Nigeria Nigerians Celebrate as Air Peace Stuns with Massive London Fare Reductions - Economy Now ₦1.2M

Nigeria's largest carrier, Air Peace, has ignited intense competition on the Lagos-London route by significantly reducing its economy class ticket to an unprecedented ₦1.2 million. This move, which represents a remarkable 66% reduction in fares, positions Air Peace as a formidable contender against established foreign carriers operating on the same route.

BusinessDay's investigation reveals that foreign airlines typically charge an average of ₦3.5 million for economy class tickets from Lagos to London. With Air Peace's aggressive pricing strategy, the airline has disrupted the market, challenging the likes of British Airways, which previously enjoyed an exclusive advantage of operating direct flights. Notably, Air Peace will also operate flights to Gatwick, London, intensifying the competition.

The airline officially went live on Wednesday, unveiling its flight schedules for the highly anticipated London service scheduled to commence on March 30, 2024. Air Peace announced that a return economy class ticket would cost ₦1,200,000, while a return business class ticket would be priced at ₦4,000,000. Additionally, Nigerian students in the UK are offered a special 15% rebate on the already reduced economy fares.

Travel industry experts, such as Ndukwe Ginika Ogechi, CEO of Geena Travels and Tours Ltd, expressed excitement over Air Peace's fares, anticipating heightened competition on the route. Ogechi highlighted the impact of exchange rates as a crucial factor in pricing and predicted continued consideration of exchange rates in future pricing strategies.

John Ojikutu, CEO of Centurion Aviation Security and Safety Consult, sees this as the beginning of a competition that could reduce the dominance of foreign airlines on Bilateral Air Service Agreement (BASA) routes. He called for government support for Air Peace in this venture.

The surge in airfares over the past two years, attributed to trapped funds of foreign airlines in Nigeria due to unfavorable exchange rates, has been a concern. The Central Bank of Nigeria's directive to remove the cap on the investors and exporters' window aims to allow a free float of the naira exchange rate.

Bankole Bernard, Chairman of Airlines and Passengers' Joint Committee (APJC) of the International Air Transport Association (IATA), views Air Peace's London flight as a positive development for Nigeria's aviation industry, creating a balance of trade and offering support to the airline to ensure the success of the London route.

Oluwatoyin Olajide, COO of Air Peace, highlighted the airline's commitment to sustaining the London route. Operating with Boeing 777 and Boeing 787 Dreamliner aircraft, Air Peace aims to leverage its direct flight advantage and unbeatable fares to attract passengers. The launch marks Air Peace's seventh international destination, adding to its robust network of domestic and international routes.