The inaugural flight of Air Peace Airlines from Lagos to London on March 30, 2024, marked not just a symbolic event but also a very important economic milestone for Nigeria’s Aviation industry. The flight, which was filled with excitement and applause, showed the Nigerian spirit of celebrating important moments. The passengers onboard were a mix of Nigeria’s elite from various sectors, including public officials, business leaders, and entertainment personalities. The air carrier is led by Allen Onyema, the chief executive officer of Air Peace Airline, alongside notable figures like Prof. Obiora Okonkwo, chairman of United Nigeria Airline. The flight garnered attention and recognition for this particular event.
Government officials such as Festus Keyamo, the Minister of Aviation and Aerospace Development; and industry leaders like Doris Uzoka-Anite and Chris Najomo were also present. This shows the importance of this milestone for Nigeria’s aviation sector. Air Peace’s entry into the Lagos-London route was made possible by the Foreign Carrier Operator Permit and Third Country Operator Permit obtained in November 2023. This achievement allowed the Airline to operate flights to Europe and the UK, and serves as proof that the carrier is capable to compete internationally. The Minister of Industry, Trade, and Investment talked about the economic impact of this flight. He said that it would contribute to trade, investment, and collaboration between Nigeria and the UK.
Airfares fall and competition arises with AP’s entry into int’l routes.
Availability of this new route is expected to benefit Nigerian travellers by offering more options and competitive fares. It also shows that Air Peace is committed to providing exceptional service and expanding its reach to strategic international destinations. Also, the company’s track record of supporting Nigerians during challenging times, such as the Xenophobia crisis in South Africa and the COVID-19 pandemic, has earned it admiration and loyalty from Nigerians. By rallying behind and supporting homegrown airlines like Air Peace, Nigerians can contribute to the growth and success of the aviation sector while showing the world what Nigerian businesses can achieve globally.
By the introduction of Air Peace Airlines on the Lagos-London route, there has been a massive drop in airfares for international travel from Nigeria, following the recent appreciation of the Naira and increased competition in the aviation sector. The pressure on the foreign exchange market has also eased, with the naira strengthening to 1,340 per dollar on the parallel market, marking an 8.21 percent gain compared to previous rates. This positive development has had a ripple effect on airfares, leading to reduced prices across several airlines and destinations.
Recent competitive pricing attributed to Air Peace.
Also, the International Air Transport Association (IATA) rate for ticket sales in Nigeria has also seen a notable decline, dropping from nearly ₦1,800/$ a few months ago to ₦1,468/$. This reduction has directly reflected in ticket prices, making Air Travel more affordable for Nigerian passengers. For instance, on routes like Lagos-London, airfares have witnessed noticeable reductions. British Airways, Lufthansa, and Virgin Atlantic have all lowered their ticket prices as well, making travel more accessible for passengers. This competitive pricing environment has been attributed to Air Peace’s entry into the market and its offering of competitive fares on the London route.
Its decision to price its Economy Class ticket at ₦1.2 million for the Lagos-London route has led to a reshaping of the competitive landscape. The airline’s introduction of daily direct flights to London, coupled with its competitive pricing strategy, has forced other airlines to adjust their fares to remain competitive. Industry experts and stakeholders have welcomed this development, acknowledging the positive impact it has had on the aviation industry and travellers. Sindy Foster of Avaero Capital Partners highlighted the increase in seat capacity and competitive fares as significant factors influencing ticket prices.
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John Ojikutu, CEO of Centurion Aviation Security and Safety Consult, emphasized that Air Peace’s entry into the Lagos-London route would bring about healthy competition and benefit travellers. This sentiment was echoed by Bankole Bernard, chairman of Airlines and Passengers’ Joint Committee of IATA, who described Air Peace’s London flight as a positive development for the industry. Gina Ndukwe, CEO of Geena Travels And Tours Ltd, expressed optimism about further reductions in ticket prices due to the appreciation of the naira and favourable exchange rates for ticket sales.