By Jeph Ajobaju, Chief Copy Editor
Green Africa Airways, the newest airline in Nigeria, has launched with a Lagos-Abuja flight for N16,500 to put price pressure on competitors who are also dangling gifts to lure passengers in a hard but lucrative terrain.
The average price of a Lagos-Abuja flight across airlines is N45,000.
Green Africa flies from its based in the commercial hub of Lagos to six domestic destinations – Abuja, Port Harcourt, Akure, Ilorin, Enugu, and Owerri.
Tickets sales have begun and the airline says it will commence flights on June 24 with the Lagos-Abuja price range fixed at between N16,500 and N23,000 for the year, per reporting by TheCable.
Green Africa has taken delivery of two ATR 72-600s both with capacity for 70 passengers in an all-economy, 2-2 layout. It plans to increase its fleet of ATR turboprops to 15 by the end of next year.
100% price rise for local flights
Last month, local airline operators raised fares by more than 100 per cent to recoup losses suffered under coronavirus lockdown and offset higher maintenance and other operational costs in a bid to stay afloat in a highly competitive terrain.
Fares from Lagos to other cities North and South, such as Ilorin, Birnin Kebbi, Maiduguri, Yola, Kano, Port Harcourt, and Calabar, have increased in the last one month.
Air travellers expressed shock and resentment over the rising fares especially as bandits and kidnappers make journey by road risky.
Olaoluwa Owoeye told Nairametrics that he was shocked that the air fare from Lagos to Port Harcourt has risen by over 100 per cent, from N26,000 to N60,000 (Air Peace) and that flights to the Garden City are fully booked until April 12, 2021.
Tobi Hassan, a graduate student at Kwara State University, Ilorin lamented the new fare to Ilorin, saying: “The price had increased from N27,000 to N52,500 when I checked last week.
“I had no choice but to pay for Overland Airline ticket because I cannot afford to travel by road.”
Wale Richard, managing director of an agrotech firm in Lagos who has clients in Kebbi State, said he was surprised to see that the fare to Birnin Kebbi is up by over 100 per cent.
Bimbola Omotayo, a lawyer handling court cases in Abuja, Kano, and Kaduna, told Nairametrics that the fares were raised a few days after the Nigerian Civil Aviation Authority (NCAA) suspended the flight operations of Azman Air.
The cost of a one-way ticket from Lagos to Kano has risen from N35,000 to between N56,500 and N90,000 on Max Air (depending on how early a flight is booked) and to N73,000 on Air Peace for a second day flight.
From Lagos to Port Harcourt via Air Peace is up from N26,000 to over N50,000 and from Lagos to Kano on Max Air from N40,000 to N90,500.
High maintenance cost
Aviation consultant Muyiwa Lucas attributed the hike in naira/dollar exchange rate to the surge in air fares because the rate exposes local airlines to financial risks as most of their expenses are denominated in dollar.
“The major worry of the airlines is the high cost of maintenance. A C-check that is required every 18 months now costs an average of over $2 million each for every commercial aircraft,” he explained.
“Maintenance is only one component of other obligations. So, if you have N26,000 tickets now selling for N60,000 or more, you cannot really blame the airlines, but the economy and its handlers.
“Most airlines that have a couple of aircraft running have reduced their frequencies and routes just to be able to cut losses.
“The fares are up because the government has not helped operators and they have been forced to spread the cost across the traffic available. Though they feel the pains of their patrons survival is paramount to them.”
Other industry watchers said fares to the North had been doubled before the new increases in other parts of the country.
Airlines dangle gifts in battle for passengers
Local airlines are also downsizing staff and operations and fiercely competing to retain existing passengers and attract potential ones with incentives in a Nigerian market that is lucrative but beset by a harsh business environment.
Some upgrade tickets from Economy to Business Class, others offer Health Maintenance Organisation (HMO) card gifts to woo passengers, boost revenue, and cruise well in the post-pandemic firmament.
NCAA Director General Musa Nuhu confirmed that airlines have re-strategised using cost-effective aircraft.
“Already, there is a paradigm shift. People are beginning to realise you can’t use Boeing 737 aircraft for short flights,” Nuhu told Nairametrics.
“I can see Air Peace has got an E-195, and he plans to replace all the B737 in the long term. United Nigeria is using Embraer 145. Green Africa is using ATR 42, 72.
“There is one that has started processing its documents; he wants to use Embraer 145. Chanchangi wants to come back and they want to use ATR. The demand is there.
“The thinking is changing because this B737 business is not working for us. It is going to take a while but it is a positive change in the industry.”
A source in Green Africa added that the airline does not plan to employ more than 15 staff across the country.
“We are only employing less than 20 direct staff but will get more contract staff to do more work. Most of the other jobs will be outsourced.
“The era of employing scores of staff and paying them fortunes for the same jobs agents and temporary workers can do is gone. To survive during difficult times, we must implement certain measures,” the source insisted.
And, per Nairametrics reporting, below are some of the freebies the airlines are offering passengers to come on board.
Air Peace
Air Peace, Nigeria’s acclaimed biggest airline, launched “random act of love” in April and has been exciting passengers with gifts onboard to put a smile on their faces.
The airline places gift cards in random seat pockets. During flight, passengers are instructed to check their front seat pocket to see if they have won a gift.
Items won include thermos bottles, food flasks, diaries, umbrellas, notebooks, remote organisers, and free HMO cards.
Air Peace spokesperson, Stanley Orisa, explained that “this is an extension of the airline’s Random Love Act campaign, aimed at demonstrating a customer’s love for flying with the airline.
“Also with the card, you enjoy certain Business Class privileges when flying.”
Azman Air
Azman Air has slashed the cost of a flight from Lagos to Kano from N72,458 to N52,983.
I has also started rewarding loyal passengers with free ticket upgrades from Economy to Business Class.
“@AzmanAir is back and stronger. I also wish to thank you for the free upgrade to business class,” one passenger tweeted.
Green Africa
The new entrant, which took delivery of its second aircraft on May 13, is offering potential customers (gFlyer Community) 10 per cent off first bookings.
“To mark this major milestone, we are offering the gFlyer Community 10 per cent off their first booking with us.
“We are crafting a network plan that will afford more customers the opportunity to pursue their economic interests or simply spend more time with family & friends,” said Babawande Afolabi, Green Africa founder Chief Executive Officer.
A unique code to claim the offer is shared with each gFlyer, who has to fill a form on the airline’s website to enjoy the benefits.