Foreign Airlines have begun crashing their airline ticket prices below that of Airpeace for the Lagos – London route.
Evidently, the introduction of Airpeace into the atmospheric fray has massively unsettled the profit margins of these foreign airlines.
It is not unexpected that, as a result of this, they would try to frustrate Airpeace and take them out of business.
By some parameters, that will be somewhat easy for them. Given their cash reserve, they need to start a “price war,” an unwholesome attempt to shelve “the new kid on the block” to the sidelines.
If such is their goal, the assumption will be to steadily reduce their price to the barest minimum and subsequently increase it astronomically, once they succeed in outdoing Airpeace.
Some of these foreign Airlines were originally charging ₦15 million to ₦17 million for business class, for the Lagos- London route.
Airpeace slashed the price to 4 million Naira for Business Class, and started charging ₦1.2 million for economy class.
Now, in an incredible competitive move, some of them are selling their flight tickets for ₦700,000.
Allen Onyeama, the CEO of Airpeace, observed that some of the foreign airlines dropped their price to $100 which is currently ₦123,200.
Airpeace will very likely not win the price war, as it were.
It is understandable they may not crash their prices any lower because, obviously, they need to make profit.
However, Airpeace can undo their rivals, as Stanley Umezulike writes, “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.”
Airpeace would not need to join them in this case of dog eat dog. The can subtly and determinedly rise above the murky waters of meanness and make “globe trotters” breathe fresh air. Airpeace could guarantee atmospheric serenity at an understandably, relative cost.
