By Jeph Ajobaju, Chief Copy Editor
Local airline operators have 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.
A frequent traveler, Kayode Bello, explained that fares to the North rose by over 100 per cent shortly after the NCAA suspended the operations of Azman Air.
Another aviation consultant, Chris Aligbe, clarified that although it may not be justifiable to attribute the hike to the suspension of Azman Air the sector had witnessed similar incidents in the past.
“I cannot give reasons for the hike because I have not conducted my research on the development but we have witnessed similar cases in the sector when an airline will stop operating in a route and competitors in that route will increase the fare. That happens in the industry,” he said.
Gbemi Adeniji, a travel agent, insisted that the suspension of Azman Air is directly responsible for the hikes because limited options for passengers encourage other airlines to raise fares.
“We have limited options in Kano, Kaduna, Maiduguri and even in Abuja. With the suspension, the price is meant to rise because when demand exceeds supply, prices tend to rise in the sector,” she explained.
Before its suspension Azman Air operated 15 daily flights to mostly Northern destinations in Kano (its operational base), Maiduguri, Kaduna, Kebbi, and Yola.
Azman’s return may change dynamic
Azman Air operations were suspended on March 15 over what NCAA Director-General Musa Nuhu described as a “series of incidents involving [its] Boeing 737 aircraft.”
Aviation experts anticipate that the fares on Azman Air routes may return to normal once its suspension is lifted.
But NCAA spokesperson Sam Adurogboye explained that “it is the outcome of the audit that will determine what happens next. If the airline has addressed NCAA’s safety concerns, it will be asked to resume flight operations immediately.
“The idea behind the audit is to assist the airline and not to kill it and also to ensure the lives of passengers are secured. I don’t know if what they will need to do will take a while before they complete the process.
“We assure Nigerians and other stakeholders that NCAA will do everything possible to safeguard the interests of all.