Yuletide: 131% surge in airfares to S’East, S’South sparks passengers’ outcry,
By Dickson Omobola
Some domestic airlines have raised ticket prices to South-East and South-South regions by 131 per cent ahead of the Yuletide.
The price adjustments, which usually take effect mostly from December 1, come four months to the Christmas and New Year season, when airlines usually experience higher demands.
Findings by Vanguard showed that Nigeria’s largest airline, Air Peace, has jacked up its one-way economy ticket from Lagos to Asaba in Delta State from N147,000 to N337,500.
Lagos to Enugu and Benin in Edo State on a one-way economy ticket on the carrier moved simultaneously from N145,000 to N335,500, while Abuja to Benin increased from N145,000 to N335,500.
For United Nigeria, a one-way economy ticket from Lagos to Enugu would increase from N125,500 to N335,500 starting from December 11.
One-way economy tickets from Lagos to Owerri in Imo State and Asaba in Delta State simultaneously rose from N125,500 to N335,500.
However, for Akwa Ibom State-owned airline, Ibom Air, checks by Vanguard showed that fares are still within the same price range.
Passengers speak
Meanwhile, some passengers who spoke to Vanguard expressed frustration, saying that despite insecurity concerns, they might have to resort to road transportation.
A frequent flyer, Mr Michael Onwusa, said: “I cannot imagine paying this huge amount for myself, my wife and our two kids to travel to Imo. I will ensure my car is in a good condition so I can drive for our Christmas holiday.”
Another traveller, Tina Ikwuogu, said: “This is huge. I have not travelled by road to Enugu in a while, and I cannot afford to do that during the Yuletide. Even if it means borrowing to fund my travel plans, I will do that because I cannot afford not to reunite with my people.”
Expert’s view
Sharing his thoughts on the development, trustee member of Airline Operators of Nigeria, AON, Roland Iyayi, argued that pricing of airfares was an economic consideration, adding that nothing could be done about it.
Speaking to Vanguard, Iyayi said: “Anything about pricing of airfares is an economic consideration. We look at it from the standpoint of demand and supply. There is also a need to consider all the factors involved. For the South-East, during a peak period, traffic is typically one way. What it means is that the demand is usually in one direction. If an airline takes maybe 100 passengers to that destination, it comes back with maybe about 20 passengers.
“Now, because the price is in one direction, each seat has to be priced in such a way that the yield from one direction would fairly cover the operating costs. Any airline that does otherwise would end up making losses. Having said that, pricing takes cognisance of the peculiarity of the time and demand. There is nothing that can be done about it because such flights are like a charter, and when a charter is being priced, it is for both circles.
“What happens around that period (Yuletide) to scheduled airlines is similar to the structure adopted by charter airlines.”
Other factors
Recently, Vice Chairman of AON, Allen Onyema, identified reasons airfares were not dropping, saying they include landing cost, aviation fuel, also known as Jet-A1 and insurance.
Addressing newsmen at Air Peace’s headquarters in Lagos, he said: “Aviation fuel remains a major issue for airlines worldwide. A litre of fuel sells for about N1,050 to N1,100. A Boeing 777 burns between 3,500 and 4,000 litres per hour on the Lagos to Abuja route.
“When multiplied, that amounts to roughly N5 million. In addition, once an aircraft takes off, there is an associated engine cost per landing. Every cycle carries an engine cost, alongside the cost of insurance.
“There is a cost attached to everything, including the airframe, fuselage and landing gear. If the aircraft is wet-leased, the operator pays about $6,000 per hour.”
The post Yuletide: 131% surge in airfares to S’East, S’South sparks passengers’ outcry appeared first on Vanguard News.
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Some domestic airlines have raised ticket prices to South-East and South-South regions by 131 per cent ahead of the Yuletide.
The post Yuletide: 131% surge in airfares to S’East, S’South sparks passengers’ outcry appeared first on Vanguard News.
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