Strategic
low-cost carrier programme has been identified as an important business model
that will transform the air travel sector, especially the survival of local
airlines and maximal use of airport infrastructure across the country.
Concerned
stakeholders told The Guardian that whereas the strategy will lower prices for
affordability on less viable routes, it will increase demand with new traffic
routes opening up for optimal activities for struggling airlines.
The
challenge, however, is evolving an effective collaboration that requires the
transportation ministry, regulatory agencies and operators to workout the plan
with some concessions across the board.
In a related
development, travel agencies in the country have described the proposed plan by
the Federal Government to tax both business and first class travel tickets as
additional burden on the travelling public.
President of
the National Association of Nigerian Travel Agencies (NANTA), Bernard Bankole,
said while the plan was to increase revenue for the government’s coffers,
raising taxes will in fact crash the source of income as lesser number of air
travellers will opt for the luxury air travel.
Specifically,
a low-cost carrier (LCC) or low-cost airline also known as no-frills, discount
or budget carrier is an airline that generally has lower fares and fewer
comforts.
Group
Captain John Ojikutu (rtd) observed that what the local carriers currently
practice is mere low pricing regime that is doing more harm to the airlines.
Ojikutu said
holistic low cost carrier approach is more realistic with win-win for all.
President of a global distribution service company, Sabre Network West Africa,
Gbenga Olowo, noted that the problem of the industry, as often misdiagnosed, is
neither the lack of capacity nor non-viable routes (with 22 airports
nationwide) outside of traditional Lagos, Abuja, Port Harcourt and Kano
airports.Rather, the dearth of effective partnership among the local carriers
to emerge stronger to fully maximise the demographic potential of the country.
Olowo said
in respect of the high-capital intensity of the industry, the onus is on the
operators to merge into one or two airlines, without necessarily losing their
identity, to properly deploy their capacity nationwide.
Bankole, in
his reaction, said the travellers are already paying more with the recent
review of the rate of exchange from N305 official rate to N359.5/dollar.He said
government needs to stop seeing aviation as a leisure vehicle and waiting cash
cow, rather as a necessity for the economy to make progress.
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