The recent introduction of Nigeria’s major carrier, Air Peace, to the lucrative London route has ignited a fierce price war among foreign airlines. This competition has led to significant reductions in airfares as these airlines strive to compete with the new entrant.
The Minister of Aviation and Aerospace Development, Festus Keyamo, expressed gratitude to Gatwick Airport’s management for welcoming Air Peace. The airline commenced its flight service to the airport on March 30, 2024, marking a significant milestone.
Air Peace initiated direct flights from Lagos to London on March 30, offering round-trip economy tickets at a substantially lower price of N1.2 million, compared to the N3 million previously charged by foreign airlines for the same route.
In response to Air Peace’s competitive pricing, foreign carriers slashed their airfares, with some reducing prices to an average of N841,732 for a round-trip economy ticket. This price adjustment reflects a concerted effort by these airlines to maintain their market share in the face of heightened competition.
A comparison of current airfares with those before Air Peace’s entry reveals significant decreases across various carriers. For instance, Egyptair now offers Lagos-London economy tickets for N585,620, while British Airways reduced its fares to N981,848. Similarly, Virgin Atlantic and Royal Air Moroc have also adjusted their prices to N1.1 million and N569,422, respectively.
Dr. Allen Onyema, Chairman and CEO of Air Peace, highlighted the challenges faced by the airline amidst the price war, citing deliberate undercutting by foreign competitors. He expressed concerns that these tactics could potentially drive Air Peace out of the market, leading to adverse consequences for Nigerian consumers.
Former Director General of the Nigeria Civil Aviation Authority (NCAA), Benedict Adeyileka, emphasized the significance of Air Peace’s entry in disrupting the monopoly previously enjoyed by foreign airlines. He noted that the ensuing price war was aimed at ousting Air Peace from the market, potentially resulting in a drastic increase in fares by up to 300%.
In response to these developments, Minister Festus Keyamo reiterated the government’s support for local operators like Air Peace. He expressed appreciation to Gatwick Airport for its reception of the Nigerian carrier and affirmed the government’s commitment to facilitating seamless operations for domestic airlines.
Gatwick Airport’s official Twitter account welcomed Air Peace to its family, highlighting the airline’s daily flights to Lagos as an exciting addition to its services. As one of the world’s leading private airport operators, Gatwick Airport aims to provide passengers with diverse travel options and seamless experiences.
The ongoing price war underscores the competitive dynamics in the aviation industry, with Air Peace’s entry reshaping the landscape and driving down fares