One of the leading Nigerian airlines, Air Peace, on Friday, defended the cost components of flight tickets in Nigeria, explaining that a one-hour flight should ideally cost between N500,000 and N700,000 due to the high cost of operations in the aviation sector.
The airline’s Chief Operating Officer (COO), Mrs Oluwatoyin Olajide, dismissed allegations of passenger exploitation by the Federal Competition and Consumer Protection Commission (FCCPC), describing them as baseless and damaging to the airline’s reputation.
Addressing the issue, Olajide noted that the FCCPC had invited the airline for discussions, which the Chairman/CEO attended, only for the commission to clarify that no investigation was being conducted. Despite this, a subsequent news report implied the airline was under investigation, leading to significant reputational damage.
She said, “A country we have written to for a slot wrote back to us yesterday to say that they don’t have a slot for us because they said we are not their priority. They tell us we are not a priority because of the way we are treated in our country.”
According to DailyTrust, she added that such publications tarnish Air Peace’s image internationally and hinder its efforts to represent Nigeria positively.
Explaining ticket pricing, Olajide emphasised that operating costs drive fares, particularly the price of aviation fuel, which constitutes 60 to 65 percent of the costs, stressing that a one-hour flight requires 4,000 litres of Jet A1 fuel, costing N7 million.
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“Before you say an airline is exploiting passengers, you must be able to prove it. How do you come about that? There are operating costs on a flight. We buy fuel at almost N1,400 per litre. To operate a one-hour flight, it will take an average airline 4,000 litres of fuel. Fuel alone costs N7 million on a one-hour flight.”
She added that the airline incurs significant expenses on insurance and ACMI (Aircraft, Crew, Maintenance, and Insurance) agreements.
“What we pay on insurance is three times higher than what other countries pay. Insurance cost alone brings another N5 million on a one-hour flight.”
Olajide criticised the disparity in borrowing costs, noting that Nigerian airlines face interest rates of about 30 per cent compared to 3 per cent in countries like the United States and the United Kingdom.
She further explained that all operational aircraft components must be purchased in foreign currencies, further driving up costs.
She revealed that despite these challenges, Air Peace charges between N95,000 and N120,000 for a one-hour flight to destinations such as Abuja. The COO described this as a huge sacrifice to make air travel affordable, adding that accusations of exploitative fares are terribly unfair.
“For an airline in Nigeria to operate sustainably, a one-hour flight should not cost less than N500,000 to N700,000,” she stated, stressing the airline’s commitment to making air travel accessible to Nigerians.”
Olajide also highlighted Air Peace’s role in reducing exorbitant airfares on international and regional routes, particularly in the UK and other African countries.
She, however, commended President Bola Tinubu’s administration for its support, saying, “We are fully aware of the support of the Federal Government. This is not in doubt, and we commend it for that.”
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