Respite is here again for the aviation sector with capacity gradually building up for operators as airlines have commenced daily flights and increased frequencies into Nigeria.
BusinessDay’s checks show that Etihad Airways is now back to daily frequency and Lufthansa is also back to daily flights in Lagos and four flights to Abuja and Port Harcourt.
Emirates is back to twice daily flights from Lagos and four flights out of Abuja. Delta is now offering three flights to John F. Kennedy International Airport, New York and four flights to Atlanta every week.
Air Peace is expanding its international network to Dubai, Sharjah and Guangzhou. Kenya airways plan to increase frequency out of Lagos from seven to ten weekly.
In addition to these, there are no blockages of airline remittances.
Travel agencies and airlines anticipate very strong bookings for Easter break at the end of March.
These developments are coming two years after foreign airlines operating in Nigeria had in excess $575 million, stocked at the Central Bank of Nigeria (CBN).
As the forex controls of the CBN lingered, some foreign airlines resorted to selling tickets in dollars or moved their ticketing operations to neighbouring countries to reduce the naira piles, while others like Iberia and United airlines stopped operations into Nigeria.
However, the narrative is changing now as experts have hinged the current increase in capacity to relaxed CBN window and improvement in the economy.
Tayo Ojuri, an industry expert and Chief Executive Officer, Aglo Limited, an aviation support service told BusinessDay that the airline business is often the first hit during recession and will improve once the economy recovers.
Ojuri explained that the direct implication of improvement in the economy is that there will be increase in the purchasing power of people, which will enable them buy tickets to travel.
Experts in the aviation sector have said that in 2018, air travel will gain momentum as a result of improvement in the Nigerian economy.
A clear indication of this is that airlines are increasing frequencies into the country, bringing in bigger aircraft, opening new routes and expanding fleet.
Oil production recovered to 1.8 million barrels as at January 2018, according to OPEC data, from as low as 1.2 million barrels daily in the thick of militant disruptions.
These factors contributed to lifting the economy from recession in the second quarter of 2017, according to the National Bureau of Statistics (NBS). The economy has consolidated its exit from recession after growing 0.8 percent in 2017 compared to a 1.6 percent contraction the previous year.
Sam Adurogboye, General Manager, Public Relations, NCAA said the sector is better than it was two years ago as more prospective airlines are showing interest in commencing airline business.
“Twenty-six (26) prospective operators have commenced the stage of getting an Air Operators Certification (AOC) but are yet to complete the stages.
Adurogboye said the stages are thorough to ensure the safety of passengers and the country’s airspace.
Philip Akesson the country manager for Travelstart Nigeria, who confirmed increase in capacity, said the increase in ticket sales experienced in Nigeria lately is an indication that the stable economy is helping to give more trust such that the airlines will keep investing.
“Delta is commencing Lagos to NewYork flights, RwandAir is also adding more flights and a lot of the airlines are adding more flights and new routes. Some airlines that flew three times into Nigeria before are now doing daily now. The market is not like it was two years ago, it is improving and a lot of these is because of stability and it is good for business,” Akesson said.
Promotional fares are also being offered to lure passengers into old and new destinations.
A return ticket from Lagos to London which previously cost between 400,000 to 450,000 on Qatar Airways now cost about N350,000. A return ticket from Lagos to Atlanta on Delta airline which cost above N600,000 is now sold for N539,640. A return ticket from Lagos to New York on Emirates which sold for N400,000 to N500,000 now cost about N300,000.
IFEOMA OKEKE
