In the fast-paced and ferociously competitive airline sector, price wars have become like Siamese twins that can not be separated by the actors, as a surviving strategy.

While price wars are a common occurrence in the airline sector, they represent intense competition that sees airlines cut prices in an attempt to snatch passengers from their competitors. The subsequent implication may automatically trigger reduced margins and profitability. To thrive amid these price wars, airlines need strategy and competitive intelligence, specifically competitive flight price data to survive.

This is what is presently playing out in Nigeria’s air transport sector with focus on international flights since Air Peace, a Nigerian carrier, commenced flights to London Gatwick on March 30, 2024.

The exorbitant fares by the foreign carriers reached its peak following the over $800 million of their proceeds trapped in Nigeria with the mega carriers withdrawing their lowest inventory fares, leaving the highest inventory fares for Nigerians to grapple with.

The withdrawal of low inventory fares by the foreign carriers saw airlines like Virgin Atlantic increase fares on the economy class to N2.353,200 for just a seat while the business class skyrocketed to N5,345,700 on the Lagos-London route.

For Turkish airlines, the economy class ticket for the Lagos-Istanbul route rose to N874,661 while the business class ticket jumped to N1,980,876.

This was the same situation Nigerian travellers experienced with other foreign carriers like British Airways, Delta Air Lines, Lufthansa, KLM/Air France, Air Maroc and Ethiopian Airlines.

Before the foreign carriers ganged up to increase their fares, economy class tickets on the Nigeria-UK route was between N400,000 and N650,000, depending on the booking period while business class was between N800,000 and N1.2 million.

The financial pressure the exorbitant fares inflicted on the Nigerian travelers became so unbearable that those who could not afford it were forced to suspend international trips while some like students shifted their patronage to the neighboring countries where low inventory fares were available.

The rip off continued even after the federal government had paid the substantial part of the trapped funds with the outstanding funds now put around $29 million.

Relief however came with the commencement of Air Peace flights to London.

Immediately Air Peace announced its fares which have been found cheaper and more affordable for Nigerians, the foreign carriers, out of fears of losing their Nigerian, passengers to Air Peace have engaged in price wars for survival.

According to investigations, majority of the foreign carriers operating on the Nigeria/London route have conspired to drastically slash fares to the point of charging fares lower than Air Peace fares.

Apart from introducing new incentives and more friendly marketing strategies, the foreign airlines are neck deep in dangerous battles for market share that is capable of sending weaker airlines out of business and equally wreak havoc on profit margins or even challenge the very survival of Air Peace.

A price list sighted by Saturday Tribune showed Air France luring passengers to book between May 15 and June for economy class seat on the Lagos/London route with N907,782 fares as against the over N2 million for the economy it charged before now.

British Airways has also slashed its fares on the Abuja/London Heathrow to N1,394,536 as against the over N3 million it was formerly charging. Now, an economy class ticket on Virgin Atlantic from Lagos to London has been brought down to N980, 654,000 as against the N2.353,200 it used to charge.

The ongoing price wars and other gang ups by the foreign carriers which has raised concerns amongst key players have been attributed to the desperation of the mega carriers to push out Air Peace out of the Lagos/London route.

The price war strategy adopted by the foreign airlines has been described as one of the unjust engagement of the use of international Aero politics to frustrate any African carrier they see as competitive like Air Peace.

Many of the foreign carriers are said to be uncomfortable with the presence of Air Peace in view of its capacity in the areas of modern day aircraft in its fleet that can compete favourably with those of the foreign carriers.

The global record of the Nigerian carrier as a carrier that had in the past engaged in flight operations between Nigeria and other countries like China, UAE, Israel Brazil and South Africa during the pandemic seamlessly may have caused sleepless nights for the foreign carriers.

Many key players while reacting to the foreign airlines price wars described the market as extremely agile and impatient. They advised Air Peace to urgently change its game plan by making “the world taste what it means to be a truly Nigerian brand. You could see the presence of intentionality in their campaigns. It shows a clear understanding of the market. They are unleashing on Air Peace products of insights derived from the algorithm in their passengers platforms. They know where these customers are, they have their details, they may even be engaging passengers directly.”

The sudden reduction in the fares the key players said will be for the benefit of the Nigerian travelers who are the brides. They, however, expressed surprise at how the foreign airlines that refused to reduce their fares ab initio suddenly slashed the fares just to get at Air Peace.

helinues:
It's an open market

No one is frustrating anyone .

Air peace should have made proper consultation with other airlines before splashing the average airline ticket to UK.

Win win for the travellers as the airlines would drag themselves to the extent of free falling the price

condensedmilk:


So Air peace should have consulted other airlines so as to maintain the high fair.

helinues:
It's an open market

No one is frustrating anyone .

Air peace should have made proper consultation with other airlines before splashing the average airline ticket to UK.

Win win for the travellers as the airlines would drag themselves to the extent of free falling the price

CountinBlessins:


Man you are very unintelligent. You talk so much nonsense all the time. Ordinarily I would chuck it up to very poor quality education but your pattern of behavior shows an extremely low IQ individual who is garrulous and not very bright .

What do you mean by consult with foreign airlines ? Did they consult with Nigerian aviation minister or sector before tripping and quadrupling their ticket prices ?

Stop always confirming our suspicion that you are very unintelligent and learn to be silent

condensedmilk:


So Air peace should have consulted other airlines so as to maintain the high fair?

helinues:


Make your points without throwing as usual tantrums.

That's what quarter cleverness can cause to Air peace

CountinBlessins:


I am so glad you proved my point with this nonsensical response. 😂
Young man stick to the romance section you are not very intelligent .

Nigeria needs patriots who are ready to work and fix this nation. Nigeria needs citizens who are ready to support the government and the president.

Your comment is typically that or a no stakes having mentally handicapped no do well who wants everything handed to him.

The president acknowledges that people like Airpeace are patriots who work towards the nation building.

But you are used to living off handouts given to you by either politicians or individuals with no stakes in nation building hence your IQ can't fathom what it takes to sacrifice toward building a future for us all

helinues:


Yes, that should have been the right move. Air peace met some airlines operating from Nigeria to UK, it's insensitive of Air peace to slash the pice without no proper consultation with other airlines.

If Air peace ticket to London is $700, na to just drop theirs to $650.

Everyone is allowed to play the game

CountinBlessins:


Man you are very unintelligent. You talk so much nonsense all the time. Ordinarily I would chuck it up to very poor quality education but your pattern of behavior shows an extremely low IQ individual who is garrulous and not very bright .

What do you mean by consult with foreign airlines ? Did they consult with Nigerian aviation minister or sector before tripping and quadrupling their ticket prices ?

Stop always confirming our suspicion that you are very unintelligent and learn to be silent when faced with topics your handicapped IQ cant handle .

Learn to think like a patriot and not be always so hateful and negative.
Keep your stupidity focused on your family and not this nation.

We all want a better Nigeria

helinues:
It's an open market

No one is frustrating anyone .

Air peace should have made proper consultation with other airlines before splashing the average airline ticket to UK.

Win win for the travellers as the airlines would drag themselves to the extent of free falling the price

helinues:
It's an open market

No one is frustrating anyone .

Air peace should have made proper consultation with other airlines before splashing the average airline ticket to UK.

Win win for the travellers as the airlines would drag themselves to the extent of free falling the price

Artscollection:


I believe there is need to be logical and act as a normal being at some point even if you are paid to be stupid!!! You should consult your rival that is one hell of a stupid statement and at this point i can tell you that your mental health is deteriorating!

TouchNfollow:


Bicycle owner with Tesla opinion......do you have an active international passport?

helinues:


So what are you guys complaining about on this thread?

Air peace slashed the price without consultation, then others also have the right to splash their price without consulting Air peace

After all, na win win for the passengers as the price would continue to drop

helinues:


So what are you guys complaining about on this thread?

Air peace slashed the price without consultation, then others also have the right to splash their price without consulting Air peace

After all, na win win for the passengers as the price would continue to drop

Artscollection:


The fact that you are asking them to consult their rivals

helinues:


They are in the same business line. Those foreign airlines who dropped their price must have consulted themselves cos that's how things work in the industry.

djon78:


Majority of our people are not smart

Foreign airlines have been riping you off for years charging exhorbitant price


Air peace entered the market and crashed the prices

Now the smart foreign airlines now remembered that they can now slash there prices


I know Nigerians
They won't do the right thing

They will still follow there oppressors

But Air Peace should just continue there match

They will still grab significant part of the market share

CountinBlessins:
We really need to learn to be patriotic a d favour our Nigerian companies and goods . If you like patronize these foreign companies for over 20.yeaes they don't respect you or see you more than just a Nigerian. They will favour and respect their own citizens more than you.

Learn to patronize and support Nigerian companies

helinues:


They are in the same business line. Those foreign airlines who dropped their price must have consulted themselves cos that's how things work in the industry.

Abi, how come other foreign airlines just dropped their price suddenly if not that they have consulted themselves

helinues:


Yes, that should have been the right move. Air peace met some airlines operating from Nigeria to UK, it's insensitive of Air peace to slash the pice without no proper consultation with other airlines.

If Air peace ticket to London is $700, na to just drop theirs to $650.

Everyone is allowed to play the game