Business
Domestic Airlines Increase Fares Ahead of Flight Resumption
Domestic Airlines Raise Ticket Fares Ahead of Flight Resumption
The nation’s airline companies raised ticket fares to compensate for lack of bailout from the Federal Government and about 100 percent increase in service charges.
Last month, the Federal Government directed all domestic airlines to begin flight operations on July 8th following the March 30th suspension of all operations.
However, checks by our correspondent showed that domestic airlines have increased fares on all classes of tickets from Lagos to Abuja.
For a Dana Air flight from Lagos to Abuja, Economy Discount tickets are sold for N30,000 for a one-way ticket while the Economy Flexible ticket goes for N70,500.
Similarly, Air Peace Economy-Flexi Domestic Plan ticket goes for N33,001 for a one-way flight from Lagos to Abuja. The company sold its business class ticket for N80,000.
While potential passengers of Azman Air would need to part with N33,000 for an economy ticket from Lagos-Abuja. For a business class ticket, the company charges N60,000.
Arik Air, however, charges the lowest for economy plan. Passengers are required to pay just N29,189 for economy tickets and N71,532 for business tickets for a one-way trip from Lagos to Abuja.
Allen Onyema, the Chief Executive Officer, Air Peace, who was present at the simulation exercise conducted two weeks ago, had called for a bailout to help the sector protect jobs.
He said “Palliatives, bailout, rollout, intervention funds or whatever we call it is necessary. All over the world, the government is giving palliatives, bailout funds to their airlines.
“Even the strongest of airlines all over the world asked for this. What bothers us more in Air Peace is the retention of the workforce.
“COVID-19 has brought about immense loss of jobs worldwide. We must begin to think of ways of curbing the losses in Nigeria.”
However, it doesn’t seem like the Federal Government that is presently battling possible recession is willing to bail out airlines whose services are mainly required by high net worth individuals. This further highlighted why the service charges on flight tickets were raised by 100 percent.
The average cost of one way air flight from Lagos to Abuja was between N15,000 to N40,000 before the lockdown.