these foreign airlines drastically reduced their fares, despite no significant change in the exchange rate. Onyema pointed out, “The foreign airlines were taking between N15-N17 million for business class, N6 million for premium economy, and N5 million for economy. 

Then Air Peace came on, charging N4.5 million for business class, and economy class starting from N1.2 million. Now Air Peace did this, everybody has come crashing their prices from N18 million to N5 million.”

The devilish conspiracy claimed by Onyema

Onyema further elaborated that foreign airlines are conspiring to cut their fares to levels below their break-even point, aiming to push his airline out of the Nigeria-UK route. He warned that if these foreign airlines succeed, Nigerians would face considerably higher fares than the current rates. “It is a very devilish conspiracy. 

All of a sudden, airlines are underpricing. The idea is to take Air Peace out. The moment they succeed in taking Air Peace out, Nigerians will pay 20 times over,” he stated.

Onyema seeks government intervention

While Onyema acknowledged the Federal Government’s support, especially from the Minister of Aviation and Aerospace Development, Festus Keyamo, in launching Air Peace’s Lagos-London route successfully, he called on the government to intervene. He highlighted the need for action against foreign airlines that are slashing fares below their break-even points, aiming to force Air Peace out of the Nigeria-UK route prematurely.

Onyema suggested that the government could assist Air Peace by reducing its operational charges, thus providing the airline with a better opportunity to compete against foreign carriers backed by their governments.

What to note about Air Peace

Air Peace launched its Lagos-London route on March 30 to provide a quality travel experience and make international trips affordable. Since commencing its UK service, Air Peace has offered competitive rates, starting economy class fares at N1.2 million, significantly less than the N3-5 million usually charged by foreign carriers. 

The airline priced its business class tickets at around N4.5 million, far below the N15-N18 million foreign airlines’ rates. This pricing strategy garnered praise from Nigerians for its affordability, leading to a price reduction by foreign airlines on the Nigeria-UK route.

In conclusion, Air Peace’s entry into the Lagos-London route has sparked a price war with foreign airlines, leading to concerns about the sustainability of competitive fares. The airline’s CEO, Allen Onyema, has called for government intervention to ensure a level playing field and prevent the premature exit of Air Peace from this crucial international route.