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Foreign airlines returning to full capacity, fares may further tumble

…Offer more seats, seek additional frequencies, expansion

 

The release of $850 million blocked fund by the Central Bank of Nigeria (CBN) to foreign airlines has begun to have a catalytic effect on the overall aviation travel chain as the sector is set to reap bountifully.

Airlines have relaxed a lot of rules and regulations and are willing to launch back and begin to make money. Better things await the sector. The airlines see it and they know it.

Former President of the National Association of Nigerian Travel Agencies (NANTA), Susan Akporaiye said the clearing of trapped funds has been going on for over two months, stressing that during this time, airlines have been planning to increase frequencies and routes because they know that Nigeria is a lucrative market.

Already, the aviation sector, particularly, international air travel is witnessing massive reductions in fares as low as N650,000 to choice destinations on many of the big carriers as the carriers are adding more seats on so many routes, engendering competition. The more seat availability and restoration to full capacity with more demand for frequencies are leading to cheaper fares.

Consequently, airlines that left Nigeria or at the verge of exiting the country during the trapped fund crisis have started returning while many that cut frequencies are returning to daily flights while others are seeking more frequencies to cope with the surge in air travel from and into Nigeria.

The number of Nigerian travellers who travelled overseas through Accra, Benin and Lome has drastically reduced or no longer exists because of the sharp reduction in fares made possible by the release of low ticket inventories immediately the Federal Government released the funds to the carriers.

RwandAir which cut its daily frequencies to five flights weekly has returned to daily flights to Lagoas from Kigali while maintaining its four weekly flights to Abuja.

The Chief Commercial Officer of RwandAir, Owie West who spoke to Aviation Metric at the weekend said the carrier which cut its flights to five from seven will this week return to daily flight to Lagos from Kigali.

He lauded the Federal Government for it action it took to defray the funds, stressing the action would make air travel to be cheaper disclosing that his carrier never blocked lower ticket inventories while the situation lasted because of their belief that the situation would be resolved with time.

Owie equally disclosed that RwandAir was the only airline that never sold tickets in dollars by accepting Naira payment, adding that its fares to London are very affordable with just one and half layover in Kigali for onward journey to London.

He noted that many airlines have seen the resilience of the sector in Nigeria and the huge market occasioned by the big population of Nigeria to expand operations into the country, while also doubling its fleet in the next five years to operate to more airports in the country.

Aside from RwandAir restoring its daily flight to Lagos, Kenya Airways’ Chief Commercial and Customer Officer, Julius Thairu who was in Lagos penultimate week to meet the Kenya Airways team and to support them for the incredible job they have done by positioning Kenya Airways as a strong brand to get a huge share of the Nigerian market and to meet trade partners and bankers on repatriation of the carriers’ funds said Nigeria is an important market for Kenya Airways, describing it as second biggest market in Africa behind South Africa.

Thairu said that the East African carrier would from last week increase frequencies to Lagos to ten from seven, explaining that with time, “We will increase to two daily flights to have good connectivity truly.”

According to him, “We are strongly considering a new city to fly to in Nigeria. We are looking at Abuja and probably sometime next year for that to connect Kenya and beyond. We have been in existence since 1977 and have been flying to Lagos since 1988 and we pride ourselves as an airline that puts Africa first, connect Africa. Our mission is to propel and drive prosperity in Africa. There is a big gap when it comes to connectivity.”

Delta Air Lines, recently announced that it would be operating seven flights to Lagos from New York. Delta currently operates daily service between Atlanta and Lagos and, with the resumption of daily New York-JFK service, will offer a total of 14 weekly flights to Nigeria in December through the first half of January and 10 weekly flights for the remainder of winter 2024.

The return of Emirates after two years of exit is bringing excitement back to the sector as the carrier announced that it will restart services to Lagos on October 1, 2024. With a daily schedule between Lagos and Dubai, the airline will provide passengers with more options and connectivity while travelling from and through Nigeria’s largest metropolis.

Just last week, the Director-General of the International Air Transport Association (IATA), Willie Walsh, while praising Nigeria for releasing funds to the airlines said the amount of money blocked in Nigeria at its height in June 2023  which was $850 million, had a significant impact on the finances and operations of the carriers.

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