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Airpeace - 816,130
British Airways - 981,848
Egypt Air - 585,620
Royal Air Moroc- 569,422
Rwanda Air - 679,070
Ethiopian Air - 677,824
Turkish Airlines - 807,408
Airfrance - 1.1m
KLM - 1.1m
Lufthansa - 1m
Virgin Atlantic - 1.1m

Before Airpeace began flying Nigeria to London for around 500k for a one way flight, the cheapest you could get any airline to London was around 3 to 4 million Naira. Then Airpeace came and the tickets have been dropping drastically. The new strategy these foreign airlines have now adopted is to force Airpeace out of the market by dropping their airfare below Airpeace.

What we should all consider is that if we help these foreign airlines to succeed by patronizing them because of their lower rates, what will happen is that Airpeace will no longer be able to compete and they will eventually start exploiting us again. Nigerians are one of the most widely traveled anywhere in the world and Airpeace is our only hope against exploitation.


Credit: Wale Jana

What Should Airpeace Do?

Foreign Airlines have started crashing their airline ticket prices below that of Airpeace for the Lagos - London route.

It is obvious that the entrance of Airpeace in that route has threatened the profit margins of these foreign airlines.

It is likely that as a result of this, they would try to frustrate Airpeace and take them out of business.

This will be easy for them to do because they have the cash reserve they need to start a "price war".

Their goal perhaps, is to reduce the price to the barest minimum and increase it 20 times over, moment they succeed in crippling Airpeace.

Some of these these foreign Airlines were charging ₦15 million to ₦17 million for business class, for the Lagos- London route.

Airpeace reduced the price to 4 million Naira for Business Class, and started charging ₦1.2 million for economy class.

Now, some of them are selling their flight tickets for ₦700,000.

According to Allen Onyeama, the CEO of Airpeace, some of the foreign airlines slashed their price to $100 which is currently ₦123,200.

Airpeace can't win the prize war.

They can't crash their prices any lower.

They need to make profit.

What should Airpeace do?

1. Airpeace should leverage their strengths. Do they offer a superior in-flight experience, more legroom, or better entertainment options?

They now offer amazing Nigerian meals during flight.

They should promote these aspects.

2. They should focus on exceptional customer service. This could include shorter check-in lines, priority boarding for frequent flyers, or improved in-flight assistance.

They should also revamp their loyalty program.

I suggest they start offering bonus miles for consistent customers and partner with Lagos and London hotels to offer flight + hotel packages at competitive rates.

If they start offering student discounts, family travel packages and senior citizen deals - they will capture different range of customers.

3. How about running a 'Fly Nigerian Campaign' that emphasizes supporting a homegrown airline?

Tell Nigerians that Airpeace belongs to them.

They should highlight job creation for Nigerians and contribution to the national economy. And then partner with Nigerian celebrities who have massive followers on social media.

Airpeace should actively engage with customers on social media and address their concerns.

That way, if the foreign Airlines run out of their cash reserve because of low patronage, they would have no option but to end the price war.

In business, don't engage in price war. Rather, focus on satisfying your customers.

As an entrepreneur, I'm also learning a lot from this.

I wish AirPeace Airline all the best.

N.B: Help us share this post.

©Stanley Umezulike

If Cadbury is in Band A and you increase their tariff by 300%, the price of Bournvita will go up and those in Band Z where there is no transformer will buy at the increased price.

If they buy at higher price, they are the ones paying the 300% increase, not the manufacturer who you want to tax.

If consumers don't have the purchasing power to buy at the new rate, Cadbury will close down.

If Cadbury close down and others too follow, unemployment will increase.

If unemployment increases, insecurity will take a jump.

If insecurity jumps, the money you thought you're making will be diverted to security and it won't be enough.

That is why US, UK, France, Germany and all developed economy support their factories with billions invested in power subsidy.