Air Peace Sparks Price War on Lagos-London Route, Igniting Debate on Government Support for Nigerian Airlines

Air Peace, a Nigerian airline, has recently launched direct flights from Lagos to London, offering significantly lower fares compared to foreign carriers on the same route. The airline's entry into the lucrative Lagos-London market has triggered a fierce price war, with foreign airlines slashing their ticket prices by over 50% within two weeks of Air Peace's launch.

Air Peace is offering round-trip economy tickets for ₦1.2 million, while foreign airlines have reduced their average fare to ₦841,732. Despite the high exchange rate of ₦1,250 per dollar, a one-way ticket from Lagos to London now costs between ₦1.03 million and ₦1.3 million.

The price war has ignited a discussion on the necessity for government and public assistance for Nigerian carriers to aid them in competing with well-established foreign airlines on international routes. Benedict Adeyileka, a former acting Managing Director of the Nigerian Civil Aviation Authority, has identified several ways in which the government and Nigerians can support Air Peace.

Adeyileka proposes that the government should provide a transit facility in Lagos to make it easier for Air Peace to transport passengers from West African countries. He also believes that the government can mandate officials to use Air Peace or other Nigerian airlines for official travel. Additionally, he stresses the importance of Nigerians being more patriotic and supporting Air Peace by choosing the airline over foreign carriers.

Regarding financial support, Adeyileka acknowledges the difficulty for banks to offer single-digit loans to Air Peace. However, he suggests that the government can intervene through specialized banks like the Bank of Industry to provide financial assistance and help with aircraft leasing to support Air Peace's operations.

Why this matters: The success of Air Peace on the Lagos-London route has broader implications for the Nigerian aviation industry. It highlights the challenges faced by Nigerian airlines in competing with well-established foreign carriers and the need for a comprehensive strategy to strengthen the local aviation sector. The debate on government and public support for Nigerian airlines is critical in determining the future growth and competitiveness of the industry.

The Ohaneze Ndigbo Worldwide, a prominent Igbo socio-cultural organization, has praised Air Peace's chairman, Chief Allen Onyema, for the airline's achievements. The organization highlighted Onyema's extraordinary contributions to Nigeria, including the evacuation of Nigerians from South Africa and Sudan. However, Ohanaeze Ndigbo has also raised concerns about "orchestrated internal and external conspiracies, malicious aero-politics, imperialistic intrigues, and discrimination" aimed at frustrating Air Peace's international operations.

Key Takeaways

• Air Peace launched direct flights from Lagos to London with lower fares.
• Foreign airlines slashed ticket prices by over 50% to compete with Air Peace.
• Experts propose government support for Nigerian airlines to aid competitiveness.
• Ohaneze Ndigbo praised Air Peace's chairman for achievements, but raised concerns.
• The price war highlights challenges faced by Nigerian airlines against foreign carriers.